AT&T has created a joint venture, LevelBlue, to specialize in managed cybersecurity services.

LevelBlue starts with a robust infrastructure, including over 1,300 employees and seven international operations centers.

The company inherits AT&T's cybersecurity capabilities, such as managed security, consulting services, and a threat intelligence platform.

This strategic move allows AT&T to reduce its debt while granting LevelBlue greater agility in its service offerings and market expansion.

LevelBlue faces the challenge of evolving from traditional MSSP services to meet the increasing demand for MDR services.

The cybersecurity industry is undergoing a transformation with major players divesting security segments to sharpen their focus on core businesses and financial stability.