Sunday, October 22, 2017

Sources. Telefonica turns to German rival to expand cloud capacity

Company taps into data centre which is set to be expanded to cope with the telco’s need for more cloud power.

Brazilian telecommunications and cloud provider Telefonica Vivo, a business arm of Telefonica, is expanding its services in the South American country and is seeking more data centre space to support its growth.

According to local reports, the company has turned to T-Systems in its search for more data centre capacity.

However, T-Systems is a Deutsch Telekom company, rival of Telefonica. Both Telefonica, through Vivo, and Deutsch Telekom, through T-Systems, provide cloud services in Brazil.

People familiar with the matter confirmed to news source Baguete that Telefonica was indeed turning to Deutsche Telekom’s T-Systems to expand its cloud services reach in the local market.

Both Telefonica and T-Systems declined to comment.

In the meantime, T-Systems has announced an expansion plan for its Barueri T-Center data centre in São Paulo worth $6.4m.

According to Baguete, the client for which T-Systems is building out the data centre plans to move 100% of its data analytics to the site.

The expansion is said to help grow the client’s ability to serve small and media enterprises. However, core applications are to remain on Telefonica’s Vivo cloud.

The Tier III data centre was originally opened in 2011 with a 6.500 sqft capacity and an investment worth $16m.

Since then, a further $8m have been invested into the facility which counts today with 19,375 sqft of hosting space and 50 clients including BAT, Shell and Thyssengroup.

A further $3.2m have been invested in the last two years to improve security and power efficiency, according to Guilherme Barreiro, head of global delivery unit, dynamic platform services at T-Systems.

Barreiro added: “On top of all this, our business plan for the next four years already looks at possible future expansion.”