Service & Sourcing Lifecycle ManagementThe Next Generation Service & Sourcing Lifecycle Management Platform1/9/2013       ...
TSG: A Swiss Company. Incorporated in Palo Alto, CACountries of Operation:• Switzerland• United States Palo Alto, CA• Germ...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
TSG Customers and Testimonials                                                                                            ...
TSG Cloud Service Transformation Platform•      TSG was founded in 1998 by the former       management team of EDS Switzer...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
Paradigm Shift in IT Services              Business                                                               IT (Info...
Buying IT Services in the Future: The Hybrid Cloud             Corporate                                                  ...
The 4 challenges of managing cloud transformation                                                                         ...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
Learning from Industrialization of Car Manufacturing1/9/2013                 TSG The Sourcing & Service Life Cycle Managem...
Automotive vs. IT Service Configuration           Consumer View (Configurator)                                     Manufac...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
4 Core Competencies to manage the cloud transformation                                                                    ...
Increase Cost Transparency. Design the Service                            Business                                        ...
Industrialize IT Services. Build the Service Model•What does Car Manufacturing have in common with IT Services?•Why are in...
Plan the Service. Manage IT like a Business•Bill of material for services in order to control and manage service consumpti...
Industrialize the Service. Define the Service Model•Convert a technical Service Portfolio into customer centric Services•B...
Industrialize IT Services. Service Engineering                      Building the Service Model                            ...
Business Centric IT Service. Service Configuration1/9/2013                  TSG The Sourcing & Service Life Cycle Manageme...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
TSG Service & Sourcing Lifecycle Management SaaS PlatformTSG SaaS Platform delivers:• Service & Sourcing Lifecycle Managem...
TSG Platform Core Functions             TSG Service & Sourcing                                                            ...
The TSG differenceWe enable IT & Business                                                                     Implementati...
The TSG advantage                                                                                                         ...
The TSG speed factor                                                                                                      ...
Agenda           1   TSG           2   Paradigm Shift in IT           3   Learning from Car Manufacturing           4   4 ...
Service based Calculation Models. TSG SaaS Platform                                                                       ...
Global Infrastructure Deployment for Hosted Platform                 Americas                                             ...
Transparent Service Quality & SLA                                                                               Monday - F...
Automated SLA Generation based on selected services1/9/2013                TSG The Sourcing & Service Life Cycle Managemen...
Service Modeling        Volkswagen Calculation Sheet                                                    Service Reference ...
Service Reference Catalogue – Volkswagen Service CostService Reference Catalogue (best practice)                          ...
Industrialized Price and Scope for Cloud Computing4      Target Pricing                 €M                              Cu...
Cloud Service Savings Potential                                            Price            Starting                     C...
4 reasons why you need the TSG SaaS Platform                                                                         Confi...
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Cloud transformation enabling through tsg service lifecycle tool by helmuth zimmermann, ceo of tsg ag

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Cloud transformation enabling through tsg service lifecycle tool by helmuth zimmermann, ceo of tsg ag

  1. 1. Service & Sourcing Lifecycle ManagementThe Next Generation Service & Sourcing Lifecycle Management Platform1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 1
