consider outsourcing

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2008 Tata Communications, Ltd. All Rights Reserved

Consider Outsourcing

Vinay NagpalDirector, Product Management

Hosting & Data Center ServicesTata Communications

Computer World Forum

Data Hot-House Summer 2008


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Considering Outsourcing?

Why buy the cow if you need only the milk?

Why run your own data centers when you can just pay to have your

machines hosted or have your computing resources supplied as autility?

There are cases where it may make sense to have your own farm!


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The CIOs conundrum

Need to show the value of IT to the business

Need IT infrastructure to support mission critical applications"

SLAs aligned to needs of the business? the performance cost trade-off

Business needs changes implemented quickly but we need to get it right

Users are getting more and more demanding. There is a deluge ofinformation to manage, and the underlying infrastructure is complex"

Our internal admin costs are too high

We need to improve business performance

We dont know what we have got out there

We need to be more customer oriented


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Global Data Center

Marketplace


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The New World

Globalization Web 2.0 India & China


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Data Center Market Trends

Various Sourcing models

Enterprise data center/IT consolidation

Convergence of network & IT realms SPs adopting Virtualization/SaaS

Utility Computing

Increased volume of digital media

Flexibility and support to scale ITinfrastructure web, apps, databases

Increased power/cooling requirements

Space constraints driving next-generation

data center


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Business Drivers for Outsourcing


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Global Data Center Market

IDC has forecast that the market will grow from $29.57 billion in 2005, to$48.37 billion in 2010 (CAGR of 10%).

Worldwide IT and business services: Focus on SMEs, global assets, globalsourcing for innovation, and industry focused BPO

IDCs latest forecast for the Asia/Pacific market (excluding Japan) in IT

Services: 2010 China will overtake Australia

In 2011 India will overtake Korea to become the third largest market in theAsia Pacific region.


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India and China will improve their position in the APAC DC market

APAC Data Center Market Split by Country (%)

INDIA Data Center Outsourcing ($ million)

Source: Gartner

As China and India increasinglyredefine the future of technologyand innovation, knowing how to

map a course into that future willbe a core competency of the most

accomplished travelers Gartner


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Asian Data Centre Space Forecast: 2006 to 2010

Chart 1 - Data Center Space Growth Forecast 2006-2010 by country

(Source: BroadGroup)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2006 2007 2008 2009 2010

China

Hong Kong

Indonesia

India

Japan

Korea

(South)Malaysia

Philippines

Singapore

Taiw an

Thailand


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Asian Data Centre Market Forecast: 2006 to 2010

Asia Data Center Space Forecast 2006-2010 (figures in '000 square feet)

Space forecasts are based on carrier neutral facilities, carrier owned data centers, and space provided by hosting or IT service firms.

11.51958017330169501533513420Total

513001250120011501100Thailand

5950950900850800Taiwan

917501700160015001300Singapore

81200115011001000900Philippines

151500140013001200900Malaysia

1014001350125011501000Korea (South)

342004100400039003800Japan

2437003500300025001900India

40530480400360320Indonesia

1317501550130012001100Hong Kong

3514501150900725600China

CAGR%20102009200820072006Country


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Outsourcing of IT and application development demands infrastructure

and managed services

Entry into new markets requires IT infrastructure and capabilities

Drivers of Data Center Growth

Globalization &Outsourcing

Regulation &BusinessContinuity

Alternate IT infrastructure and services for business continuity and

compliance, particularly for Banking and Financial Services companies

Data privacy and security issues

Time to MarketConsiderations

Serve customers quickly and locally to improve experience Application and services roll out to emerging markets such as India,

China and South East Asia

Data Center Infrastructure easily available for applications

Reduced ITBudgets

Rising costs of real estate and power

Technology obsolescence, manpower churn, management overheads

Skills of M&E not necessarily core to IT


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Availability and cost

Proximity to fiber andchoice of providers

Space size and scalability

Commitment - contract vs. lease

Statutory approvals and regulations

Power infrastructure and costs

Fire suppression

Environmental controls M&E

Maintenance

Monitoring

Staffing and retention of skills

Challenges in building your own Data Centers

Real Estate

Core Infrastructure

Operations

Heating, Venting, AirConditioning (HVAC)

Security (manned,

access, surveillance)

3 Ps: Pipe, Power, Ping

24x7 support (3 Shifts)

Security Multiple vendor contracts


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Selection criterion to Outsource IT infrastructure

