DALLAS and ARMONK, NY - 17 Dec 2015: AT&T* and IBM (NYSE: IBM) today announced they are expanding their long-term strategic relationship to bring businesses a full suite of advanced networking, application and hosting services. Under the agreement, AT&T will transition its managed application and managed hosting services unit to IBM. IBM will then align these managed service capabilities with the IBM Cloud portfolio. IBM will also acquire equipment and access to floor space in AT&T data centers currently supporting the applications and managed hosting operations

Together, AT&T and IBM will enable companies to more easily integrate networks and cloud workloads with their IT environments. After close, IBM will deliver the managed applications and managed hosting services AT&T provides today. AT&T will continue to provide networking services including security, cloud networking and mobility that it provides today. And the two companies will work closely to innovate and deliver a full suite of integrated solutions to customers.

“Today’s announcement represents an expansion of our strategic relationship with AT&T and continuing collaboration to deliver new innovative solutions,” said Philip Guido, IBM General Manager of Global Technology Services for North America. “Working with AT&T, we will deliver a robust set of IBM Cloud and managed services that can continuously evolve to meet clients’ business objectives.”

“AT&T and IBM have worked together for nearly 20 years,” said Jon Summers, senior vice president, AT&T Mobile and Business Solutions. “This is a natural expansion of our relationship, and it demonstrates our continued commitment to serve customers based on our respective strengths and capabilities.”

AT&T and IBM are committed to serving our business customers. We will ensure a smooth transition and will continue to provide the same high level of service clients expect from the two companies. As the new operator of these managed application and managed hosting services, IBM will bring extensive enterprise experience and a rich portfolio of cloud, data and application solutions.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.