Microsoft has teamed up with Telstra to enhance its AI capabilities in Australia. Telstra has laid down about 1,800 kilometers of fiber, which Microsoft will use to deliver cloud services, including AI tools. Additionally, Telstra InfraCo plans to offer AI solutions to Australian clients.
Major AI Deployment in Australia
Telstra is set to distribute 21,000 Microsoft 365 Copilot licenses amongst its employees, marking the largest adoption of this AI service in the country and among global telecommunications operators. An initial trial with 300 employees showed time savings of up to two hours weekly. Telstra CEO Vicki Brady highlighted the importance of their intercity fiber network, linking Australia to the world and integrating with Telstra's global subsea fiber network.
Judson Althoff, Executive VP and Chief Commercial Officer at Microsoft, reiterated the company's commitment to supporting organizations in adopting AI securely. The partnership, which started with a significant five-year agreement in 2022, includes Telstra choosing Microsoft Azure as a key cloud partner as part of its multi-cloud strategy, with the goal of migrating 90% of its applications to public cloud systems by 2025.
Boosting Fiber Network Capacity
The collaboration also includes the construction of high-capacity fiber routes across cities for Microsoft, enhancing connectivity across major telecommunications routes in Australia and the Asia-Pacific region. This underscores Microsoft's investment in AI infrastructure and cloud services within Australia.
Telstra and Microsoft aim to propel Australia's AI ecosystem by combining Microsoft's AI expertise with Telstra's Intercity Fibre Network initiative. Contracts have been signed for the first routes on Telstra's new high-speed fiber network. Brady emphasized the importance of solid connectivity infrastructure to support AI advancements. The Intercity Fibre Network will offer high-speed, dependable, secure, and scalable connectivity, essential for AI, quantum computing, and advanced data centers.
History of Collaboration
Microsoft and Telstra are long-time partners who have been working together for years. In 2016, Telstra began offering a free two year subscription to Microsoft's 200GB OneDrive tier. That same year, the two companies teamed up to introduce cloud communication services for Office 365 enterprise customers. Among the capabilities was voice calling through the cloud, which was be handled through Microsoft's now defunct Skype for Business service.
