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AT&T Adds Amdocs, Juniper to Cloud Roster

Sarah Thomas
4/23/2014
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AT&T's user-defined cloud is getting more defined. The carrier announced Tuesday that it has selected Amdocs and Juniper Networks to help design and deploy the cloud-based architecture. (See AT&T Adds Amdocs, Juniper to Cloud Initiative.)

Amdocs Ltd. (NYSE: DOX) and Juniper Networks Inc. (NYSE: JNPR) are joining Ericsson AB (Nasdaq: ERIC), Tail-f Systems , Affirmed Networks Inc. , and Metaswitch Networks as vendors in AT&T Inc. (NYSE: T)'s User-Defined Network Cloud program, which was introduced at the Mobile World Congress in February. The initiative is part of the carrier's Domain 2.0 supplier program designed to reduce network costs in its move to SDN and NFV. (See AT&T's Cloud Future Takes Shape.)

"We're taking another step toward building the faster, simpler, and more flexible network of the future that provides increased global connectivity with easily scalable and faster content delivery," Tim Harden, president of the AT&T Supply Chain, said in a press release.

AT&T says it's not adjusting its capex guidance based on the new vendor additions, but it does expect the cloud program to "reflect a downward bias towards capital spending" over the next five years.

Why this matters
AT&T's user-defined network cloud is a huge change in how it operates, just as Domain 2.0 is a significant change in how it works with its suppliers. Building the architecture based on SDN and NFV means it should be able to introduce services in real-time and tailor them to individual users. It plans to reveal more vendor partners this year, but its initial lineup suggests it's willing to work with any mix of traditional and new vendors that can meet its SDN and NFV-related needs.

— Sarah Reedy, Senior Editor, Light Reading

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SarahReedy
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SarahReedy,
User Rank: Blogger
4/24/2014 | 8:25:46 AM
Re: savings in 5 years
It's not that the project will last five years, but that it won't start reducing capex for five years. I actually thought it seemed a little long to realize the benefits of SDN and NFV, but I guess it's more realistic than expecting a wholesale change right away.
Susan Fourtané
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Susan Fourtané,
User Rank: Blogger
4/24/2014 | 6:35:28 AM
Re: savings in 5 years
Sarah, 

The timeline is just fine. At the speed of today's businesses you can't expect any project to last more than five years tops.

A change needs to be fast in order to be efficient. If the goal is to introduce services in real-time the sooner the project finishes the better. 

-Susan
SarahReedy
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SarahReedy,
User Rank: Blogger
4/23/2014 | 5:54:48 PM
savings in 5 years
AT&T mentioned these new partnerships first thing on its Q1 call, but didn't provide any more detail. Interesting, however, that it expects the cloud initiative to reduce capex in five years time. Do you agree with the timeline or is it too aggressive for SDN/NFV savings?
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