Telefonica Tech

What Telefonica Tech does

Telefonica Tech is the digital services business unit of Telefonica Group, established in 2019 and headquartered in Madrid, Spain. It provides integrated technology services across four core pillars — Cybersecurity, Cloud, IoT/Connectivity, and Data & AI — to large enterprises and public administrations primarily in Spain and broader Europe, with a presence in the UK/Ireland and (until late 2025) Latin America. As a wholly-owned subsidiary of Telefonica S.A., it operates through three primary legal entities: Telefonica Tech S.L.U., Telefonica IoT & Big Data Tech S.A.U., and Telefonica Cybersecurity & Cloud Tech S.L.U.

The portfolio combines proprietary platforms — including NextDefense XDR, DataSphere, the Kite IoT platform, and a commercial Edge Computing network (5 Spanish cities currently, expanding to 17 by 2026) — with tightly integrated best-of-breed third-party technologies from partners such as CrowdStrike, Google Cloud, Microsoft, IBM, Fortinet, Netskope, Thales, Openlayer, and Harrison.ai. The company operates global Security Operations Centers delivering 24/7 managed security services (with 926 million attacks blocked reported in 2025) and manages approximately 17 million connected IoT devices in Spain. It holds an extensive certification stack spanning ISO 27001, ISO 9001, ISO 14001, ISO 45001, ISO 20000-1, SOC 1 Type 2, SOC 2 Type 2, TISAX, ENS, GDPR, and CCPA, and is positioned as a sovereign cloud provider in Spain/Europe.

Revenue is generated predominantly through subscription-based and managed services contracts covering cybersecurity, cloud, IoT connectivity, and AI/data services. The company reported EUR 984 million in H1 2024, representing 11.1% YoY growth, with 19% revenue growth reported for FY2025. It employs 6,000+ professionals across 50+ nationalities holding 4,000+ digital certifications. Strategic activity in 2025–2026 has included the divestiture of Latin American operations (Colombia, Mexico, Chile) to hiberus, a sovereign cloud partnership with Google Cloud, the launch of an AI-augmented 'SOC of the Future' at MWC 2026, a CrowdStrike-backed MxDR service targeting mid-market companies, and AI healthcare diagnostics via Harrison.ai.

Name

Telefonica Tech

Legal name

Telefonica Tech S.L.U.

Website

https://telefonicatech.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Telefonica Tech is the digital services arm of Telefonica Group, providing integrated cybersecurity, cloud, IoT/connectivity, and data & AI solutions to large enterprises and public administrations across Spain, Europe, and the UK/Ireland.

Ownership category

akta.pro rank

Product category

Managed IT and Cybersecurity Services

NAICS

Computer Systems Design and Related Services (5415), Telecommunications (517)

SIC

Services-Computer Integrated Systems Design (7373), Communications Services, Nec (4899)

akta.pro primary industry

Virtualized Security & SASE for Telco Networks (vFW, vDDoS, vSEC, Secure Edge) (HDAIAIAK)

akta.pro secondary industries

Telco Cloud & Edge for NaaS (Distributed Cloud, MEC, Edge CNFs) (HDAIAIAE), Network Performance Management & Observability Services (BPAEAEAH), Cloud Connectivity & Interconnect (Cloud On-Ramps, IX, Cross-Connects) (HDAIAFAF)

Keywords

• Managed cybersecurity services
• Cloud infrastructure services
• IoT connectivity platforms
• Digital transformation consulting
• Enterprise data analytics

Headquarters

HQ city

Madrid

HQ country

Spain

HQ region

Europe

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Technology Services Revenue: Revenue from integrated technology services including cybersecurity, cloud, IoT connectivity, data/AI solutions, and professional services. Reported revenues of 984 million euros in H1 2024, representing 11.1% YoY growth, with 19% revenue growth in 2025.
2. Managed Security Services: Recurring managed security services including NextDefense XDR, MxDR, AntiDDoS, and SOC services, delivered through global network of Security Operations Centers.
3. IoT Connectivity Services: IoT connectivity services via Kite platform, including NB-IoT connected nodes for smart city deployments, smart metering, and industrial IoT applications. Reached 17 million connected IoT devices in Spain by end of 2025.
4. Smart Infrastructure Contracts: Long-term infrastructure contracts for smart city solutions including smart street lighting, water management, and digital transformation of public services. Examples include 10+ year contract for Castilla y Leon water cycle digitization covering 175,000 smart meters.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels5 records

Core offering

Telefonica Tech provides integrated technology services for enterprises and public administrations across four pillars: Cybersecurity (managed SOC, XDR, MxDR, AntiDDoS), Hybrid Cloud (sovereign cloud, migration), Data & AI (analytics, machine learning, AI governance), and IoT & Connectivity (managed connectivity, Kite platform, eSIM). The company combines proprietary platforms with professional services, delivered through its global network of Security Operations Centers, Edge Computing nodes, and 6,000+ specialists.

