Microsoft and AT&T unveil first big bid to roll out their multi-year cloud alliance. AT&T’s growing 5G network announces a new offering that can run Azure services.

The two companies are working on new network edge computing technology; opening a preview in Dallas next year with plans to expand to Los Angeles and Atlanta. Technology will eventually allow more powerful devices, such as autonomous cars and drones, to be smaller and faster; as most processing will be done on a 5G network; eliminating the need to install large computers on the gadgets.

The two companies came together back in July. The deal, which reportedly valued at more than $ 2 billion. Microsoft, which became AT&T’s preferred cloud provider.

“With our 5G and edge computing, AT&T is collaborating uniquely with Microsoft to marry their cloud capabilities with our network to create lower latency between the device and the cloud that will unlock new, future scenarios for consumers and businesses. We’ve said all year developers and businesses would be the early 5G adopters, and this puts both at the forefront of this revolution.” Mo Katibeh, executive vice president and chief marketing officer of AT&T Business, said in a statement.

AT&T will relocate its non-network workloads to Microsoft’s Azure cloud servers by 2024. AT&T has been laying off “tens of thousands of employees” with Microsoft 365 applications, including Microsoft Teams, SharePoint and OneDrive, and Windows 10.

Corey Sanders, Microsoft corporate vice president, said in a statement, “We are helping AT&T light up a wide range of unique solutions powered by Microsoft’s cloud, both for its business and our mutual customers in a secure and trusted way. The collaboration reaches across AT&T, bringing the hyper-scale of Microsoft Azure together with AT&T’s network to innovate with 5G and edge computing across every industry.”

Both companies (Microsoft and AT&T) are in the midst of intense technology competition. Microsoft’s cloud division was trying to capture the current power of Amazon Web Services and was a big hit when it won a $10 billion Pentagon Jedi deal last month. AT&T is running in the 5G race with Verizon and a potential combined force of T-Mobile and Sprint.