How Does Mobile Cloud
Affect Asset Ownership

Eduardo Méndez Polo
Telefónica Spain
Telefonica is now a benchmark for the global
Telco sector ...
•
•

•

1st International integrated Telco
operator by customer base

•

277.8 million accesses (as of Jun’10)

1st European integrated Telco
operator by market capitalisation

•

1st Telco in Dow Jones Sustainability
Index

•

Among the 50 largest companies in
the world by market cap

•

Among the 75 largest companies
in the world by revenues (Fortune
Global 500)

101.7 million in Europe
176.1 million in Latin America

Operations in 25 countries
•
•
•

6 in Europe (1)
13 in Latin America (2)
3 through strategic and industrial alliances (3)

About 257,000 professionals
•
•
•

31.1% in Europe
68.1% in Latin America
0.8% in others countries

Revenues (Jun’10): 29,053 Mill.€
OIBDA (Jun’10): 10,905 Mill.€
Net Income (Jun’10): 3,775 Mill.€
(1) Plus Morocco
(2) Plus U.S.A. and Puerto Rico
(3) China, Italy and Portugal
... as it enjoys an unique diversified portfolio
among the largest operators worldwide
Top 10 - Total accesses worldwide

DIVERSIFICATION PROFILE Q2 2010

Million accesses as of June 2010

554.0

China Mobile

352.4

Vodafone *

301.6

China Unicom

AMX+TMX+TII **
Deuts. Telekom***
France Telecom
at&t
TeliaSonera

277.8

182.0

T-Latam
41.5%

* Data Fixed Broadband of Vodafone as of as March 2010
** Total of America Movil + Telmex + Telmex international
*** Data UK of Deutsche Telekom as of as March 2010
Total accesses (as reported by companies) =
Fixed Lines + Mobile Customers + Narrow and Broad Band Internet + Pay TV

T-Spain
40.1%

T-Latam
41.2%

T-Europe
25.1%

T-Europe
18.7%

Accesses by Region
T-Spain
17.0%

158.7
152.4

Others &
Eliminations 0.0%

T-Spain
32.1%

258.0
215.3

OIBDA

Others &
Eliminations 1.3%

313.9

China Telecom

Telefónica

Revenues

Accesses by Business
Wholesale 1.5%

Pay TV 1.0%
Wireline 15.0%

T-Latam
63.4%

T-Europe
19.6%
Mobile 76.0%

Wireline Data &
Internet 6.5%
… which is valued by the markets placing
Telefonica in the Top 5 in the global Telco sector
Telco sector worldwide ranking by market cap (US$ bn)

216.5

China Mobile

158.7

at&t

130.1

Vodafone

107.7

Telefónica

102.8

América Móvil

84.4

Verizon
NTT DoCoMo
NTT

71.9
68.5

Deutsche Telekom

59.5

France Telecom

57.4

Source. Bloomberg 08/09/2010
Telefonica Cloud Services
saas (aplicateca)
mstore

security

storage as a service (disco virtual)

vlan

virtual hosting
The Cloud

Source: open cloud manifesto
Who are the service consumers?
Clic para editar título
• Haga clic para modificar el estilo de texto del patrón
o

Segundo nivel
 Tercer nivel

The Archives of Ontario Visual Database
Focusing
•
•

•
•

•
•

End User to Cloud: Applications running on the cloud and accessed by end
users
Enterprise to Cloud to End User: Applications running in the public cloud
and accessed by employees and customers
Enterprise to Cloud: Cloud applications integrated with internal IT
capabilities
Private Cloud: A cloud hosted by an organization inside that organization’s
firewall.
Enterprise to Cloud to Enterprise: Cloud applications running in the public
cloud and interoperating with partner applications (supply chain)
Hybrid Cloud: Multiple clouds work together, coordinated by a cloud broker
that federates data, applications, user identity, security…
End User to Cloud

Supporting the infrastructure base
for VAS
Enterprise to Cloud to End User

Regular Cloud services:
IaaS (Virtual Hosting, Storage), SaaS, ...

