Microsoft (MSFT) And Deutsche Telekom (DTEGY) Sign Cloud Computing Deal

By Amit Chowdhry • Dec 10, 2020
  • Microsoft Corporation (NASDAQ: MSFT) and Deutsche Telekom AG (OTCMKTS: DTEGY) have announced an expansion of their partnership to help customers of all sizes accelerate their cloud transformation initiatives. The combination of Microsoft’s cloud and AI capabilities with Telekom’s Cloud Migration Framework and telecommunications services will enable customers to increase their productivity, build more agile and resilient operations, and deliver new cloud offerings faster.

Microsoft Corporation (NASDAQ: MSFT) and Deutsche Telekom AG (OTCMKTS: DTEGY) have announced an expansion of their partnership to help customers of all sizes accelerate their cloud transformation initiatives. The combination of Microsoft’s cloud and AI capabilities with Telekom’s Cloud Migration Framework and telecommunications services will enable customers to increase their productivity, build more agile and resilient operations, and deliver new cloud offerings faster.

The cloud often represents an opportunity for many companies to reduce IT costs, increase their flexibility, and accelerate innovation. But to take advantage of cloud computing, it requires a high-performance network that can scale to meet increasing technology demands.

The combination of Microsoft’s cloud and AI capabilities with Telekom’s Cloud Migration Framework and telecommunications services will enable customers to increase their productivity, build more agile and resilient operations, and deliver new cloud offerings faster.

The cloud often represents an opportunity for many companies to reduce IT costs, increase their flexibility, and accelerate innovation. But to take advantage of cloud computing, it requires a high-performance network that can scale to meet increasing technology demands.

In order to accelerate business innovation, Telekom plans to migrate the majority of its internal IT workloads to the public cloud by 2025 and Azure is a central part of that strategy. And through a companywide training program, thousands of Telekom employees will learn how to maximize the benefits of Azure.

One of the targeted areas of the partnership is moving mainframe workloads to the cloud. Mainframes were historically designed as scale-up servers to run high-volume online transactions and batch processing. And using cloud-based mainframes, businesses are able to deliver new services based on evolving customer demands without retrofitting legacy hardware. This means businesses are able to drive scale, business continuity, and energy efficiency while reducing operational and hardware costs.

Telekom is going to offer its customers direct access to the Microsoft cloud through Azure ExpressRoute. And by bypassing the public internet, customers will have increased agility through faster connectivity to better address regional compliance and data residency needs.

In order to help people and businesses be more connected and productive from anywhere, Telekom will offer Microsoft 365, including Microsoft Teams. And as part of this, the companies have started a project for German schools to reimagine traditional approaches to education, enabling remote learning through cloud-based IT infrastructure, modern devices and the cloud productivity and collaboration applications within Microsoft 365.

To utilize the benefits of cloud computing for critical business processes such as enterprise resource planning and supply chain management, Telekom supports its customers with moving their SAP environments to Azure. And SAP solutions on Azure offer enterprise-grade security, and business continuity and reduce hardware expenses, making it easier for startups and smaller organizations to get started.

Telekom’s enterprise customer unit T-Systems has migrated and securely managed large-scale applications and critical enterprise workloads. And with Azure as a preferred cloud platform for select solution areas, T-Systems is providing these capabilities to companies across all industries so they can harness the global scale, security, and latest advances without needing to manage installation and maintenance. This Cloud Migration Framework combines automated assessment, cloud migration, and services management to help accelerate customers’ cloud initiatives. And small and medium-sized businesses will benefit from these offerings as they can focus on their core competencies and don’t need to provide the resources and knowledge usually required to implement a comprehensive cloud strategy.

Telekom and Microsoft will work closely together to continue to address compliance needs and European regulatory requirements.

KEY QUOTES:

“We have agreed on the framework for joint strategic growth with our long-term partner Microsoft. We are delighted. This partnership will enable us to enhance services for our customers. We will also be supporting each other with digitalization and network build-out.”

— Adel Al-Saleh, member of the Deutsche Telekom Board of Management and CEO of T-Systems

“The case for digital transformation has never been more urgent. We know that the next decade of economic performance for every business, whether large or small, will depend on the digital investments made today. Through this strategic partnership, which combines the power of Deutsche Telekom’s network and Microsoft’s cloud, customers will have more opportunities to become resilient, accelerate innovation and ultimately drive success.”

— Jean-Philippe Courtois, executive vice president and president, Microsoft Global Sales, Marketing and Operations