DALLAS and ARMONK, NY, Oct. 9 — AT&T and IBM today announced a business agreement to deliver a highly secure, first-of-its-kind "network-enabled" cloud service that uses private networks rather than the public Internet.

The companies are combining AT&T virtual private networking and IBM SmartCloud Enterprise+ cloud capabilities with breakthrough technology from AT&T Labs to create a new, fast and highly-secure shared cloud service. Targeted to Fortune 1000 companies globally, the service will be offered in early 2013 as a powerful new option for clients who are deploying cloud solutions that demand high levels of security and availability. Many businesses often cite security as a key inhibitor to cloud computing adoption.

When customers of the new service connect to IBM cloud computing resources across AT&T's virtual private network, the innovative technology tightly integrates the security protections of both, allowing customers to quickly and reliably shift information or applications between their own data centers (private clouds) and this new cloud service. This is critical for businesses that want the flexibility of the cloud but also need to protect applications and data as they move between data centers and wired or wireless computing devices such as tablets, smartphones, personal computers, retail kiosks or other machine-to-machine devices.

For example, a financial services company using the new service could move and manage critical customer data between its and IBM's cloud data centers without the data ever leaving the security protections of the virtual private network.

AT&T's breakthrough technology dynamically allocates networking resources to computing resources, automating functions that are often performed manually. This allows the network and compute resources to rapidly scale or contract in tandem to support the fluctuating demand on systems that an online retailer might experience before, during and after the holiday buying season; or that a large employer might experience before, during, and after their annual employee health benefits enrollment period.

"AT&T and IBM are delivering a new, network-enabled cloud service that marries the security and speed of AT&T's global network with the control and management capabilities of IBM's enterprise cloud," said Andy Geisse, CEO of AT&T Business Solutions. "This new service gives companies yet another way to innovate, create new value, and transform their businesses and industries."

A key element of the cloud service is IBM SmartCloud Enterprise+, an IBM Infrastructure-as-a-Service optimized for mission-critical, enterprise workloads. As a managed and hosted cloud environment, it offers many advantages of a private cloud – such as choice of dedicated physical servers and storage – but also adds the scalable flexibility of a public cloud. Customers using the new service will have access to IBM SmartCloud Enterprise+' s broad spectrum of secure managed services and be able to run processes in both public and private cloud models.

"As more organizations realize that cloud can be secure, easily managed, and a key part of their business strategy, cloud will quickly evolve as a tool for innovation rather than just for infrastructure," said Erich Clementi, senior vice president, IBM Global Technology Services. "We believe this new service from two recognized leaders in cloud computing provides a compelling way for large organizations to exploit cloud's transformational power."

Other features of the new cloud service include:

· A variety of customization options to meet specific customer needs;

· Committed service-level agreements (SLAs) aligned to business and usage requirements to increase accountability for response time and availability;

· More than 70 automated built-in security functions; and

· High levels of security extended to wired and wireless devices authenticated to the customer's virtual private network.

All of the Fortune 1000 companies are currently customers of AT&T.

Financial terms of the agreement have not been disclosed.

Find More Information Online:

AT&T News

AT&T Enterprise Services

AT&T Cloud Services

AT&T Cloud Services News

Report: AT&T #1 for Connecting U.S. Businesses' Private Clouds

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's largest 4G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse and AT&T | DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT.

About IBM Cloud Computing

IBM has helped thousands of clients adopt cloud models and manages millions of cloud-based transactions every day. With cloud, IBM helps clients rethink their IT and reinvent their business. IBM assists clients in areas as diverse as banking, communications, healthcare and government to build their own clouds or securely tap into IBM cloud-based business and infrastructure services. IBM is unique in bringing together key cloud technologies, deep process knowledge, a broad portfolio of cloud solutions, and a network of global delivery centers. For more information about cloud offerings from IBM, visit http://www.ibm.com/smartcloud. Follow us on Twitter at http://www.twitter.com/ibmcloud and on our blog at http://www.thoughtsoncloud.com

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Source: AT&T Inc.; IBM