Speeding up the pace of digitalization through cloud enabled business - three customer cases
The market for transferring operations into scalable and flexible cloud environments is growing fast. Currently, cloud services are more or less a standard part of all new offers as customers seek ways to reduce the total cost of ownership. Due to greater automation, we are able to deliver secure services with high quality and superior user experience at competitive prices.
In 2014, Tieto revenues from cloud services grew by over 150% compared with the previous year. This was driven by sales of our enterprise cloud offerings, such as Tieto Cloud Server and Tieto Productivity Cloud, and the fact that transformation to cloud has become an essential part of any outsourcing case for our customers. Cloud business is currently the fastest growing area in Tieto, and by 2020, around 80% of Managed Services revenues are expected to derive from cloud.
To elaborate the benefits, cloud can offer, we illustrate here three different types of cloud offerings provided to our customers S Group, If and Vattenfall.
New level in cost efficiency and flexibility for S Group
Biggest Finnish retailer S Group chose Tieto to be one of its main partners for data centre and capacity services. Tieto and S Group have worked together since 1990s and expanded the cooperation further to infrastructure services with the agreement. The multiyear agreement represents a significant value. Tieto will provide S Group with standardized modern services using the benefits of Tieto's latest cloud and hybrid solutions.
"Our target is to achieve a new level in cost efficiency and flexibility by managing and producing the IT services in a new way. Tieto's wide portfolio of services answered well to our needs", says Marko Myllyniemi, CIO, SOK IT Services/Infrastructure.
Tieto got renewed confidence from If
After ten years of collaboration, If Insurance extended its IT infrastructure agreement with Tieto for the third time. The new contract runs for four years with an option for two more.
"The digitization means an increased demand for more personalized services that can be brought to the customers at a faster pace. We believe that Tieto is the right partner to help us improve and develop our business", says Kjell Rune Tveita, CIO at If.
With the new agreement, If gets access to modern and cost-effective cloud services with a flexible pricing structure. The foundation of the new solution is the Tieto Productivity Cloud which includes a Microsoft software suite for customer management, business intelligence, and Office. Delivery will be made via private, hybrid and central cloud solutions.
Vattenfall selected Tieto to deliver new Industry Cloud solutions
Energy company Vattenfall selected Tieto to deliver its Energy Utilities Industry Software as a Service solution (SaaS) for Vattenfall Finland. Tieto will deliver the latest cloud solutions to support Vattenfall´s retail business in the Finnish market. The initial contract duration is five years with an option for two additional years.
The service solution is specially designed for the Nordic retail business and includes support for core business processes such as CRM, sales, digital online services and billing. It provides true scalability while meeting the strict security requirements by leveraging Tieto's private cloud platform delivered from its data centres in the Nordic countries.
The new solution is continuously adapted to current and future Nordic electricity market regulatory requirements. The service will commence in 2015.
The Industry SaaS is the future business model for retail companies. It enables them to scale their core operations and make the cost predictions they need to ensure their competitiveness in the market. Tieto is the front-runner of this development and fully committed to the journey of Nordic market harmonization.
See what cloud can do for your organisation.