Deutsche Telekom takes on U.S. data center outsourcing leaders with major U.S. hospital deal
Germany's Deutsche Telekom is taking on U.S. data center outsourcing market leaders CSC (NYSE: CSC), Dell (Nasdaq: DELL), HP (NYSE: HPQ) and IBM (NYSE: IBM) through a major 10-year data center outsourcing deal with Presbyterian Healthcare Services.
Under the agreement, DT's T-Systems unit will move Presbyterian's existing data center operations, located in Albuquerque, New Mexico, into the cloud.
Approximately 40 Presbyterian IT employees will transfer to T-Systems and will remain at the hospital's Albuquerque facility. The data center operations will move to T-Systems' Houston facility as part of the contract.
T-Systems and Presbyterian also plan to create a new Albuquerque-based Center of Excellence for Health Solutions, which will focus on the development of new healthcare IT tools and technologies for healthcare practitioners to test.
"Together with Presbyterian we will work on new IT solutions for the health industry by bundling the required skills and competencies into a dedicated center. The result will be an overall enhancement to healthcare services through mobile solutions for healthcare professionals and health applications for patients," said Reinhard Clemens, chief executive officer of T-Systems.
The data center outsourcing market is predicted to increase at a 4.7 percent compound annual growth rate (CAGR) through 2015, according to TechNavio.
A key factor contributing to the predicted growth is the need to improve computer resource usage, according to the firm. At the same time, data security concerns could pose a challenge to that growth.