How Does AT&T’s Public Cloud Strategy Fare against that of Verizon?

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By Don Alusha | 4Q 2021 | IN-6296


Pursuing Innovation: A Tale of Two Distinct Strategies


On June 30, Microsoft announced that it intends to acquire AT&T’s intellectual property and human capital for AT&T’s Network Cloud Platform. That platform serves as the foundation for AT&T’s 5G core network. AT&T continues to manage its network and customer relationships, but Microsoft is obtaining cellular capabilities to control, design, and build core network functionality. In other words, the intelligence—and the service logic—resides within Microsoft’s public cloud infrastructure and is under its control. With this decision, AT&T takes the plumbing and inner workings of the core network to Azure for Operators. This is enabling Microsoft to accelerate deployment of its public cloud in telecoms as discussed in ABI Research’s Insight (IN-5693), “Microsoft Brings the Power of IT into Telecoms.”

By contrast, Verizon announced recently that it will use its public cloud selectively. For example, Verizon deploys its own cloud infrastructure to host its 5G core network. Given that the core ne…

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