Source: utdallas.edu
What do consumers want?
DATA SECURITY

AVAILABILITY

REGULATION

LOCK-IN
AVOIDANCE

COMPLIANCE

COMPETITIVE
PRICE
What do consumers want?
DATA SECURITY

AVAILABILITY

“I have one question
regarding how we can deploy
heavy applications using
Cloud Computing. BecauseLOCK-IN
it
REGULATION
AVOIDANCE
uses Internet and if it is down
then it would be difficult to use
applications at that time.”

COMPETITIVE
Comment
COMPLIANCE to a survey to Cloud experts on Cloud Computing Journal
PRICE
Some Predictions
By 2012, 20 percent of businesses will own no IT assets
By 2013, mobile phones will overtake PCs as the most common Web
access device worldwide.
Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond

When customers need strong support to their professional
or personal tools, they usually trust on operators
(Although they frequently complain against us)
How We Retain the Customer 1/2

Cannot be a black box

Source: open cloud manifesto
How We Retain the Customer 2/2

Have you tried turning it off and on again?
The IT Crowd, Channel 4 UK
Service Level Management
• Service Portfolio Management
• Configuration Management
• Support
o

Incident Management
 Event Management

o

•
•
•
•
•

Problem Management

Release Management
Change Management
Asset Management
Capacity Management
Performance Management

itSMF
Service Level Management
Enterprise Customer Homework
THE PATH TO CLOUD
Virtualization
Consolidation

Resource
Management

STEPS INTO CLOUD
1. Define Cloud Strategy and Identify your Starting
Point

2.

1. ROI analysis.
2. Define security & compliance requirements
3. Resources: Be sure you have the best professionals
Define the plan
1. Sizing: Just a pair of web apps or the whole IT dept.?
2. Management tools.
3. Failover, High Availability and Load Balance tools.
4. Define Phases

3. Set up Service Mngmt. and Quality Assurance
4. Test
5. Prepare the handling to migrated site

Private
Cloud

Public
Cloud

RISK MANAGEMENT
1. Verify process and applications
independence.
2. Integrations are accurately defined.
3. Security levels are properly identified.
4. Enterprise architecture is healthy.
5. Dependence on communications.
6. Cost.
7. Application migrations
Service Level Management
Enterprise Customer Homework
THE PATH TO CLOUD
Virtualization
Consolidation

Resource
Management

Private
Cloud

Public
Cloud

“Cloud Computing
STEPS INTO CLOUD

1.

is not a technology
RISK MANAGEMENT
Define Cloud Strategy and Identify your Starting
that can just be turned 1. Verify process and applications
on overnight”
Point

independence.
2. Integrations are accurately defined.
3. Security levels are properly identified.
Peter Tseronis, deputy associate CIO
4. Enterprise architecture is healthy.
2. Define the plan
5. Dependence on communications.
1. Sizing: Just a pair of web apps or the Energy Department and
of the whole IT dept.?
2. Management tools.
6.
chairman of the Cost.
3. Failover, High Availability and Load Balance tools.
7. Application migrations
1. ROI analysis.
2. Define security & compliance requirements
3. Resources: Be sure you have the best professionals

4. Define Phases

US Federal Cloud Computing Advisory Council

3. Set up Service Mngmt. and Quality Assurance
4. Test
5. Prepare the handling to migrated site
Other Issues: Diversity Management

How much diversity can
you manage in your
technology portfolio?

Will you reject a customer who
does not comply with it?
To Sum Up

Source: open cloud manifesto

• Cloud Computing offering must be Customer centered, not Technology
centered.
• Cloud Computing adoption must be Service Management centered.
• Telco Clouds will provide customers the confidence in quality and
availability for service, infrastructure and communications.
From Pottery to Ceramics
Pottery (job) – Ceramics (product)
Cheap
Popular
Serial

Technology as change driver

Professional (99%)

Usage
- Users
- Usability
- Utility
User (1%)
Expensive
Exclusive
Unique

Artisan (99%)

Advance
•
Time
•
Tecnology
•
Specializat
ion

Expensive
Exclusive
Unique

Source: Luis Miguel Rosa, EXIN
From Infrastructure to Service
Infrastructure Mgmt. (job) – Service Mgmt. (product)
Cheap
Popular
Serial