  2. 2. TSG: A Swiss Company. Incorporated in Palo Alto, CACountries of Operation:• Switzerland• United States Palo Alto, CA• Germany• South Africa• India (Development)1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 2
  3. 3. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 3
  4. 4. TSG Customers and Testimonials TSG Customers“TSG is the number one choice when it comes to realIT transparency and large scale cost take out efforts. Finance It enabled Volkswagen to source to the cloud.”Dr. Martin Hofmann, CIO of Volkswagen AG, Germany Insurance„TSG has helped us to understand where the levers Transportare to control and manage IT like a Business“Norbert Hoffmann, CIO Alpiq Group, Europe Manufact.“Prior to TSG, we were spending almost a month to Telcogenerate Cloud enabled Services. Now we can do thesame with just a touch of a button“. Service ProviderJohn Jenkins, Chief Executive Services Group, BusinessConnexion (Pty) Ltd, South Africa Utility“The TSG Toolset allows us to take big steps towards Governmentgetting the cost of our healthcare system undercontrol while allowing to implement Cloud based ITServices” VariousMartin Häusermann, Head Operation, KSA, Switzerland1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 4
  5. 5. TSG Cloud Service Transformation Platform• TSG was founded in 1998 by the former management team of EDS Switzerland (1991 - 1998 building EDS Switzerlands business from 0 to $ 550 M in revenues over 7 years)• Serving Fortune 500 IT Organizations in Europe for complex IT Sourcing transactions and managing more than $ 15 B of IT Outsourcing Service Contracts• Building Service Intelligence Database, holding more than 10’000 Service Elements and $ 2.8 B in managed IT Service Contracts• TSG is supported by Steve Walske (ex. PTC & Baldelogic) Dr. Martin Hofmann (CIO of Volkswagen) Jeroen Tas (CIO of Philips) TSG 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 5
  6. 6. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 6
  7. 7. Paradigm Shift in IT Services Business IT (Information Technology)Market dynamics force the business to Challenge: Increased complexity &implement new services and innovate integration of internal and externalfaster factories Cost of Service? IT Standardization? Quality of Service? IT Customization? Time to Implement the Service? OPEX to run legacy? Market Service Pricing? Cutting Cost? Security & Compliance? Shift in Paradigm • Cloud based Services • Service on Demand 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 7
  8. 8. Buying IT Services in the Future: The Hybrid Cloud Corporate Corporate core delivered Corporate commoditized IT Services Corporate and sourced specific shared standardized IT Services delivered and sourced IT Services Services1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 8
  9. 9. The 4 challenges of managing cloud transformation 1 Design the Service On Premise delivered Ability to specify the Service IT Services will decrease 70% to 80% and make it transparent from 60% to 30% 2 Plan the Service Cloud Ability to plan demand Sourced and supply of a service IT Services 3 Build the Service Ability to customize From single to and engineer a service multi sourced IT Services % of cloud sourced Service (t) 4 Manage the Service Ability to source and integrate a service1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 9
  10. 10. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 10
  11. 11. Learning from Industrialization of Car Manufacturing1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 11
  12. 12. Automotive vs. IT Service Configuration Consumer View (Configurator) Manufacturing View (Bill of Material) Option 1 Option 2 Option 3 Halbzeug Einzelteil1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 12
  13. 13. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 13
  14. 14. 4 Core Competencies to manage the cloud transformation Cloud ReadynessTSG enables IT :• to improve cost transparency Service & Sourcing Lifecycle Management 100%• to deliver tailored services for IV the business TSG 80% Design the Plan the Manage the• to optimize and streamline Services IT services and reduce the 60% Services Services III & Service time to implement up to 90% Build the Configuration II Services• to deliver business centric 40% & Service Engineering services for market pricing 20% I Cost Manage IT Industrialize Business Transparency like a Business IT Services Centric IT Services 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 14
