Why are alliances between operators and cloud giants multiplying?


Technology giant Oracle announced on Thursday that it is strengthening its relationship with Spanish operator Telefonica to expand its cloud computing business in Spain and the wider market that Telefonica serves. The new agreement has two parts: first, Oracle and Telefonica will jointly offer cloud computing applications and platforms to enterprises and public sector organizations. Next, Telefonica will serve as the hosting partner for Oracle’s future cloud region in Madrid.

This is not the first time that the American giant has partnered with operators to expand its cloud computing activities around the world. As a reminder, at the beginning of October, the latter entered into a large-scale partnership with Orange to develop cloud services in several West African markets. Oracle also has similar relationships with Italian carrier TIM, Indian carrier Bharti Airtel, and other international telecommunications companies. The company currently has 37 cloud computing regions in 20 countries.

As Oracle opens new sites, it is getting closer to telecommunications operators, who can help it comply with local data governance rules and help it connect with their workforce. client companies at local, regional and national level. In addition, carriers are big cloud customers themselves, all the more so in the age of 5G and the many business opportunities that the next generation of mobile technology enables (and will enable).

A key role

For example, Telefonica España recently signed a multi-year agreement to migrate its critical business and operational systems to Oracle Cloud Infrastructure. It is also building its new communication services for individuals and businesses on OCI. Oracle’s approach to the cloud reflects “a trend that we’re starting to see,” Leo Leung, vice president of Oracle Cloud Infrastructure, told ZDNet. “It’s less about having a handful of very large hyperscalar regions and more about having a footprint in every country. Spain is just the latest example. »

Oracle’s hybrid and multi-cloud strategy therefore aligns with Telefonica’s goal of hosting customer data regionally or in-country when possible and giving customers cloud services that meet their data needs. matter of data sovereignty.

In addition to meeting regulatory requirements, hosting data locally has clear latency and performance benefits. Above all, the alliance between Oracle and Telefonica speaks volumes about the increasingly strategic interest that telecommunications operators represent for the cloud giants in their search for closer ties with national customers.

Source: ZDNet.com





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