Product overview

Telefónica Tech is a digital transformation company offering an integrated portfolio of four core solution pillars: Cybersecurity (NextDefense XDR, MxDR, SOC of the Future, AntiDDoS, and managed security services), Hybrid Cloud (infrastructure optimization and migration), Data & AI (analytics, machine learning, and AI-powered solutions), and IoT & Connectivity (managed connectivity, Kite Platform, smart solutions). The company operates as a platform-plus-services model, providing specialized solutions across industry verticals (Industry, Health, Banking & Finance, Public Sector, Retail, Tourism, Transport & Logistics, Energy & Utilities, Smart Cities) supported by enabling platforms including TheThinX (IoT testing lab), Digital Operations Center (DOC-SOCs), Edge Computing, DataSphere (data spaces), and Self-Sovereign Identity. The portfolio integrates best-of-breed third-party technologies including CrowdStrike, Fortinet, Netskope, Google Cloud, IBM, and Openlayer while maintaining differentiated managed services and professional services layers.

Differentiator

Problem solved

Functional benefit

Products and services

• NextDefense XDR Managed cybersecurity service providing extended detection and response across endpoints, identity, cloud, and data environments for enterprise customers; integrates CrowdStrike Falcon Next-Gen SIEM for real-time analytics, AI-powered detection, and automated incident response from global SOC network.
• Hybrid Cloud Cloud solutions optimizing workloads, scaling IT environments, and enabling growth through secure and scalable hybrid cloud deployment for enterprise competitive advantage and strategic outcomes.
• Data & AI Solutions
• IoT & Connectivity
• Kite Platform
• DataSphere Platform enabling secure multi-sectoral data exchange while preserving data sovereignty for participating organizations; uses federated architecture with advanced tools for access control, digital contract management, and verifiable credentials.
• Edge Computing Services Commercial Edge Computing services for businesses in Spain with deployment across five nodes (Madrid, Valencia, Seville, Bilbao, A Coruña); two tiers: Edge Básico for sovereignty and static workloads, Smart Edge for dynamic mobile connectivity and AI capabilities.
• MxDR Managed Cybersecurity Service Managed cybersecurity service combining CrowdStrike Falcon platform with Telefonica SOC capabilities for continuous threat monitoring and incident response across workstations, servers, identities, cloud, email, and networks; targets mid-market companies with 150-1,000 devices.
• SOC of the Future AI-powered managed cybersecurity service transforming traditional Security Operations Centers into cognitive, automated systems for continuous business cyber resilience; integrates AI with security platforms combining information from networks, endpoints, identities, cloud, and external exposure surfaces.
• Global Multi-Operator eSIM for IoT Global eSIM offering based on GSMA SGP.32 standard enabling single card with profiles from multiple mobile operators for international IoT deployments with unified connectivity management; developed with Thales.
• Self-Sovereign Identity (SSI) Self-sovereign identity product based on verifiable credentials, helping companies implement EU's new SSI legal and technical framework with EUDI Wallet as reference; uses QR codes for user-controlled personal data.
• Digital Operations Center (DOC-SOCs)
• AntiDDoS
• Mobile Network Security (SRM)
• AI Diagnostic Support for Lung Cancer Screening AI-powered clinical decision support software for chest X-ray analysis deployed across Spain's regional health services through Harrison.ai partnership; detects up to 124 clinical findings including pulmonary nodules; CE IIb medical device certification.
• SecOps Services with Fortinet Advanced SecOps services with Fortinet technology (FortiSIEM, FortiNDR, FortiSOAR); unified architecture for prevention, detection, and response; integrated into single platform and managed by SOC 24x7.
• Sovereign Cloud (Google Cloud Partnership) Sovereign cloud solution for Spanish public administrations and regulated private companies; Google Cloud selected Telefonica as trusted sovereignty partner in Spain, with Telefonica managing encryption keys generated in its own sovereign cloud infrastructure.
• Private 5G Networks
• Industrial Safety IoT/AI IoT and AI-powered industrial safety solution combining wearable devices with real-time monitoring; features SOS alerts, fall detection, geolocation, and environmental monitoring; claims up to 60% reduction in workplace incidents.
• TheThinX
• Quantum-Safe Cryptographic Solutions Strategic alliance with IBM for quantum-safe cryptographic solutions including IBM Guardium Quantum Safe and IBM Quantum Safe Explorer to protect data from future decryption threats; IBM infrastructure deployed at Telefonica headquarters in Madrid.

