Categories: Cloud, Enterprise

T-Systems bets on cloud services, sees U.S., Brazil as major markets


T-Systems, the corporate customer arm of Deutsche Telekom, is betting on cloud services. “In the next few years, companies will be buying through the cloud,” said Juergen Urbanski, vice president for cloud at T-Systems, during the Gartner Symposium in São Paulo.

T-Systems is focusing on private and hybrid cloud models, since the company does not believe enterprises should adopt public cloud for critical applications. “Public cloud will not have the largest share in the market; private and hybrid will,” Urbanski said.

Revenues from cloud services have already reached about €500 million (U.S.$645.4 million) from the company’s total revenues of approximately €10 billion (U.S.$12.9 billion), which represents a large share in Urbanski’s opinion.

Speaking with members of the press, Paul Warrenfelt, T-Systems’ vice president of sales for the Americas region, said the United States and Brazil are two of the top countries for T-Systems where the company sees tremendous growth opportunities. “They are very important for us, and they are our focus now. We had real growth over the last few years in both of them,” said Warrenfelt, adding that the company has  more employees in Brazil (about 2,200 people), but the biggest revenues have come from the U.S.

In answer to a question, Warrenfelt said that U.S. operations are twice as big as Brazil’s. “However, we are better positioned in the Brazilian market than in the U.S.,” he said.

As for forecasted growth, Warrenfelt said that worldwide, T-Systems expects to grow 2% to 3% this year, and in the Americas region (excluding global contracts) its business is expected to grow between 17% and 19%.

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