Telefonica teams with Oracle to speed cloud transition

Telefonica Spain inked a multi-year deal with Oracle to speed the migration of its business operations to the cloud as part of a bid to increase agility and boost its ability to launch new digital services.

Under the agreement, Oracle will deploy and manage an on-premises version of its Exadata Cloud Service in Telefonica’s data centers. This will allow the operator to consolidate its mission-critical systems while also meeting data residency and latency requirements.

Telefonica said in a press release it plans to transition most of its Oracle database systems to the new platform, as well as its OSS and BSS applications, business intelligence systems, CRM, billing and revenue management systems.

Fidel Jesús Fernández, director of Technologies and IT Transformation at Telefónica Spain, said in a translated statement “we need to consolidate and simplify our technological infrastructure to become more agile and adaptable, and this is where our collaboration with Oracle comes in.” He added Oracle’s solution will provide “the flexibility we need to build a robust and extensible cloud platform in our own data centers that is scalable and elastic to meet the changing needs of our business."

The Oracle news follows Telefonica’s announcement last week that it selected IBM to supply software and services for the operator’s first-ever cloud native 5G core network platform. At the time, the operator said the platform would utilize IBM Cloud Pak for Network Automation, Red Hat OpenShift and Juniper Networks’ Apstra and QFX technology.

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Oracle currently trails Amazon, Microsoft, Google, Alibaba, IBM, Salesforce and Tencent in the cloud infrastructure market, according to recent data from Synergy Research Group, but has been working to grow its cloud business and boost its market share.

In its fiscal Q1 2022 (the three months ending August 31, 2021), Oracle's overall revenue grew 4% to $9.7 billion. Cloud services and license support revenues increased 6% to $7.4 billion, while cloud license and on-premise license revenues fell 8% to $813 million.