click to edit master subtitle style tunis, tunisia, 18-19 june 2012 enabling innovative cloud...

• Click to edit Master subtitle style

Tunis, Tunisia, 18-19 June 2012

Enabling innovative cloud servicesAn IBM point-of-view for Communications

Service Providers

Selma Turki, ITS Services ExecutiveIBM North-West Africa

[email protected]

ITU Workshop on “Cloud Computing”

(Tunis, Tunisia, 18-19 June 2012)


Cloud Market overview

The cloud marketplace is real; the cloud marketplace is

now; and CSPs are well positioned to take advantage of

this opportunity


Future success requires execution on three key imperativesBased on market research, the CEO Telecom Survey, Telco 2015 Study

Cost-effective ultra-fast broadband deployment strategy

Network / customer insights to enhance experience & optimize cost

Culture of collaboration

Cost containment

Agile, flexible and reconfigurable processes and infrastructure

IBM Telco 2015 Study Common Critical Success Attributes

3 Key Imperatives to Smarter Communications

Improve Operational Efficiencies & Reduce

Costs

Differentiate the Customer Experience

Enable New Services & Business Models

IBM CEO Survey Recommendations for Telecom

Build operating dexterity

Reinvent customer relationships

Embody creative leadership


Public cloud service revenue is growing in importance and CSPs are in the strongest position to capitalize on this opportunity

Public Cloud Initiatives

Verizon buys Terremark Worldwide, a Public cloud

provider, for $1.4B

Telstra: $1B in 2011

Rackspace: $100M in 2010

Salesforce: $2.3B in 2011

Amazon: $1B in 2011

Large enterprise customer base

Strong brand recognition

Comprehensive network capabilities

Extensive marketing experience with many sales channels

Advantages for CSPs as aCloud Service

Provider

1

2

3

4

5Owning the complete end-to-end delivery chain is a big advantage

Publically available information sources


2008

Source: IBM (MI), IDC, CIO magazine, BCG analysis

23%

40%

27%

SaaS

PaaS

IaaS

HW

SW

Services

2012

70% of public cloud market is in SMB market

Largest segment Low barriers to entry Focus of SMB e.g. email, CRM,

industry processes

Highest growth e.g. Web apps, DB, DR

Components

Infrastructure services

Business services

Highest margins (today)

e.g. Dev / Test, Compute, Storage

Clients buy products and / or implementation services

Enterprise clients building private cloud

Hybrid

Private cloud + selective use of public cloud services

CAGR BPaaS

$126B

Cloud Computing Market Breakdown


Analysts suggest that the most significant opportunity for cloud services will be applications

2012 2013 2014 2014 Share

Applications 15,332 17,470 20,580 37.1%

Development 4,325 6,075 8,618 15.5%

Systems Infrastructure 7,194 8,877 11,345 20.5%

Servers 4,960 6,000 7,548 13.6%

Storage 4,098 5,414 7,366 13.3%

Total 35,911 43,837 55,457 100%

Source IDC April 2010

1. Applications will be the largest segmentrepresenting 37.1 % of the $55B market by 2014

2. The Applications segment includes messaging, conferencing, and team collaboration software and business applications (e.g., CRM, ERP, financial, HCM, PLM, and SCM), delivered via the cloud services model

3. Communications and collaboration applications lead the way for marketentry – followed by opportunities for business applications


Applications-as-a-Service

Current Offering: Value Added Service Targeted at SMB Hybrid Cloud Public Cloud

Enhanced Capabilities:

Private Cloud Mobile-enabled New industry

verticals

Computing-as-a-Service

Current Offering: Table stakes Infrastructure (IaaS) Platforms (PaaS) Public Cloud


Infrastructure solution for SMBs

Enhanced storage & security capabilities

Virtual desktop for mid-market customers

Additional capacity/power from new data centers

Intelligence-as-a-Service

Groundbreaking Monetize ‘data’ as

consumable services Private Cloud Hybrid Cloud

Communications-as-a-Service*

Current Offering: Differentiator Unified

Communication Services

IP Voice Conferencing Contact Center Videoconferencing


Add’l conferencing features

Contact center and IVR Network Services

Unified communications services targeting healthcare providers, government and SMBs

We have highlighted five categories of cloud-based services that are suitable for Telco cloud offerings-

