trends and innovations in cloud and managed services

What we will be covering:Trends in Cloud and Managed ServicesDifferences and Cloud OptionsGlobal StandardsHow Cloud Services improve TCO

2© Current Analysis Inc. All rights reserved.Washington, DC / London / Paris

October 22, 2013

Trends and Innovation in Cloud and Managed Services: Current Analysis

Perspective

Bruce PageVice President, Custom Research

3© Current Analysis Inc. All rights reserved.

Enterprise Communications Management: A Balancing Act

Enabling Business Initiatives & Competitiveness

Driving improved Return on IT Investment & Assets

Managing a Growing Base of Increasingly Complex IT Applications

Maintaining / Improving Service Quality

Complying with Regulatory & Compliance Mandates

Enabling Increasingly Mobile Workforce

Achieving IT & Business AgilityAND always doing More with Less

Keep the lights on while…


Cloud & Managed Services Leveraging Supply- and Demand-Side Trends

Globalization, cost control, & and service innovation are key drivers

Economic/

Budget Pressur

esPush

to

Impro

ve

Busin

ess

Effica

cyM

aturing

Technology

/ Delivery

Mod

els

Ric

her

Por

tfol

ios

and

Impr

oved

Rel

iabi

lity

Globalization

• Continued fiscal challenges• Need to be more agile• Greater efficiency

• Advances in virtualization, automation, and orchestration

• Increased network connectivity and bandwidth

• Maturing service provider business models

• Broader and deeper provider solution sets

• Better integrated security

• Improving delivery

Cloud &

Managed

Services

• Compete in new locales

• Expedite technology deployment

• Accelerate product development

• Speed time to market


Rapid Move to the Cloud Across All Key Industries, 2012-2014

By 2014, 28% of organizations plan to deliver over 20% of their overall IT application burden via Cloud architectures

HP Restricted


Enterprise Apps and E-Mail Most Commonly Deployed to Cloud

E-mail, UCC, and Storage Lead Cloud Procurement Plans

Unified communications

Storage on-demand

Enterprise applications

Desktop applications

E-mail

Computing on-demand

Bandwidth on-demand

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

26%

36%

48%

36%

40%

24%

17%

15%

13%

8%

8%

22%

10%

5%

60%

51%

44%

56%

38%

66%

79%

Top 7 Cloud Applications for Cloud DeploymentCurrently there Expected Don't know/Can't say

Source: Current Analysis 2012 Collaboration Research


Staff time is at a premium… how best to optimize their time?

For data networks, voice, video, cloud IT, collaboration, mobility…

Maximizes control over enterprise IT systems; agility

But requires more staff time & training in order to manage increasingly complex networks & systems

Allows re-allocation of staff time & training

But requires strong process definition & governance

Removes capex investment requirements

But requires strong organizational alignment with service provider

Optimize IT resource allocation within each service domain to best support the business’s goals

Self-Manage own CPE 3rd Party Managed CPE Full Outsourcing & Cloud


Growing preference for Cloud & Managed UC & Collaboration

Which deployment model is preferred for your UCC project?

Premises-based, 3rd party (VAR, etc.) managed

Vendor hosted dedicated

Partner hosted dedicated SaaS

Service provider hosted dedicated

Premises-based, service provider managed

Vendor hosted cloud

Service provider hosted cloud

Premises-based, self-managed

0% 5% 10% 15% 20% 25%Total US Europe

Source: Current Analysis 2012 Collaboration Research


Enterprise adoption plans for management services for Smartphones

60-70% of enterprises plan to use Mobile Device Management Services

Application management

Device procurement

Security

Software / version management

Configuration and trouble shooting

Logistics (i.e., ordering)

Device management

Network services

Expense management

0% 20% 40% 60% 80%

Next 12 months 13-24 months


Cloud & Managed Services: Right Solution, Right Time?

As IT management challenges mount, Cloud and Managed services solutions are also maturing, becoming attractive to a new set of potential customers

Interoperable

Instill

Consistent

Processes

Reduce Complexity

Easy to

pay for Cloud & Managed Services Solutions


Communications Managed Services: Differentiators

Demonstrated TCO improvement from similar use cases (domain-level, engagement type)

Performance metrics as measured by SLA commitments, variances and penalties

Standardized processes used in service delivery

Maturity of customer management processes & service management

Platform used to monitor and manage the customer’s environment

Geographic reach, including in-region language support

Capabilities of the service provider’s customer portal across the engagement lifecycle

Ability to integrate customer’s existing communications solutions

Capability to manage multi-vendor environments

Modular service offerings with tiered service levels

Regional and Local support capabilities

“Operational Excellence:” Easy to say, but harder to deliver

12© Current Analysis Inc. All rights reserved. 12Proprietary and Confidential© Current Analysis Inc. All rights reserved.

