08/21/2024 | News release | Distributed by Public on 08/21/2024 09:01
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Oracle & AT&T Announce Strategic Partnership around IoT Management and Network APIs |
NEWS |
Earlier in August 2024, Oracle and AT&T announced a strategic partnership to integrate AT&T's Internet of Things (IoT) connectivity and network Application Programming Interfaces (APIs) with Oracle's cloud services in a move to streamline the management of IoT devices and enhance real-time data processing. The move will allow the Oracle Enterprise Communication Platform (ECP) to use AT&Ts 5G connectivity and network APIs.
At present, the partnership focused on providing communications-enabled restaurant operations, automated utility grid management, and "enriched telehealth" capabilities. This ABI Insight argues, however, that partnerships between communication and cloud service providers can have a much more fundamental effect on the industry and push enterprise digitization efforts beyond these boundaries.
Telco and Cloud Service Providers Are Growing Closer Together |
IMPACT |
This announcement is interesting from a range of different perspectives that go well beyond increasing the popularity and, therefore, commercial traction of IoT solutions and/or network APIs. Of course, it will lead to operational improvements and provide a push to digitization efforts. At the same time, it illustrates at least two fundamental shifts in the telco and cloud industries.
First, it underscores the ongoing disruption in the cloud service provider market-particularly as enterprises start to accelerate their cloud adoption strategies. As the market is becoming more competitive, cloud service providers face a growing pressure to strike new partnerships to expand their enterprise portfolio.
In addition, it shows an increased focus on bundling different services for enterprises, as it brings the telco and cloud industries closer together. Consequently, this can be the starting point to integrate enterprise cloud services with telco services and, therefore, create a new, combined value proposition. This would appeal to enterprises looking for seamless solutions that combine cloud computing with connectivity, potentially shifting market dynamics toward more integrated service models. As this partnership announcement allows Oracle to leverage AT&T's existing network infrastructure, it will offer more competitive pricing or value-added services. This will increase the competitive pressure on other cloud service providers-Amazon Web Services (AWS), Microsoft, and Google Cloud-to adjust their pricing.
Second, endeavors like this announcement from AT&T and Oracle strengthen the understanding of cellular connectivity as a key enabler for concrete enterprise use cases. Consequently, these partnerships can help communication service providers win back some relevance in the enterprise verticals, as it allows them to offer dedicated, outcome-based services that go beyond just providing connectivity. Instead, it will allow both AT&T and Oracle to provide connectivity bundled with cloud-based IoT management and analytics solutions. Furthermore, it allows the integration of AT&T's FirstNet with the Oracle cloud infrastructure to support first responders with real-time data, live video, and secure communication.
The Telco Industry Will Need the Cloud Service Provider for Relevance in the Enterprise Domain |
RECOMMENDATIONS |
For several years, the telco industry has tried to prove its relevance for different enterprise verticals-with very mixed outcomes, as communication service providers, in particular, have struggled. Network APIs can certainly be a good tool for communication service providers to develop enterprise-grade applications and services.
Partnership agreements with cloud service providers can, in this context, be one of the last opportunities for communication service providers to change that and increase their relevance in the enterprise domain. To provide the best possible ground for successful partnerships, however, both players and cloud service providers will need to do their homework.