it sourcing towards the cloud
TRANSCRIPT
2017
IT Sourcing towards the cloud
2
Profound changes in behavior and attitudes are bothering us for quite a long time
2013 2017
3
What is the Impact of Technological Changes on Business Activity
DIGITAL CUSTOMER
1 In new ways of relating to other people
2 In the operating and business processes
DIGITAL ENTERPRISE
DIGITAL BUSINESS
4
• x86 architecture• Virtualization• Communications Improvement
Technological perspective
Visibilityperspective
What is cloud?
• Open software• Mobility
Enterprise IT as a Service
Hybrid Cloud
PrivateCloud
Public Cloud
DRIVERS
5
Reliability AgilityScalability
DisasterRecovery
Cost Optimization
What cloud is for?
6
Standard IT - TCO
Name Type
Government Opex
Operation Opex
Software Manteinance Capex
Software Capex
Hardware Manteinance Capex
Hardware Capex
Datacenter: Floor + electricity + Refrigeration
Capex + opex
Name Type
GovernmentOpex
Cloud Service
Cloud
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Government
Operation
Manteinance Software
Software
Manteinance Hardware
Hardware
Datacenter
Business evolution (BE)
Technical innovation (TI)
The actual business leads the expenses
The prevision of business leads the expenses
Cloud – Cost analysis
BE BE BEBE BE BE
BE BE BE
BE BE BE
TI
TI
7
Some information about cloud
8
The ICT market is seeing a huge transformation to the Cloud space and players are moving quickly
Cloud
Service
Provider
Managed
ServicesSW
Providers
Out-
sourcers
HW
Providers
TraditionalIT
9
Telefonica value proposal. From current infrastructure until hyper scalars providers
Outsourcing CloudGestión Completa
Gestión Seguridad
Command Center
10
A global leader in communications and ICT_
More than 315 million accesses• > 100 million in Europe• > 200 million in Latin America
Strong financials (2016 - Mn €)• Revenues: 52.036• OIBDA: 15.118• Inversion: 8.928
Operations in 21 countries• 21 full network operations• Global Datacenters network• 129 countries extended MPLS• Startups accelerators: Wayra and
Telefonica Open Future
121,000 employees• 31% in Europe• 68% in Latin America• 1% in other countries
11
1 Almost 25 years in Cloud
2 More than 400 Enterprise
clients
3References in all the sectors
4Some figures about usage
…delivering IT services to our customers
1Activity volume
2 IT consumption
…and in our self consumption
3 Digital transformation
QualityThe best quality standards and the best partners
Pecal 2110ER-0305/1995
GA-2005/0319
We have experience…
12
TEF has the best-of-breed assets such as DataCenters and local and global Communication Networks in its footprint
Miami
Madrid - Alcalá
Owned Data Center
3rd Party & Partners
Spain
Brazil
ArgentinaChile
Peru
Colombia
México
Ecuador
UK
>55 .000 m2
for external
consumers
Miami
São Paulo
2014 Awards – Uptime Institute – Alcalá DataCenter“TEF prioritized efficiency, financial viability, a system of accountability, and a world-class result for its internal and external clients…”
13
The Alcalá DataCenter is one of the largest and most powerful DataCenter in Europe for end customers
EfficiencyFlexibility SecurityReliabilityCapacity1 2 3 4 5
14
Telefonica Position in Spanish market
44%
The top ten IT companies
Represent an Income share of
Variation on Ranking 2014-15
Ingr
eso
s 2
01
5 (
M€
)
Major IT companies by incomes. IT Sector 2015
+1 -1 +1 -1 +1
• Source: Gartner
15
Cloud is changing the face of IT Departments
Cloud ischanging
the face of IT Departments
Business processBusiness process
…
Communications
Applications
Infrastructures
Services for customers
Employees Workplace
“run the business”
A significant challenge to CIOs
“change the business”
Adapt to adopt
16
Outsourcer partner needs an end to end vision of the projects
Government models
Presales Offering Transition / Transformation Running
Global management
End to End vision
Knowledge, skills, experience, empowerment, and based in probed methodology to create
an ad hoc solution, with a transition and transformation phase designed to minimize the
risks.