Bruce PageVP, Custom ResearchCurrent Analysis, [email protected]

Thank You

mailto:[email protected]

mailto:[email protected]

Trends and Innovationsin Cloud and Managed Services

Roberto SchmidlVice President , Global Cloud Sales

© 2013 Avaya Inc. All rights reserved. 14

The Market We Are In…The Perfect Storm

Over 1 Billion tabletsby 2016

72% permitting employee devices for business

Mobile devices spending will exceed PC 4x

400 Million PCs in 2014to be VDI

Video soft clients increase 400% from 2010-13

¾ of all mobile apps have been be integrated with enterprise services since 2012

Consumerizationof IT / BYOD

Collaboration Driving Growth

The Ageof the Cloud

Cloud computing marketis a $74 Billion industry

“Digital universe” grew to 2.7B in 2013, up over 50% from 2011

Over 80% of new appswill be deployed/distributedon clouds

*Source Marc Randall SVP Avaya Networking, Technology forum 2012 based on Gartner and Yankee Group 2011info


IT Leaders Under Siege

Budget constraints

Legal and regulatory requirements

Demands of internal corporate governance

Human resource issues

Day-to-day Distractions:

Perhaps theMost Complex:

Managing the communications component of the IT domain Customers

– Communications are nowvery personal, creating greater demands and challengesfrom user organizationsand business units

Technological Change– Fast-paced, often tumultuous,

and ongoing; winners unclear


Mastering the Current Environment

A critical foundation to build on, but only one of several

factors that allow the IT executive to anticipate events,

control outcomes, and lead

Strong Technical Knowledge

Incorporation of Exciting,New Technologies

For example, business users self-deploying smartphones and tablets

The hard-and-fast boundaries between work and home devicesand applications are quickly evaporating

The incorporation of collaboration, like SharePoint, personal video, mobile UC apps, etc.

Tie it together - provide access to business critical information

Should enable the corporate vision without slowingthe forward march of the organization

Should align with line of business (LOB) objectives

Should empower employees and enable choices


Cloud and Managed Services Can Help

Customers Want to Realize Benefits of New Solutions

Increased Solution Functionality &Complexity

Ability to Consume Functionality & Complexity

TechnologyAdoption Gap

Adoption optimizesthe business value

Mitigate Risk

Optimize Solution Performance

Reduce TCO

Drive Business Value


CaaS

Private

Per User

Public

Rental

Utility

Hosted

AOB

High Water Billing

Who Knew “Cloud” Could Mean So Many Things?

What is Cloud?

Managed Servicesare often included but

not the same asCloud


Avaya Collaborative Cloud™ PortfolioCustomer Choices

Next Gen PublicCloud

AvayaLive™ Connect

Avaya OperationsServices

AvayaCollaboration

Pods

Hosted CloudEnablementPublic Cloud

PrivateCloud

Build Out

CAPEXPerpetualLicense

On-Premises

OPEXSubscription

LicenseCloud

Build Manage Enable Deliver

AvayaUC/CC/Videoas-a Service

Pri

vate

Pu

bli

cH

ybri

d

Managed Private Cloud

- Contact Center

Managed Private Cloud

COS andCOS Ex

AvayaOn-PremiseUC/CC/VideoProducts &

Services

Cloud Enablementfor UC and

CC

Cloud Enablement

for Video


Dedicated(Private)

Shared Multitenant

(Public)

Hybrid(Assets on PremiseApps from cloud)

Managed Services

Assets on premiseOwned by CustomerManaged by 3rd Party

Outsourced (COS)

Assets on premiseOwned by 3rd Party

Managed by 3rd Party

Hosted

Assets hosted by 3rd PartyOwned by 3rd Party

Managed by 3rd Party

Implication: Large Enterprises are not quite sure as to what implications Cloud will have on their business, but are expecting a solution that offers cost savings, control, leverage and security first and scalability, flexibility, standardization and homogeneity in the long-run

CloudServices

Avaya Offers Flexible Business Models

OPEX MODELS

Customers Are Seeking Creative Business ModelsCustomer Drivers for OPEX Models Cash Management:

– Consume all network, telephonyand applications as a service

– Use capital in other areas of business Flexible Delivery Options

– Up-scale, down-scale on demand– Hosted, On Premise Managed, Hybrid

Managing and Reducing IT Complexity

– Reluctance to hire staff to manage VoIP/UC technology complexity

– End-to-end SLA Total Cost of Ownership

– Potential for cost savings, including people, capital & operating cost

– Virtualization and shared infrastructure lowers the cost to deliver services

Managing Obsolescence– Refresh as technology evolves

Corporate-wide Standardization Customer facing differentiation


Public vs. Private Cloud

Multi-Tennant – more than a single customer uses a shared platform

Lower cost/price and usually lower features

Limited “custom” options – usually rate carded

Hosted off premise

Built specifically for that customer

10-15% more expensive

Total flexibility in the design

On or off premise options

Cloud option for enterprises with security or shared tenant issues (Financial / healthcare)

AV UCaaS/CCaaSPublic

(Management Services Optional add-on

AOS Opex ModelPrivate

(AOS Management included)

AOS COS Express Model Hybrid

(AOS Management included)

Public Private Hybrid

What does this mean in Avaya?

