IBM (IBM) has assumed control of AT&T’s managed application and managed hosting services unit, as the company attempts to take on more networking, application and hosting services.

Big Blue said it plan to align AT&T’s managed application and hosting services assets to its IBM Cloud portfolio, so that the companies can help joint customers more easily integrate networks and cloud workloads with their IT environments. The deal also gives IBM access to equipment and floor space in AT&T data centers currently supporting the applications and managed hosting operations, according to the press release.

“Today’s announcement represents an expansion of our strategic relationship with AT&T and continuing collaboration to deliver new innovative solutions,” said Philip Guido, IBM general manager of Global Technology Services for North America, in a statement. “Working with AT&T, we will deliver a robust set of IBM Cloud and managed services that can continuously evolve to meet clients’ business objectives.”

The deal marks a huge change of pace for AT&T, which until now handled its own managed applications and hosting services. The telecom giant will continue to provide networking services including security, cloud networking and mobility services, AT&T said.

The majority of AT&T employees who currently support these services will move to IBM and continue in their current roles, according to eWeek. IBM did not disclose whether or not it financially compensated AT&T under the terms of the revised partnership agreement.

“AT&T and IBM have worked together for nearly 20 years,” said Jon Summers, senior vice president of AT&T Mobile and Business Solutions. “This is a natural expansion of our relationship, and it demonstrates our continued commitment to serve customers based on our respective strengths and capabilities.”

This isn’t the first time that IBM and AT&T have partnered on cloud solutions. In October, the companies announced they would deliver a scalable mobile cloud solution to protect corporate data and apps.

Last week, IBM detailed an expanded partnership with Box, in which both companies agreed to focus on stronger go-to-market and sales commitments.