German telco Deutsche Telekom is reportedly considering a sale of its T-Systems IT unit.

Manager-Magazin reports the company is preparing to sell T-Systems, and plans to start talks with interested parties in February, with a deal expected in September.

Another German publication, Handelsblatt, reported that Deutsche Telekom is considering a spin-off of T-Systems, and has already discussed this with the German government, a significant stakeholder in the telco.

T-Systems has been struggling for a number of years. And while Deutsche Telekom has been performing well recently, T-Systems has been underperforming, seeing incoming orders declining by 25 percent during the coronavirus crisis.

Last year, Deutsche Telekom's finance chief Christian Illek said that reduced IT spending by the automotive and airline industries would necessitate additional restructuring at T-Systems on top of an ongoing three-year turnaround plan.

In September Google announced it was working with Deutsche Telekom and T-Systems on a new German sovereign cloud project.

In June Deutsche Telekom opened two new data centers in Amsterdam, the Netherlands, to provide more capacity for its Open Telekom Cloud Infrastructure as a Service (IaaS) offering. It seems the company has actually taken space in NorthC’s Almere and Aalsmeer data centers.

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