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The Spanish telecom company, Telefonica, signed a multi-year deal with cloud-services provider Oracle, to migrate most of its database to the cloud. The firms announced the deal on Monday in preparation for the use of IoT and 5G.

The telecoms company, which already used Oracle data systems, will transfer them to a fully cloud-based private platform supporting its internal and commercial operations, including billing, business intelligence, and customer management services.

The new platform will be operated by Oracle in Telefonica’s data centers to reduce operations costs, ensure security and be in compliance with European data laws.

A deal that will see Telefonica be ‘all cloud’

One source with knowledge of the deal said the companies signed a four-year deal to migrate all the Telefonica systems to Oracle’s public cloud. The private cloud is an intermediary step, the source added, between having physical machines to connect to, at first.

Telefonica’s Tech and IT Transformation director, Fidel Jesus Fernandez, said that the company needs to consolidate and simplify its technological structure, to build a more robust and scalable cloud platform in its own data centers to satisfy the changing business needs.

Time to change

The company has been feeling the pressure of a competitive, increasingly low-cost Spanish market and facing the high costs of rehauling its physical and digital infrastructure.

It is betting on accelerating digitization during the pandemic to get out of this position. Cloud computing has grown as businesses make the migration. The boom has seen companies like Microsoft, IBM, and Amazon grow at high rates.

However, the companies have also drawn scrutiny regarding the cybersecurity required to keep the data safe and potential regulations across different jurisdictions.