Deutsche Telekom aims to increase European market share with Open Telekom Cloud launch

DTDeutsche Telekom has launched Open Telekom Cloud, a new public cloud platform with Huawei as the hardware and software solution provider, in an effort to increase its market share in the European public cloud segment.

The service will offer European enterprises on-demand, pay-as-you-go cloud services via an OpenStack-based Infrastructure-as-a-Service solution operated by T-Systems. The company ambition is to accelerate its position in the market segment, which is currently dominated by US players.

“We are adding a new, transformational cloud offering to our existing portfolio of cloud services,” said Deutsche Telekom CEO Tim Höttges at CeBIT in Hanover. “For our business customers in Europe this is an important new service to support their digitization, and a critical milestone for us in our ambition to be the leading provider of cloud services in Europe.”

“More and more customers are discovering the advantages of the public cloud. But they want a European alternative,” said Anette Bronder, Head of the T-Systems Digital Division. The move aims to capitalize on recent industry concerns over where data is being stored, as European customers are increasingly demanding that their data remain within the boundaries of the EU.

Located in Biere, Saxony-Anhalt, any data will be subject to German data protection policy, recognized as one of the most stringent globally. “Access to a scalable, inexpensive public cloud provided by a German service provider from a German data centre under German law will be very attractive to many customers in Germany” said Andreas Zilch, SVP at analyst firm Pierre Audoin Consultants. “The combination of a competitive service and German legal security represents a unique selling point right now.”

Deutsche Telekom and its subsidiary T-Systems have been offering cloud solutions since 2005. The data centre in Biere, and its twin in Madgeburg, hosts almost all of the company’s ecosystem partners, which includes the likes of Microsoft, SAP, Cisco, Salesforce, VMWare, Huawei, Oracle, SugarCRM, and Informatica.

The announcement also strengthens Huawei’s position in the European market, a long-term ambition for the Chinese tech giant. Huawei will provide hardware and software solutions, including servers, storage, networking and Cloud OS, while also the technical support for the public cloud services.

“The strategic partnership allows each party to fully play to their strengths, providing enterprises and the industry with various innovative public cloud services that are beyond those provided by over-the-top content players,” said Huawei Rotating CEO Eric Xu “At Huawei, we are confident that, with esteemed partners like Deutsche Telekom, we can turn Open Telekom Cloud into the standard of public cloud services for the industry at large.”