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Telefónica Tech signs big Oracle cloud services deal

Telefónica Tech signs big Oracle cloud services deal

IT managed services firm Telefónica Tech and Oracle are to jointly offer cloud platform-as-a-service and applications to enterprises and public sector organisations across telco Telefónica's global customer base.

The services will be delivered through a partnership that will enable Telefónica Tech to offer Oracle Cloud Infrastructure (OCI) services as part of its portfolio, as well as support clients through professional and managed services.

Telefónica Tech has a team of over 3,000 IT pros and provides services to Telefónica Group’s 5.5m B2B customers in 175 countries.

To support the increasing demand for cloud services in Spain, Telefónica will also become the host partner for the Oracle Cloud Madrid Region. The new region will be designed to provide Spanish businesses and public sector customers with a “broad and consistent” set of cloud services with low latency and tight security.

It will also help customers address their in-country data residency and compliance requirements. The Madrid region is Oracle’s first in Spain, and one of at least 44 cloud regions Oracle plans to have open by the end of the year.

“With Oracle Cloud Infrastructure, we are complementing Telefónica's cloud services offering with a platform that has seen strong growth over the last year, as customers all over the world use it to run their most mission-critical workloads in the cloud,” said Albert Triola, SVP and country leader for Oracle Spain. “Our partnership also comes at a propitious moment for Spain, with the ongoing application of EU recovery funds to boost cloud adoption and business competitiveness in the country.”

“One of the key drivers for success in the cloud market is to help our customers in their digital transformation by offering a complete and differential portfolio with the support of reference partners,” said María Jesús Almazor, CEO of cyber security and cloud at Telefónica Tech. “This agreement with Oracle will allow us to expand our cloud services and strengthen our strategic positioning in PaaS, as well as reinforce our value proposition in databases and middleware applications with one of the market leaders.”

Oracle and Telefónica España recently announced a multi-year agreement to migrate the operator’s mission-critical commercial and operational systems to Oracle Cloud Infrastructure, and accelerate the development of new communication services for consumers and businesses.

Since October last year, Oracle has entered into similar agreements with Telecom Italia, India’s Bharti Airtel and Orange Africa, all telcos who are growing their digital and cloud service businesses, in a market that analyst house IDC expects will be worth $1 trillion by 2024. This total covers worldwide spending on cloud services, the hardware and software components underpinning cloud services and the professional and managed services opportunities around them.

The above telcos have also agreed to migrate their critical systems to Oracle Cloud Infrastructure.

Last December, Oracle opened new cloud regions in Stockholm, Sweden and Milan, Italy.