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Differentiating Your Telecom Cloud
 

Differentiating Your Telecom Cloud

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  • During the last years Telefonica has being offering a variety of Cloud services. From the pure virtual hosting and storage to the application level. In the next weeks, Telefonica will run an innovative Virtual DataCenter offering, beyond the regular virtual hosting. <br />
  • Advice nº1: focus on the business segment. Once you have made your position there, open your Cloud to residential customers. <br />
  • Advice nº 2: If You Can&apos;t Measure It, It Doesn&apos;t Exist <br />
  • The Open Cloud Manifesto defines the Cloud Taxonomy with this diagram. Although the biggest part in the diagram is the Service provider side, we will agree that the most important one is the Consumer side. We all run a business, and if we cannot meet customer expectations, of course they will not trust in us to support their activities. <br />
  • No matter if we run a Cloud in a B2C or B2B2C, the real challenge is to guarantee that the final consumer receives the best service quality, no matter if we run Iaas, PaaS or SaaS businesses. <br />
  • Satisfaction is not linked to technology or expertise. It is to Service Levels <br />
  • Yes. When companies are not coming to the Cloud is exactly because they do not find the service levels they want. <br />
  • And we already knew what to do, because all these frameworks and standards were already there <br /> There are a number of service management processes required to support Cloud computing. Many clients will need to make significant changes to the way that they manage IT services if they are immature in these areas. <br /> They Cloud provider should need to have a strong service management practice and enterprise customers should require the ISO 20.000 certification. <br /> If you do not know what is this all about, yo should contact your local chapter of itSMF organization to start your own training and skills improvement. <br />
  • The key point is: What is the quelity of service we can provide? Are our organizations dimensioned and trained to attend an IT service? Do we have the tools and skills to manage service in a flexible way, obtaining high levels of customer satisfaction, at the same time we control costs to maximize profit? <br />
  • There are also a number of requirements that your customers need to consider. <br /> Many clients will need to make significant changes to the way that they manage IT services if they are immature in these areas <br />
  • The evolution from Pottery to Ceramics lasted during centuries, and moved the entire industry from an artisan way to an industry way. <br /> In the beginning they were specialists with a huge knowledge and experience, making unique work very expensive. <br /> In the end the work is done automatically, the specialist are reserved to the design phase, and we obtain a cheap commoditized result. <br />
  • In a similar way, IT has evolved from an artisan way of doing in the sixties and seventies, with very poor standardization and huge costs for exclusive result, to a standardized, commoditized industry at a low cost. <br /> In both examples we can still found the expensive, exclusive and unique artisan work. But in most cases we will choose the cheap, popular serial one. <br /> What is the difference between both industries? That the main driver in pottery is the manufacturer design, and in the IT Cloud, it is the customer request of service quality. <br />

Differentiating Your Telecom Cloud Differentiating Your Telecom Cloud Presentation Transcript

  • DIFFERENTIATING YOUR TELECOM CLOUD Eduardo Méndez Polo Telefonica
  • TELEFONICA INTRODUCTION Eduardo Méndez Polo Telefonica 2
  • Telefónica is a reference in the Latin American Telco market … Accesses December 2011 (million) Brazil: 87.2 Argentina: 23.0 Mexico: 20.5 Peru: 18.8 Colombia: 13.8 Chile: 12.7 Venezuela: 10.4 Central America: 8.1 Ecuador: 4.5 Uruguay: 1.8 Total Accesses 201 Mill. Notes: - Central America includes Guatemala, Panama, El Salvador, Nicaragua and Costa Rica - Total accesses figure includes Narrowband Internet accesses of Terra Brazil and Terra Colombia, and Broadband Internet accesses of Terra Brazil, Telefónica de Argentina, Terra Guatemala and Terra Mexico Eduardo Méndez Polo Telefonica
  • … and has achieved a relevant scale in Europe Accesses December 2011 (million) Spain: 47.1 Germany: 24.5 United Kindom: 23.0 Czech Republic: 7.8 Ireland: 1.6 Slovakia: 1.2 Total Accesses 105 Mill. Eduardo Méndez Polo Telefonica
