Dive Brief:

• AT&T announced it will partner with Amazon Web Services (AWS) to let joint customers to use AWS cloud services with the AT&T network.
• The two companies say they will deliver solutions around cloud networking, mobility, Internet of Things, security and analytics.
• Under the agreement, businesses customers will use the AT&T network to establish high-speed network connections to the AWS cloud and to send IoT data to the cloud faster. 

Dive Insight:

Analysts expect huge growth in the IoT market in coming years, so AT&T is working to get a foothold in the market early. AT&T is not alone in its efforts as its competitor Verizon is also looking to move into IoT. 

Telecommunications companies are increasingly looking to secure new, diverse business as cellular services face an uncertain future in the wake of potential new, disruptive types of communications technologies. With new devices that constantly send data to networks, companies have to increase their network capacity to keep up. 

AT&T also announced a similar deal earlier in the week with IBM to run AT&T applications on IBM’s cloud. In addition, the company has a partnership with Microsoft involving its cloud services division.