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AT&T Harnesses Edge Capabilities With Hewlett Packard Tie Up

Zacks Equity Research

AT&T Inc. T recently collaborated with Hewlett Packard Enterprise Company HPE to facilitate diverse businesses to harness edge connections and edge computing capabilities to push their boundaries to new frontiers. The deal seems to be the call of the hour with increased 5G deployments giving rise to large quantum of data.  

Edge computing forms a core focus area for AT&T and marks a positive stride forward in providing faster processing and potentially enhanced security for business applications. While AT&T Multi-access Edge Compute Services offer seamless cellular coverage along with new capabilities to manage cellular traffic through virtual network functions, HPE Edgeline Converged Edge Systems provide a single system that implements data center-level compute and management technology at the edge.

Together, the companies aim to offer a flexible tool to better analyze data and process low-latency, high-bandwidth applications. The go-to-market alliance particularly intends to enable customers to swiftly convert data into actionable intelligence, enabling unique digital experiences and smarter operations.

Moving forward, AT&T anticipates gaining an advantage over rivals through edge computing services that allow businesses to route application-specific traffic to where they need it and where it’s most effective — in the cloud, the network or on their premises. Through its Multi-access Edge Compute solution, the company offers the flexibility to better manage data traffic. It leverages indigenous software-defined network to enable low-latency, high-bandwidth applications for faster access to data processing. AT&T expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts in the near future. Utilizing machine learning techniques and more connected devices, this could transform the way data-intensive images are transferred across the industry on real time basis.

We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. The stock has outperformed the industry year to date with an average return of 13.6% compared with the 8.7% rise of the latter.



A couple of better-ranked stocks in the industry are Gogo Inc. GOGO and T-Mobile US, Inc. TMUS, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gogo beat earnings estimates in each of the last four quarters, the average positive surprise being 38.7%.  
       
T-Mobile has a long-term earnings growth expectation of 13%. It beat earnings estimates in each of the preceding four quarters, the average surprise being 12.1%.

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Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Gogo Inc. (GOGO) : Free Stock Analysis Report
 
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