Deutsche Telekom continues aggressive business strategy: T-Systems breaks with conventional outsourcing models

• Growth with classic IT services
• Working motto for CeBIT 2016: "Making digitalization simple."

T-Systems, Deutsche Telekom's business customer arm, will continue its aggressive pursuit of business customers in 2016. After cementing new cloud computing partnerships with Huawei, Microsoft and Cisco, the ICT service provider is now going on the attack in classic IT business as well. With its new "Run on Satisfaction" offering for SAP, the outsourcing specialist promises completely satisfied customers and the possibility to switch to T-Systems risk-free, with flexible contract obligations.

Breaking with familiar models in the outsourcing market
Multi-year contracts for large IT projects are the standard in the industry. Effective immediately, T-Systems offers corporate customers the right to terminate the contract if they are not satisfied with the agreed performance and features just three months after migration is completed. As the first in a series of offerings, "Run on Satisfaction" for dynamic SAP services and SAP HANA breaks with outdated models in the outsourcing market, making it simple to switch to IT solutions by Deutsche Telekom. At CeBIT 2016, from March 14-18, T-Systems will continue this series and present additional new models.

"Classic IT services continue to promise growth," says Dr. Ferri Abolhassan, Managing Director of T-Systems and head of the company's IT Division. "We want to shake up the market and serve the changing needs of the digital age." The most important trend: instead of conventional outsourcing models, in which an IT service provider simply takes over a customer's activities and technologies largely unchanged, the Deutsche Telekom approach involves transformation to new, more efficient and standardized IT platforms. "We now guarantee the success of these modernization activities," says Abolhassan.

Over the past two years, T-Systems has thoroughly reworked its business model. With the IT Division, TC Division and Digital Division, Deutsche Telekom's corporate customer arm has positioned itself as a partner for the digitalization of business.

Motto for CeBIT 2016: "Making digitalization simple."
Deutsche Telekom is also making this "new simplicity" the center of its presentation at this year's CeBIT, the international information technology trade fair. Under the motto "Making digitalization simple," the Group will present specific solution elements for the digitalization strategies of its commercial customers, from small business to major corporation. According to surveys, 71 percent of IT decision-makers feel overwhelmed by the complexity of the Internet of Things. Nearly everyone knows that they have to do something, but only a few of them are actually doing anything.

In response, Deutsche Telekom not only wants to portray the chances and opportunities that digitalization offers, but also show practical examples of how digitalization can work in specific industries, such as retail and the automotive sector. The trade fair presentations will also focus on the areas of cloud computing, connectivity and IT security. Deutsche Telekom has already announced the launch of the Open Telekom Cloud with Huawei, its partner, planned for March 14, 2016. Through this partnership, Deutsche Telekom will offer computing capacity from the public cloud. With this step, the company is entering a market segment that up to now has been dominated by U.S. Internet companies.

With a stand area of more than 5,000 square meters, Deutsche Telekom is the largest single exhibitor on the fairgrounds in 2016. Last year, CeBIT was attended by some 220,000 visitors from 100 nations. More than half of them stopped by Deutsche Telekom's stand.

About Deutsche Telekom
Deutsche Telekom is one of the world’s leading integrated telecommunications companies with around 151 million mobile customers, 30 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2014). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in more than 50 countries and has approximately 228,000 employees worldwide. The Group generated revenues of EUR 62.7 billion in the 2014 financial year – more than 60 percent of it outside Germany.

About T-Systems
Deutsche Telekom considers the European business customer segment a strategic growth area. Deutsche Telekom offers small, medium-sized and multinational companies ICT solutions for an increasingly complex digital world. In addition to services from the cloud, the range of services is centered around M2M and security solutions, complementary mobile communications and fixed network products, and solutions for virtual collaboration and IT platforms, all of which forms the basis for our customers' digital business models. With approximately 47,800 employees worldwide, T-Systems generated revenue of around EUR 8,6 billion in the 2014 financial year.