sent06 bovy presentation

8/6/2019 SENT06 Bovy Presentation

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05 October 2006

"Unrestricted"

Services Offering for Enterprise

Customers

The Telcos perspective

Philippe Bovy

Business Development ManagerTelindus Belgacom ICT


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Septembr 26, 2006 | slide 1

Contents

Company Overview

European ICT Market & Trends

Telcos Challenges & Roadmap towards ICT Services

Telcos ICT Offering

New Telcos Outsourcing approach

Conclusions


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Septembr 26, 2006 | slide

Part of the Belgacom Group

Telindus joined the Belgacom Group in January 2006


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About Telindus

International ICT integrator, since 1969

Offering cross domain ICT solutions & services

Serving business & public market needs as a solution & sourcing partner

International delivery capabilities with 2570 employees

Spread over 14 countries (35 cities)


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European ICT servicesMarkets


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What does include the ICT market ?


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Businessservices

Applicationservices

Data Centreservices

Networkservices

Connectivityservices

Install, maintain and operate thenetwork of laptops, PCs, PBX,

telephones and so on. Connect thenetwork to the outside world

Host and maintain the customersdatabases and software infrastructure in aremote secured location (a Data Centre).

Archive & backup of customer data

Develop and implement softwareIntegrate software so as to inter-work

with other softwareUpgrade softwareManage software portfolio

Run an entire customer business processsuch as a customers Payroll, a customerswarehouse, a customers IT department, a

customers training department etc.

Traditional Telcobusiness

(voice + datanetwork)

CT IT

The ICT Services value chainWhat do we mean?

Communication Technology (CT) Services were typically found on theleft of the value chain, whereas Information Technology (IT) Serviceswere typically found on the right of the value chain


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Consultancy IT-consultancy

Hard & software sales Reselling of HW, SW

Business process

outsourcing

Full takeover of bus processes: e.g.

HR, fleet, etc

System integration Application development &

implementation

Application management

Desktop management

Data centre & storage

IT outsourcing (WAN bus

not included)

(W)LAN, IPTEL, Security

Network Integration

Deployment of LAN or Wireless LANDeployment of VoIP platforms (PBXs)Deployment of Firew all and Certificates

Archive & Back-Up of Customers Data insecured location

Deployment & Maintenance of Desktops,Laptops, PDAs on Customer premises

Deployment & Management of OfficeApplications (mail/ fax serv.), broadcasting,

Design & Implementation of customized

applications ( Internet E-Commerce,Dynamic Web site)

Design & Management of customerbusiness processes (Payroll, e-Learning,SAP Financials, etc )

Storage & Shipping of P rinters, Servers,Desktops, etc

Project Management, Solution Design

The ICT Services value chainWhat do we mean?


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Market size in value

Total IT market for Western Europe isestimated by IDC at 254 Bio for 2006

This covers the follow ing services :

Businessservices

Applicationservices

Data Centreservices

Networkservices


CT IT

Source : IDC, January 2005

IT services accounts for 45% of I T spending, Hardware for 34%and Software for 21%

Split of Western Europe IT Spending

34%

21%

45%

Hardware

Software

IT Services


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Gartner also forecasts a CAGR of 3,4% (2005-2009) for IT Services in Western Europe

EITO (European Information Technology Observatory) forecasts a 5.0% growth of IT

services in Europe for 2006 and 5,3% for 2007. (This is much higher than traditional

Carrier Services : 1.6%)

IDC expects a CAGR of IT services spending in Western Europe of 5.0% for period2004-2009

The Total IT Services market is definitely growing

Market Value:120B in 2007

Market size in value


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Telcos Revenue Challenge :The Roadmap to ICT Services


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1. Decline in (traditional) Revenue Stream

Most European Telcos are facing triple pressure :

Saturation : Fixed line traffic volume is declining : Fixed voice substitution toIP & mobile

Pricing : Bundled offer and flat fees are common practice

Regulatory climate : leading to aggressive LLU offers (triple/quadrupleplay) from (new) competitors

resulting into declining domestic revenues.