  15. 15. Increase Cost Transparency. Design the Service Business Service “Running IT like a Business means managing your money” • How successful would McDonalds be if they didn’t know what a Big Mac costs them? • $ 1.00 for the meat • $ 0.02 for ketchup packet • $ 0.05 for bathroom cleaning • $ 0.02 for fryer maintenance • Value starts with pricing • Calculate demand with pricing even if you don’t charge back • Define the quality of service (1.6 oz. beef)1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 15
  16. 16. Industrialize IT Services. Build the Service Model•What does Car Manufacturing have in common with IT Services?•Why are industrialized IT Services necessary?•Why is the customer looking for a standardized and modularized Service Portfolio?•Why are systematically designed and engineered IT Services prerequisite for cloud services?•How does transparent service pricing help Service Providers? Industry Standardized IT Services Standardized Product (Platform) IT Service (Plattform) & Option 1 Modularized Products Option 2 Option 3 Assembly Options Variants Options Halbzeug Components Parts Systematic Design Process Hardware Software Others & Element Product Structure1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 16
  17. 17. Plan the Service. Manage IT like a Business•Bill of material for services in order to control and manage service consumption and to plan resources for IT delivery•Continuous engineering and planning for usage-based service delivery. „Service on Demand“•Calculation of true TCO „total cost of ownership“ as well as financial KPI‘s like EBIT, EBIDA, RoI, EVA for new sourcing opportunities and projects•Monitoring of KPI regarding „quality and quantity of Service“.•Availability for standardized & competitive services unit pricing Demand Consolidated IT-Service Planning , Control Quantity of Service Total Demand1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 17
  18. 18. Industrialize the Service. Define the Service Model•Convert a technical Service Portfolio into customer centric Services•Build service platforms similar to car platforms, allowing most flexibility to represent customers requirements•Build service platforms, allowing a highly automated and standardized level of the current companies’ delivery processes•Deliver “Service on Demand” to accommodate the customers’ needs and have changes more rapidly implemented Delivery View Modularized Service Portfolio Service Provider Service Consumer Product Organization Service Organization P1 Delivery 1 Catalog Service 1 Cycle Mgmt Service Life P2 Delivery 2 Variante IT Delivery Customer Optionen Production P3 Delivery 3 Variante Delivery 1 Delivery 2 Delivery 3 Delivery 4 P4 Delivery 4 Optionen Service 2 P5 Delivery 5 Variante Optionen1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 18
  19. 19. Industrialize IT Services. Service Engineering Building the Service Model IT Bill of Material (Platform) IT Service externer externer Kunde Kunde Telep Inter diAx u. Luc honie Sup net OPENSY Swisscom ent RAS UBS Intrusion port STEM User Connec Detection kbps 256 t Product Ro diAx Mo ute Route de PROFIT PROFIT r Web- Web- r m WEB Applikati WEB2 Applikati und und onserver onserver Mo Mo Rou PB Juke ter Fire Lucent de de X box Mo Mo Load Definity m m wall de de Balance DMZ / r m m 100Mbps NTSWISS NICEL SU Mail Stati NTSWIS NTSWIS Option LIFE3 Proxy Server Server Voicel OG ogging N File-, RAS Telep und CTI SLIFE2 stik SLIFE Print- Server honie Profitline LAN Server Variant / 100Mbps Heart Option beat UBSL1 UBSL1 UBSL1 WS80 WS80 Datenban Datenban Datenban Web- Zutritts 003 004 005 24A Applikati 05A Office k Server k Server k Server und kontroll onserver Wings UBSL1 UBSL1 e Datenban 001 Datenban 002 Mo Li Develo k Server k Server de ve pment Faxm Mo Faxm m odem de odem Data Faxm m Center odem Kun H Kun U den Sup P den BS port ComponentsProcess Hardwar Software OthersElement e 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 19
  20. 20. Business Centric IT Service. Service Configuration1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 20
  21. 21. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 21
  22. 22. TSG Service & Sourcing Lifecycle Management SaaS PlatformTSG SaaS Platform delivers:• Service & Sourcing Lifecycle Management to implement real cost savings beyond cost Service & Sourcing transparency and service pricing Lifecycle Management• Real Time IT Benchmarking based on $ 2.8B service contracts• IT demand based on the Leading Edge IT Demand Total Mgmt Cost Mgmt Service Configurator• Total Cost Management with Service Price Service IT Sourcing Calculator & SLA/ Statement-of-Work IT Benchmarking Configurator Mgmt Generator Catalogue• IT Sourcing Management with Reverse Auctioning Capabilities IT Service Intelligence Data Base (Target Scope & Target Pricing Engine) Service Reference Model• IT Service Reference Model allows to build Sourcing Provider Network Business Centric IT Services for Fortune 500 Companies SaaS Platform TSG• Sourcing Provider Network to get fast service and benefits implementation 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 22
