AT&T and Microsoft announce a strategic alliance to deliver innovation with cloud, AI and 5G

Multiyear collaboration will accelerate AT&T's "public cloud first" internal transformation and deliver new customer offerings built on AT&T's network and Microsoft's cloud

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Microsoft Corp.

Jul 17, 2019, 09:00 ET

DALLAS and REDMOND, Wash., July 17, 2019 /PRNewswire/ -- AT&T Communications and Microsoft Corp. are embarking on an extensive, multiyear alliance where the two companies will apply technologies, including cloud, AI, and 5G, to improve how people live and work today and in the future. Microsoft will be the preferred cloud provider for non-network applications, as part of AT&T's broader public cloud first strategy, and will support AT&T as it consolidates its data center infrastructure and operations.

Microsoft CEO Satya Nadella with AT&T Communications CEO John Donovan

AT&T is becoming a "public cloud first" company by migrating most non-network workloads to the public cloud by 2024. That initiative will allow AT&T to focus on core network capabilities, accelerate innovation for its customers, and empower its workforce while optimizing costs.

As part of the agreement, AT&T will provide much of its workforce with robust cloud-based productivity and collaboration tools available with Microsoft 365, and plans to migrate non-network infrastructure applications to the Microsoft Azure cloud platform.

AT&T and Microsoft will together help enable a future of ubiquitous computing through edge technologies and 5G. AT&T was the first to introduce mobile 5G in the United States and expects to have nationwide 5G by the first half of 2020. Microsoft will tap into the innovation AT&T is offering on its 5G network, including to design, test, and build edge-computing capabilities. With edge computing and a lower-latency 5G connection enabled through AT&T's geographically dispersed network infrastructure, devices can process data closer to where decisions are made. Recently, Microsoft and AT&T worked together to test an edge computing-based tracking and detection system for drones. With more connected devices and the growing demand for streaming content from movies to games, businesses and consumers require ever-increasing network capabilities.

The global scale of Microsoft's Azure cloud and AT&T's domestic 5G capabilities will enable unique solutions for the companies' mutual customers. The companies will bring to market integrated industry solutions including in the areas of voice, collaboration and conferencing, intelligent edge and networking, IoT, public safety, and cyber security. The companies already have joint enterprise solutions for networking, IoT, and blockchain in market, and expect to announce additional services later in 2019. The two companies envision scenarios with 5G enabling near-instantaneous communications for a first responder who is using AI-powered live voice translation to quickly communicate with someone in need who speaks a different language.

"AT&T and Microsoft are among the most committed companies to fostering technology that serves people," said John Donovan, CEO, AT&T Communications. "By working together on common efforts around 5G, the cloud, and AI, we will accelerate the speed of innovation and impact for our customers and our communities."

"AT&T is at the forefront of defining how advances in technology, including 5G and edge computing, will transform every aspect of work and life," said Satya Nadella, CEO, Microsoft. "The world's leading companies run on our cloud, and we are delighted that AT&T chose Microsoft to accelerate its innovation. Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T's workforce collaborates and to shape the future of media and communications for people everywhere."

In addition to their technology collaboration, AT&T and Microsoft will work together on technology-enabled approaches and solutions aimed at social good. Both companies have been focused on addressing sustainability, accessibility, and community challenges such as homelessness and see an opportunity to support each other's work to address urgent social needs, including Microsoft's affordable housing initiative and the AT&T Believes campaign.

About AT&T Communications
We help family, friends and neighbors connect in meaningful ways every day. From the first phone call 140+ years ago to mobile video streaming, we innovate to improve lives. We have the nation's fastest wireless network.* And according to America's biggest test, we have the nation's best wireless network.** We're building FirstNet just for first responders and creating next-generation mobile 5G. With DIRECTV, DIRECTV NOW and WatchTV, we deliver entertainment people love to talk about. Our smart, highly secure solutions serve nearly 3 million global businesses - nearly all of the Fortune 1000. And worldwide, our spirit of service drives employees to give back to their communities.

AT&T Communications is part of AT&T Inc. (NYSE:T). Learn more at att.com/CommunicationsNews.

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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.

*Based on analysis by Ookla® of Speedtest Intelligence® data average download speeds for Q2 2019.
**GWS OneScore, September 2018.

About Microsoft
Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

SOURCE Microsoft Corp.