Telcos tough times in domestic markets

Source : Ovum


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1. Decline in (traditional) Revenue Stream (contd)

Professional Voice Market (traditional cash cow) is declining

Situation in Belgium

Value evolution Belgian Fixed Business

telecom market 2006-2008

-12%-10%

-8%

-6%

-4%

-2%

0%

2%

4%

2006 2007 2008

Fixed Voice Business Fixed Data Business

Fixed Internet Business Fixed Total Business

Fixed Data Bus

Fixed Int. BusFixed Total Bus

Fixed Voice Bus

Source: Gartner/Dataquest 2006


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Corporate Customers want integrated solutions

Corporate Customers are also looking for service providers taking care of all(or part) of their ICT services

Outsourcing becomes a more common practice for Corporate customers whoneed to focus on their core business

Market globalisation and mergers & acquisitions lead to internationalintegration and harmonisation of corporate ICT solutions, resulting in

the need to have all services provided seamlessly by international serviceproviders and integrators

with coherent SLAs

Corporate Customer Needs more than just Telecom services

2. Change in Customer Needs


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IT providers are pushing computer-telephone integration as much as theycan

With voice & data convergence over a single IP-based platform, IT providers(IBM, HP) and network integrators (Dimension Data, Telindus, ) areoffering services that were once the exclusive domain of telecom firms.

Examples : IxSP (IVSP, )

Competition on the Corporate segment does not only come fromTelcos but from IT Providers enlarging their scope of activities

3. Change in Competitive Landscape

Consulting

services

Applicationservices

Storageservices

Networkservices


Belgacom/

Telcos

Dimension Data

NextiraOne

Damovo

Getronics

Low positionin the value

chain

IBM

HP

EDS


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Overall exercise in the Telcos Industry

Most European Telcos are embracing the IP opportunity/challenge to offernew bundled ICT products, leveraging the unified communicationsmomentum,

This move is supported by strong users and industry organizations:

EVUA (Global Telecommunication Focus Group) created a new ICTservices Special Interest Group (SIG) aiming to identify bestpractices & solutions among ICT services providers

ETN0 (European Telecommunications Network Operators),highlighted in 2005 to its Members the importance of the Telcosroles in the future development of European ICT sector (with theaim to ensure the success of i2010 Lisbon initiative.

This ICT story is not restricted to a few key players.

Fully supported by ICT analysts


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Telcos ICT Offerings


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What keeps CIOs awake?

Selective Sourcing

Security

Directory Services

Mobile Computing

Virtual Network Services

Windows Migration and .net

Server & Storage

Consolidation

Digital Surveillance

IP Based Contact Centre

Content Delivery Networks

IPVPN (MPLS)

Electronic Messaging and

video Applications

Business Recovery, Continuity

Customer Relation

Management

Application ResponseTime Management


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Telcos ICT Solutions

Telcos solutions w ill leverage Telcos infrastructure and skillsdevelopped for Internal needs

Security

Cost ControlBusinessPerformance

Get your network powered for the future!You need bandw id th , r e l i ab i l i t y & s ecu r i t y

Consolidate your IT systems!redu ce cost fo r se rvers & s to rage Empower your applications!N et w o r k + Sy st e m s p o w e r t o b o o st p e r f o r m a n ce


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Do more with less!

