Shares of Lumen Technologies (LUMN.US) rose more than 10% before the market opened after the company reached an agreement with Microsoft (MSFT.US).
We learned from Zhitong Finance that Lumen Technologies(LUMN.US) announced that it has entered into a strategic partnership with Microsoft(MSFT.US) to support its digital transformation across the organization and to drive its AI initiatives. After the announcement, Lumen's stock price surged 10.74% at the opening.
Lumen has launched an enterprise-wide transformation to simplify and optimize its operations. As part of the partnership, the telecom company will migrate its workloads to the Microsoft cloud platform Azure, use Microsoft Entra solutions to protect access and prevent identity attacks, and work with Microsoft to create and deliver new industry-specific solutions for the telecom industry. The initiative is expected to add over $20 million in cash flow for Lumen in the next 12 months, while also improving the company's customer experience.
In addition, Microsoft has selected Lumen as its strategic supplier for its network infrastructure needs. Lumen's private network architecture will enable the tech company to scale its network capacity to support the AI demands of its data centers.