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DEUTSCHE TELEKOM OPEN TELEKOM CLOUDPOWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-basedPublic Cloud in Europe

EXECUTIVE SUMMARYAccording to Gartner, Inc., the worldwide public cloud servicesmarket is projected to grow 17.2 percent in 2016 to total 208.6 billion, up from 178 billion in 2015. The highestgrowth will come from cloud system infrastructure services(infrastructure as a service [IaaS]), which is projected to grow42.8 percent in 2016. [1]It is undeniable that public cloud IaaS offerings are rapidlygaining acceptance among enterprises as a replacementor compliment to existing on-premises hardware for ITinfrastructures. While big US public cloud service providers arethe ones which have initiated and grown public cloud services,they face challenges in expanding their market outside ofUS, especially in Europe due to data sovereignty and securityissues. We are seeing a trend that telecommunication serviceproviders such as Deutsche Telekom and other first tier orsecond tier telcos outside of US are starting to provide IaaS tocompliment and to add value to their existing telecom services.Enterprise customers would prefer to use a telco operatedpublic cloud service provider due to the reasons of security,cost, convenience, localization, and trust.Open source has been a significant trend in ICT innovation.OpenStack, an open source cloud operating platform, hasachieved tremendous success and adoption in the developer,user, and vendor communities. Both Huawei and DeutscheTelekom are strong supporters and contributors in OpenStack,and are using OpenStack as one of the core technologies fortheir ICT innovation.Deutsche Telekom and Huawei have formed a partnershipto build and to operate the first large scale, multi-nationalOpenStack-based public cloud in Europe - Open TelekomCloud, launched in March 2016, initially focusing on theEuropean market, with the plan of going global in the future.Based on OpenStack, Open Telekom Cloud enables userand developer organizations to use cloud services for theirinnovative R&D and business needs and avoid vendor lock-in. Italso meets the European legal requirements for IT operations,e.g. data protection and other compliance issues.T-Systems (the global IT services and consulting arm ofDeutsche Telekom) operates Open Telekom Cloud in twoavailability zones (AZ) at data centers in Magdeburg and Biere.1. SOURCE: E TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in EuropeThese are twin-core, tier 3 facilities located 25 kilometersapart. They are connected via a low-latency, high-speednetwork, and therefore meet all criteria for fail-safe operations.T-Systems guarantees 99.95 percent availability for its IaaS.At the data centers, T-Systems maintains pools of commodityservers with Intel x86 architectures. Compute capacity forusers’ virtual machines is provisioned automatically. ClassSATA, SAS or SSD storage is deployed in accordance with I/O rate requirements. The underlying network uses vSwitches,eliminating the risk of bottlenecks arising in the IP fabric.T-Systems holds comprehensive certifications validating thecorrect operation of the infrastructure platform, includingISO 27001 and ESARIS (Enterprise Security for Reliable ICTServices). Moreover, the provider has obtained cloud-specificcertifications such as CSA STAR level 2 Gold, and TÜV TrustedCloud Service. Other certification processes are scheduled forcompletion in 2016, including ISO 27017 and 27018, and theTrusted Cloud Label. T-System has completed the OpenStackDefcore test, and obtained the right to use the "OpenStackPowered" trademark.Moving forward, Deutsche Telekom and Huawei will continueto make investments and to hold significant roles in growingthe OpenStack platform, ecosystem, and community; and toutilize the best in OpenStack in making Deutsche Telekom’sOpen Telekom Cloud the most competitive public cloud andbetter serving business customers' ICT needs.

