AT&T Inks $1B-a-Year Deal to Deliver IBM ServicesBy Sharon Linsenbach | Print
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Updated: IBM employees in 30 nations could be transitioned, AT&T says.AT&T will provide all of IBM's network management and maintenance, in a deal AT&T is calling a bellwether for other enterprise customers.
AT&T will provide all of IBM's network management services and infrastructure as part of five-year deal estimated at $5 billion, it announced in a filing Oct. 3 with the U.S. Securities and Exchange Commission.
AT&T will provide and maintain IBM's network (LAN) solutions, firewall and security management as well as the MPLS-based VPN, VoiP services, managed voice services, hosting and call center solutions it has been managing since AT&T purchased IBM's network division, Global Networks, in 1998 for $5 billion.
Although the deal is expected to generate $1 billion annually in additional revenue for AT&T over the next five years, the partnership is not expected to have a great material impact on AT&T's upcoming financial results, according to the filing.
AT&T told the SEC it intends to transition IBM employees associated with the services in 30 countries.
Editor's Note: This story was updated to include the information that AT&T will provide all of IBM's network management and maintenance.