AT&T (NASDAQ: T) and Amazon (NASDAQ: AMZN) have partnered together to provide secure cloud services. Together the companies will focus on the AT&T NetBond that serves most of the companies, including Microsoft, IBM, around the world. AT&T and Amazon merge up will bring more advancements and features in the both the AT&T NetBond and the Amazon Web Services.
“All of the corporate connectivity is going from desktop computers to smartphones and tablets,” said Ralph de la Vega, the head of AT&T’s mobile and business solutions business. “We’re looking at an environment where the business mode of operation is changing to ‘mobile first.’”
AT&T partnership with the Amazon will benefit the corporate with new technologies such as virtual private network or VPN. The service that company announced on Thursday will be in action till 2015. There will be the availability of more cloud computing services as AT&T is going to base everything in the Amazon Cloud Data Centers.
It is expected that the company will attract more customers to choose its service, whereas, on the flip side it will also increase the number of users at the AWS. However, the price plans are still not disclosed by the company, Mr. de la Vega said AT&T’s pipes into Amazon “should cost less to providers,” since they would handle a lot of traffic per lines.
Amazon also has a service called Amazon Direct, which serves connection to the businesses. However, the At&T is moving from being a phone service company to one that provides the network services. Analysts believe that phone service will become a small part in the company.
“Phone switches are in our past,” said Mr. de la Vega. “We’re moving to network functions in commodity computer servers. We’re bringing in new players.” Of the older equipment providers, he said, “Some of them are reluctant to admit this, and want us to do one more upgrade on their equipment.
“We’re not buying it,” he said, “this is moving really fast.