Global technology research firm OMDIA analyses the growth and strategic progress of Telefónica Tech, Telefónica’s digital business unit, in a recent report.
Telefónica Tech, created in 2019, has become a key component within Telefónica Group’s technology transformation strategy. OMDIA’s report outlines this and other key aspects of Telefónica Tech’s trajectory and continued dedication to innovation and excellence.
One of the main themes in OMDIA’s analysis is Telefónica Tech’s continued focus on becoming a leader in multicloud services for its enterprise customers. This goal aligns with Telefónica Tech’s mission to offer a full portfolio of digital products and services, including Cyber Security, Cloud, IoT and Big Data, Blockchain and Artificial Intelligence.
The firm points out that the inclusion of Oracle Cloud Infrastructure (OCI) in Telefónica Tech’s growing portfolio (Oracle’s first in Spain) is indicative of its commitment to providing its customers with the most advanced solutions.
Strategic investments and acquisitions
The OMDIA report also emphasises Telefónica Tech’s strategic importance within the Telefónica Group. Telefónica’s investments and acquisitions are increasingly concentrated in Telefónica Tech areas.
These include the acquisitions of Incremental, a Microsoft Dynamics partner in the UK and Ireland; and BE-terna, a Microsoft Dynamics partner in Germany and other markets. A strategy that confirms the relevant role of the digital business unit in driving Group transformation and growth.
Growth and strength in revenues
Telefónica Tech also increased its Group revenues contribution. Its share has grown from 3.3% in Q1 2022 to a solid 4.5% in Q2 2023, a trend that OMDIA acknowledges as an indicator of Telefónica Tech’s growing influence.
OMDIA’s report also remarks on the diversity and strength of Telefónica Tech’s revenues. Most of the Telefónica Tech’s revenue comes from services, with a focus on managed and professional services. Telefónica Tech also enjoys a strong presence in hard currency markets, where more than 85% of its revenues come from.
Service unification for a comprehensive offering
OMDIA analyses the unification in 2023 of Telefónica Tech’s Cyber Security and Cloud and IoT and Big Data business units. This strategic move positions Cloud services as a catalyst for IoT, Big Data and Artificial Intelligence solutions.
It also points out that Telefónica Tech has integrated Cyber Security across its entire portfolio, strengthening security in all its products and services.
Geographic expansion and a highly qualified workforce
Regarding geographical expansion, Telefónica Tech’s solid growth in the European market has received praise from OMDIA. It rates as a noteworthy achievement the closing of more than 4,500 new contracts in the Cyber Security and Cloud unit during the first quarter of 2023.
The company has also reported growing demand for IoT and Big Data solutions from key sectors such as utilities and industry, mobility, commerce, and the public sector.
OMDIA also highlights that Telefónica Tech’s workforce consisting of 6,200 professionals of which 80% are located in Europe, allows Telefónica Tech to have a highly skilled and specialised team of professionals. This contributes to its success and competitive advantage in the business market.
The recognition by OMDIA of Telefónica Tech’s achievements includes its importance in the transformation process of the Telefónica Group and its constant growth, which provides Telefónica Tech with the ability to consolidate its reputation and leadership position in the digital business services sector.
The full report, Digital Profile: Telefónica – 2023, Ari Lopes, 14 September 2023, is available here (subject to subscription).