The project will allow Telefonica to boost its innovative services in Latin America using a more efficient model and with reduced time-to-market. Initially, Telefonica aims to support the business of small and medium enterprises in Latin America, by breaking down the current entry barriers to new technologies and to the world of IT applications, while encouraging an open environment for developers to launch new applications.

NEC will deploy the platform and applications to launch Cloud services in Latin America, including logistics, location, collaboration, virtual PC, CRM, ERP, health, games and media applications. Cloud computing will play a significant role in Telefonica's portfolio, with the ability to deliver added value to both residential and enterprise markets.

The new agreement follows the recent contract signed by NEC and Telefonica of Spain to launch applications and software as a service (marketed as "Aplicateca"). It is part of the activities of NEC's new European Competence Center for Cloud Computing and value added services, which was established in Madrid in early 2009.