OPENSTACK, HUAWEI, DEUTSCHE TELEKOM, ANDTHEIR PARTNERSHIPSThe OpenStack project is a global collaboration of developersand cloud computing technologists producing the openstandard cloud computing platform for both public and privateclouds. Companies large and small are using OpenStackthrough a range of consumption models for a variety ofworkloads. OpenStack is used by 50 percent of the USFortune 100, spanning industries including financial services,manufacturing, media, government/university research, retail,technology & telecom. Launched in 2010, the OpenStackproject, one of the fastest growing open source communitiesin the world, is backed by a vibrant community of developersand some of the biggest names in the industry. To date, over20 million lines of code have been contributed by 62,000 people and 630 supporting companies in 180 countries.Huawei, one of the leading ICT technology and serviceproviders, is a firm believer of innovation via open source.Huawei has been fully committed to OpenStack's success andits entire ecosystem starting from the OpenStack Grizzly releasetimeframe, June 2013. Huawei's Cloud OS, FusionSphere 5.0and beyond, is built based on OpenStack. Within only threeyears, Huawei's code contribution for the later releases ofOpenStack since Juno release has been consistently ranked asone of the top 6 to 8 companies in the OpenStack community.DEUTSCHE TELEKOM has been a public supporter ofOpenStack since 2012, and has been actively promotingOpenStack via sponsoring and participating in OpenStackSummits and OpenStack Days events, meetups, code fest, etc.Moving forward, Deutsche Telekom hopes to continue to shareoperator expertise in running a large size, multi-national publiccloud and help OpenStack developer community understandpublic cloud requirements and improve OpenStack; and makeOpenStack the de facto cloud platform.Deutsche Telekom and Huawei have been partners for years inthe area of developing and operating ICT services. In July 2016,Deutsche Telekom and Huawei have jointly announced theirpartnership in Deutsche Telekom OPEN TELEKOM CLOUD,the first large scale, multi-national OpenStack-basedpublic cloud in Europe. With Deutsche Telekom’s expertisein ICT operations, Huawei's expertise in ICT technology andservices, Deutsche Telekom Open Telekom Cloud will be ahighly performing, scalable, reliable, secure, cost effective,agile cloud platform meeting enterprise customers' needs intoday's fast growing digital economy.Huawei, currently a Gold member of the OpenStackFoundation, has been a loyal and significant contributor ofOpenStack in providing vision, software development, testing,bug fixes, and resources; sponsoring and participating inlarge and small OpenStack summits, meetups, OpenStackDays, hackathons; and the protection and promotion of theOpenStack brand. In the past two years, Huawei has leadfour China Bug Smash (aka hackathon) events, which fixedover 300 bugs. Moving forward, Huawei will continue itsleadership, commitment, and contribution to the OpenStackFoundation, and the developer and user communities.DEUTSCHE TELEKOM, one of the world's leading integratedtelecommunications companies with more than 156 millionmobile customers, 29 million fixed-network lines and around18 million broadband lines (as of December 31, 2015).The group provides fixed-network/broadband, mobilecommunications, Internet, and Internet-based TV productsand services for consumers, and ICT solutions for businesscustomers and corporate customers.DEUTSCHE TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in Europe2

DEUTSCHE TELEKOM OPEN TELEKOM CLOUDOVERVIEWOPEN TELEKOM CLOUD SERVICES Deutsche Telekom launched Open Telekom Cloud in March2016, initially focusing on the European market, and withthe plan of going global in the future. Open Telekom Cloudprovides all the resources business customers need indevelopment and operation of their digital business models,and for projects that require additional resource capacity.Based on Huawei FusionSphere (OpenStack Powered cloudoperation system),this IaaS from the public cloud makescustomers' IT more flexible, reliable, scalable, secure, andcost effective than the proprietary public cloud services inthe marketplace. Customers have complete control over CPUpower, RAM, storage, and network connectivity. Via an userfriendly self-service portal or API, customers can configureall relevant parameters, and order optional security andmanagement solutions as needed. Deutsche Telekom Open Telekom Cloud means faster rollout of customer digital business models, thanks to fullyscalable resources ordered on demand. Business customerscan leverage Open Telekom Cloud and Huawei's extensiveexperience in ICT and cloud computing to gain competitiveedge and enjoy the following benefits:THE BENEFITS OF OPEN TELEKOM CLOUD Security made in Germany: all applications are hostedat Deutsche Telekom’s certified data centers in line withGerman data-protection legislation Scalable IT resources: simple access to CPU power, storage,network and additional servicesEase-of-integration: the OpenStack architecture mesheseasily with customer's in-house IT environmentTotal cost transparency: customers only order and pay forthe IT resources they actually requireCertified data security: access, infrastructure, andgovernance, risk and compliance systems are all designedto international standards (TÜV, CSA STAR) for rock-solidend-to-end protectionOPEN TELEKOM CLOUD SERVICE OFFERING OVERVIEW Computing: Elastic Cloud Server, Auto Scaling, ImageManagement Service Storage: Object Storage Service, Elastic Volume Service,Volume Backup Service Network: Virtual Private Cloud, Elastic IP, Elastic LoadBalancer Additional Services: Cloud Eye, Cloud Container Engine,Relational Database Service, Security/Anti-DDos Upcoming Services: DNS, Direct Connect, OBS Encryption,new flavors of OS, and many more. DT OTC is committedto continuously developing the service landscape.INFRASTRUCTURE, SUPPORT, ANDCERTIFICATIONT-Systems, the IT arm of Deutsche Telekom, operates OpenTelekom Cloud in two availability zones (AZ) at data centersCreate your individual IaaS solutionCOMPUTING POWERCONNECTIVITY Elastic Cloud ServerSTORAGE Virtual Private Cloud Auto Scaling Object Storage Service Elastic Load Balance Cloud Image Service Elastic Volume Service Elastic IP Volume Back-up Service3DEUTSCHE TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in Europe

