T-Systems Announces Completion of Data Center Consolidation

BERLIN, GERMANY — T-Systems, the German global IT services and consulting division of Deutsche Telekom which has been operating at loss in recent months, has announced via a press release (originally written in German) the completion of their previously announced major data center consolidation. T-Systems’ number of data centers around the earth has decreased to a low of 13, down significantly from their one-time tally of 89.

This is the most recent chapter in the highly publicized re-structuring of T-Systems under the helm of Adel Al-Saleh, a recent addition from Deutsch Telekom meant to turn around the struggling organization in the last year. Deutsche Telekom placed a wealth of blame on T-Systems for the conglomerate’s disappointing earnings in 2018.

The consolidation follows the downsizing of staff (from 37,000 to 10,000); an exit from 90% of the cities T-Systems has a footprint in (out of 100); as well as the sale of its mainframe business to IBM for almost $1 Billion USD (the deal alone included 400 employees). About the sale, T-Sytems provided a short quote to Reuters, declaring that “Existing customer contracts remain unaffected. T-Systems will continue to offer mainframe services, but with IBM in the future.”

T-Systems also mentioned in the press release that their infrastructure has increased storage and server capacity by 25% while decreasing greenhouse-gas emissions from data centers by 56%. Deutsche Telekom expects to save hundreds of millions of euros thanks to the restructuring.

The bulk of the data center consolidation happened within the tech giant’s home country of Germany (60%), and in the German press release, the firm touted their “twin” data centers model, which ensured reliability and uptime during the process of migration and relocation. Perhaps the biggest beneficiary, from a business standpoint, of the consolidation is T-Systems’ recently opened modular data center in the Saxony-Anhalt region, named Bierre II and also “the house of Clouds.”

Roughly translated, T-Systems’ Head of IT Production, Jörn Kellermann boasted of his firm’s ability to transform their business operations without sacrificing their quality of customer service.