[EN] IBM taking over AT&T's managed app/hosting services unit
As part of a deal declared to be an expansion of the companies' "long-term strategic relationship," AT&T is "transitioning" its managed app and managed hosting services unit to IBM. Big Blue will also acquire equipment and floor space access in AT&T data centers supporting the business.
Once the deal closes, IBM will deliver the manged app/hosting services currently provided by AT&T. The offerings will be "aligned" with IBM's cloud services portfolio.
No details have been given yet about the deal's revenue impact, or about how much (if any) money is changing hands. It follows a Q3 in which IBM's global tech services revenue fell 10% Y/Y to $7.9B, and its global business services revenue 13% to $4.2B, amid cloud and forex pressures. The company is already a notable player in the managed app and hosting markets; its SoftLayer unit participates in the latter.
Within its Business Solutions segment, AT&T's fixed strategic services revenue (has included hosting, Ethernet, cloud, VPN, and security services) rose 12.6% Y/Y in Q3 to $2.76B. That helped offset an 8.7% drop in legacy voice/data service revenue to $4.5B.
AT&T and IBM Expand Their Strategic Relationship in Managed Application and Managed Hosting Services
AT&T’s networking, security and mobility solutions coupled with IBM Cloud offers companies a fully managed IT environment
DALLAS and ARMONK, N.Y., Dec. 17, 2015 /PRNewswire/ -- AT&T* and IBM (NYSE (NYX): IBM ) today announced they are expanding their long-term strategic relationship to bring businesses a full suite of advanced networking, application and hosting services. Under the agreement, AT&T (T) will transition its managed application and managed hosting services unit to IBM. IBM will then align these managed service capabilities with the IBM Cloud portfolio. IBM will also acquire equipment and access to floor space in AT&T data centers currently supporting the applications and managed hosting operations.
Together, AT&T and IBM will enable companies to more easily integrate networks and cloud workloads with their IT environments. After close, IBM will deliver the managed applications and managed hosting services AT&T provides today. AT&T will continue to provide networking services including security, cloud networking and mobility that it provides today. And the two companies will work closely to innovate and deliver a full suite of integrated solutions to customers.
"Today's announcement represents an expansion of our strategic relationship with AT&T and continuing collaboration to deliver new innovative solutions," said Philip Guido, IBM General Manager of Global Technology Services for North America. "Working with AT&T, we will deliver a robust set of IBM Cloud and managed services that can continuously evolve to meet clients' business objectives."
"AT&T and IBM have worked together for nearly 20 years," said Jon Summers, senior vice president, AT&T Mobile and Business Solutions. "This is a natural expansion of our relationship, and it demonstrates our continued commitment to serve customers based on our respective strengths and capabilities."
AT&T and IBM are committed to serving our business customers. We will ensure a smooth transition and will continue to provide the same high level of service clients expect from the two companies. As the new operator of these managed application and managed hosting services, IBM will bring extensive enterprise experience and a rich portfolio of cloud, data and application solutions.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.