Deutsche Telekom's International Cloud Approach
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- Jeffery Owens
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1 Deutsche Telekom's International Cloud Approach Cloud computing is a strongly growing and highly attractive sector of the ICT market. According to Deutsche Telekom's in-depth cloud market analysis the global cloud services market will grow at a 34% CAGR from 2012 to 2016 and is expected to reach a total market value of EUR 114 billon in This highlights the importance of why Deutsche Telekom wants to become a major player in the cloud game. Cloud is now firmly anchored as one of the key international innovation initiatives across Deutsche Telekom. The company will target all types of customers: from individual consumers, small firms, larger enterprises right up to some of the world's largest multi-national corporations. Contrary to many other players in the cloud arena, Deutsche Telekom is well positioned to secure a large share of this market. Cloud services will need state-ofthe-art networks and infrastructures, but also the existence of a strong ICT market position and large customer base will bring additional advantages to Deutsche Telekom. For the past seven years, Deutsche Telekom through T-Systems has actively been promoting and supporting cloud solutions under its series of "Dynamic services" for larger enterprises. With the launch of the new Business Marketplace as a safer and easy to use cloud platform, Deutsche Telekom will directly serve and create value for a large number of small and middle-sized businesses (SMBs) in its key markets. Uniquely positioned for the cloud Deutsche Telekom customers are increasingly aware of the advantages of cloud services. Besides cost savings and enhanced business flexibility, customers benefit from not having to invest any of their precious resources into in-house IT systems and applications. They also do not have to plan for increased capacity to meet growing demands on their business as the cloud provides instantaneous access to extra compute capabilities. Deutsche Telekom is uniquely positioned as it addresses all major needs of customers, such as a secure and sustainable IT environment as well as end-to-end responsibility for cloud services, where it can leverage its assets and know-how. The key attributes of Deutsche Telekom's cloud services are: Deutsche Telekom guarantees data protection and data privacy with end-to-end service for all customers. Specifically, and for both consumers and SMBs, Deutsche Telekom cloud services will be easy to use with lower costs. 1/7
2 Additionally, consumer and SMBs will be able to use a wealth of new innovative applications. For larger customers such as multinational companies, cloud services are based on a proven track record gained over the past seven years by T-Systems. Additionally, these enterprise grade services will be fully integrated into the customer's existing IT production environments and business processes. Furthermore, these T-Systems cloud services meet the required mission critical requirements, so even core legacy systems can be successfully replaced by Deutsche Telekom s cloud solutions. (see chart 1) Full range of cloud services Deutsche Telekom is structuring its cloud services portfolio into seven categories. These are complemented by an overarching cloud consulting and integration services capability. Infrastructure (IaaS) Within its cloud portfolio, Deutsche Telekom offers cloud computing IT capacity (such as "virtual machines" and dedicated or virtualized hosted server instances). It also provides secure storage and backup services to meet a wide range of customer needs. For example the T-Systems Dynamic Services for Infrastructure allows firms to book "virtual machines" on demand. Desktop (DaaS) These cloud services allow customers to use thin clients and associated solutions to access comprehensive desktop functionalities in the cloud. Business Applications as s Service (BAaaS) These services enable the customer (consumer, SMB and enterprise) to use a wide range of standard business software products in the cloud from office productivity software to more complex business applications such as ERP or CRM solutions from firms such as Scopevisio. Communication and Collaboration (CaaS) These cloud services allow the customer to use modern communication and collaboration tools that simplify interaction within and outside of their companies. Examples are DeutschlandLAN and Telepresence as well as the a video conferencing and meeting room solution called imeet that also incorporates file sharing and social network integration. 2/7
3 Security (SecaaS) These services ensure that customers can safely work in the cloud and guarantee secure data exchange with other parties. Examples are Deutsche Telekom's new secure solution D , a secure data room, and a new hosted firewall and anti-virus solution from Clearpath. Platform (PaaS) Deutsche Telekom will offer comprehensive on-demand development and testing environments to allow firms to develop new cloud services. An example is T-Systems Dynamic Services for SAP Projects. Cloud connectivity services A robust network is needed to connect customers to the cloud. The performance, security and reliability of the connecting line is crucial for overall cloud service quality. (see chart 2) Additionally, cloud integration and consulting will be an important pillar of Deutsche Telekom's cloud offerings. With T-Systems, Deutsche Telekom already has experience in system integration and consulting for very large enterprises (e.g. Cloud Readiness Services from T-Systems). Building on these system integration and consulting competences, Deutsche Telekom will extend its focus to larger SMBs in Germany and selected other countries where it operates across Europe. Cloud Center provides a central location of cloud for different segments To provide the best one-stop-shopping solution, Deutsche Telekom will establish a single portal where all customers can find, select and order "their cloud services". In this Cloud Center, all existing Deutsche Telekom cloud products can be seen and accessed. New offerings will be constantly added to the Cloud Center. Thus, it will become the starting point for customers to learn more about Telekom s cloud offerings. Business Marketplace allows zero-touch provisioning of cloud services A central part of the Cloud Center will be the Business Marketplace, which is a revolutionary approach to offer cloud services to small and medium businesses. It provides state-of-the-art cloud applications that are directly usable from a single location. With the new Business Marketplace, SMBs can find, buy and use applications in a unified environment, with single sign-on, centralized user management and consolidated billing. Application developers and ISVs can reach over 3 million businesses by joining the Business Marketplace eco-system. (see chart 3) 3/7