Technology as change driver

Profesional (99%)

Usage
- Users
- Usability
- Utility
User (99%)
Expensive
Exclusive
Unique

Artisan (1%)

Advance
•
Time
•
Tecnology
•
Specializat
ion

Expensive
Exclusive
Unique

Source: Luis Miguel Rosa, EXIN
Contact: emendezpolo@gmail.com
Cloud Mobility: Enabling Mobility Accross Devices

Cloud Mobility: Enabling Mobility Accross Devices

  • 1.
    How Does MobileCloud Affect Asset Ownership Eduardo Méndez Polo Telefónica Spain
  • 2.
    Telefonica is nowa benchmark for the global Telco sector ... • • • 1st International integrated Telco operator by customer base • 277.8 million accesses (as of Jun’10) 1st European integrated Telco operator by market capitalisation • 1st Telco in Dow Jones Sustainability Index • Among the 50 largest companies in the world by market cap • Among the 75 largest companies in the world by revenues (Fortune Global 500) 101.7 million in Europe 176.1 million in Latin America Operations in 25 countries • • • 6 in Europe (1) 13 in Latin America (2) 3 through strategic and industrial alliances (3) About 257,000 professionals • • • 31.1% in Europe 68.1% in Latin America 0.8% in others countries Revenues (Jun’10): 29,053 Mill.€ OIBDA (Jun’10): 10,905 Mill.€ Net Income (Jun’10): 3,775 Mill.€ (1) Plus Morocco (2) Plus U.S.A. and Puerto Rico (3) China, Italy and Portugal
  • 3.
    ... as itenjoys an unique diversified portfolio among the largest operators worldwide Top 10 - Total accesses worldwide DIVERSIFICATION PROFILE Q2 2010 Million accesses as of June 2010 554.0 China Mobile 352.4 Vodafone * 301.6 China Unicom AMX+TMX+TII ** Deuts. Telekom*** France Telecom at&t TeliaSonera 277.8 182.0 T-Latam 41.5% * Data Fixed Broadband of Vodafone as of as March 2010 ** Total of America Movil + Telmex + Telmex international *** Data UK of Deutsche Telekom as of as March 2010 Total accesses (as reported by companies) = Fixed Lines + Mobile Customers + Narrow and Broad Band Internet + Pay TV T-Spain 40.1% T-Latam 41.2% T-Europe 25.1% T-Europe 18.7% Accesses by Region T-Spain 17.0% 158.7 152.4 Others & Eliminations 0.0% T-Spain 32.1% 258.0 215.3 OIBDA Others & Eliminations 1.3% 313.9 China Telecom Telefónica Revenues Accesses by Business Wholesale 1.5% Pay TV 1.0% Wireline 15.0% T-Latam 63.4% T-Europe 19.6% Mobile 76.0% Wireline Data & Internet 6.5%
  • 4.
    … which isvalued by the markets placing Telefonica in the Top 5 in the global Telco sector Telco sector worldwide ranking by market cap (US$ bn) 216.5 China Mobile 158.7 at&t 130.1 Vodafone 107.7 Telefónica 102.8 América Móvil 84.4 Verizon NTT DoCoMo NTT 71.9 68.5 Deutsche Telekom 59.5 France Telecom 57.4 Source. Bloomberg 08/09/2010
  • 5.
    Telefonica Cloud Services saas(aplicateca) mstore security storage as a service (disco virtual) vlan virtual hosting
  • 6.
    The Cloud Source: opencloud manifesto
  • 7.
    Who are theservice consumers?
  • 8.
    Clic para editartítulo • Haga clic para modificar el estilo de texto del patrón o Segundo nivel  Tercer nivel The Archives of Ontario Visual Database
  • 9.
    Focusing • • • • • • End User toCloud: Applications running on the cloud and accessed by end users Enterprise to Cloud to End User: Applications running in the public cloud and accessed by employees and customers Enterprise to Cloud: Cloud applications integrated with internal IT capabilities Private Cloud: A cloud hosted by an organization inside that organization’s firewall. Enterprise to Cloud to Enterprise: Cloud applications running in the public cloud and interoperating with partner applications (supply chain) Hybrid Cloud: Multiple clouds work together, coordinated by a cloud broker that federates data, applications, user identity, security…
  • 10.
    End User toCloud Supporting the infrastructure base for VAS
  • 11.
    Enterprise to Cloudto End User Regular Cloud services: IaaS (Virtual Hosting, Storage), SaaS, ... Source: utdallas.edu
  • 12.
    What do consumerswant? DATA SECURITY AVAILABILITY REGULATION LOCK-IN AVOIDANCE COMPLIANCE COMPETITIVE PRICE
  • 13.
