The partnership marks IBM’s first high-profile customer since it completed its $34bn purchase of open source company Red Hat last week.
“Through our collaboration with IBM, we're adopting open, flexible, cloud technologies, that will ultimately help accelerate our business leadership,” said Thaddeus Arroyo, CEO of AT&T Business.
"In AT&T Business, we're constantly evolving to better serve business customers around the globe by securely connecting them to the digital capabilities they need."
As part of the deal, AT&T will also utilise Red Hat’s open platform to “better serve enterprise customers.”
The companies will also work together on edge computing platforms that will help their clients “capitalise on the power of 5G network speeds and the internet-connected devices and sensors at the edge of the network.”
"We are proud to collaborate with AT&T Business, provide the scale and performance of our global footprint of cloud data centers, and deliver a common environment on which they can build once and deploy in any one of the appropriate footprints to be faster and more agile," added Arvind Krishna, Senior Vice President, Cloud and Cognitive Software, IBM.