IncreasesValueCreation

Todays IT

Source: Accenture IT spending survey

30%new capability

70%sustaining

&running

existingcapabilty

45%new capability

55%

existingcapabiltyDecreasesMaintenance& Delivery

Desired IT


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Headquarters

Intranet

Engr Dept

Mktg Dept

Finance Dept

HR Dept

File servers

DMZ

Pro-active management of critical architecture components

SOHO

Internet

Stand-alone IDP

Deep Inspection Firewall

Stateful Inspection Firewall

Firewalling & VPN

Proxy cache

Antivirus scanning

Strong authentication

Intrusion detection

Content&URL filtering

User authentication

End point of defense

1. Security : Managed Security Service

Regional Office

users


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KnowledgeCenter

Security policies & proceduresSecurity infrastructure designSecurity training

Installation & configurationof securitySet up of managed services

Managed Services24*7

Monitoring, management,Support

Operational security reviewPenetration testsVulnerability scans

Security : Managed Security Service

Security is more that just monitoring access and traffic

. Security is also a process


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Security : Risk Assessment


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Security

Source : Europes 2005 Entreprise Telecom Outlook, Forrester, July 1,2005

Security : # 1 in ICT Spending Increase


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Leverage Telcos State-of-the-art Data Centers

Secure places with plently room available

State-of-the art fire detection and electrical power/airco supply Existing bullet-proof physical Access infrastructure & procedures

Fully redundant connectivity : connected to wide range of competitive Carriers(Interconnect)

Optimal place for:

Business Recovery Housing Business Recovery Office

2. Cost Control : Consolidate Infrastructure


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Leve

lofOuts

ourci

ng

Application Outsourcing

ASP, AIP, Citrix, TS, Jetro,

Standard Application Server

File Exchange, Document Archiving,e-mail, fax, ftp, db,

Server HostingDedicated Web ServerDedicated Standard ServerDedicated Enterprise Server

Server On-Site

Cost Control : Servers Solutions


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End device

Application Outsourcing

Applications movedTowards the Data Centre

Data Centre

MainframeApplications

16-bitClient/Server

32-bitClient/Server

Poorly designed

HTML Web Apps

HTML WebApplications

Web Services

Applications

Network FileStores

Other Data andFile Stores

Application Outsourcing is a managed solution where applications& data are installed and executed on centralized servers

Mouse clicks andkeystrokes sent to server

Screen updates sent toclient devices

Cost Control : Servers Solutions


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C t C t l B k S l ti


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Cost Control : Backup Solutions

Many Specific Enterprise applications

Storage Area Network (SAN)

Decentralized Backup/Restore

LAN based Backup/Restore

Information Cycle Management

Move Storage to more cost effective media

Keep Data on specific storage based on legal regulation (Basel II)

3 Business Performance : Managed IP Telephony


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IP Tel offers new ways to manage voice svcs : Dedicated / Hosted

in complement to Shared IP -Centrex plain Telco offering

3. Business Performance : Managed IP Telephony

IP telephonyCall Server

Customer

switch

Data Center

VPN

Central remote

management

RemoteManagement

IP telephonyCall Server

Voice/ data/ videoapplications

Hosted

B i P f V i d Vid


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Business Performance : Voice and Video

Infrastructure

Communication services

Connectivity & access

LAN/WANNext Generation Network

Integ

rationS

ervices

Email

OnlineCollaboration

CalendarConvergedDATA/ Voice/ VideoConvergedDATA/ Voice/ Video

ContactCenter

TelephoneServices

VideoConferencing

Service

LevelAg

reements

Servers

InstantMessaging


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IP Services

Source : Europes 2005 Entreprise Telecom Outlook, Forrester, July 1,2005

Business Performance : IP Services


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Vertical Solutions : Healthcare


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Ultimate Objective : develop federal framework and neutral

service platform to serve the exchange of medical informationbetween relevant Parties.

Vertical Solutions : Healthcare

Authentic sourcesfor attributes

Org. n

Health Careusers

Belgacom e-Health FIM

Org. 2

Org. 1

Federated Identity Management:

Security Access &Single Sign-Onis managed by Trusted-Third Party

Different credentials can beintegrated based on security levelrequired by application owner

Lay down the foundations for futurecontent-related applications

National Register

Order of Doctors

PatientPatient

Vertical Solutions : e-HR (e-Human Resources)


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Businessservices

Applicationservices

Data Centreservices

Networkservices


CT IT

Access Service(ADSL Teleworking

VoIP)