  • The value of Telefónica is recognised by the markets, ranking among the Top 10 in Worldwide Telco sector ranking by market worldwide the Telco sector cap (Million Euros) 165,747 China Mobile 138,880 at&t 102,541 Vodafone 81,310 Verizon 71,477 América Móvil Telefónica 56,069 NTT DoCoMo 54,443 NTT Deutsche Telekom China Telecom Source: Bloomberg 03/31/2012 Eduardo Méndez Polo Telefonica 45,103 39,168 33,620 1st European integrated Telco by market capitalisation
  • Different organizations have recognized our commitment with social corporate 2 in Telco Sector 2011. Best practice in: sustainability Risk Management Model Corporate nd     Global Environmental Management System Global Policy Responsibility Suppliers Impact of ICT in communities Best practice in Corporate Responsibility Carbon Disclosure Project: Signed by 551 institutional investors, with assets of US$71 trillion. CDP Global 500 Report examines the carbon reduction activities at the world’s largest public corporations Telefónica Leader in Telco Sector Included in FTSE4Good Index in 2011, an index that measure the performance of companies that meet globally recognized corporate responsibility standards Eduardo Méndez Polo Telefonica
  • CLOUD at TELEFONICA Eduardo Méndez Polo Telefonica 7
  • Telefonica Cloud Services Virtual Data Center service provides Infrastructure as a Service (IaaS) as an integral solution to meet customer demands in IT: servers, storage, security, communications, monitoring, administration and backup. And all through a powerful Self-Management Portal (TCloud Portal). Aplicateca is a marketplace Productivity Suite: bringing for applications (pay per use or subscription) offering a reliable, supported and one only entry point. together cloud versions of Microsoft/IBM most trusted communications and collaboration products with the latest version of the desktop suite for business of all sizes. Terabox is online storage with a simple and powerful web interface to access anywhere and anytime, with multimedia albums & able to play/stream multimedia content with on-line players. 3GBox is a 3G dongle that provides unlimited network storage with the ease of use of a conventional memory pen-drive. Cloudphone is a managed service for corporations (MNC, Large Corporations, Middle Businesses) that covers the whole lifecycle (Configuration, deployment, security, access control, updates, removal) of virtual devices (Operating System + Applications + Data + User Subscription of Voice & Data) deployed in a pay-as-you-go model (to be defined: Monthly fee per user, device, download, profile) . Eduardo Méndez Polo Telefonica 8 Virtual Desktop service delivers PCs as a Service, including Operating Systems, user data and collaboration/ productivity applications, through the network, driving away complexity from the user (and devices) to the network.
  • The Cloud Market Scenario is Complicated + local providers… too many competitors? Eduardo Méndez Polo Telefonica 9
  • Bad Signs: Gartner Hype Cycles 2008 2009 2010 2011 Eduardo Méndez Polo Telefonica 10
  • Bad Signs: We Still Have Too Much Confusion Around http://dilbert.com/dyn/str_strip/000000000/00000000/0000000/100000/00000/9000/700/109703/109703.strip.gif Eduardo Méndez Polo Telefonica 11
  • Bad Signs: High Impact Failures        Lightnings Power Outages Connectivity Issues Data Losses Unauthorized Accesses Tricky SLAs … Eduardo Méndez Polo Telefonica 12
  • Bad Signs: Service Replacement Users’ communication minutes are moving from telco services to cloud services. Cloud based communication services — voice over IP (VoIP), unifiedcommunications-as-a-service (UCaaS), and social networking — are rapidly displacing traditional telco revenues from services like traditional voice calls, SMS, and mobile roaming. New entrants are increasingly the communication service providers of choice for consumer and business customers alike. Their offerings siphon customers, minutes, and spending away from traditional telco services; eventually, voice and messaging services will move almost entirely into the cloud. Telcos As Cloud Rainmakers Forrester, march 14, 2012 Eduardo Méndez Polo Telefonica 13
  • ? Eduardo Méndez Polo Telefonica 14
  • Good Signs: Cloud Market Forecasts Billion $ Spending Predicted for Year CISCO 43 2013 AMI PARTNERS 100 2014 IDC 72,8 2015 IBM 88,5 2015 HIS 100 2015 MarketsAndMarkets 121,1 2015 GARTNER 176,8 2015 BAIN 150 2020 FORRESTER 240 2020 Eduardo Méndez Polo Telefonica 15
  • Good Signs: CIO Dilemmas are Still There  75% - 80% of IT budget is needed to maintain legacy. Only 20% - 25% for new projects.  The average workload is 15% of deployed computing capacity.  The average timeframe for regular infrastructure deployment is 2-3 months. Dilbert Calendar App Screenshot By Metranome Inc. Eduardo Méndez Polo Telefonica 16
  • Maturity Service Level IT Operations Developers Business Early Adopters Eduardo Méndez Polo Telefonica 17 Fast and Cheap Deployments Looking for… Good Signs: Who Is Driving Cloud Adoption?