4 Partner program to support Telekom's cloud portfolio In adherence with Deutsche Telekom's new innovation approach, Deutsche Telekom will partner with Independent Software Vendors (ISV) to provide new and innovative applications faster to its customers across its footprint. One major pillar is the "Easy-to-Partner" ISV program, which will be launched at CeBIT. The Easy-to-Partner ISV program provides different partnership levels depending on the depth of the partnership between an ISV and Deutsche Telekom: For example partners on the Advanced level need to be ready to provide 2nd level support during working hours for their applications. Deutsche Telekom will help with localization of the application to Deutsche Telekom's footprint and integration into Deutsche Telekom's support processes. Deutsche Telekom will guide the partner through the integration process, it will also provide access to an integration environment as well as technical and business cooperation assistance. Finally, Deutsche Telekom will assure that the application complies with Deutsche Telekom security and data privacy standards. This ensures that Deutsche Telekom can provide end-to-end service to the customers in-line with the other key attributes that Deutsche Telekom provides. A Premium level partner needs to provide 24x7 2nd level support for the applications and integrate the application even deeper within Deutsche Telekom's production systems. The premium partner has access to cloud technical and business specialists at Deutsche Telekom who will support the partner during the technical integration and the definition of a joint go-to-market approach. Additionally, Deutsche Telekom will offer different application integration levels, allowing a partner to on-board the business marketplace quickly and also adhere to the high standards of Deutsche TelekomCloud with regards to reliability, data privacy and security. A Hosted application level allows an ISV to manage its applications in a secured Deutsche Telekom cloud environment where Deutsche Telekom provides a hotline and 1st level support. The Managed applications level indicates ISV solutions that are deeply integrated into Deutsche Telekom's cloud platform and are managed directly by Deutsche Telekom itself. Of course, all applications (hosted or managed) will adhere to Deutsche Telekom's cloud service attributes and positioning. (see chart 4) 4/7
5 Integrated Cloud platforms Based on the extensive cloud production expertise that T-Systems has gathered during the past seven years, Deutsche Telekom is now extending and building an advanced cloud production environment for the whole of the Deutsche Telekom Group. The structure of Deutsche Telekom's new unified Cloud Factory consists of a common technical portal that supports all cloud eco-systems in a shared globally distributed environment, several cloud production ecosystem platforms, which address specific market and offering needs and a common infrastructure, i.e., one infrastructure for all cloud offerings that is fully automated and virtualized (for load sharing). Apart from other (to be announced) platforms, Deutsche Telekom's decision to join the OpenStack community is aimed at developing an open platform cloud architecture in order to offer high-quality and low-cost cloud services to consumer and SMB customers. Charts Chart 1 Positioning of Telekom Cloud services 1 Attractive, compelling applications 2 Easy self-provisioning 3 Secure and sustainable 4 End-to-End responsibility by 5 Vocal about the hosting location 6 Bookable and demand-based SLAs 7 Benefits from economies of scale 8 Full range of service 9 Full business integration 10 Brand: magenta Cloud icon Ease of use Low cost Innovative apps Best for SMBs & consumer Key Cloud service attributes Data Protection Data Privacy End-to-End service Proven track record Full Business Integration Mission critical approved Best for Corporate customers/mncs 5/7
6 Chart 2 Platform Infrastructure Desktop Business Apps Managed IT Portfolio Communication & Collaboration Security Cloud Connectivity Chart 3 3 rd party Apps secured and integrated by Deutsche Telekom Portal runs in secure Deutsche Telekom environment and is hosted in Germany Customer data handled in secure Deutsche Telekom environment Anonymous and encrypted usage of normally unsecure apps End-to-End service Data Protection Data Privacy 1-Click secure access to new Applications Privacy guaranteed Customer billing and financial data handled within DT environment Compliance with German and EU regulations 6/7
7 Chart 4 Deutsche Telekom supports partners on their way into the Cloud New go-to-market for partner products through Telekom Cloud Business Marketplace Developer and integration support Partner brand recognized as Telekom Cloud Partner Partner Advantage Stable, scalable and secure cloud platform for small and medium businesses Run your App in a trusted Cloud platform made in Germany operated and supported by Deutsche Telekom Customer billing and financial data handled by Deutsche Telekom Access to Telekom Cloud Partner Eco-System Contact: Deutsche Telekom AG Corporate Communications Phone: +49 (0) media@telekom.de 7/7
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