Reinhard Clemens talks about the industry 4.0 revolution and its impact on business processes and models.
Editorial

We’re different. And for good reason.

Reinhard Clemens, Member of the Board of Management Deutsche Telekom AG for T-Systems.
Photo: Mareen Fischinger/Deutsche Telekom AG
In an editorial two years ago, I announced our company’s biggest ever reorganization. And Experton Group’s Digital Transformation Vendor Benchmark 2016 is proof positive that this was the right move. It demonstrates that, from our customers’ perspective, our new structure, comprising the IT Division, the Telecommunications Division and the new Digital Division, is the right one. In a field comprising almost 600 IT service providers, we are among the leaders: an exclusive group of seven who offer outstanding strategic and tactical support for full IT/business transformation. Very few players can match us in terms of a truly complete portfolio of IT services for digital transformation.
A key differentiator of our end-to-end approach is the fact that we repeatedly and critically reassess the entire IT value chain to answer the question: what do our customers really need? And in what way do we need to reinvent ourselves to be ideally placed to drive business digitization? With regard to cloud services, technologies such as big data analytics, the security and speed of networks, and managed IT services, from data centers to client-side applications, we are always looking for opportunities to improve – if necessary, by doing things differently. Whenever and wherever it makes sense, we are willing to break with the old and embrace the new.
I would like to offer two examples of what I mean. Not so long ago, business data and the public cloud were seen as incompatible. The Safe Harbor agreement became synonymous with the insecurity CIOs associated with public clouds and their providers. And we believed the time was right to rectify this situation. As a result, we are launching our Open Telekom Cloud to coincide with the start of this year’s CeBIT. This is the first, and only, public cloud in the world to be hosted at a highly secure data center in Germany, by a German company, in accordance with this country’s strict data protection legislation. It will make infrastructure as a service affordable, safe, and easy to use.
This shows we have what it takes to be different. And we are also addressing the private cloud. It’s our conviction that longterm outsourcing agreements are passé. Customers need flexibility. We will start with Dynamic Services for SAP and SAP HANA. If, at the end of the intensive hypercare phase, new customers are not satisfied with their transformation to cloud computing, they should be entitled to cancel their contracts at any time, without citing grounds. Similarly, existing customers should have the right to terminate their contracts at short notice.
These are some of the ideas we are exploring in response to the evolving IT needs of digital-era businesses. And we have the ability to put them into action because we have more than a decade’s hands-on experience of cloud computing. We understand the technology, how to manage it, and how to integrate it with customers’ systems – from end to end. With the support of our quality assurance program: Zero Outage.
IT environments will only remain up and running if the right protection is in place. And trends such as the smart factory and the fourth industrial revolution compel us to give security greater weight than ever before. We need to find ways not only to safeguard our IT systems, but also the billions of machines and devices worldwide that will soon be connected to the Internet. As I see it, the answer lies in scalable, cloud-based security solutions. And in combining and consolidating our resources to repel cyber attacks – assaults on data centers, networks, our customers’ infrastructures and data. T-Systems, in partnership with our enterprise customers, is a major power in the security arena. Experton’s Security Vendor Benchmark 2016 names us leader on eight fronts, for example. But security demands all stakeholders join forces – from major corporations to SMBs to individual consumers. Against this backdrop, we have pooled all of our internal and external security skills and tools throughout Deutsche Telekom within a single business unit: Telekom Security. In the future, Telekom Security’s solutions will be marketed under the Magenta Security brand. And we have set our sights on becoming the European market leader in this space.
This issue of Best Practice considers the role our external partners and their market-leading technologies will play for us now and in the future, and why, for us, digital transformation means reorganization is an ongoing process. We hope you find it enjoyable and informative.

Best regards,
Reinhard Clemens