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IBM, AT&T Will Partner on a 5G-Powered Hybrid Cloud Initiative

By Will Healy – Updated Oct 29, 2020 at 10:48AM

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The alliance will leverage AT&T's network and IBM's Cloud Satellite.

International Business Machines (IBM -0.25%) and AT&T (T -1.69%) are forming a partnership in the cloud, they announced today. Using AT&T's 5G networks and IBM Cloud Satellite with Red Hat OpenShift, both companies will help organizations manage applications hosted in the hybrid cloud.

The hybrid cloud environment will connect through AT&T Multi-Access Edge Computing. This is a low-latency edge environment using private cellular networks.

Under this system, enterprises can manage services across numerous clouds and edge devices using a single dashboard. Both companies expect that this will speed implementation while bringing services under a centralized management system.

The system will also emphasize security as it seeks to capture business in the most regulated industries. Only the client will be able to access its data; so tight is IBM's encryption that neither IBM nor AT&T can access that data.

Woman standing on a mountain top above a city as she holds her laptop and connects to the cloud hovering above the city.

Image source: Getty Images

Allied Market Research estimates the global 5G technology market will reach $668 billion by 2026. This partnership should enable both tech stocks to better capitalize on a lucrative opportunity.

Howard Boville, senior vice president of IBM's hybrid cloud, said that this would bring enhanced customer experiences and additional revenue opportunities: "Together with AT&T, we will be helping clients securely leverage 5G and edge offerings in any environment with IBM's open and secure hybrid cloud platform."

Mo Katibeh, chief product and platform officer for AT&T Business, said that his company can offer the responsive network needed for such applications. "Our work with IBM will bring differentiated value that customers will appreciate," Katibeh said.

Both companies expect that numerous enterprises across multiple industries will take advantage of these capabilities. Dynamic supply chains, better patient monitoring at hospitals, and improved fraud detection at ATMs are among the varied benefits.

Will Healy owns shares of AT&T and IBM. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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