Quantifiable outcome

• Reduced security analyst workloads by 20-40% through automation of repetitive tasks
• +4 more outcomes

Named customers11 records

Segments8 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration15 records

AI capability15 records

Feature6 records

Partnerships

23 partnerships are on record, tiered strategic, core and minor.

• Harrison.aistrategicTechnology or Integration · 22 July 2026Partnership for AI-powered diagnostic support tool analyzing chest X-rays to detect up to 124 clinical findings including pulmonary nodules. Tool trained on 780,000+ chest X-ray studies with CE IIb medical device certification.
• Harrison.aistrategicTechnology or Integration · 21 July 2026AI diagnostic support tool for chest X-ray exams marketed through Telefonica Tech's Spanish subsidiary, with next-generation foundational model for professional medical scan reports.
• FortinetstrategicTechnology or Integration · 15 July 2026Collaboration for SecOps services including FortiSIEM, FortiNDR, and FortiSOAR, providing unified security architecture with coordinated threat response.
• ThalesstrategicTechnology or Integration · 9 July 2026Partnership to launch global multi-operator eSIM offering based on GSMA SGP.32 standard, enabling businesses to use a single card with profiles from multiple mobile operators for international IoT deployments.
• ThalesstrategicTechnology or Integration · 9 July 2026Development of GSMA SGP.32-based eSIM solution for IoT connectivity management, supporting international deployments across different geographies.
• CrowdStrikecoreTechnology or Integration · 9 July 2026Launch of managed cybersecurity service (MxDR) in Spain combining CrowdStrike Falcon platform with Telefonica's SOCs for continuous threat monitoring across endpoints, servers, identities, cloud, email, and networks.
• HalotechstrategicTechnology or Integration · 11 June 2026Partnership for IoT and AI-powered industrial safety solution in the US, combining Telefonica's Kite platform connectivity with Halotech's AI and wearable devices (HALO I, III, III+).
• O2 BusinessminorChannel Partner/ Reseller/ Distributor · 8 June 2026Panel participation at Mobile Europe private 5G event outlining strategies for enterprise private 4G/5G deployments.
• Google CloudcoreTechnology or Integration · 29 May 2026Strategic partnership to deliver sovereign cloud solutions for Spanish public administrations and regulated private companies. Google Cloud selected Telefonica as its trusted sovereignty partner in Spain, with encryption keys generated and managed by Telefonica in its own sovereign cloud infrastructure.
• GSMAminorStrategic or Co-development Partner · 22 May 2026Collaboration to reinvent call center authentication using digital wallet-based caller verification, presented at MWC 2026.
• IndraminorChannel Partner/ Reseller/ Distributor · 2 May 2026Mentioned as domestic Spanish systems integrator and managed services provider in Spanish serverless computing market alongside Telefonica Tech.
• MinsaitminorChannel Partner/ Reseller/ Distributor · 2 May 2026Mentioned as domestic Spanish compliance consulting provider in Spanish serverless computing market alongside Telefonica Tech.
• CrowdStrikecoreTechnology or Integration · 26 March 2026Launch partner for Charlotte AI AgentWorks ecosystem enabling partners to build and manage custom AI-driven security agents on Falcon platform. Also provides Falcon Next-Gen SIEM technology for NextDefense XDR service.
• OpenlayerstrategicTechnology or Integration · 26 March 2026Commercial partnership to deliver AI governance and observability solutions across Europe and Latin America. Openlayer provides technology platform for pre-deployment testing, real-time observability, and EU AI Act compliance mapping.
• Qilimanjaro Quantum TechstrategicStrategic or Co-development Partner · 23 March 2026Strategic alliance to expand quantum computing ecosystem and create Quantum AI proposition for enterprise clients, integrating specialized quantum hardware.
• QCentroidstrategicStrategic or Co-development Partner · 23 March 2026Strategic alliance for quantum computing ecosystem expansion, providing multi-hardware orchestration platforms for quantum AI services.
• Multiverse ComputingstrategicStrategic or Co-development Partner · 23 March 2026Strategic alliance for quantum computing ecosystem, providing quantum-inspired algorithms targeting sectors including banking, logistics, and energy.
• DeoleostrategicImplementation/ SI/ Consulting Partner · 14 March 2026Three digital transformation projects including blockchain traceability for olive oil products, factory maintenance digitization, and AI solutions to optimize oil blending and quality.
• CAF (Construcciones y Auxiliar de Ferrocarriles)strategicImplementation/ SI/ Consulting Partner · 19 February 2026First European B2B pilot integrating Edge and 5G Stand Alone capabilities for the railway sector, demonstrating low-latency processing and digital sovereignty.
• TIREAstrategicImplementation/ SI/ Consulting Partner · 13 February 2026Collaboration with insurance sector technology hub to develop digital identity management platform enabling secure access across multiple insurance companies.
• NetskopestrategicTechnology or Integration · 28 January 2026Launch of managed Security Service Edge (SSE) for UK and Ireland customers, utilizing Netskope technology with zero trust principles and AI-driven security.
• IBMcoreTechnology or Integration · 30 January 2025Strategic alliance for quantum-safe cryptographic solutions including IBM Guardium Quantum Safe and IBM Quantum Safe Explorer to protect data from future decryption threats. IBM infrastructure deployed at Telefonica headquarters in Madrid.
• Akamai TechnologiesstrategicTechnology or Integration · 1 June 2022Development collaboration for Mobile Network Security (SRM) service protecting corporate mobile lines from malware, phishing, and botnet attacks.