    What do consumerswant? DATA SECURITY AVAILABILITY “I have one question regarding how we can deploy heavy applications using Cloud Computing. BecauseLOCK-IN it REGULATION AVOIDANCE uses Internet and if it is down then it would be difficult to use applications at that time.” COMPETITIVE Comment COMPLIANCE to a survey to Cloud experts on Cloud Computing Journal PRICE
  • 14.
    Some Predictions By 2012,20 percent of businesses will own no IT assets By 2013, mobile phones will overtake PCs as the most common Web access device worldwide. Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond When customers need strong support to their professional or personal tools, they usually trust on operators (Although they frequently complain against us)
  • 15.
    How We Retainthe Customer 1/2 Cannot be a black box Source: open cloud manifesto
  • 16.
    How We Retainthe Customer 2/2 Have you tried turning it off and on again? The IT Crowd, Channel 4 UK
  • 17.
    Service Level Management •Service Portfolio Management • Configuration Management • Support o Incident Management  Event Management o • • • • • Problem Management Release Management Change Management Asset Management Capacity Management Performance Management itSMF
  • 18.
    Service Level Management EnterpriseCustomer Homework THE PATH TO CLOUD Virtualization Consolidation Resource Management STEPS INTO CLOUD 1. Define Cloud Strategy and Identify your Starting Point 2. 1. ROI analysis. 2. Define security & compliance requirements 3. Resources: Be sure you have the best professionals Define the plan 1. Sizing: Just a pair of web apps or the whole IT dept.? 2. Management tools. 3. Failover, High Availability and Load Balance tools. 4. Define Phases 3. Set up Service Mngmt. and Quality Assurance 4. Test 5. Prepare the handling to migrated site Private Cloud Public Cloud RISK MANAGEMENT 1. Verify process and applications independence. 2. Integrations are accurately defined. 3. Security levels are properly identified. 4. Enterprise architecture is healthy. 5. Dependence on communications. 6. Cost. 7. Application migrations
  • 19.
    Service Level Management EnterpriseCustomer Homework THE PATH TO CLOUD Virtualization Consolidation Resource Management Private Cloud Public Cloud “Cloud Computing STEPS INTO CLOUD 1. is not a technology RISK MANAGEMENT Define Cloud Strategy and Identify your Starting that can just be turned 1. Verify process and applications on overnight” Point independence. 2. Integrations are accurately defined. 3. Security levels are properly identified. Peter Tseronis, deputy associate CIO 4. Enterprise architecture is healthy. 2. Define the plan 5. Dependence on communications. 1. Sizing: Just a pair of web apps or the Energy Department and of the whole IT dept.? 2. Management tools. 6. chairman of the Cost. 3. Failover, High Availability and Load Balance tools. 7. Application migrations 1. ROI analysis. 2. Define security & compliance requirements 3. Resources: Be sure you have the best professionals 4. Define Phases US Federal Cloud Computing Advisory Council 3. Set up Service Mngmt. and Quality Assurance 4. Test 5. Prepare the handling to migrated site
  • 20.
    Other Issues: DiversityManagement How much diversity can you manage in your technology portfolio? Will you reject a customer who does not comply with it?
  • 21.
    To Sum Up Source:open cloud manifesto • Cloud Computing offering must be Customer centered, not Technology centered. • Cloud Computing adoption must be Service Management centered. • Telco Clouds will provide customers the confidence in quality and availability for service, infrastructure and communications.
  • 22.
    From Pottery toCeramics Pottery (job) – Ceramics (product) Cheap Popular Serial Technology as change driver Professional (99%) Usage - Users - Usability - Utility User (1%) Expensive Exclusive Unique Artisan (99%) Advance • Time • Tecnology • Specializat ion Expensive Exclusive Unique Source: Luis Miguel Rosa, EXIN
  • 23.
    From Infrastructure toService Infrastructure Mgmt. (job) – Service Mgmt. (product) Cheap Popular Serial Technology as change driver Profesional (99%) Usage - Users - Usability - Utility User (99%) Expensive Exclusive Unique Artisan (1%) Advance • Time • Tecnology • Specializat ion Expensive Exclusive Unique Source: Luis Miguel Rosa, EXIN
  • 24.

