infoTECH Feature

December 29, 2011

T-Systems' Cloud Contracts See Dramatic Rise

T-Systems (News - Alert), a subsidiary of German wireless giant Deutsche Telekom, says it is landing an increased number of cloud-based contracts. So much so that now nearly 80 percent of company’s SAP (News - Alert) business is coming from the cloud.

The company is quickly getting so many contracts because its cloud solutions allow companies to keep their IT services in line with current business developments and pay only for products and services they actually use.

A week ago, Spanish national postal service Correos signed a four-year contract with T-Systems to deploy cloud-based SAP services.

T-Systems is already providing cloud service to Brazilian insurance group Intermedica and Prisa Group, the largest media company in the Ibero-American market. Consol, Africa's largest producer of glass, relies on cloud services from T-Systems for its SAP infrastructure.

The German company’s other big clients are Consol, which has been using the cloud service since 2005, and Jet Aviation, the Swiss company for aviation logistics and aircraft maintenance, that has now extended its contract with T-Systems.

"Our customers no longer focus only on the cost factor when it comes to information and communication technologies. An improved ICT infrastructure contributes toward enhancing the corporate value of a multinational," said Reinhard Clemens, member of the Board of Management at Deutsche Telekom (News - Alert) AGand T-Systems CEO.

T-Systems’ corporate customers arm generated revenue of around EUR 9.1 billion in the 2010 financial year.The four-year contract it recently signed with Correos is said to have a volume of around EUR 41 million. The Telekom subsidiary has been entrusted with the operation and modernization of existing SAP applications with the aim of harmonizing and consolidating the IT systems of Correos.

Deutsche Telekom serves more than 128 million mobile customers, about 35 million fixed-network lines and approximately 17 million broadband lines.

Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.

Edited by Carrie Schmelkin

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