On or off premise options

Standard configurations offered

Limited “custom” options - usually rate carded


Avaya Cloud Transformation OffersServices for the Enterprise

Assess and determine most optimal communications delivery model

Cloud Design& Integration

Cloud TransformationStrategy

CommunicationsDelivery Strategy

Determine the most appropriate cloud communications solution and delivery model for the organization

Prepare designs for communications integrationof a client’s business process / back office apps


Service Delivery and Support

Backed up by Contractual Service Level Agreement and Underpinning Contracts

Core Value and Model

Implementation & Program Support

Service Delivery Support Model Client Management Experience

Solution Design Engineering Support

Program Management Office

Seamless Service Assumption and Transition Process through To “Day 2” Production Support

Program Governance & Ownership

Underpinning AOS Quality Governance Program

Governed by ITIL Standards

End to End ITIL Process Driven

Dedicated/Designated Solution Support Engineering Teams

Core Competencies and Dedicated

Dedicated Client Service Executive and Program Director

Dedicated/Designated Service Delivery Manager and Liaison

Dedicated/Designated Client Business Manager

Service Level Management

Risk and Financial Management

CSAT Champion

Currently Managing: 3.5M plus UC /Telephony

ports 350,000 CC agents 1.3M plus Data and

Ethernet ports 56,000 hours of managed

video support

Avaya Matrix Management Platform

95% + Incident Detection

Platform Enabled ITIL Processes

Vendor Agnostic

Bi-Directional eBonding (Ticketing and/or Inventory Systems)

Transparent Customer Portal


Single Pointof Contact

Accountability Through SLAs and a Single Pointof Contact and Management

Flexible SLA progression is available to meet your business needs

Maintain your workforce’s performance

Proactive global service for allof your accountneeds

Delivered 24 X 7in language

Supported byAvaya Matrix

Built with industry standard components & Avaya IP

Delivered through personalized web portal experience

Service Level Agreements

Integrated Management


ITIL Alignment

Strong Governance and ITIL® AlignmentEnsures Success of Your Environment

Ensuring you are kept aware of activity in your environment through:

Security and Access Reporting Escalation Project Coordination

and Planning Management and

Oversight

Single, definable, repeatable, and scalable IT framework for the entire organization

Clearly identifies roles and responsibilities for Service Management

Defines IT in terms of services rather than systems

GovernanceModel

Helps reduce capitalIT costs

Improves communication between IT and other departments

Supports improvementof IT performance

Enhances ability of ITto adjust to changing business needs

What It Means Benefits


Client PortalInteractive

Management

Transparency Gives You Easy Accessto Your Information

Incident Management Change & Release Management Problem Management Configuration Management Service Request Management Ordering & Billing Knowledge Base Reporting

Customizable landing page Role based personalization HTML 5 based for browser

access from any device Two-factor authentication (2FA) Multiple language support Single sign on

Interactive toolgiving visibility into

your network

Web-based interfacefor enterprise

application users


Summary - Challenges and Value Proposition

Limited IT budgets, Limitedto No Capital

Increasingly complex application environments

Limited IT resources. Increasing cost to attract, retain and train.

Increasing costs to purchaseand maintain IT tools.

Challenging to manage system obsolescence and integration

Aging Infrastructure but limitedto no capital available

Require flexibility on users (up/down)

Reduce Total Cost of Ownership (Operations, Staff, Tools, Training, HW/SW)

Business Model– Opex– Predictable Cost– Simple, Flexible

Outsource Complexity– System Integration– Obsolescence Management– IT Communication Skill sets

Improve Productivity– Advanced Applications

Deployed Quickly

Today’s Challenges Services Value Proposition


Snapshot: Global ManufacturerUC Deployment Success

SolutionChallenge Results

Aging TDM infrastructure not meeting the client’s business needs

Requiring a next-generation UC platform migration path

Limited capital budget so client did not want to own or operate any equipment

Complex global solution supporting 75,000 ports over 700 sites

Migration path to Avaya Aura®

Total Avaya Opex Utility Model solution

Avaya/client process and tool integration

Complex global billing solution

Complete Avaya Aura® Transformation over thenext three years

Creation of regional, primary core data centers in the Americas, EMEA, and APACto support all users

Reduction in total cost of ownership

Fully operating expense solution with predictablepricing and global reach

Support mission to fully own and operate networkTransform to next-generation UC platform


Review and Close

Trends- Strong Growth in Cloud and Managed Services

Public, Private and Hybrid- Options depend on your business Global Standards- Ensures connectivity and reach

TCO – Savings over 20% by Reducing Complexity, increasing productivity and maximizing performance

Process People Presence Capacity Performance

trends and innovations in cloud and managed services

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