Google and Amazon will both be upset this week as Microsoft has managed to sign a huge deal with AT&T which will see the telecommunications company shift to run on the Microsoft Azure cloud computing platform.
As TechCrunch reports, the deal is thought to be worth $2 billion to Microsoft, with AT&T expected to move most of its non-network workloads to Azure by 2024. At the same time, AT&T’s workforce will shift to use the suite of tools that make up Office 365.
For AT&T, although the deal is costing a lot, it should, as Microsoft puts it, “optimize costs” as the company will operate on a single cloud platform as far as its workforce is concerned. However, the water is muddied slightly because a couple of days ago AT&T also signed a deal with IBM to run AT&T Business’ applications on the Red Hat open source platform. So it looks as though Microsoft secured the consumer side of AT&T’s operations while IBM gets the enterprise and business side.