in Magdeburg and Biere. These are twin-core, tier 3 facilitieslocated 25 kilometers apart. They are connected via a lowlatency, high-speed network, and therefore meet all criteriafor fail-safe operations. T-Systems guarantees 99.95 percentavailability for its IaaS.At the data centers, T-Systems maintains pools of commodityservers with Intel x86 architectures. Compute capacity forusers’ virtual machines is provisioned automatically. ClassSATA, SAS or SSD storage is deployed in accordance with I/O rate requirements. The underlying network uses vSwitches,eliminating the risk of bottlenecks arising in the IP fabric.T-Systems provides users with first-and second-level support.Huawei offers third-level support by phone.T-Systems holds comprehensive certifications validating thecorrect operation of the infrastructure platform, includingISO 27001 and ESARIS (Enterprise Security for Reliable ICTServices). Moreover, the provider has obtained cloud-specificcertifications such as CSA STAR level 2 Gold, and TÜV TrustedCloud Service. Other certification processes are scheduled forcompletion in 2016, including ISO 27017 and 27018, and theTrusted Cloud Label. DT OTC has passed the Defcore test andobtained the right to use "OpenStack Powered" trademark.ADVANTAGES OF HUAWEI FUSIONSPHEREFUSIONSPHEREThe engine that powers the Open Telekom Cloud - HuaweiFusionSphere, an OpenStack Powered Cloud OperationSystem (OS) Optimized for ICT Convergence.Public Cloud(IaaS/PaaS/SaaS)Private Cloud(VDI/ERP/CRM)Hybrid CloudFusionSphere FusionNetworkFusionManagerFusionSphere Cloud OSHuawei built its commercially used Cloud OS, FusionSphere,based on native OpenStack, thus it is compatible with theOpenStack ecosystem. This enables Huawei FusionSphere tosupport all hypervisors and software and hardware productsthat are certified on OpenStack. In addition, Huawei addedOpenStack expansions to improve the performance,reliability, availability, security, ease-of-use, compatibility,automation, and management of OpenStack for itscustomers' commercial use. All the expansions andenhancements are implemented based on the native OpenStackplug-ins/drivers. There are no changes made in the OpenStacktrunk code. Drivers of other vendors' hardware can be easilyintegrated into Huawei's FusionSphere. This ensures the integrityof OpenStack core platform within Huawei FusionSphere whileproviding Huawei's customers a production ready, enterprisegrade, cloud platform. In addition, FusionSphere offers a rich setof north bound APIs that includes a set of standard OpenStackAPIs which are fully compatible with the OpenStack tenantservice interfaces, as well as FusionSphere added APIs improvingthe management of a large, multi-resource pool and the easeof-use for application developers.THE FUSIONSPHERE ADVANTAGES:Mobility, Cloud, Social, and Internet of Things are rapidlyblurring the boundaries between telecommunication and IT. Weare experiencing the height of ICT convergence in data centers.Huawei FusionSphere differentiates itself from otherOpenStack based cloud operating systems in the area ofICT support:1. "Enterprise Ready" Server Virtualization Reduced Latency - FusionSphere hypervisor is built withthe technology to improve communication performanceof virtual machines (VMs) by 1.5 to 3 times, significantlyreducing latency. Higher Performance - FusionSphere's cloud resourcescheduling allocates virtualized resources according the affinitybetween network elements to improve VM performance. Inaddition, a "performance priority" policy is available to ensureDEUTSCHE TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in Europe4

that all the VMs for a logical network element (multiple VMsworking together to provide a complete service function)stay close physically in the network topology to guaranteeoptimized latency and throughput between VMs. Our testresults have demonstrated performance improvement ofkey applications such as Oracle database by 20%. With thesame memory resources, the VM density of the FusionSphereplatform increases by 130%, which helps to reduceprocurement costs on memory components by 30%.Higher Reliability - High Availability (HA) and Fault Tolerance(FT) features are built in FusionSphere to include resourceredundancy, fault detection, fault recovery to minimize oreliminate system and application downtime. In addition, a webUI based installation and automatic deployment of the cloudplatform, one-click smooth cloud platform upgrade, one-clickhealth check and system information collection are included tominimize user error and improve overall system reliability.2. Distribute Storage VirtualizationFusionSphere adopts SDS (software defined storage), a stateof-the-art distributed storage system that provides low latency,high performance, scale-out storage capability. FusionSpherevirtualizes various storage systems and enables storageresources to form resource pools, building application-orientedstorage systems with an unified management.In addition, FusionSphere uses an intelligent storage resourcescheduling algorithm to deliver optimal performance andresource utilization. Compared to traditional disk arrays,FusionSphere SDS increases the IOPS of applications by 2 to 3times, improves the throughput by 6 times, reduces the latency5DEUTSCHE TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in Europebetween server and storage by 20 percent to 50 percent andexpands the peak I/O bandwidth by 10 times.3. Software Defined NetworkFusionSphere uses an overlayed virtualization networkcomponent that is based on software-defined networking (SDN)and virtual extensible LAN (VxLAN) to construct a full mesh Layer2 network in one, and across multiple data centers, simplifyingapplication development and making resource schedulingflexible. Being aware of topologies and Quality of Service, theSDN controller dynamically selects the correct routing path andadjusts the WAN routing policy and bandwidth among multipledata centers, reducing cross-data-center link bandwidth cost by60 percent to 70 percent on average.Huawei's SDN is directly programmable, agile, centrally managed,programmatically configured, based on open standards and isvendor neutral. Its differentiated offerings are DC-SDN, DCI-SDN,WAN-SDN, and Policy-SDN.4. SecurityFusionSphere is a cloud platform that is hardened for securityin responding to the security risks and threats of cloud, suchas security threats from external networks (IP attacks, OS andsoftware vulnerabilities, virus, SQL injection, phising, zero-dayattacks, etc) and security threats from intranet (worms andviruses are spread through patches and database vulnerabilities,confidential information leaked via unauthorized Internet accessact, unsecured mobile device access, viruses spread via networkapplications, data leakage and virus spreading occur due to thelack of peripheral management, etc).