Scale indicators10 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• T-Systems (Deutsche Telekom): The IT services subsidiary of Deutsche Telekom, directly comparable to Telefonica Tech as a major European telco's enterprise digital transformation arm. T-Systems offers a similar integrated portfolio of cloud, security, IoT, and SAP/Microsoft services to large enterprise and public sector clients across Germany and Europe, competing head-to-head for multinational RFPs.
• Orange Business Services: The enterprise division of Orange, one of Telefonica's largest European telco peers. Orange Business provides comparable managed services in cloud, cybersecurity, IoT, and data analytics, and competes directly for enterprise and public sector contracts across France, Spain, and broader Europe with similar sovereign cloud and digital transformation offerings.
• BT Global Services: The enterprise arm of BT Group, offering comparable managed network, cloud, security, and unified communications services to multinational enterprises. BT Global competes directly in UK and European enterprise markets and shares Telefonica Tech's telco-foundation advantage in connectivity, IoT, and managed security services.
• NTT Data: A global IT services provider with telco heritage that competes with Telefonica Tech across cloud, cybersecurity, IoT, and enterprise digital transformation. NTT Data has comparable vertical reach in public sector, healthcare, and financial services and is similarly positioned as a systems integrator with strong data center and managed services capabilities.
• Atos: A major European-headquartered IT services company with comparable offerings in cloud, cybersecurity, digital workplace, and industry-specific digital transformation. Atos competes directly for European enterprise and public sector contracts and shares Telefonica Tech's focus on regulated industries and sovereign infrastructure.
• Kyndryl: The managed infrastructure services company spun out of IBM, focused on enterprise IT modernization, cloud migration, and managed services. Kyndryl competes directly for enterprise infrastructure outsourcing and managed network services contracts that Telefonica Tech targets through its Hybrid Cloud and SOC offerings.

Broad incumbents

• Capgemini: A global IT services and consulting leader that competes with Telefonica Tech across cloud, cybersecurity, data/AI, and IoT, though at substantially larger scale and broader scope. Capgemini's deep enterprise consulting footprint and global delivery model make it a key competitor for large European digital transformation deals.
• Accenture: The largest global IT services and consulting firm with broad capabilities in cloud, security, data/AI, and industry-specific digital transformation. While much larger and more diversified, Accenture competes with Telefonica Tech for European enterprise digital transformation mandates and brings significant scale advantages in talent and delivery.
• IBM Consulting: IBM's professional services arm, which competes across cloud, AI (watsonx), cybersecurity, and quantum computing services. IBM is simultaneously a Telefonica Tech technology partner (Guardium Quantum Safe) and a competitor for consulting-led enterprise transformation engagements in Europe and Latin America.

Emerging players

• Hiberus: A Spanish technology company that recently acquired Telefonica Tech's Latin American operations (Colombia, Mexico, Chile), positioning it as a regional competitor in Spanish-speaking markets. Hiberus competes in cloud, digital transformation, and managed services and has gained strategic assets from Telefonica's divestiture.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat7 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/telefonicatech

Compliance11 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A5 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Telefonica Tech