  23. 23. TSG Platform Core Functions TSG Service & Sourcing Plan & Build Manage IT Services Design IT Services Lifecycle Platform IT Services Service Delivery Service Contracts SLA Service Catalogue & Service Service Dashboard manages Service Delivery & Capacity Configurator Service Demand & Supply Mgmt. Dashboard IT Service & Sourcing Product Service Intelligence Product Variants & Scope Price Modeler Hardware,Component Options Offers Business Case Software & s Billing Approval • Reference Service Catalogue Miscellaneous Process • Service Pricing /Benchmarking Processes & Service Service Integration Sheets Organization Engineering Model Planning • Service Demand Mgmt. Planning Service Service Portfolio Contracts & • Service Budgeting Service SLA Management • Service Contract Mgmt., Planning Optimization Analysis & Capacity Management • Service Sourcing Mgmt. Management Reporting • Service Provisioning • Service OLA, SLA Generator • Service Bid Generator • Service Metering • Service Billing Reporting1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 23
  24. 24. The TSG differenceWe enable IT & Business Implementation of maximized TSG savings with TSG Platform • The Holistic View: Constantly compare IT Services to Saving Potential global market standards (e.g. leveraging benefits of cloud Continuous Cost Transparency Program computing) to reduce efforts and to provide better Services in Cost Transparency by Initiative quality and price • Demand, Cost & Sourcing Management must be an ongoing and integrated business function 6 Month 12 Month 18 Month 24 Month 30 Month 36 Month • Rapid Implementation of Cost + 6 month * * Time to Implement Cost Savings Savings and Service Improvement + 12 month* and Improvements < 6 month with TSG Platform TSG < 12 month Continuous Cost transparency Program < 18 month by Cost Transparency Initiative1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 24
  25. 25. The TSG advantage Industrialized IT ServicesMore than just implementing TBM*• Having full cost transparency and budget allocation implemented is the first stage to create “virtual money savings” Calculate Evaluate• TSG’s platform goes much further in Create IT Cost Define Service, Market and Source & IT Budget Benchmark Transparency Service Contract Implement implementing the savings of REAL Planning Services Pricing Service Service money through industrialization of services, and by sourcing the Technology Business Management services from the most efficient IT delivery source like: TSG TSG • On Premise • Virtual Private Cloud Save Virtual Save REAL Money money • Public Cloud * Technology Business Management 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 25
  26. 26. The TSG speed factor Business Centric IT ServicesSpeed to Implement Benefits• Going far beyond budget allocation and cost transparency (internal view)• Market Service Pricing Engine Benefit from TSG’s Platform Dramatically reduces cost• Market Service Catalog allows composition of competitive Services• Unique Service Configurator Traditional Cost Saving Implementation builds Business Centric Services• Integrated Demand & Sourcing Classical Management Technology Business Management TSG Service & Sourcing Lifecycle Management 20% 40% 60% 80% 100% 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 26
  27. 27. Agenda 1 TSG 2 Paradigm Shift in IT 3 Learning from Car Manufacturing 4 4 steps to transform IT Services to the cloud 5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle 6 Real Case Automotive1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 27
  28. 28. Service based Calculation Models. TSG SaaS Platform Service Engineering TCO based Calculation Service based Calculation (Total Cost of Ownership) (Cost per Service) Total Cost Manpower Cost Model Top Down Hardware Income Statement Year 1 Year 2 Year 3 Year 4 Software Miscellaneous Service Line 1 Service Line 2 Service Line 3 Service Line n Bottom Up Service Pricing Service Pricing Service Contracts SLA € /Unit Cost Splitting Price per Manpower Total Number Price Unit Cost of per HW Units #=€ Unit € SW1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 28
