AT&T and IBM said Wednesday they have teamed up to offer more cloud networking services to businesses.
IBM will sell AT&T's new FlexWare for setting up and managing virtual network functions on a single network device, such as a router. It is already globally available through the AT&T Network on Demand service, which is made up of software-defined networking and virtualization technologies. Pricing is based on the functions needed by the customer.
The partnership means customers can see new networking capabilities and cost savings, both companies said in a statement.
AT&T will be able to run applications on IBM's infrastructure for cloud, cognitive analytics and security. In turn, IBM has also begun to roll out AT&T FlexWare at many of its own sites.
"By expanding our relationship with IBM, more customers will be able to take advantage of AT&T FlexWare that will adapt and grow with customers' business needs," said Steve McGaw, chief marketing officer for AT&T Business Solutions, in a statement.
Partnerships between major technology providers are not unusual, but growth in cloud and virtualization services for networking capabilities have grown in demand recently.
AT&T, Verizon and other major service providers are expanding use of their large, often global networks to support innovations in cloud and Internet of Things technology. Part of their drive in doing so is to find new areas of growth to supplant a revenue slowdown in wireless services to consumers and businesses.