Telefonica beefs up cloud cred with Altostratus acquisition

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Altostratus CEO Daniel Aldea said in a statement the deal “completes a journey that began more than five years ago so that we could become the leader in Google Cloud services in Spain. (Image by Engin Akyurt from Pixabay)

Telefonica sought to bolster its cloud position, announcing its Telefonica Tech division inked a deal to acquire Spain-based migration and multi-cloud specialist Altostratus Cloud Consulting.

The consultancy has been a Google Cloud Premier Partner in Europe since 2019, and currently serves more than 300 customers. Through the deal, Telefonica said it will gain expertise in consulting, implementation, migration and managed public cloud services, as well as custom big data and machine learning solutions for enterprises.

Amdocs recently made a similar play for a consultancy, scooping up Canadian cloud transformation specialist Sourced Group for $75 million. The financial terms of Telefonica Tech’s deal with Altostratus were not disclosed.

Altostratus’ employees will join Telefonica Tech. In a blog, Altostratus said the company will “maintain its autonomy within the Telefonica Group,” operating under the oversight of CEO and founder Daniel Aldea.

Aldea said in a statement the deal “completes a journey that began more than five years ago so that we could become the leader in Google Cloud services in Spain. We consider it a natural step in our relationship with Telefónica after several years of working together with our customers in their digital transformation process." 

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The acquisition is Telefonica’s latest move to deepen ties with cloud players. The operator launched its cloud, big data and security-focused Telefonica Tech arm in late 2019, and in February 2020 tapped Microsoft as a strategic cloud partner. A few months later in June it inked a partnership deal with Google Cloud to fuel its internal digital transformation and jointly develop edge solutions.

In April 2021, Telefonica announced it had integrated its cloud services subsidiary Acens, which it acquired in 2011, into the Telefonica Tech unit.