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T-Systems targets Amazon cloud customers

Deutsche Telekom's IT services division plans to take business from Amazon with a cheaper public cloud that guarantees users' data stays in Germany

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T-Systems is targeting customers in Europe with public cloud that is cheaper than Amazon Web Services' and guarantees data stays in Germany.

Customers can use the infrastructure as a service, with a price tag which T-Systems said is 15% lower than Amazon, or they can receive services on top through T-Systems.

The datacentres for the Open Telekom Cloud are in Germany and all data falls under German privacy law, which is stricter than EU law. Large companies have already approached T-Systems because they want their data to be in Germany rather than the US.

The public cloud service has been piloted by customers and Cern, the particle research organisation, has become its first customer.

T-Systems uses the communications network of its parent company Deutsche Telekom and the low-cost infrastructure hardware of Chinese supplier Huawei to underpin Open Telekom Cloud, which was launched at the recent CeBIT technology event in Hannover.

Cern will use 1,000 simultaneous virtual machines and associated cluster storage of more than 500 Terabyte, for a three month period.

Helge Meinhard in the Cern IT department said: “This contract will allow us to further our understanding of the practical steps needed to integrate commercial cloud services into our physics workflows by increasing the scale of the resources being integrated with the private cloud resources of Cern.”

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T-Systems UK managing director Christoph Rode said the company is targeting European customers of Amazon. He said many of T-System’s existing customers use Amazon cloud services, and the company will look to convert them to its public cloud.

He added that the advantages of the Open Telekom Cloud are its lower cost per usage, the fact that it is simpler to set up virtual machines and because data stays in Germany. The cloud uses OpenStack open source infrastructure as a service.

Separately T-Systems is offering customers its cloud-based SAP service, with the option of ending the contract after six months if they are not happy – without penalty charges.

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