Keynote Three: Creating cost - effective network capacity and ensuring resilience

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Technology leaders are not just ensuring adequate systems availability for today – a complex and demanding task in itself. They are having to prepare for the likely demands of a completely connected world with billions – estimates run between 50 and 80 billion – connected devices globally. As networks extend, they have to be resilient in the face of physical challenges. And their capacity also has to make financial sense. Few organisations can justify expensive ownership of fixed infrastructure to accommodate peak demand that may only occur occasionally and for short periods. Greater flexibility, security and cost-effectiveness will be gained by a move to virtualisation. This will free up investment for innovation in areas such as apps development by breaking the costs "stranglehold" of tasks such as running conventional data centres and securing them.

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Keynote Three: Creating cost - effective network capacity and ensuring resilience

  1. 1. BT ‘. . . technology has created the equity markets as we know them today.’T. Rajah Source: Robert A. SchwartzChief Information OfficerJune 2012
  2. 2. Impact to corporate IT over 10 years The bursting of dot.com Bubble The great Recession of 2007-2008 Global Outsourcing Cloud Services - Smart devices, Virtualisation SaaS PaaS IaaS Source: FT©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 2
  3. 3. Challenges…Business Issues Globalisation Decreasing margin & increasing cost Regulation & ComplianceImpact to IT Speed of change Unpredictable volume Big Data Business resilience Complexity©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 3
  4. 4. Data volumes are going through the roof 750,000 700,000 500,000 Aggregated One Minute Peak MPS Rates 400,000 CTS, CQS, OPRA, NQDS 280,000 140,000 120,000 55,105 80,000 4,799 9,650 12,906 25,869Source: SIAC, OPRA, and NASDAQ©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 4
  5. 5. Market structure has created a number of workarounds Tools Mkt Trade 400 shares Client order Market 150,000 Shares Structure©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 5
  6. 6. Aggregation technologies have drastically changed the nature of mkt US Equity Share volume and trades 14,000 1,600 Avg. Shares (m), Avg. Trades(k) 12,000 1,400 Avg. Shares / Trade 10,000 1,200 1,000 8,000 800 6,000 600 4,000 400 2,000 200 0 0 Ju 0 Ju 1 Ju 2 Ju 3 Ju 4 Ju 5 Ju 6 Ju 7 08 Ja 00 Ja 01 Ja 2 Ja 3 Ja 4 Ja 05 Ja 06 Ja 07 0 0 0 0 0 0 0 0 l-0 l-0 l-0 n- n- n- n- n- n- n- n- n- l- l- l- l- l- Ja Total Shares (m) Total Trades (k) Shares / TradeSource: NYSE, Nasdaq, NSX, & ArcaEx ©2010 CLSA Asia-Pacific Markets (“CLSA”). IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which may be obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 6
  7. 7. Electronic execution Clients using FIX order routing High touch biz with low touch service 100 Direct electronic connectivity to all major markets 90 80 Electronic conversation % of Clients 70 60 50 Best execution 40 30 TCA, Measured for every aspects of trade life cycle 20 10 0 Electronic conversation 5 Yrs ago 3 Yrs ago Year ago Today Over 95% client FIX connections Electronic execution STEP (straight through exception processing) 100 90 80 Full disaster/business recovery services 70 Percentage 60 50 40Our systems are fully exposed to 30 20 10clients 0 2005 2006 2007 2008 2009 2011©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 7
  8. 8. and not High Continuous availability©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 8
  9. 9. A tidal wave of regulations©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 9
  10. 10. Consumer privacy Corporate governance Capital adequacy/Basel II Accounting standards/IAS Anti-money laundering Information security Record retention Business continuity planning Financial reporting/SOX FINRA/SEC research guidelinesSource: Celent©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 10
  11. 11. KNOWLEDGE WORKER Technology at office Vs Home©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 11
  12. 12. Growth of Tablets 326M 103M 63M 17M 2010 2011 2012 2015 Source: Cisco, Symantec Apple, Asymco, IDC©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 12
