Here’s what Microsoft’s deal with AT&T could mean for its bottom line
Microsoft’s AT&T contract is far from a Wall Street bet.
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What you need to know
Microsoft is hard at work injecting the power of Azure into anything and everything it can. Just recently, we saw the company figure out how to meld Azure with chocolate via itsenhanced partnership with Mars, and now we’re seeing its cloud service’s presence boom with AT&T via a new strategic alliance.
Here’s a quick excerpt from Microsoft’spress writeupto get you up to speed on the deal: “AT&T will move its 5G mobile network to the Microsoft cloud. This strategic alliance provides a path for all of AT&T’s mobile network traffic to be managed using Microsoft Azure technologies.”
The benefits for Microsoft are access to AT&T’s IP, and the growth ofAzure for Operators. There’s also the monetary aspect to consider.
According to Rosenblatt Securities analyst John McPeake, Microsoft’s AT&T alliance could net the tech giant’s Azure service over $1 billion per annum as the years go on (viaBenzinga). The deal is predicted to hold “measurable impact” as an easily financially defineable boon for Microsoft.
This financial analysis is noteworthy given that Microsoft and AT&T did not disclose the specific monetary details of their strategic teamup. “Microsoft will assume responsibility for both software development and deployment of AT&T’s Network Cloud immediately and bring AT&T’s existing network cloud to Azure over the next three years,” the Microsoft presser reads. “The companies are not disclosing details on financial terms.”
McPeake’s insights on the deal’s financial optics help give an idea of its scope alongside other major Microsoft deals (such as its$10 billion JEDI Pentagon contract).
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Robert Carnevale is the News Editor for Windows Central. He’s a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author ofCold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.