FUTURE ROADMAPOver time, Huawei and Deutsche Telekom will continue toevolve Open Telekom Cloud in meeting more business customerrequirements and helping customers meet the needs of today'sfast growing digital economy.Huawei will continue to be a significant contributor to OpenStackin providing thought leadership and resources in helping OpenStackgrow into a more "Enterprise ready" and "ICT innovative platform"for developers and users. In addition to OpenStack, Huaweiwill further develop OpenStack enhancements, as part of theFusionSphere offering, in the areas of massive scalability, reliability,performance, disaster recovery, security, bare metal, and containertechnologies to provide Open Telekom Cloud more competitiveadvantages of being a large scale, multi-national public cloud.From the Open Telekom Cloud services side, the relationaldatabase, the cloud container engine, and a high-performanceflavor have been available since release 1.01 (July 2016).Further features will be added to the cloud container engineand the database services in late 2016. The platform will thensupport SAP HANA. Subsequently, Open Telekom Cloud willbegin to offer additional platform services—PaaS and SaaS.ROADMAP FOR FURTHER SERVICESQ3 2016Q4 2016Cloud Container Engine (Docker)Cloud Container Engine (Enhanced)Relational Database ServiceBasicRelational Database ServiceEnhancedHigh Performance FlavorAdditional Flavors for SAP HANA, graphical processing,workspace and big dataOBS EncryptionDNSDirect ConnectMigration as a ServiceCONCLUSIONOpenStack, one of the most successful open source projects inthe market today, offers faster speed in technology innovationwith more quality assurance supported by a massive numberof global member companies and developers. Both DeutscheTelekom and Huawei are committed to the longevity and thegrowth of OpenStack and its entire ecosystem. With Huaweiand Deutsche Telekom's commitments in OpenStack andyears of accumulated ICT and cloud computing expertise,Open Telekom Cloud will be the most flexible, reliable,scalable, innovative, secure, and cost effective public cloudfor customers' ICT needs. And, the best of all, Open TelekomCloud is made and operated in Germany.Learn MoreCheck out these resources for more information:Deutsche Telekom Open Telekom Cloud: pen-telekom-cloud/Huawei FusionSphere: /cloud-computing/fusionsphere/fusionsphereDEUTSCHE TELEKOM OPEN TELEKOM CLOUD POWERED BY HUAWEI FUSIONSPHEREThe First Large Scale, Multi-national OpenStack-based Public Cloud in Europe6

Copyright T-Systems International GmbH and HuaweiTechnologies Co., Ltd. 2016. All rights reserved.No part of this document may be reproduced or transmittedin any form or by any means without prior written consent ofT-Systems International GmbH and Huawei Technologies Co., Ltd.General DisclaimerThe information in this document may contain predictivestatements including, without limitation, statements regardingthe future financial and operating results, future product portfolio,new technology, etc. There are a number of factors that couldcause actual results and developments to differ materially fromthose expressed or implied in the predictive statements. Therefore,such information is provided for reference purpose only andconstitutes neither an offer nor an acceptance. T-Systems andHuawei may change the information at any time without notice.T-Systems International GmbHOpen Telekom CloudHahnstraße 43dD-60528 Frankfurt am [email protected] TECHNOLOGIES CO., LTD.Huawei Industrial BaseBantian LonggangShenzhen 518129, P.R. ChinaTel: 86-755-28780808Version No.: M3-038242-20161020-C-1.0www.huawei.com

the marketplace. Customers have complete control over CPU power, RAM, storage, and network connectivity. Via an user-friendly self-service portal or API, customers can configure all relevant parameters, and order optional security and management solutions as needed. Deutsche Telekom Open Telekom Cloud means faster roll-