1 ©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

How telecommunications service providers can become powerful public cloud service providers

Stephane Rogier

Worldwide Cloud Program Leader

Communications and Media Solutions

Hewlett-Packard

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Agenda

– THE IT REVOLUTION

– CSPs CHALLENGES

– CLOUD: MEETING SMB, Enterprise and Telco challenges

– Cloud for Telco HP vision

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“By 2012,

20% of all businesses will own no IT assets.”

Top Predictions for IT Organizations and Users, 2010 and

Beyond: A New Balance

– Gartner, Jan. 2010

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Everything as a Service, the Concepts Included in the Cloud

EaaS

SaaS

PaaS

IaaS

5

Services Can Be Optimized Through Different Delivery Models

Resources shared across workloads

Dedicated

Shared

Resources dedicated to each workload

On premisesCustomer-owned data center

Off premisesService provider’s data center

Service provider shares resources across workloads of multiple customers

Resources dedicated to each workload; Co-lo, managed, hosted, multi-client data center

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IT Evolves into the Strategic Service Broker

IT organizationstrategic service broker

Outcomes that matter

Accelerate growth

Lower costs

Mitigate risk

Service portfolio

Servicessourced

Services delivered

Hosted/managed service providers

CSPs

Internal service providers

Cloud service providers

Lines of business

Business functions

E-mailSFAERPApp HostingStoragePC back up

PBXMobileIMIVRUCIP CC...

...

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Serv

ice M

anagem

ent

Valu

e S

ourc

ed

Lines of business

Business functions

Enterprise

IT

Managing a Hybrid Service Ecosystem Takes a New Kind of Leadership

Business outcomes

Lower costs

Mitigate risk

One pane of glass to manage services, processes and experiences across resources

you own, borrow and rent

S

Accelerate growth

Hosted/managed service providers

CSPs

Internal service providers

Cloud service providers

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WW Growth: 2.1%

CSPs Challenges

Source: IDC World Wide Telecommunications Services Database: January 2009

0

200

400

600

800

1,000

1,200

1,400

1,600

2008 2009 2010 2011 2012

($U

S b

illio

ns) Mobile

Voice 2%

Mobile Data 11%

Wireline Data 5%

Wireline Voice –5%

Establish Competitive Differentiation

Reduce Costs and Drive Operational Efficiency

Implement EfficientService Delivery Environment

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Cloud Transformation Can Help CSP

TRANSFORM

Internally

INNOVATE

Target new markets

MONETIZE

Your services

Leverage the cloud and • Migration to IP• Network/IT Transformation• Implementing Strategies for eco-sustainability• Increased demand for Managed Services

• Reduce time to market• Develop new sources of revenue• Support third-party content/applications

• Increasing competition from traditional and non-traditional competitors

• Disintermediation by OTP players• Target New Markets as Enterprise Services

Establish Competitive Differentiation

Reduce Costs and Drive Operational Efficiency

Implement EfficientService Delivery Environment

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SMB/Enterprise Services

Encroachment from over-the-

top competitors

Ubiquitous broadband

CSPs challenges

MEETING ENTERPRISE-SMB CSPs CHALLENGES

Accelerate technical adoption

Biz orientation of IT organization

Capital shy investment

Economic downturn prohibits costly CAPEX

investments

Retain and attract business customers

Flat to declining revenue

Meeting Enterprise-SMB CSPs ChallengesBoth focused on reduced cost and increased profitability

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INCREASE SECURITY

UNIQUE CUSTOMER EXPERIENCE FOR

ORDERING SERVICES

PAY ONE INVOICE FOR IT AND COM.

SERVICES

GIVE EMPLOYEEDETAILS ONCE

Quality Assurance

HP Offers a Hub for End-user Services

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

SaaSProvider

SaaSProvider

SaaSProvider

SaaSProvider

SaaSProvider

SaaSProvider

OSS BSS

BB FixedWireles

s

IaaS SaaS

CMS AggregationPlatform for SaaS

TELCO’S OWN CLOUD SERVICE

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The SMB CAAS Market Is Ripe with Opportunity

Source: HP and Forrester Study, Key Findings, September 2009

Over half of your SMB customers want an as-a-Service offering

SMB demand for CaaS is red-hot: A $12.2b market at 28% CAGR in 2014

9 out of 10 firms want some type of bundle with their as-a-Service

The greatest opportunity is with SMBs with 100+ employees

SMBs are price sensitive: They want the service; but at low prices

Service Providers do have permission to play

HP as a partner increases likelihood for SMBs to buy for two-thirds of firms

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Some CSPs Are Already in the Hosting Market, Other CSPs Desire to Enter