Proposed Cloud-Based Opportunities

Business-Process-as-a-Service

Remote business process management

Streamlines transactions

Targeted at SMBs, Industry verticals

Public Cloud

Guiding Principles Enhance existing services Become an early entrant into cloud ‘intelligence’ space Take market share in the ‘communications’ space Build value add capabilities to enable ecosystems Focus on industry verticals, leveraging key

relationships and acquisitions

New Cloud Service

New Cloud Service

Enhanced Cloud Service




SK Telecom is a unit of SK Holdings, one of South Korea’s largest chaebol conglomerates

SK Telecom has #1 market share in the domestic wireless market, and #2 market share in the domestic fixed line market

SK Telecom is perceived as a technology leader in South Korea

Reduction of new service development time, achieving faster time to market

Efficient management of resources, delivering reduction in capex & opex

Korean language portal based on API extensions to CSP2 Service Portal

Development Platform-as-a-Service offering to allow Business Partners to quickly test, develop, and publish new end-user focused WAP services available on SK Telecom network

Service Management-enabled Cloud Delivery platform to run new WAP services in a workload optimized fashion.

Our Customer’s Business What Did We Do?

Cloud Business Benefits

• Click to edit Master subtitle styleCloud Business Benefits

Our Customer’s Business The Business Challenges

What Did We Do?

• Rapid deployment of new services in seconds rather than hours. (Deployed 100’s of new VM instances in under 5 minutes).

• No/low maintenance, minimized operational administration, and no outages required for upgrades.

• Changing the delivery of DR services from cold-standby (capital intensive) to rapidly deployed (utilization efficient) and significantly more cost effective for customers and CSPs.

• DutchCloud is a leading ISP based in the Netherlands, focused on SME customers in a few key industries (Healthcare, Electronics).

• DutchCloud offers a range of Cloud based services from fully managed IaaS through to disaster recovery solutions.

• Customers select DutchCloud for the quality of service delivered and its service assurance.

• DutchCloud was looking for a light-weight, highly functional solution for core cloud service delivery.

• Current challenges are to improve the delivery of Cloud services in terms of cost, speed, agility, minimized operations and industrial strength solutions.

• Scale delivery costs to business volumes.

• Support delivery through a Reseller model.

• Implementation of IBM SmartCloud Provisioning as the core delivery platform across multiple compute and storage nodes.

• KVM hypervisor delivery for VMs supporting minimized license cost.

• Customer, management, and VLAN separation for multi-tenant isolation at the network and presentation layer.

• Integration with IBM V7000 Storwize storage and SmartCloud Provisioning to offer customers variable SLAs for storage.


Cloud Service Provider in action: Dynamically creates secure virtual, infrastructures for local businesses in hours

“Our vision was to create a platform to foster innovation and growth in the Vietnamese economy, taking advantage of our economy of scale to deliver highly cost-effective enterprise-class IT services to small- and mid-sized businesses,” says Nguyen Minh Tan, CEO, Vietnam Technology and Telecommunication. ”We chose IBM as our trusted partner for delivering commercial cloud services, based on its comprehensive portfolio and proven track record in other client engagements. We knew that IBM had the expertise and the local support to help us leverage cloud in a way that is safe, reliable and efficient for our business.”

$75 million in savingsover five years

370% projected ROI inthe first year alone

The benefits:

VNTT wanted to create a shared central infrastructure to deliver flexible infrastructure and software services to small- and mid-sized companies, on a pay-as-you-use pricing model.

• Launched the VNTT Cloud Center, built on IBM Service Delivery Manager cloud solution and featuring IBM System x and BladeCenter servers, enabling the dynamic creation of secure virtual infrastructures for local businesses.

• Dynamically creates secure virtual, infrastructures for local businesses in hours

Nguyen Minh Tan, CEO, Vietnam Technology and Telecommunication

The Business Challenges What Did We Do?


Early Adopters are Building Market Share but are also Learning

Valuable Lessons

WSJ: 9/28/2010: SAP committed to 10,000 ByDesign customers by

2010, but due to issues the number is 100...not as successful as

expected

As IaaS and PaaS become mature, there will be a Rush to build

Vertical Solutions

Picking the right Plays with limited

investment dollars is crucial

“Risk of inaction”

2007 2008 2009 2010 2011 2012 2013 2014 2015201

6201

7201

8201

9202

0

Laggards

Late Majority

Early Majority

Cloud-Based Solutions Maturity Model

Making money in the cloud space requires careful planning


12 IBM Confidential

To succeed with Cloud Services, CSP’s must be prepared to challenge themselves and the way they ‘think’