A qualified team for leading this kind of projects
17
With critical assurance of the T&T phases
IT Services
Due Diligence Control Operacional
Delivery and continuous improvement
Contract duration
Due DiligenceTransition and
operational controlRunningTransformation
Detailed transformation plan Transformation
Transition
Government model
Service catalogue
E2E ITC solution
Initial state
audit1 Service control2 Service
optimization3 Regular service4
18
Looking for the optimal transformation projects
TO BEAS IS
Plat. Virtual
CPD1 CPD2
CPD6
CPD4 CPD5
Plat. Virtual
SAP
Madrid Miami
PaaS
IaaS
82 VMs
47 VMs
44 VMs
36 VMs
VMs
Zerto para VMs
Zerto para VMs
Zerto para VMs
CPD1
CPD2
CPD3
CPD4
Madrid
Miami
TEM
P
VMConverter Virtualización
S. Operativo
Aplicaciones
Storage/BKup
Serv. Físicos
Comunic. LAN
Infraes. CPD
VD
C
Virtualización
S. Operativo
Aplicaciones
Storage/BKup
Serv. Físicos
Comunic. LAN
Infraes. CPD
VD
C
Techniques and tools used with
success in previous projects, and
always adapted to the business
needs
Technology and business define “services blocks” to
transform to reference architectures
209
38
19
You need a detailed global plan with specific projects
Planning has to be defined to minimize the impact in the businness
20
T&T Projects: they must have a structure of project plan
Project management
structure
1. Objectives and scope
2. Phases and activities
3. Schedule and milestones
4. Effort and tools
5. Costs
6. Dependencies
7. Risks
8. Critical factors of success
9. Assumptions and exclusions
10. Benefits and outputs
21
And to define a customized government and relationship model
Understandable structure of the working groups, aligned with the catalogue of services
Integration with service management
• Hierarchical organization of work team with all the roles involved defined
• Work groups based on their specialization, defined by technical towers and their interactions
• Locations and schedules aligned with customer needs
• Roles and responsibilities suited to the organizational structure of the client
• Value chain management of service integrated with the structure of delivery processes
• Global delivery model adapted with the functions of the offices of management service (SMO), demand (BMD) and projects (PMO)
Support tools• Support processes
• Support to governance of the service
The global delivery model is
based on a well defined structure,
integrated with the management
of the service and the tools
needed
22
Governance Model
Operational
Strategic
Tactical
Levels
Service Manager
Cloud Product ManagerInfrastructure Technical Manager
LAN Technical Manager
Specialists (Centers of expertise)
Chief Executive
Service Manager
Operational Manager
Technical Responsible
Specialists
CIO
Responsible Contract manager
Technical Committee
Steering Committee
Monitoring CommitteeCrisis Committee
CommitteesClient
23
Governance Model
24
Operational Model
Authorized Users
N0
N1
N2
N3 Providers
Centers of expertise
Customer Management Center
SGSD
SGSD
IT Portal IT Portal
LAN Technical CenterSGSD
SGSD
Command Center
Sto
rage
Bac
kup
Vir
tual
ize
d
syst
em
s
Win
do
ws
Syst
em
s
Un
ix a
nd
Lin
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Syst
em
sC
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bo
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No
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SQL
Dat
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Mid
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war
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Too
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Infr
astr
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Dat
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nte
r C
om
mu
nic
atio
ns
SOC
AdvancedManagement
Center
LAN
25
26
New tendencies: Agile IT Management – Dev Ops - Containers
27
New tendencies: edge and fog computing
29
Microsoft
68 productos
30
AWS
31
SalesForce