  13. 13. The World Went Social 900M+ Members 400M+ Members 2010 2012 Source: Cisco, Apple, Asymco, IDC©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 13
  14. 14. The Enterprise Went Social Social Network ??? 2010 2012©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 14
  15. 15. Files Went Into The Cloud 2010 2012©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 15
  16. 16. Flip the Security Equation Leverage economies of scale Future – Cloud services could be more secure than private DC’s©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 16
  17. 17. Managing Infrastructure “To be, or Not to be”©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 17
  18. 18. Infra Stats… Infrastructure accounts for 65% of the IT budget It is expected to reach 75% in 2 years Big Data Capacity Data centre Availability 25% of developers time spend on testing applications (on infra changes) As a result, significant management effort focused on managing “lights on” services Cost of security continues to rise (exponentially)©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 18
  19. 19. Traditional IT practices are unsustainable Application Virtualisation Build for average capability and burst for peak The uncompromised bursting and we will pay Business continuity on the Cloud Continuous availability and not high availability Data belong to data center and not desktop BYOD (Bring your own display) Secure Content aware firewalls Secure content distribution & location aware access control©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 19
  20. 20. What enterprise Want? Pay-as-you-go: Cost optimisation & Visibility Buy service and products Flexibility: Open architecture, supplier diversity Technology refresh User experience: QoS Geographical workload mobility Consistent and intuitive user©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 20
  21. 21. Transforming the Business of IT Transform to a service-oriented organisation People, Process and Services Transform the development lifecycle Enable new business model (SaaS, Collaboration etc) Cloud Deployment Multi tenancy Virtual Security Private/Hybrid/Public Cloud©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 21
  22. 22. Transformation at CLSA ••Any-to-Any • Home-worker Any-to-Any ••Class of Service • • Security Security ••Roaming CIS Integration Class of Service ••Gigabit/s Gigabit/s • • Wireless LAN Wireless LAN ••Reduced call logging Inbound Finance App •Building Estate Resilient VRec Store Visual Mobility Collaboration Converged• •Private Ccts Private Ccts Unified Comms Flexible• •Frame Relay Frame Relay Trading Environment• •ATM ATM Converged Worker Current State Converged Voice & Data Voice & Data Managed Cloud Services (Network)• •PABX’s PABX’s• •Voice VPN’s Voice VPN’s (Network) Intelligent (SIP)• •Key systems Key systems Unified Comms Convergence Desktop Environment (Desktop) Identity, Risk & BT Hosted Compliance UCC Open • VoIP •• IPT Apps MS Integration •• IP PABX’s IP PABX’s • • VoIP IP Telephony •• Presence IPT Apps Social •• IP Handsets IP Handsets • IP Telephony • • Call Centres Lowest call routing • Presence • i-Bridge©2010 CLSA Asia-Pacific Markets (“CLSA”).IMPORTANT: The content of this report is subject to CLSAs Legal and Regulatory Notices as set out at www.clsa.com/disclaimer.html, a hard copy of which maybe obtained on request from CLSA Publications or CLSA Compliance Group, 18/F, One Pacific Place, 88 Queensway, Hong Kong, telephone (852) 2600 8888. Page 22
  23. 23. Important notices© 2010 CLSA Asia-Pacific Markets ("CLSA").Key to CLSA investment rankings: BUY = Expected to outperform the local market by >10%; O-PF = Expected to outperform the local market by 0-10%; U-PF = Expected to underperform the local market by 0-10%;SELL = Expected to underperform the local market by >10%. Performance is defined as 12-month total return (including dividends).This publication/communication is subject to and incorporates the terms and conditions ofuse set out on the www.clsa.com website. Neither the publication/ communication nor any portion hereof may be reprinted, sold or redistributed without the written consent of CLSA.CLSA has produced this publication/communication for private circulation to professional, institutional and/or wholesale clients only. 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