Mental Model

Economics

Customers

Technology

Time to market

Possible Thinking

We can rent our way into the business We can manage it in house

CSP’s value add is brand strength We need a killer app Build it and they will come

Cloud is a technical offering Platform is Decision #1

“We want to wet our toes” We follow existing processes to launch

new cloud services

Must include ..…

We ‘white label’ where we can to accelerate entry into the cloud market We invest in strategic ‘cloud-enabled solutions’ where we can capture

market share and offer clear economic differentiation to our customers We build an ecosystem of partners (suppliers and wholesalers)

We need to know our end customers’ value chain and their priorities Our differentiation is superior, integrated with vertical customer

experiences. Our ability to integrate with our existing wholesale solutions portfolio and customers with new types of business solutions.

Cloud is more of a business transformational model than it is a technology solution

While platform is critical, customer experience, industry specific solutions and speed-to-market are more important than the platform, as platform can be outsourced

Capturing market share early for the lucrative applications space is important. High profit industry solutions cannot be white-labeled.

CSP’s needs an ecosystem where they can rapidly deploy new services in a matter of few weeks from ideation to deployment.

Agile and nimble processes are critical to success


Market & Marketing

Business Model

You can leverage lessons learned from IBM’s experience with CSPs around the world and from operating our own IBM public cloud

Solution & Operations

Self-service storefront with integrated marketing will drive demand and reduce churn.

A combination of premise based and aggregated cloud services are required for maximize flexibility and control

Think through offer management. An application can have of multiple offerings and can participate in multiple bundles.

Building your own Cloud ecosystem is time consuming -leverage existing storefronts and ISV relationships to get to market quickly.

Develop “A Single Strategy” for cloud that covers multiple segments.

Cloud providers must offer a a full suite of services to be taken seriously.

Owner economics will win for CSPs.

Provide entry level and premium offerings for each service.

CSP

14

What services should we offer? How should we sell these services? How should we price such services? How should we deliver such services? How much are we willing to invest in such services? Should we build these services ourselves? What is the value of such services to Telco? How soon are we looking to launch such services?

Service Innovation Key Questions

Two-Sided Business Model

How does the two-sided business model work? How does the money flow? How do we charge customers? How do we target our customers across various cloud

industries/customer segments? What types of investments do we make, if any? What types of events do we need to think about? How do we get started? What is a realistic timeline?

Cloud-based Transformation Models

Key Questions

Telco’s cloud-based business model will be a combination of a service innovation model, as well as the creation of a two-sided business model


CREATE MANAGE

Deliver a broad portfolio of cloud services through

a common platform

MONETIZE

Energize Cloud Sales & Optimize

the Customer Experience

Aggregate a WideVariety of

Cloud Services

Rapidly Launch PartnerApplications

Infuse Creativity Into the Service Portfolio

Market White LabeledIBM Cloud Services

Optimize Sales WithSelf-Service Web

Storefront

Provide Web 2.0 enriched shopping

experience

Leverage Intelligencefor Differentiation

Delegate Administration to Enterprise customers

Leverage Robust andSecure Cloud Service

Integration

Ignite Innovation and Differentiate

the Service Portfolio

IBM Cloud Service Aggregation Platform - designed to empower CSPs to CREATE, MANAGE, & MONETIZE a broad portfolio of cloud services fast.



Services SolutionsFoundation

Commitment to open standards and a broad ecosystem

Easily build and rapidly scale private cloud environments with unparalleled time-to-market, integration and management

Unprecedented choice, security and portability of applications on IBM’s SmartCloud service delivery platform

Software as a service coupled with deep industry insights, business process skills and analytics

Smarter Cities

Social Business

Smarter Commerce

Business Analytics and Optimization

Business Process as a ServiceSoftware as a Service

IBM's approach is to match our client’s choice of deployment models & entry strategies


IBM’s SmartCloud service delivery platform is a platform for business innovation and growth

A broad ecosystem of ISVs leveraging the IBM SmartCloud as a platform for running their business

Enterprise data center

Hosted private cloudManaged private cloud

Enterprise

Shared cloud services

A

Enterprise

B

Management and support

Security Availability and performance

Infrastructure platform

Payment and billing

ApplicationResources

Application Environments

Application Management

Integration

Application Services

ApplicationLifecycle

Client Defined Services

IBM Services

Partner Services

A robust set of business solutions that leverage IBM’s deep industry and process skills including migration of existing hosted business applications

The choice and control to enable clients

to develop, deploy and

manage custom

services

A growing set of infrastructure services and solutions coupled with our deep architecture,

integration and implementation skills



IBM is building a robust ecosystem designed to address a broader set of enterprise requirements

Cloud Infrastructure Providers

Cloud Technology Providers

Cloud Application Providers

Cloud Services Solution Providers

Enterprise data center

Hosted private cloudManaged private cloud

Enterprise

Shared cloud services

A

Enterprise

B

Application Services

Client defined services

Industry services

Data and Analytics

Workplace

Security

Resilience

Enterprise applications

Partner services

Cloud Builders


Protecting and risk management in the cloud building on traditional approaches, applied to new models. Each model has different aspects to consider.

