The telco consolidates cloud offerings under sovereignty-focused platform but European market share continues to tread water
Deutsche Telekom will unveil its new T Cloud offering at Digital X in Cologne on 10 September, positioning the platform as a response to growing European demand for digital sovereignty amid increasing concerns about dependence on US technology providers.
The launch comes as European cloud providers face mounting challenges in their home market. According to Synergy Research Group data published in July, European service providers have seen their market share drop from 29% in 2017 to around 15% today, even as they more than tripled their revenues over that period. Amazon, Microsoft and Google now control 70% of the €61 billion European cloud market.
“T Cloud is the answer to Europe’s call for greater digital self-determination,” said Ferri Abolhassan, CEO of T-Systems and member of the Telekom Board of Management. “T Cloud combines all of Telekom’s cloud expertise in individually combinable packages – for digital sovereignty, security, and economic transformation.”
The timing of the T Cloud launch aligns with Deutsche Telekom’s broader sovereignty push. This month, the operator appointed Christine Knackfuß-Nikolic as T-Systems’ first chief sovereignty officer, a newly created role focused on developing solutions to address customer sovereignty challenges across the Deutsche Telekom portfolio.
“The call for digital sovereignty is growing louder. Due to geopolitical uncertainties, more and more companies in Germany and Europe are demanding sovereign cloud solutions. They want to free themselves from dependence on hyperscalers and regain control over their own data,” Abolhassan said when announcing that appointment.
Multi-cloud approach
T Cloud consolidates Deutsche Telekom’s various cloud services under a single umbrella, pursuing what the company describes as a multi-cloud approach rather than closed systems. The platform integrates hyperscaler cloud solutions, consulting services, and Telekom’s own cloud infrastructures into what it calls a seamless partner ecosystem.
The T Cloud portfolio includes four main components:
- T Cloud Service: Customer support for solution selection and migration assistance
- T Cloud Public: European public cloud solutions operated from certified data centers in Germany, the Netherlands, and Switzerland
- T Cloud Private: A private cloud platform focused on SAP application migration and digital transformation
- T Cloud AI: An Industrial AI Cloud developed in cooperation with NVIDIA, launching in 2026
“T Cloud offers security in line with European standards – GDPR-compliant, certified, and transparent. It protects sensitive data and builds trust as the basis for digital self-determination,” added Rodrigo Diehl, head of Telekom Deutschland and member of the Telekom Board of Management (above).
Sovereignty levels
The platform allows customers to choose from three levels of sovereignty based on their industry requirements and regulatory environment: Data sovereignty – complete control over data; Operational sovereignty – independent control of critical infrastructure and processes; and Technology sovereignty – independent development and control of key technologies.
Despite the sovereignty focus, T Cloud faces the same fundamental challenge as other European providers: competing against US companies that collectively invest €10 billion every quarter in European infrastructure. Amazon, Microsoft and Google now operate over 140 hyperscale data centers across Europe.
“While European cloud providers have been growing and some will no doubt continue to grow, none come remotely close to challenging the big US cloud providers for leadership of European markets,” said Synergy Research chief analyst John Dinsdale when they realised their report in July. “That train left the station years ago and there were no European companies on it.”
Existing sovereignty solutions
Deutsche Telekom already offers some sovereignty-focused services, including External Key Management (EKM) alongside its Data Protection as a Service for AWS users. In this setup, T-Systems operates key management infrastructure from EU-based data centres separately from Amazon’s systems, ensuring encryption keys remain under European control while customer data stays within European borders.
Similar approaches are emerging across Europe. LuxTrust partners with Thales and DEEP by POST Group to provide Key Management as a Service from Luxembourg, while OVHcloud has secured SecNumCloud certification from France’s cybersecurity agency ANSSI.
Lars Neumann, head of T Cloud, emphasised the economic rationale behind the platform: “T Cloud combines economically viable cloud solutions for medium-sized and large enterprises. It combines digital sovereignty with investment security and sustainable benefits – locally anchored, globally connectable, tailored to the needs of the customer.”
According to Synergy’s research, Deutsche Telekom currently holds approximately 2% of the European cloud market, tied with SAP as the leading European provider. However, both companies remain far behind the US hyperscalers in market presence and infrastructure investment.
