IBM set its newly acquired Red Hat assets to work as part of a strategic networking deal with AT&T, under which the operator will use the open source platform to manage applications and workloads for its business unit.

As part of the deal, IBM will serve as the primary developer and cloud provider for AT&T Business’ internal applications, and help manage AT&T Communications’ broader IT infrastructure.

In exchange, AT&T will use Red Hat’s platform to provide IBM with software defined networking, and boost its networking portfolio with 5G, IoT and multi-cloud capabilities.

The pair will also collaborate on the development of edge computing platforms, with the aim of helping enterprise customers capitalise on next generation features including low-latency and massive bandwidth.

Arvind Krishna, IBM SVP of cloud and cognitive software, said in a statement the move will provide customers with increased scale and performance, as well as “a common environment on which they can build once and deploy in any one of the appropriate footprints to be faster and more agile”.

The move comes a week after IBM closed its $34 billion acquisition of Red Hat.

IBM struck a struck a similar strategic networking deal with Vodafone Business in January.