Editor's Notes

  • #2 I am pretty sure that all of us understand that physical assets ownership are not the matter of discussion today. For long years we have been outsourcing activities both in our professional and personal lives, whenever we have found that having an specialist could provide us an activity would permit us focus in our core ones. But the rising of Cloud makes a new question: Will the Cloud give really the added value I need? Or will I have to pay a price in quality for the flexibility and cost reduction? This is where I want to start the debate, because depending on the answer we can conclude how Cloud will affect our asset ownership and value.
  • #3 Telefonica is one of the leading Telco operators in the world. We started operations in Spain, and expanded our business through acquisitions in our natural markets: Latin America and Europe. Telefonica is also one of the fastest growing operators in innovation, where we are becoming a reference.
  • #4 Even in the present crisis period, Telefonica is being able to sustain a healthy and wealthy situation, thanks to the geographic diversification and and solid finantial practice.
  • #5 To sum up, Telefonica has the strongest opportunity to grow among the multinational telco operators.
  • #6 During the last years Telefonica has offered to our market a variety of Cloud services. From the pure virtual hosting and storage to the application level.
  • #7 The Open Cloud Manifesto defined the Cloud Taxonomy with this diagram. Although the biggest part on it 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.
  • #9 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.
  • #10 A variety of kinds of services can be provided with a Cloud. I like to group them in three categories: Those where a final residential customer is directly involved. Those where the operator can benefit from the Cloud for internal IT and provide this benefit to the enterprise customers. Those where interoperability between networks and Clouds is the key difference. Focusing on the first kind…
  • #11 Operators need to differentiate from their competitior offering as many VAS as they can. Time-to market, service quality and cost are the main metrics to guarantee their profitability. A strong infrastructure and service life-cycle practice are fundamental to obtain success.
  • #13 The question is: Do consumers really care about our efficiency, asset management or orchestration? Or they really care about if: Will anybody have access to my personal or business information? Will I have my service running 24/7? Will I comply with my legal requirements? Will I be locked with my provider? Will I meet my industry and company standards? Will I obtain and maintain a better cost than running the service myself?
  • #14 The question is: Do consumers really care about our efficiency, asset management or orchestration? Or they really care about if: Will anybody have access to my personal or business information? Will I have my service running 24/7? Will I comply with my legal requirements? Will I be locked with my provider? Will I meet my industry and company standards? Will I obtain and maintain a better cost than running the service myself?
  • #15 There is a huge opportunity for Operators in the Cloud. If we do our homework, we can take the strong slice combining the communications with the IT services, and making a major entrance in the IT services market.
  • #16 With a regular IT infrastructure, businesses have control of their assets and processes. We must provide the visibility of the service provided as part of the SLA. But we have to make the complexity of infrastructure management, transparent to the customer.
  • #17 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?
  • #18 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. They Cloud provider should need to have a strong service management practice and enterprise customers should require the ISO 20.000 certification. 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.
  • #19 There are also a number of requirements that your customers need to consider. Many clients will need to make significant changes to the way that they manage IT services if they are immature in these areas
  • #20 There are also a number of requirements that your customers need to consider. Many clients will need to make significant changes to the way that they manage IT services if they are immature in these areas
  • #23 The evolution from Pottery to Ceramics lasted during centuries, and moved the entire industry from an artisan way to an industry way. In the beginning they way specialist with a huge knowledge and experience, making unique work very expensive. In the end the work is done automatically, the specialist are reserved to the design phase, and we obtain a cheap commoditized result.
  • #24 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. 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. 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.