Ericsson is working with AWS to help service providers seize opportunities like Internet of Things (IoT) and big data analytics and drive convergence of mobile infrastructure and cloud, the companies said.
It will also give application developers and service providers new capabilities that accelerate innovation, they added.
The announcement was made at the Mobile World Congress.
Delivering a keynote at the event, Ericsson President and CEO Hans Vestberg said digital disruption will come to every industry in 2016.
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He identified 5G, IoT and cloud as the hottest topics in the ICT industry.
Using AWS' cloud, Ericsson will develop solutions to help service providers meet internal efficiency goals. Telstra is the first Ericsson customer to agree to host a joint cloud innovation center with Ericsson.
"Ericsson has always taken great ideas, industrialised them and made them available in every country. Building upon AWS' platform, we will drive new growth opportunities across the service provider industry," Ericsson Head of Business Unit - Cloud and IP, Anders Lindblad said.