  • What Are Cloud Customers Willing to Pay For? Source: Gartner IT Key Metrics Data 2012 Eduardo Méndez Polo Telefonica 18
  • Yes But…What Are The Outsourced Services? Communications SaaS VDI SaaS IaaS SaaS Source: Gartner IT Key Metrics Data 2012 Eduardo Méndez Polo Telefonica 19
  • For telcos that have long been looking to fuse communications technology with IT services, cloud computing provides a model that plays to a number of their core strengths, in particular through the utilization of communications networks as a delivery mechanism. As demonstrated by Apple and Google's dominance over the consumer applications and services market, the ability to provide a "one-stop shop" for an enterprise's entire range of IT and communications needs will be fundamental in attracting enterprises to a service. OVUM “Enabling Telco Cloud Services” (OT00056-001) Eduardo Méndez Polo Telefonica 20
  • Why Is There a Room For Telcos? Source: Gartner IT Key Metrics Data 2012 Eduardo Méndez Polo Telefonica 21
  • Some Key Drivers Infrastructure Infrastructure Management N Y Y IO C T C N N C Ea A Internal Purchase IIE C F Capacity black box IIC F F IS F F T E party cloud E Third A S with own brand Internal Capacity T S Third party O C Third parties SaaS & App. Store Eduardo Méndez Polo Telefonica Customer Service 22
  • Cloud Stack and Customers SaaS External Customers PaaS IaaS Eduardo Méndez Polo Telefonica 23 Internal Customers Computing Storage Network
  • Not Only One Size Fits All Blackbox Product Internal VAS Deployment Internal IT Usage Adapt to Customer Needs Enterprise Eduardo Méndez Polo Telefonica SMB 24 Individuals
  • Adaptation Public / Private Portfolio Data Migration Compliance Reqs. Integration with IT Data Protection Eduardo Méndez Polo Telefonica SLA Datacenter Location Industries 25
  • Cloud Dimensions Source: open cloud manifesto Eduardo Méndez Polo Telefonica 26
  • Eduardo Méndez Polo Telefonica 27 The Archives of Ontario Visual Database
  • Customer Cloud Strategies PWC Navigating the Cloud Eduardo Méndez Polo Telefonica 28
  • Customer Satisfaction PWC Navigating the Cloud Eduardo Méndez Polo Telefonica 29
  • It is All About Service IBM Academy of Technology Survey: Cloud computing insights from110 implementation projects Eduardo Méndez Polo Telefonica 30
  • We Know What We Have To Do     CoBIT 4.1 ITIL / ISO 20000 ISO 27001 US NIST 800-53 Copyright © 2011 Cloud Security Alliance Hoja de cálculo de Microsoft Excel 97-200 Eduardo Méndez Polo Telefonica 31
  • Service Level Management    Service Portfolio Management Configuration Management Support          Incident Management Problem Management Release Management Change Management Asset Management Capacity Management Performance Management Risk Management Security Management Eduardo Méndez Polo Telefonica itSMF 32
  • How can Operators Differentiate? TRUST Have you tried turning it off and on again? The IT Crowd, Channel 4 UK Eduardo Méndez Polo Telefonica 33
  • Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality. Peter Drucker, “Innovation and Entrepreneurship” Eduardo Méndez Polo Telefonica 34
  • The Service Path to Cloud Virtualization 1. Consolidation Resource Management Private Cloud Public Cloud RISK MANAGEMENT STEPS Computing is not a technology “CloudINTO CLOUD Define Cloud Strategy and Identify be turned 1. Verify process and applications that can just your Starting on overnight” Point independence. 1. ROI analysis. 2. Integrations are accurately defined. 2. Define security & compliance requirements 3. Security levels Peter Tseronis, deputy associate CIO are properly identified. 4. Enterprise Define the plan of the Energy Department and architecture is healthy. 1. Sizing: Just a pair of web apps or thechairman of the Dependence on communications. whole IT dept.? 5. 2. Management tools. 6. Cost. US Federal Cloud Computing Advisory Council 3. Failover, High Availability and Load Balance tools. 3. Resources: Be sure you have the best professionals 2. 7. Application migrations 4. Define Phases 3. Set up Service Management and Quality Assurance 4. Test 5. Prepare the handling to migrated site Eduardo Méndez Polo Telefonica 35
  • Not All the Providers Provide The Same http://my-inner-voice.blogspot.com/2011/02/here-are-results.html Eduardo Méndez Polo Telefonica 36
  • The Cloud Market Scenario is Complicated More individuals are born than can possibly survive. The slightest advantage in one being over those with which it comes into competition, or better adaptation in however slight a degree to the surrounding physical conditions, will turn the balance. Charles R. Darwin The Origin of Species, c. 14 + local providers… too many competitors? Eduardo Méndez Polo Telefonica 37
  • Contact: emendezpolo@gmail.com Eduardo Méndez Polo Telefonica 38
  • From Pottery to Ceramics Cheap Popular Serial Professional (99%) Technology as change driver Usage - Users - Usability - Utility User (1%) Expensive Exclusive Unique Artisan (99%) Advance • Time • Tecnology • Specializa tion Eduardo Méndez Polo Telefonica 40 Expensive Exclusive Unique Source: Luis Miguel Rosa, EXIN
  • From Infrastructure to Service Cheap Popular Serial Profesional (99%) Technology as change driver Usage - Users - Usability - Utility User (99%) Expensive Exclusive Unique Artisan (1%) Advance • Time • Tecnology • Specializa tion Eduardo Méndez Polo Telefonica 41 Expensive Exclusive Unique Source: Luis Miguel Rosa, EXIN