IBM to Take Over AT&T Managed Application, Hosting Services

An expanded agreement between AT&T and IBM transitions control of the former’s managed application and managed hosting services unit to the latter.

IBM will align its newly controlled managed-service capabilities with its cloud portfolio. Big Blue also gets equipment and access to floor space in AT&T data centers that support the applications and managed hosting operations.

As a result, the two companies together plan to help businesses more easily integrate networks and cloud workloads with their IT environments. Once the deal closes, IBM will deliver the managed apps and hosting services that AT&T provides today. AT&T will continue to offer networking services such as security, cloud networking and mobility. The companies plan to work closely to innovate and deliver a full suite of integrated products and services.

“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’s 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.”

The companies promise a smooth transition for those customers who are impacted.

This is just the latest instance of a shift in the data-center industry as more traditional telcos move away from running their own facilities and/or hosting divisions. The biggest happened in October, when Windstream announced the sale of its hosting unit to TierPoint for $575 million. Just a few weeks later, Verizon adamantly denied speculation that the data-center services it acquired via its acquisition of Terremark would soon be up for sale.

Follow senior online managing editor Craig Galbraith on Twitter.

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