IBM has taken control of AT&T’s managed application and managed hosting services unit, as it plans align AT&T’s assets with its IBM Cloud Portfolio. The aim is to aid customers in network and cloud integration with IT environments. This deal benefits IBM by providing the company with access to equipment and area in the AT&T data centers that support the applications and managed hosting operations that IBM has taken control of.

Philip Guido, IBM general manager of Global Technology Services for North America, has commented, “Today’s announcement represents an expansion of our strategic relationship with AT&T and continuing collaboration to deliver new innovative solutions. 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.”

This is a huge change for AT&T, which has handled its managed applications and hosting services until this IBM takeover. AT&T will still provide services such as security and mobility. AT&T employees that serve in the sectors adopted by IBM will continue their current jobs at IBM. Financial details were not disclosed by IBM.

Jon Summers, senior vice president of AT&T Mobile and Business Solutions, has stated, “AT&T and IBM have worked together for nearly 20 years. This is a natural expansion of our relationship, and it demonstrates our continued commitment to serve customers based on our respective strengths and capabilities.”

IBM and AT&T have had other relations pertaining to cloud solutions; the two companies announced in October their intent to provide a scalable, mobile cloud solution that protects corporate data and applications.

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