Dedicated

Shared

On premisesCustomer-owned data center

Off premisesService provider’s data center

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SHARED

DEDICATED

ON PREMISESCustomer-owned data center

OFF PREMISESService provider’s data center

Cloud Services

Resources shared across workloads

Resources dedicated to each workload

Service provider shares resources across workloads of multiple customers

Resources dedicated to each workload; Co-lo, managed, hosted, multi-client data center

TELCOS

NEW ENTRANTS

(MICROSOFT)

Managed Hosting, Telcos

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Changing Roles

– Customer – what relationships do you want to have

with your customers and do they want with you

– Market – how does competition impact business

modes, economics?

– Process – how can you improve the way your

organization works?

– Service – how can you tune your portfolio to provide

differentiating value for customers

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Differentiate Through Insight and Creating Great Customer Experience

Applications & Content Production

Infrastructure & Content

Management

Voice & Data Delivery

Operations

Customer Experience

Management

Developer

Advertiser

Artist

Business User

Consumer

Customer Aggregator

Experience Provider

Monetize application and content services delivered to a broad

customer base through multiple channels

Enable customers to consume an

intentional experience anywhere, anytime and through any

device at a compelling price point

Monetize Services

Monetize Services

Create innovative service offerings in

collaboration with an ecosystem of partners

Enable the seamless delivery of services across all networks

and channels through a leveraged delivery

platform

Monetize Services

Monetize Services

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Service Providers Need Operational Excellence

Properly address customer concerns Value sourcing Compelling Bundles

– Security – multi tenancy threats, data in the cloud• Cloud Security Alliance

– Availability (% per day/week/month) and resilience (time to restore)• an SLA for business users

– Guarantees – my data is safe from others and you will not lose it

– Performance – it works OK

– Legal – legislation & litigation

– Service termination

– One throat to choke

– TCO winner – not just the headline number • includes all cost

– SLA fit for business critical applications• no short cuts with a weak SLA

• not just a simple percentage with partial refund

– SLA for not business critical applications

– Excellence in delivery• cost of service delivery is best in the

industry

• no need to pay breakdown compensation

– One throat to choke

– App store for on-line services• pre defined bundles

• optional add -ons for bundles

– One bill

– One throat to choke for a group of related services• broadband, servers, and storage

• voice (fixed and mobile), messaging , e-mail services and collaboration

– Simplicity - resolve complexity• easy to buy

• easy to use

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HP CLOUD SERVICE AUTOMATION (IaaS/PaaS)

• Tuned BTO Software and services to run your applications

• Enables integrated infrastructure and platform services

• Focused cloud solution in your infrastructure

Where it fits

HP Cloud Approach

PUBLIC CLOUD SERVICE DELIVERY AUTOMATION SOLUTION• Infrastructure as a Service portal• Aggregation Platform for SaaS• Provisioning and Billing automation

HP BTO HETEROGENEOUS CLOUD SOLUTION (IAAS/PAAS/SAAS)

• Encompasses comprehensive reference architecture

• Highly customizable for complex needs

• Integrates HP and 3rd party software for holistic solution

HP BLADESYSTEM MATRIX (IaaS)

• HP Converged Infrastructure and Technology on HP hardware

• Services to deliver the ideal foundation for shared infrastructure

• Built for speed. IaaS Now.

+

CMS

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Business Applications as a Service

Cloud money is going to be won by people who win the consumption side

Introducing Cloud Service Enablement

Device Management as a Service

Communications as a Service

Infrastructure as a Service

CMS solution (Self Service IVR, Video Surveillance)

and 3rd party solution (IP Contact Center)

Computing as a Service

Storage as a Service

External SaaS providers: ERP. CRM, HR

Mobile Device Management

Mobile and PC Data Back-Up

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1. Enable cloud service providers

2. Help clients secure, source and govern cloud services

3. Delivery of cloud services from HP

HP’s Cloud Strategy

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Q&A

22 ©2010 Hewlett-Packard Development Company, L.P.

To learn more on this topic, and to connect with your peers after

the conference, visit the HP Software Solutions Community:

www.hp.com/go/swcommunity

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