Deutsche Telekom launches public cloud service, bids to disrupt Amazon, Google

Deutsche Telekom, T-Systems, cloud

Deutsche Telekom has officially launched a public cloud service that it hopes will take the fight to Amazon and Google in Europe.

The service, called Open Telekom Cloud, enables enterprises to buy IT infrastructure, such as storage and security, on a pay-as-you go basis.

For example, access to a virtual Linux server is available for under €0.12 per hour.

The operator said the resources would be available “in a matter of minutes”.

Huawei is providing the hardware and “solution know-how” while T-Systems is providing the data centre and network, as well as cloud operation and management.

DT is touting its Germany-based data centre as a differentiator versus the likes of Amazon and Google.

It pointed out that any data processed would be subject to Germany's “strict” data protection law.

The service, which is based on Openstack architecture, is launching with SAP as a partner.

Deutsche Telekom CEO Tim Höttges said: "For our customers, whether major corporations or SMEs, this is an important new service for their digitisation - and an essential milestone for us in our ambition to be the No. 1 provider of cloud services for business customers in Europe."

The operator is aiming to double its revenue from cloud-based services for business customers by the end of 2018.

[Read more: Telcos must do more in bid to provide cloud services to SMEs]

Anette Bronder, Head of the T Systems Digital Division, said: “More and more customers are discovering the advantages of the public cloud. But they want a European alternative.”

The global public cloud services market is set to grow 16.5 percent this year, according to Gartner.

Andreas Zilch, from Pierre Audoin Consultants, said: "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.”

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