Location: Globally expansive footprint

Ability to deliver consistent services across multiple regions

Data centers in mature markets and emerging markets

Connectivity: Highly available, secure and integrated network

People: Technically competent IT staff

IT infrastructure and management: Well-defined and flexible roadmap

Operational efficiencies

Adherence to compliance

Financial Viability


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and sometimes it makes sense NOT to Outsource

Assets on the ground

Custom/legacy system requirements

Security requirements

Extent and depth of management oversight

Regulatory and compliance issues

TCO consideration

Footprint and facilities requirements


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Data Centers Outsourcing Options in Asia Pacific

Australia & New Zealand Good IT infrastructure

Experienced IT staff

Good service quality Network latency far from Asia

No direct routes connecting India &China

South Korea, Japan & Taiwan Good network to China & HK Service quality and network

performance are good

Far from South Asian countries

Limited capacity to India

High labor and real estate costs

Hong Kong & Singapore Good IT infrastructure

Experienced IT staff

Excellent network coverage Good language skills

High labor & real estate costs

India & China Growing markets Service quality improved but

inconsistent

IT skills are improving

Limited international connectivity

Huge domestic market


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Tata Communications in

the Data Center Market


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Vision

Emerging Markets

Converged IP

Solutions

Managed

Services

INDIA, ASIA incl CHINA, SOUTH AFRICA

NEW WORLD OFCOMMUNICATIONS

NEW WORLD OFCOMMUNICATIONS

Deliver a new world of communications to advancethe reach and leadership of our customers.


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Data center infrastructure in key geographies Presence in both developed and emerging markets

Tata Communications Data Center Strategy

Global Footprint

Integrated withNetwork Services

ConsistentService

Capabilities

Out-taskedManagedServices

Captive DataCenters

Leverage extensive global network integrated with data centers

Network Services: IP, MPLS, Ethernet WAN for DC and end sites Carrier diversity to support redundancy requirements

Data centers are based on consistent standards Tier 3 specifications

Based on global and industry standards ISO 20000, 27001, SAS70

Managed IT infrastructure services servers security and network

Managed Hosting and Storage

Standards-based management for consistent service capability

Leverage in-house experience and expertise along with partners to buildcaptive data centers


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Data Center Services and Capabilities Multiple hosting and colocation facilities

Network Colocation and IT Hosting suite of services

Data Centers build to Tier 3 standards

Integrated with backbone network

Infrastructure

Colocation

Hosting

Services

Racks and cages

Remote Hands Services

IP and Bandwidth Services

Managed Security- Firewalls, DDoS, and UTM

Managed Hosting Services Servers, Storage, Security, Network

Virtualization, DB, Dual Site Recovery Replication in development

24 x 7- operations, management and monitoring and OS level

management; Linux, Solaris, Windows, AIX Centralized Management Platform with customer view portal


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Tata Communications Global Footprint of Colocation and Hosting Facilities

NORTH AMERICACanada

Montreal

Toronto

USA New York, NY North Alameda, LA Santa Clara, CA

Portland, OR Wall, NJ

Guam

UK Stratford, London

Highbridge

Peterborough

EUROPE Lisbon, Portugal

Seixal, Spain

Derio, Spain

INDIA Mumbai Chennai Delhi

Bangalore Hyderabad

Pune

ASIA PACIFIC Shinagawa, Tokyo Toyohashi, Japan

Singapore


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The Road Ahead


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The Next Wave Driving Data Center Outsourcing Energy use and power and cooling management and optimization

New IT systems and infrastructures; alternate sources of power

Cost reductions and savings; environmental impact

Green IT

Virtualization

Captive Data

Centers

Security

Application/Content Delivery

Logical server installed base growth: 65 million versus 45 million of

physical server install base by 2010 Virtual Data Center; from consolidation to dynamic flexible infrastructure

Anywhere Enterprise; DC, Application, Network and Desktop virtualization

BO, BOT models; for the enterprise, but operated, managed as a service

Issues of capacity management, infrastructure upgrades, aligned tobusiness needs

Anytime, anywhere information availability drives shift towards policy-based security management and administration

Networks make it a reality; network as a delivery platform; orchestration ofvirtual resources


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Summary

Key drivers for Data Center Outsourcing

Cost savings by avoiding capex investment

Limited IT skill-set

Technology challenges

Improve performance and availability of IT systems and websites

Asia Pacific region is positioned to take a significant portion of Global DataCenter Market

Singapore is currently the regional hub of Data Center business

Increased focus on emerging markets India & China


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www.tatacommunications.com

Thank you!Thank you!

Vinay NagpalVinay Nagpal

Tata CommunicationsTata Communications

consider outsourcing

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