keeping your internet business it asset light by mandar kulkarni
DESCRIPTION
TRANSCRIPT
Keeping Your Internet Business IT
Asset Light
for
Confidential Netmagic Internal Use Only
POINTS WE WILL COVER
●Business LifeCycle of an Internet Centric Enterprise (ICE)
● IT Challenges for an Internet Centric Enterprise
●Technology Investment Options Available
● IT Asset Landscape
● Impact on Cashflow
● CapEx
● OpEx /
● Pay-per-use
●Options
●Case Studies
●Recommendations
Confidential Netmagic Internal Use Only
BUSINESS LIFECYCLE
New Idea
Develop and Test
Deploy and Market
Grow and Expand
Market Feedback
Discontinue Service
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TECHNOLOGY CHALLENGES
Dynamic business
Use of latest in technology
Bottomline and cashflow friendly investments
Flexibility to scale up and scale down
Faster time-to-market
Delivering consistent (but nuanced) user experiences
Security threats, compliance requirements
Ever-growing pool of technology tools and platforms
Confidential Netmagic Internal Use Only
CHALLENGES FOR IT
• Insurance
• Government
• ERP
• Telecomm
• Banks
• Securities and trading
• Payment gateways
• Back-office applications
• Education
• Manufacturing
• Services
• Ecommerce
• Online travel and leisure
• Market and Stocks
• Media & Entertainment
Com
plia
nce r
equirem
en
t
Performance / without glitch availabilityLow Cost
High
Cost
High
Cost
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IT LANDSCAPE OF RETAILER
Robust and Scalable IT Infrastructure (Compute, Storage and Network)
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TECHNOLOGY INVESTMENT MODELS
Option HWSW /
LicensesConnectivity
Management
Services
CapEx X X
OpEx
Pay-per-use X
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TECHNOLOGY PROVIDERS
AVAILABLE
Option HW SW / Licenses ConnectivityManagement
Services
CapEx OEM OEM NA In-house
OpEx
IT Service
Provider
(Netmagic)
Service
Provider
(Netmagic)
Service
Provider
(Netmagic)
Service
Provider
(Netmagic)
Pay-per-use
Cloud Service
Provider
(Netmagic)
SPLA
Cloud Service
Provider
(Netmagic)
Cloud Service
Provider
(Netmagic)
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IMPACT OF ASSETS ON FINANCE
OptionInvestment in
Fixed AssetsEBIDTA Cash Flow
CapEx HighGood for short term
EBITDA
Need upfront funds
and need to service
the capital
OpEx Nil Impact on EBITDA Good for cashflow
Pay-per-use Nil Impact on cashflow Best for cashflow
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LEVERAGING CLOUD
●Options:
1. Start on Cloud
2. Start with connecting to public
Cloud for capacity expansion,
new service roll out, etc.
3. Use Cloud for demand
management / Scaling Out
4. Provision application servers on
public and let the DB on
dedicated server.
Use Cloud to rationalize new investments
Confidential Netmagic Internal Use Only
INDUSTRY TRENDS
95% of ICE customers prefer the Opex or Pay-per-use model
Prefer to outsource IT infrastructure management and keep the application management in-house
80% of ICE customers are moving some piece of their IT Infrastructure on the cloud (pay-per-use)
Demand for stringent Service Level Agreements
Increasing focus on end-user experience driving SLA demands
Hybrid IT Infrastructure Models (Pay-per-use, Opex and Capex)
Confidential Netmagic Internal Use Only
Case Study Snapshots
Dedicated Hosting
(OpEx) model to
CapEx model
Dedicated Hosting
(OpEx)Asset-light model -
completely on cloud,
migrated from US to India
online
managed
marketplace in
India hosts with us
India’s Most
Popular TV
Talk Show in
2012 hosted with us.
Truth Prevails!
Asst light, completely on
cloud - easy setup, scale
on demand and reduce
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ADVANTAGE OF MOVING TO AN
ASSET LIGHT IT SERVICE MODEL
Start a company with “0” capex
Unlimited Innovation – don’t “select” ideas
Manage business not IT
Stay ahead of the IT infrastructure refresh curve
Flexible throughout the business lifecycle (move to different investment models based on business demand)
Control through business focused SLAs
Build technology team to manage business applications and not IT infrastructure
Confidential Netmagic Internal Use Only
WHO WE ARE…
14
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ABOUT NETMAGIC
15
We own the complete cycle of Planning, Designing, Procuring, Integration,
24x7 Monitoring and Management of mission-critical IT Infrastructure hosted out of
our state-of-the-art datacenters. We deliver these services on a flexible Opex
(Service) commercial models
Single Window Access to best practices and capabilities to
architect, manage and host your IT Infrastructure.
System Integration 24x7 IT Infra Management Managed Hosting
Plan, Design, Size
Procure & Manage Hardware
Deploy, Consolidate / Migrate
/ Transition Datacenter
Infrastructure
Architect / Build / Manage
Private Cloud Environment
Monitor & Manage the entire IT
Infrastructure stack
OS
DB
Network
App
Managed Security
24x7x365
Colocation
Hardware on OPEX,
Internet Bandwidth with
domestic/ global peering
capabilities
Remote Hand Support,
Cloud (IaaS) – Public / Hybrid
Netmagic: End – to – End IT Infrastructure Solutions Company
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NETMAGIC AT A GLANCE
c
c
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NETMAGIC AT A GLANCE (Contd…)
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NETMAGIC AT A GLANCE (Contd…)
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Public Cloud /
IaaS
SimpliCloud
Hybrid Cloud /
Cloud
Connect
HybriCloud
DR on Cloud
Private Cloud
Custom
Clouds
Cloud-in-a-
Box
SOaaS
Time to deploy / consume services
Enterprise DC
Consolidation
and
Virtualization
LowHigh
Moderate
High
CLOUD SERVICES PORTFOLIO
Netmagic DatacenterNetmagic Datacenter / Customer Datacenter
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CUSTOMER SNAPSHOT
15 of top 20 broking firms in India
5 of top 10 Indian media companies
ALL TOP online travel companies in India
Strong presence in the
Manufacturing Sector
Leading International players from the BFSI
vertical
90% of Mobile VAS providers in India
Customers
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http://www.youtube.com/user/netmagicsolutions