AT&T places its 5G future in the Azure cloud

As an analyst, I follow all the level 1 mobile network operators in the world. Each is unique in terms of their subscriber base, vertical market orientation and areas of investment, and AT&T is no exception. The operator’s investment in research and development is impressive, as evidenced by its efforts at Bell Labs and the contribution of the Linux Foundation networking group (see my previous writings on the Linux Foundation here). AT&T is also a peer leader in software-defined networks (SDNs), an advantage it has held for nearly six years. Since achieving its ambitious goal of virtualizing three-quarters of its network functions by 2020, AT&T has shown the world the benefits: improved deployment agility, reduced capital expenditure, and improved performance for workloads. critical work.

All of this to say that I was not surprised by the news last week regarding AT & T’s decision to migrate its 5G mobile network to the Microsoft Azure for Operators cloud. AT&T and Microsoft executives briefed a few, including me, ahead of the announcement. Today I would like to share my impressions.

The devil is in the details

I think there are two key takeaways from the AT&T and Microsoft Azure announcement for carriers. First, Microsoft will integrate AT&T staff and intellectual property related to the development of virtualized and containerized workloads. Second, Microsoft will be responsible for hosting all development and deployment of AT & T’s network cloud. It is important to note that AT&T will continue to manage all aspects of its network and the deployment of the new 5G service, business applications and subscriber data. As a result, I believe AT&T will overtake its competitors in the United States to become the first operator to transition to a full, end-to-end cloud solution (ahead of deployments of new 5G mobile networks such as Dish Networks, Rakuten, and Reliance Jio ).

Azure for Operators has gained tremendous momentum over the past year as critical acquisitions bolster its telco cloud capacity. I analyzed its progress a little over a year ago, and if you’re interested, you can learn more here. There is no doubt that Amazon Web Services is in pole position among its peers to disrupt the telecoms market. However, Azure for Operators is on its heels, and I love AT&T’s decision to partner with a starving Microsoft that can draw on a significant set of software engineering capabilities.

Benefits that extend beyond AT&T

To be clear, developing and deploying cloud native architecture isn’t AT & T’s first rodeo (as we like to say in Texas!). AT&T has designed its 5G mobile network cloud natively from the ground up. I believe AT & T’s decision to host their network functions in the Azure cloud will facilitate a cutting edge approach to delivering a highly available and scalable 5G network for the long term. Considering AT & T’s previous investment, I compare it to an SDN 2.0 evolution. I also like that the partnership allows AT&T to focus on its core competency of building 5G network and Microsoft on the evolution of its cloud platform. AT&T has another advantage over many other operators given its strong focus in the vertical market of manufacturing, healthcare, education, public sector (including FirstNet), retail, financial services, sports and entertainment, etc. To learn more, click here. One of the other exciting opportunities for AT&T is that Microsoft could also open up access to its corporate customers for additional service sales opportunities.

Beyond the synergies mentioned above, other operators who deploy Azure for Operators will benefit, as AT&T shares its significant SDN intellectual property developed in recent years and built on open standards. AT&T has a long history in this regard, given its contributions to several Linux Foundation networking projects. These include:

• ONAP, which focuses on the automation and orchestration of networks,
• DANOS, which focuses on creating a disaggregated network operating system,
• Acumos, which aims to democratize the accessibility of AI to bring intelligence to network operations, and
• Akrino Edge Stack, which supports cloud services and edge computing systems and applications.

Wrap

AT&T has a long history of leading the charge for virtualized network functions, SDN, and cloudification. I think this recent announcement with Microsoft will further accelerate the operator’s momentum, given Microsoft’s cutting edge approach and potential access to new business customers. Some might be quick to dismiss AT&T for abandoning a critical aspect of its 5G deployment effort. However, I believe this is a smart long-term decision that will ensure a highly available and performance-optimized network for consumers and businesses.

Disclosure: My company, Moor Insights & Strategy, like all research and analysis companies, provides or has provided research, analysis, advice and / or advice to many high-tech companies in the industry, including AT&T and Microsoft, cited in or linked to this article. I do not own any participation in the companies mentioned in this column.