19

Different security controls are appropriate for different cloud needs - the challenge becomes one of integration, coexistence, and recognizing what solution is best for a given workload.

IBM Cloud SecurityOne Size Does Not Fit All


Brokering a range of services is a compelling value proposition for enterprise customers who are looking at Cloud to reduce IT complexity

“The future of cloud computing will be permeated with the notion of brokers negotiating relationships between providers of cloud services and the service customers.”

Market Implication:“Customers will be able to consume multiple cloud services in a more user-friendly fashion, with the complexities of managing multiple service providers throughout the supply chain reduced significantly, if not removed altogether.”

In a 2011 survey, Gartner found that 46% of enterprise customers indicated that the Cloud Service Broker model was relevant to their selection of cloud service providers. Source: Gartner


Complexity drives the need for Cloud Service Brokering . . . and provides an opportunity for differentiation

White LabelInfrastructure

Data CenterInfrastructure

Cloud Applications

Cloud Storefronts

On PremiseCloud

Applications

Companies for illustration only

CSP


Cast Iron demonstrates IBM’s commitment to a Smarter Services platform.

22

Comprehensive range of supported hypervisors

Fully extendable via an Open API

Advanced hybrid Cloud integration

Hardware vendor agnostic

Deploy on IBM systems for optimal service management visibility, cost and control

Accelerate on-boarding of new partner provided services with pre-configured templates and policies

Leverage your existing capital expense investments while avoiding technology lock-in

Cast Iron’s offerings will…advance IBM’s capabilities for a hybrid cloud model.


A quick start for Cloud: Building a private cloud in your enterprise

IBM provides options to Customers on how private clouds can be delivered. Which option is right for you?

4 Standard ConfigurationsPre-Built at Factory Integrated Support10 day installationSelf contained & expandable to

heterogeneous infrastructure and custom components

Starter Kit Pricing

Unlimited ConfigurationsCustom BuildProduct Level SupportLonger installation Installed to support multiple

platforms and custom components

Enterprise Pricing

IBM CloudBurst Pre-Integrated Bundles Custom Private Cloud

Flexibility Time to Results Install Base Workload Skillset


IBM Centers Deliver & Manage Cloud Services Around the World

Sao Paulo

Raleigh, NCSilicon Valley, CA

Boulder, CO

Johannesburg

TokyoSeoul

Hanoi

Singapore

Bangalore

Hong Kong

Beijing

Dublin

IBM Cloud Lab

IBM Cloud Data Center

Wroclaw, Poland

Ehningen, Germany

7 Cloud Data Centers11 Cloud Labs57 Global Delivery Centers54 Global Command Centers

IBM Worldwide Support Centers

Toronto


Driving client-focused open standards andinteroperability.

IBM solutions are built on a comprehensive,open reference model.

Provides guidance to the multiple cloud standards-defining bodies. Establishes the criteria for open- standards-based cloud computing. Delivers content in the form of best practices, case studies, use cases, requirements, gap analysis and recommendations for cloud standards.

companies areparticipating.

operate outside the IT realm.


Lessons Learned from Global Cloud InitiativesFocus, Success, Scale

Establish a cloud SP strategy, in alignment with your business and market and then transform your IT in consequence

Get into the market – it takes time to build critical mass in your company

Self-service ease-of-use is critical to success

Do what you do best first – infrastructure, communications, collaboration

Continually refresh product catalog to maintain customer interest – draw customers into an expanding set of services

Support multiple offerings per product – different buying behaviors

SMB most lucrative market for cloud services

Some business applications are complex – channel strategy is critical – start small, grow fast

click to edit master subtitle style tunis, tunisia, 18-19 june 2012 enabling innovative cloud...

Documents

public cloud market

cloud marketplace

innovative cloud services

cloud services model

categories of cloud

cloud service provider

public cloud provider

private cloud mobile