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BT and AWS extend partnership to $500m IoT and MEC enterprise services market

UK-based BT Group has further expanded its partnership with Amazon Web Services (AWS) to collaborate on IoT industry solutions, cloud networking propositions, and 5G edge computing services for UK enterprise customers. It said the deal “targets” a $500 million revenue opportunity” to sell IoT connectivity and services to UK businesses, primarily, over the next five years. At the same time, BT has become a listed AWS channel partner, to resell and manage AWS cloud and analytics applications alongside its own core connectivity services. 

It follows an announcement earlier this month that BT is working with AWS on a “multi-million-pound investment” in mobile edge computing (MEC) in its public LTE (4G) and 5G network in the UK, to bring enterprise services and applications closer to customers. The move will see AWS’s compute and storage services, branded Wavelength, embedded into BT’s network infrastructure. The pair said a year ago they will migrate BT’s legacy infrastructure and applications to a new cloud-first architecture designed with “modularity and reusability” in mind.

BT’s IoT platform is built on AWS. The partnership is with BT’s digital unit. It will focus on co-development of IoT solutions and MEC services for the manufacturing, logistics, healthcare, and buildings sectors, utilising the ongoing Wavelength deployment. The reseller deal makes BT a “single source” for managed AWS cloud and edge compute solutions, presumably where they combine with BT’s own connectivity components. BT said the company’s global enterprise sales division will also draw on the collaboration, and the “$500 million revenue opportunity”.

The collaboration will inform BT’s ongoing work at Belfast Harbour and the Association of British Ports in Ipswich. A statement said: “The two companies will work together to advance BT’s existing IoT services and create new ones that combine AWS services with BT’s network and service delivery capabilities to solve problems for customers across a variety of vertical industries. The new solutions and services that will be explored… are focussed on delivering value and opportunity for BT’s customers in the UK and globally as they tackle a wide range of challenges.

Thomas Duecke, chief operating officer of BT’s digital division, said: “AWS and BT Group have shared ambitions at the intersection of cloud and connectivity, and we’re delighted that we have this partnership to frame how we will work together to accelerate these outcomes, for our customers and for the Group.”

Adolfo Hernandez, vice president and general manager at AWS’s telecom industry business unit, said: “Moving from a connectivity provider to a digital services provider is a strategic shift to help communication service providers unlock growth. This new agreement with AWS helps BT accelerate that journey and deliver greater value to its customers.”

ABOUT AUTHOR

James Blackman
James Blackman
James Blackman has been writing about the technology and telecoms sectors for over a decade. He has edited and contributed to a number of European news outlets and trade titles. He has also worked at telecoms company Huawei, leading media activity for its devices business in Western Europe. He is based in London.