German Telecom Stock: Push from Google's Cloud Services
A Match Made in Cloud Heavens: Google and T-Systems Partner Up for Germans' Data
Google, the data titan, is forkin' over a billion euros to level up its cloud game in Germany, and they're doin' it with the help of T-Systems, Deutsche Telekom's sub. That's right, folks, this power couple's partnership is gonna give T-Systems a much-needed boost and help Deutsche Telekom maintain its spot as a top comms company.
Google's already got a huge data center in Frankfurt with their cloud division, and they're planning to build another one in Mittenwalde, south of Berlin. But they ain't exactly swimming in profits like their competitors, Amazon and Microsoft. So, to unlock the cheese in Germany, they're hoppin' on board with T-Systems.
"We're gonna team up with T-Systems," proclaims Google Cloud CEO, Thomas Kurian. "We'll serve customers from sensitive sectors, like finance and the German government, with the help of our new partner. So, we're investin' in this partnership."
T-Systems: Gainin' Momentum with Google
In the autumn of 2021, T-Systems and Google sealed the deal to construct sovereign cloud solutions for the public sector, enterprises, and healthcare in Germany. T-Systems reported that telecom companies are revamping their infrastructure to design new, cloud-based network models. In a joint project, they're testin' network services like 5G offers in Austria and solutions to improve data roamin'. They're also usin' Google Cloud's expertise in data analysis to understand their networks better.
T-Systems' system division, though it runs with fluctuatin' success, took a tiny dip in the first half of 2022. However, there's growth in the Digital Solutions portfolio unit by 10 percent.
Stateside Success and Future Growth
Digital solutions in collaboration with Google could be just the ticket for T-Systems to gain some speed. The profit from the telephone and mobile business in the USA has already jumped by 9.3 percent to 12.5 billion euros in the first half of 2022. And the German domestic business saw a growth of 3.3 percent to 4.8 billion euros. Deutsche Telekom will be sharin' fresh numbers later this week.
All in all, Deutsche Telekom looks primed for future growth. And with the system division gainin' some momentum from the Google cloud, the future's lookin' even brighter than Google's search results.
Behind the Scenes Insights
- Google and T-Systems are teaming up to offer secure cloud solutions, complying with EU data sovereignty rules.
- T-Systems plans to build five new data centers, while Google leverages their local expertise to strengthen their Frankfurt and Berlin cloud regions.
- Deutsche Telekom is using Google's AI models to improve network management and customer-facing apps, while migrating SAP systems and IT infrastructure to Google Cloud.
- The partnership grants Google long-term revenue and access to Deutsche Telekom's enterprise customer base in Europe, while T-Systems expands its managed services revenue.
- The team's collaboration strengthens Deutsche Telekom’s position as a digital transformation leader in Europe and solidifies Google Cloud’s foothold in the EU’s growing sovereign cloud market.
- Google, in partnership with T-Systems, will offer secure cloud solutions adhering to EU data sovereignty rules, investing €1 billion for expansion in Germany operating within sensitive sectors such as finance and government.
- The alliance will support T-Systems as they construct five new data centers, harnessing Google's expertise in data analysis and network services like 5G provisioning and data roaming.
- In the first half of 2022, despite a slight dip in the system division's revenue, growth was seen in T-Systems' Digital Solutions portfolio, bolstered by their collaboration with Google.
- Strengthening Deutsche Telekom's digital transformation leadership in Europe, this collaboration solidifies Google Cloud's foothold in the EU's growing sovereign cloud market, increasing their long-term revenue prospects and access to Deutsche Telekom's European enterprise customer base.
- The team's joint initiatives include migrating SAP systems and IT infrastructure to Google Cloud, utilizing AI models to improve network management and customer-facing apps, and scaling 5G network services for customers regionally.
