Deutsche Telekom and Microsoft have signed a deal that sees the operator’s enterprise arm control access to some of the computing company’s customer data.

Microsoft plans to offer its Azure, Office 365, and Dynamics CRM Online products from two datacentres in Germany in the second half of 2016.

While the US-based company will provide operational and technical support, T-Systems will be responsible for controlling access to customer data.

Businesses will be asked to sign an amendment to their Microsoft contract customers enabling T-Systems to act as the Data Trustee.

Under the contract, Microsoft will have no access to customer data unless granted by T-Systems or customers.

The news comes a month after the European Court of Justice declared that the Safe Harbour ruling, which enabled US companies to comply with European privacy laws, was invalid.

Further, DT has made it clear it wants to challenge the power of Amazon and Google in the cloud space by providing a European alternative.

It has set a target of more than doubling the revenue it gets from cloud services currently – €1 billion per year – by the end of 2018.

Anette Bronder, Director of T-Systems’ Digital Division, said: "Together with Microsoft, we see a big opportunity for the two leading enterprise-service providers to generate growth in Europe.

"We will assume the role of Data Trustee for Microsoft’s customers' data.

“Through our partnership Microsoft’s customers in Germany and Europe will soon be able to choose a new degree of data protection that complies with the requirements of

German business enterprises and many public sector customers.”

[Read more: Q&A with T-Systems’ Managing Director of Telecommunications]

According to Alex Stüger, Area Vice President for Microsoft Germany, over 80 percent of the Fortune 500 are using Microsoft’s trusted cloud services.

He said: "We’re excited to partner with Deutsche Telekom to provide our customers enterprise-grade, trusted, cloud services, with a unique Data Trustee model that is optimized for the requirements of our German customers."

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