BT expands its AWS contract to increase revenue by $500 million - INTERNET Definition & Usage Examples
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BT expands its AWS contract to increase revenue by $500 million

IoT, managed security and software-as-a-service (SaaS) are the emphasis of BT’s extended cooperation with Amazon Web Services (AWS).

AWS has been working closely with the UK incumbent since May last year, when AWS was hired by BT to restructure its internal IT infrastructures and apps. It also adopted what AWS calls a “cloud-first architectural approach”. This modernization initiative aims to save PS2 billion per year by 2024. BT and AWS are working together to cut costs, but also increase revenue.

BT announced Tuesday that it would collaborate with AWS in order to enhance its existing portfolio of IoT Solutions, which covers the manufacturing, healthcare and smart cities industries, as well as transportation and logistics. They will also collaborate on developing new products and services for clients from a wide range of industries in the UK and abroad that use AWS’ cloud capability and BT’s network and service-delivery expertise. It is important to note that BT’s IoT platform already uses AWS. This week’s announcement, therefore, is more a continuation of an existing cooperation than a migration.

BT, as a result, will join AWS Marketplace in the role of a channel partner. This will allow it to resell managed security products and other SaaS to clients around the globe.

Thomas Duecke said in a press release that AWS and BT Group share similar ambitions at cloud and connectivity intersection. We’re thrilled to have this partnership as a framework for how we can work together to achieve these results, both for our customers and the Group.

The announcement on Tuesday comes just one week after BT Wholesale revealed that they are testing a mobile edge computing service with AWS in Manchester that will provide companies and public services with high-speed mobile IoT connectivity.

Over the next five-year period, the UK incumbent expects to earn up to $500,000,000 in additional revenue through connections, digital services and solutions.

The amount of $500,000,000 over the next five years is not impossible to achieve. A Capgemini February analysis found that telcos with a comprehensive cloud strategy can expect to generate an extra $110 to 210 millions in revenue annually. The research was based upon interviews with 270 executives from telcos, vendors and hyperscalers.

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