Cloud Services

T-Systems Kicks Cloud Butt

11:45 AM -- T-Systems International GmbH , the enterprise services division of Deutsche Telekom AG (NYSE: DT), has landed itself a significant cloud services deal with global tobacco giant British American Tobacco (BAT) worth more than €160 million (US$213 million). (See BAT Goes Cloudy With T-Systems.)

The deal, which will see T-Systems consolidate 10 data centers into three and provide services to 45 BAT factories in Asia/Pacific, Europe and North America, is worth noting because telecom service providers, it seems, are struggling to punch their weight in the cloud services sector. Traditional IT services giants are currently regarded as more trusted partners as enterprises edge their way into the cloud services market (usually with a small, non-critical part of their IT set-up).

There's no doubt that telcos have the assets that could make them the "go-to" companies for cloud services, with the likes of T-Systems, NTT Communications Corp. (NYSE: NTT), Verizon Communications Inc. (NYSE: VZ) and CenturyLink Inc. (NYSE: CTL) leading the way. (See Trusted Cloud Services Will Be Big in 2012 and Cloud Customers Get More Demanding.)

But it could be a few more years before enterprise IT leaders turn to them first.

— Ray Le Maistre, International Managing Editor, Light Reading

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