INTERNET DATA CENTER
a snapshot view of business evolution, competition, current and future services landscape
Mehmet Cetin, Huawei CA&C, Data Center Solutions
Telco Business Trends - WW
Transformation from pipe technology in 2009 to ICT convergence in 2011 - Source： Gartner，Hyper Cycle for telecommunication Industry
Extending beyond the pipeline, and exploring new business models
Surpassing telecom and extending to other industries
Intelligent Perception and Intelligent Control; provide services for industries in order to achieve efficiency, scientific decision making, cost savings
IDC Current Landscape - TR
Mainly co-location and hosting services
DRC services from major telco operators and DCOs
Recent investment and buyouts from carrier independent Europe based DC operators
Local and ME based interest for large co-loco DC green field investments
xSP Competition Landscape
Infrastructure: Branded hardware, leveraging existing relationships, focus on quality of IT.
Value Proposition: IT management service.
Infrastructure: Mix of brand and low- cost hardware, service certified.
Value Proposition: Rack density, flexible service.
Infrastructure: Mix of brand and low- cost hardware.
Value Proposition: Certified, compliant, pre-integrated.
Hyper Scale Centers
Infrastructure: ODM servers, modular scale-out, low-cost, killer application.
Value Proposition: SAAS
74% YoY growth in DC Investment in Turkey between 2011 - 2012
Gartner’s DC Segmentation
Benefit of own controlling
Benefit of Resource Sharing
Possible Steps in Business Evolution
Basic service; co-location, hosting, white space leasing services, profitable when done effectively, efficiently; current market model
IAAS; Provide dedicated and/or shared hardware services; Backend vendor agreements, increase revenue and margins, additional revenue sharing models
PAAS; local Amazon like services for public, private and hybrid cloud hosting
SAAS; rather ecosystem dependent and indirect business modeling unless major change in existing CSP strategy is entertained
DAAS and beyond, ITAAS; market maturity dependent on readiness and willingness needs to be measured; transition when everything else is in cloud
IT is the Business
•In next 5 years, IT related service will become major part of CSPs’ income.
•In 2010, CSPs’ Data center construction projects has increased 500% (Gartner)
CSP Reporting Lines CTIO heading networks and IT, reporting to CEO
• Deutsche Telecom
• T-Mobile, US
Managers with an IT background and diversified management experience, tend to show the necessary skills for a CTIO role, which requires management of evolving skills, complex and converging technologies and diversified suppliers
Internet data size double every two years - immediate opportunity
Information explosion requires data center to store the information: UCG (Blog, etc), Multimedia, Video data, let to double size of global data every 2 years
Data flow replacing voice, occupies major capacity of CT network
Internet data flow increase 70%/year
Content need be to stored in IDC, to assure customer experience
Others：Clearance between CSPs, Customer experience assurance, etc.
China mobile pay 1M RMB/Gb/month to China telecom
IDC Value Added Services
Target customers: enterprises with multiple operation in the South East Asia region
Target customers: Content providers; enterprise need to access centralized mail server globally; business travelers.
Target customers: large web sites and enterprise
Target customers: large enterprise, mission critical system
Typical Operator’s IDC Business Pain Points
1.High Price: Price normally higher than internet companies
2.No business differentiation: Not understanding enterprise customer’s pain points, not able to create business advantage with network
3.Low management automation: IDC management solution not cost effective, poor customer experience
Price 10% higher
Opensource（Linux、 Hadoop、Openstack/ Eucalyptus）
Opensource software no cost
Power efficiency 40% lower
Overall cost 30%+ higher
Huawei’s IDC position
Further WW focus on IDC business beginning of 2013
Expertise in building, operating DCs – IDC, EDC
Over 120 simultaneous DC projects as of 2013H1
Regional DC technology center scheduled end of 2013 in Istanbul
Ready to support DC transformation at business and technology levels
Industrial IT solutions IaaS+ SaaS Opportunity
CeBit： DT vision — Innovative ICT solution provider; connected life, connected work
NTT Strategy： Provide “Networked IT solution” for industrial customer
Leading operators’ focus on networked IT solutions
Telcos Around the World
Far EasTone Telecommunications is saddled with a relatively small and mature domestic market, telecom carrier has focused on nontraditional services, such as digital books, advertising, social media, digital music and application stores, to boost its revenue. It is focusing on local preferences and culture (through which it can avoid head-on competition with global competitors), and on pursuing opportunities in the cloud computing space.
Telefonica: has set up a mobile banking joint venture with MasterCard, targeting consumers in Latin America. It has participated in social networking (Tuenti), IPTV, media and M2M services. It also has an investment arm seeking out new technology and service innovations.
France Telecom is aggressively pursuing nontraditional service opportunities. It has acquired Unanimis (which provides digital advertising), in addition to participating in mobile payment initiatives. It is also seeking to invest in Dailymotion for online video distribution.
Sprint is pursuing nontraditional service opportunities to remain competitive. Sprint is participating in digital applications such as advertising and music (Sprint Music Plus, for example, in which it leverages its partnership with Rhapsody). It has forged an agreement with American Express to enable its smartphone users to use Serve, American Express' mobile payment service. Sprint was also the first telecom carrier to support Google Wallet, in early 2011. It is also establishing its M2M ecosystem.