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AT&T buys Big Blue's Globule Newtwork

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AT&T is to buy IBM's Global Network business for $5 billion. As part of the deal -- which was announced this afternoon -- the two companies will enter into outsourcing contracts with one other. Big Blue will outsource a significant portion of its global networking needs to AT&T. In return AT&T will outsource certain applications processing and data centre management operations to IBM. The transactions could represent $2.5 billion in additional revenue to AT&T in the first full year of operation, the company said. The IBM Global Network business currently services several hundred large global companies, tens of thousands of mid-sized businesses and more than one million individual Internet users in 59 countries. ®

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