E-Learning

EmployeePortal

HR-SelfServiceApplications

-HR ProcessApplications

Typical building blocks of e-HR value chain

Vertical Solutions : e-HR (e-Human Resources)

Drivers

Evolution in composition and natureof workforce (more PC literate)

Increased focus on ROI of HRfunctions

Need for increased quality ofHuman Resource data


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Outsourcing


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Higher Level of conversation w ith an Entreprise

Typical clientconversation level today

Conversation barrier level to overcome

Trusted Advisor and Strategicguidance

Strategic impact

Move up the food chain and be thetrigger of change in stead of being theresult

Executive level conversation

IT Commodities

IT Infrastructure and Support

IT Infrastructure Strategy

Application Strategy

Strategic

BusinessProjects

Vision - Mission - Strategy

Outsourcing

Outsourcing


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Based on Gartner

Internal External

Efficiency

Agility

Efficiencyarea

Effectiveness

area

Min cost

Max value

ICT supportsbusiness

ICT enables

business

ICT drivesbusinessInterna

lICTd

epartment

Telindus

Sourcin

gServ

ices

Change in position of internal ICT departments due to

nominator thinking in the business = value creation

Outsourcing

Outsourcing


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Why

As CIOs deliver IT services and manage costs, business expectations

expand to how IT can support enterprise growth and competitiveness.

These expectations include:

Supporting enterprise growth and competitiveness

Managing an IT budget more like a business budget

Leading the IS organization to deliver strategies focused on growth,

alignment and business skills

Investing in technologies that support enterprise competitiveness.

Outsourcing


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Selective Sourcing or full Outsourcing


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sourcing services

selective sourcing

full sourcing

Sourcing ServicesA whole range of consulting, planning & adviceservices rendered by Telindus or its partner(s)

outside the scope of full or selective sourcing

Selective SourcingAny portion or portions of the entire portfolio ofthe management of ICT services and delivery ofthese services by Telindus or its partner(s).

Full SourcingThe entire portfolio of the management of ICTservices and delivery of these services byTelindus or its partner(s).

Secure and Well-Managed Infrastructure

Collaboration

Risk Management & Governance

Enterprise application integration

g g


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Selective Sourcing or full Outsourcing


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Source: Gartner Survey TOP 15 for CIOs (2006)

Outsourcing Trends

There will be a move from discrete project-oriented services towards full-scale services engagements combining different types of services,

Multisourcing - with different SP partnering as part of consortia bids toprovide a fuller range of services - might become more and more usual,

Cost Control is focused on data communications and networking rather

than systems infrastructure. Change in clients attitude : more cautious and knowledgeable customers,

better able to negotiate contracts. Customers will continue to expectmore for less or at no extra cost

But longer sales cycles while decision making is more complex.


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Conclusions

Be Focus on Core expertise


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Focus should remain on leveraging Telcos infrastructure :

IP connectivity with voice & data convergence,

DataCenter/Housing/Hosting

in combination with Security features

Telcos should not disappoint Enterprises expectations

be Flexible

No one size fits all : ICT outsourcers should integrate Corporate customerprofile in the solution design. No standard cut & paste ICT outsourcing solution

Sector

Number of sites

International presence

Nomadicity

Number of employees

Mobility

Anticipate ICT trends


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Trend to move away from just strengthening the Corporate Network perimeter tointegrate the concept of perimeter-less environment

Standalone Corporate security strategies will become obsolete

As IP convergence takes hold, services elements such as VoIP, VPN, Ethernet, RemoteHosting will require more and more Clean Pipe infrastructure from Telcos

Ultimate Goal : Identify & destroy malicious traffic

Managed Intrusion Prevention (IPS)

Managed anti-malware

Anti-Virus/Anti-Spam/URL Filtering

Etc..

Clean-Pipe strategies will be part of carriers NGN plan : NGN-Clean-Pipe Label ?

Clean Pipe Security Services


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Questions ?

Philippe Bovy

[email protected]@belgacom.be

Mob: +32.475.25.27.01

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