News

AT&T to Buy IBM’s Network Business

In a move to increase revenue in its growing network services unit, AT&T Corp. (www.att.com) will acquire IBM Corp.’s global network business, which the company put on the auction block earlier this year, for $5 billion.

Accompanying the agreement are two outsourcing pacts between the companies. AT&T, in fact, will handle approximately $5 billion worth of IBM’s global networking needs over five years.

IBM, on the other hand, will provide applications processing and data center management operations for AT&T for $4 billion over 10 years. Big Blue will also manage AT&T’s data processing centers, which operate corporate information systems such as payroll and benefits.

Analysts speculate that the deal could generate as much as $2.5 billion in revenue for AT&T in the first year alone. --Thomas Sullivan Staff Reporter/Reviews Editor

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Microsoft Warns IT Pros on Windows Netlogon Fix Coming Next Month

    Microsoft on Thursday issued a reminder to organizations to ensure that their systems are properly patched for a "Critical"-rated Windows Netlogon vulnerability before next month's "update Tuesday" patch distribution arrives.

  • Microsoft Nudging Skype for Business Users to Teams

    Microsoft on Thursday announced some perks and prods for Skype for Business unified communications users, with the aim of moving them to the Microsoft Teams collaboration service instead.

  • How To Improve Windows 10's Sound and Video Quality

    Windows 10 comes with built-in tools that can help users get the most out of their sound and video hardware.

  • Microsoft Offers More 'Solorigate' Advice Using Microsoft 365 Defender Tools

    Microsoft issued yet another article with advice on how to use its Microsoft 365 Defender suite of tools to protect against "Solorigate" advanced persistent threat types of attacks in a Thursday announcement.

comments powered by Disqus