Google Ties Up With AT&T To Offer 5G Edge Computing Solutions

By Zacks Investment ResearchStock MarketsMar 08, 2020 09:25PM ET

www.investing.com/analysis/google-ties-up-with-att-to-offer-5g-edge-computing-solutions-200514485

Google Ties Up With AT&T To Offer 5G Edge Computing Solutions

By Zacks Investment Research | Mar 08, 2020 09:25PM ET

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Alphabet (NASDAQ:GOOGL) is making every effort to integrate the cutting edge 5G networks into its cloud services in a bid to deliver enhanced cloud experience.

The company’s cloud computing arm, Google Cloud’s latest partnership with AT&T (NYSE:T) is a testament to this fact. Both the companies are committed to combining software and data services and 5G.

Google Cloud aims to leverage AT&T’s 5G network to build a suite of business products which will offer low latency and strong security to the companies.

Moreover, the underlined 5G based computing solutions portfolio will leverage Google’s Artificial Intelligence (AI), Machine Learning (ML), analytics and strength in Kubernetes. Additionally, these solutions are expected to serve various use-cases well.

5G Move to Benefit Google

Google Cloud is likely to gain strong momentum across customers with the latest move as the 5G edge computing solutions under review are expected to aid businesses in innovating end user experiences by optimizing operations and reducing latency.

Further, the solutions are likely to help the enterprises from various industries like manufacturing, gaming, transportation and retail among others, in addressing real business challenges.

We note that the latest move will expand the company’s cloud services portfolio, which in turn is expected to sustain its cloud business performance in the near term.

Notably, Google cloud generated revenues of $2.6 billion, which accounted for 5.7% of the total revenues, in fourth-quarter 2019. Further, the figure improved 53% on a year-over-year basis.

Competitive Scenario

With the latest move, Google ups the ante against Amazon (NASDAQ:AMZN) and Microsoft (NYSE:T) , which is also leaving no stone unturned to deliver low-latency experience to cloud customers via 5G network.

Amazon Web Services (AWS) announced AWS Wavelength is a combination of AWS compute and storage services, and cutting edge 5G networks.

Further, the company has joined forces with Verizon (NYSE:VZ) in order to leverage the latter’s 5G networks in order to develop applications serving use-cases with single-digit millisecond latencies.

Moreover, this partnership will aid Amazon in making AWS Wavelength available across the United States. Additionally, the company has teamed up with Vodafone (LON:VOD), SK Telecom, and KDDI to make the service available in Europe, South Korea, and Japan by 2020.

Meanwhile, Microsoft’s strategic alliance with AT&T helped it to introduce select preview availability for Network Edge Compute (NEC) technology. This move enables Microsoft to offer Azure services through AT&T's virtualized 5G core Network Cloud.

Nevertheless, Google’s deepening focus toward strengthening cloud offerings is likely to continue aiding its market position in the cloud computing market.

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Google Ties Up With AT&amp;T To Offer 5G Edge Computing Solutions

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