  29. 29. Global Infrastructure Deployment for Hosted Platform Americas EMEA China APAC Operation Center Operation Center Operation Center Operation Center 2 WAN Access WAN Access WAN Access WAN Backbone WAN Backbone WAN Backbone WAN Access WAN Backbone LAN LAN LAN LAN 5 TB 5 TB 5 TB 5 TB Managed Managed Managed Managed 5 Web Server Storage 5 Web Server Storage 5 Web Server Storage Storage Server Server Server 5 Web Server Server 4 15 2 2 Americas Markets EMEA Markets China Markets APAC Markets WAN Access WAN Access WAN Access WAN Access WAN Backbone WAN Backbone WAN Backbone WAN Backbone LAN LAN 8TB 8TB 8TB 8TB 8 Web Server Storage 8 Web Server Storage 8 Web Server Storage 8 Web Server Storage Server Server Server Server Corporate Shared Services Dedicated System TEST / Development DBS Storage / Archiving 21 VW 6 DBS 4 DBS CCS 2 DBS 2 DBS FE 5 WAS CMS 5 DBS Red Hat CCBB2 WAS Strang 3 Media QS Rendering DBS Identy Store Development Server Server Server Server Server Server Server 5TB 5TB 4 CSS Abnahme 4 CSS 3 CSS 9 DBS 2 DBS MA Server Roll Out Q2X Zone CCS-P adapter Front-/Backend SAN Storage SAN Backup Server Server Server Server1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 29
  30. 30. Transparent Service Quality & SLA Monday - Friday Saturday - Sunday Operating Hours 0 3 6 9 12 15 18 21 24 0 3 6 9 12 15 18 21 24 Base Operating Hours Productive System 24h 24h Test / Quality System 6h 6h Service Time 24h 24h Problem Handling Reaction Time ResolutionTime 0h 12h 24h 36h 48h 0h 24h 48h 72h Reaction & Resolution Time CRITICAL 15 min 2 HIGH 1h 4 Medium 24 h 72 h LOW 24 h 72 h Availability 99.0% 99.5% 99.8% 100% Monthly Fee Reduction 100% 50% 0% Requested Completion Time 0h 12h 24h 36h 48h 72h Short 6 Medium 12 Long 721/9/2013 TSG The Sourcing & Service Life Cycle Management Company 30
  31. 31. Automated SLA Generation based on selected services1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 31
  32. 32. Service Modeling Volkswagen Calculation Sheet Service Reference Catalogue (best practice) Costs over all maCost Type 2012HOSTINGCloud Hosting 84211 €Hardware Backends 0€DCRM Broker Platform 18000 €DCRM Broker AVS -DCRM Broker Dealersearch -Google Maps -FundingProductCatalog (FD Proxy) 5897 €Omniture Tracking 0€BehaviouralTargeting 84000 €xProfile 255000 €IP-TV -Sub Total Hosting: 454308 €SUPPORT1st Level Support (by SASD) 50186 € 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 32
  33. 33. Service Reference Catalogue – Volkswagen Service CostService Reference Catalogue (best practice) Volkswagen Calculation Sheet Bezeichnung Elemente Menge Preis DBS-CCS-P_Adapter-Server 6+3 Windows Server 9 116400 € DBS_CCS-P_DB-Storage_3TB Oracle Erweiterung um 3 TB 3 TB 14400.00 € DBS CCBB2 Renderserver 6 Windows Server (hochverfügbar, darum 6 99000 € DBS Renderengine Frontendserver mit Loadbalancer) 2 Windows Server 2 33000.00 € Price DBS 3D Media QS-Umgebung 2 Windows Server 2 27200.00 € DBS Identity Store 5 WAS Server + 1DB 5 41700 € Aufbau DBS Development Suite 5 Red Hat Linux VM + 1 Db Erweitwerung 5 107500.00 € VWCMS-SAN-Erweiterung SAN Plattenplatzerweiterung um 200 GB 200 GB 4500.00 € VWCMS - HW-Erweiterung 21 Server + 3 TB SAN Speicherplatz 21 253100 € Quality 2 *Windows Server Service € 27’200 / year 1 “Windows Server Service € 1’133 / month *: Data Center and Network services are included as well Scope Benchmarking: • Price (equal quality, equal scope)1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 33
  34. 34. Industrialized Price and Scope for Cloud Computing4 Target Pricing €M Current € 60.42 M €M Target € 40.28 M 2.6 2.6 2.4 2.4 2.0 2.0 1.6 1.6 1.2 1.2 0.8 Market dependent Fee 0.8 Market dependent Fee 0.4 0.4 Fix Fee Fix Fee 2012 2013 2014 2015 2012 2013 2014 2015 Target Scope Service Price &4 Quantity Service Level Business-specific Application €M Target € 4.28 M Application 2.6 Services Standard Business Application Service Scope 2.4 2.0 Standard Applications 1.6 Mail, Group Collaboration 1.2 0.8 Market dependent Fee Database / Middleware Statement of Work 0.4 Cloud Computing Fix Fee Infrastructure Incident / Problem 2012 2013 2014 2015 System Operation Services System Mgmt. Hosting Platform Computing Storage Network / Connectivity 1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 34
  35. 35. Cloud Service Savings Potential Price Starting Calculation Cloud Offering Cloud Offering Point TSG Service Provider 1-2 Provider 3 Base Line Configurator 40% 40% 30% Target Pricing Negotiated Contract1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 35
  36. 36. 4 reasons why you need the TSG SaaS Platform Configure & Build 1 Business Centric and Competitive Services Create Transparency 2 to bundle and buy Competitive Services 3 Engineer Services for Cloud Manageability 4 Manage your Service & Sourcing Lifecycle1/9/2013 TSG The Sourcing & Service Life Cycle Management Company 36

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