Open Telecom Cloud launches
So let's get into the products and projects we have had together with Huawei. I want to thank you again for asking me to be here at this huge conference. Huawei and T-Systems started our partnership about two years ago, talking about how we can really access the cloud business with a new product called the Open Telecom Cloud, which is a simple, secure and affordable public cloud platform for the international market. I will come to that in a couple of minutes.
Let me just highlight why this partnership is so important and so successful. On the one side, Huawei Technologies Co. Ltd. is an undefeated player and one of the biggest players in terms of competencies like IT hardware, data center networks, storage, IoT, big data, mobile and all of those things being converged in a cloud go-to-market model. Huawei also has a very strong footprint in the Asia Pacific. I think an expansive worldwide approach is one of the big pluses of having Huawei working with Deutsche Telekom.
On the other hand, Deutsche Telekom AG (NYSE: DT)and T-Systems International GmbH are market leaders in telecommunications from a carrier and network perspective in Europe, and also we are the number three brand in the US with our mobile business. In terms of cloud, over the last five years, we always have been the top player in private and hybrid clouds in Germany and Europe. So working with hundreds of large companies, such as Shell, BMW, Bosh, SAP and Allianz, allows us to leverage our public cloud business from this a very strong starting point and also from this strong positioning.
We have set a very ambitious goal for ourselves: Entering the public cloud market and competing against the big established competitors. So we set the target of getting 20% of the market share within the next five years in Europe, and then extending that business on a worldwide basis.
According to those huge targets over the last 365 days, I just try to do a quick recap of what had happened last year in Shanghai, and this year in Shanghai again. For the Open Telecom Cloud, let me just give you two impressions.
We signed the contract on the board level in October 2015, so this was just one year ago. Then we finalized the product for the Open Telecom Cloud in just a couple of months. All of you know how dynamic and complex this market is. You can imagine how fast these development and go-to-market cycles were. We briefed to the entire press in Europe and analysts before the launch, and trained over 2,000 sellers and account managers and experts within our corporation. We had a huge pre-launch already in 2015 in Europe, spending millions of euro together with Huawei entering that market.
This has been topped by a significant -- I would say -- the biggest product launch during the last couple of years. At CeBIT 2016, which is the biggest IT expo in Germany, this was the major product launch. There we had (Huawei CEO) Eric Xu and (Deutsche Telekom CEO) Timotheus Höttges as the CEOs that jointly introduced the Open Telecom Cloud to the customers, the press and analysts.
After that, we had a mega world advertisement and online PR push just to give you some impressions about the level of activity and spending we had to really make the Open Telecom Cloud known, recognized and successful. I think the most important aspect of all is that you have full top management attention, and this is what we are having with Huawei and T-Systems. So we are in every boardroom regarding the top management and executive levels for the Open Telekom Cloud. This is one of our top priorities.
Now we need to look forward into the next steps, next moves, next roadmaps and topics we are developing. The race is on. We have a very competitive offering in the market, being positioned as a simple-to-use provisioning platform. It is highly secure, that's another important thing, especially in the large enterprise market, and this is something we have been leveraging, especially in Germany with data, compliance, standards and requirements. And finally, it is affordable. Due to this big partnership and cooperation, we are able to undercut existing prices of competitors on a regular basis, and we will continue to do that.
On the other hand, it will go onwards, with a couple of next things and features that are coming. We are not thinking in the standardized big release cycle. We are developing more agile processes and having new orderly release cycles. So we are pushing the next steps, which will be the extended cloud container engine.
We have already brought this up with the current releases, but we will continue extending that container engine. We are going to have RDS, TPU and VTPU services. SAP will provide support in terms of the HANA cloud platform, and SAP Sweep will come in the fiscal year 2016, dedicated to provide cloud support and bandwidth-as-a-service, because this is a big thing we can use as a carrier on the one hand, and on the other hand as a system integration house bringing together both strengths and opportunities. Migration-as-a-service and virtual-desktop-as-a-service will come in 2017. And also we are discussing – this is not an official announcement – international extension in terms of availability zones and data centers in the Asia Pacific as well as in the US and Americas.
There is quite a lot going on, and I just came out of a meeting with Huawei where we talked about additional features and being very driven by customer requirements and meeting them. I said at this meeting: "There is no fixed dedicated roadmap. This also goes down to this new digital DNA, processes and leadership. You have to move fast and be flexible like big companies like Deutsche Telekom and Huawei."
The cloud, the change and the new culture. I would say it is on. And also the Deutsche Telekom cloud is. There are big opportunities for everybody and this huge market.
And last, I would like to quote a saying: "When the winds of change blow, some people build walls while others build windmills." Let's build big windmills, especially IoT-connected windmills, hopefully. And let's take our customers through the cloud above. Thank you!
— Mike Robuck, Editor, Telco Transformation