TIM launches €1 billion cloud company

TIM has formally launched its new cloud and edge computing business under the Noovle brand, repeating its pledge to generate €1 billion in revenues from the new outfit in three years.

The Italian incumbent announced its intention to spin off its data centre and cloud services operations towards the end of last year and has followed through on its pledge to get the business up and running in Q1.

Last November it was referring to the unit as ‘newco’, but has now adopted the name of the Italian ICT and systems integration consultancy it acquired in May and which will form a key component of the new venture. The decision to retain the Noovle brand underlines the key role that Google plays in the Italian company’s journey in the enterprise cloud space.

TIM inked a partnership deal with Google Cloud in late 2019 and in April last year hired longtime Google employee Carlo d’Asaro Biondo to head up its cloud operations. The acquisition of Noovle,  a cloud specialist and major Google cloud partner, followed. Unsurprisingly, it has now named  d’Asaro Biondo as chief executive of Noovle, backed by University of Oxford professor and digital expert Mariarosaria Taddeo as chair of the board.

TIM said it is bringing together the expertise it acquired with Noovle together with its own network of 17 data centres to create the business. The new Noovle will also build a further six data centres which will specialise in the provision of public and hybrid cloud services.

Noovle “will focus on the supply of innovative and bespoke Multicloud services and solutions to TIM customers, ranging from the management of network infrastructure in its Data Centres, to design and support services, migration to the cloud and support for the related management activities, using the most advanced technologies based on artificial intelligence and the Internet of Things,” TIM said. In addition to its burgeoning partnership with Google, TIM said Noovle will work with a number of strategic partners, including Atos, Cisco, Citrix, Microsoft, Salesforce, SAP and VMware.

“We are establishing a company with an extensive, healthy and solid base, and thanks to the transfer

of TIM’s Data Centres, and to the one thousand cloud professionals who have joined us, we can

look to the future with ambition,” said d’Asaro Biondo, in a statement. “Our goal will be to focus right now on bringing value to citizens, businesses and public administration.”

TIM has not been shy when it comes to sharing its ambitions for the cloud services business. As it has divulged previously, it expects Noovle to turn over €1 billion in 2024 – at an annual average growth rate of 20% –  generating €400 million in EBITDA.

The one piece of information missing from the Noovle launch announcement was around its future ownership.

The spin off of its data centre assets into Noovle is just the first step of TIM’s strategy. It revealed last year that it would seek out one or more investors partners for the business and subsequently consider floating a stake in Noovle, while retaining control, much like it did with its INWIT passive infrastructure business.

Its prospects of attracting investors are good, but there’s no news yet.