Early Lessons Learned in
Deploying Cloud Services
Cocoy J. Claravall
VP IT-Enabled Products & Services
Globe Telecom, Philippines
Agenda
Why We Are Here
Ten Lessons to Remember
Why We Are Optimistic
Positioning for Success
Where else can we grow?

What do we do, and when
do we start?
IT Enabled Services, the clear adjacency
for telcos in the B2B market
Projected Business
per Industry, YoY
2011 – 2016
Nominal CAGR
percent

The telecom services
business is big and
stable, there is still an
opportunity to expand
albeit with slowing
revenue growth …

… mirroring global
trends due to
commoditization
(declining ARPU, etc.)
and intense
competition.

Thus we need to do this
in order to maintain our
momentum while
investing for the future.
We see customers having a mindset change …
Data Center
COLO
Services

OPTIMIZING

Managed
Platforms

INNOVATING

Shared

Hosted
Applications

Managed
Applications

World-class facilities, certified people, and processes

DISRUPTING

Level of Professional Services we can offer

End-to-end Business Application Services

Shared

Dedicated

Hosted
Platforms

Dedicated

Enterprise
Public IAAS

Dedicated
Private Cloud

… and buying IT
services in different
ways.
1. Get the right partners, good synergy
is important.

Learning from Steve and Woz
2. Focus on the job, it’s hard to think
blue sky when you are swimming the
red ocean.

The approach cannot be a BTW, with no focus.
A New Globe Business
130

ITES Mandate
Focus on IT-related
products & services
Develop new
offerings or partner
with world-class
technology providers
Be the preferred IT
partner for cloud
services

IT Enabled
Services
Group

SMB
Group

Enterprise
Group
Our IT Enabled Services Group
Head

Sales
Engagement

Product

Marketing

Professional
Services

Program
Management

Professional
Services

Software Design
and Delivery

Project
Management
Office

Service Delivery

Service Desk

Service
Management

Service
Operations
In our case, a new group had to be
built, whose mission is:
To enrich lives through enabling
solutions that accelerate the
performance of business
ecosystems using best in class IT
capabilities, platforms and services.
3. It’s good to be fast, but sometimes
you will stumble if you do not plan
ahead.
4. Building credibility takes time, take
baby steps.
IAAS
5. Creating a pipeline of customers is
easy, winning deals is another story.
6. It’s hard to swim upstream, but
often that’s where you find the hidden
opportunities.
The Challenge:
• Established global cloud players
• Mom and Pop local players
• Decision mostly based on the cheapest option
The Alternative:
• Focus on higher value managed IT services
• Evangelize, evangelize, evangelize
7. It’s not just about cost, rather, focus
on what the customer is trying to solve.
“Jobs-to-be-done” theory
“The basic idea is that people don’t go
around looking for products to buy.
Instead, they take life as it comes and
when they encounter a problem, they
look for a solution—and at that
point, they’ll hire a product or service.”
Clayton Christensen, Harvard Business
School
8. Traditional marketing is not enough, we
need to advocate, and help the customer
understand our message.

Image c/o ZDNet
A recent article refers to a survey conducted by
the Cloud Security Alliance, who surveyed 456
organizations around the world:
“Of the 207 respondents from outside the
US, 56% were less likely to use US-based cloud
providers after the revelations and 10% had
cancelled plans to use American services.
About a third said the revelations would not
affect their provider choice.”

20
9. Coming from a Telco has both its
advantages and disadvantages.
Maximize strengths
1.
2.
3.
4.
5.

Infrastructure
Customers
Scale
Coverage
Ability to offer
end-to-end SLAs
6. Billing capabilities

OVERCOME
WEAKNESSES

Perceived lack of
Customer-centricity
IT and Network Silos
Perceived lack of
Innovation
Speed of Execution
“Telco-minded”
thinking
10. Segmentation is key, the best product
will not sell in the wrong market.
SOME HYPOTHESIS:
• Large and mid-size local
companies will be more open to
subscribing to managed IT
services
• More savvy <40 year old
decision makers more likely to
go with a cloud solution
• Non-IT LOB decision makers will
grow in influence in how IT
budgets are used
• Increasing number of bids are
looking for a cloud alternative
• There are opportunities in highly
regulated verticals, but we need
to invest on a lot of pre-work
and unconventional tactics.
This is just the
beginning!
Globe
launched
In 2011

TORNADO

EARLY
MARKET

THE CHASM

REVENUE GROWTH

In the Philippines, customer adoption of cloud
services is starting to increase but has to cross
the chasm to gain traction …

BOWLING
ALLEY

MAIN STREET

TOTAL
ASSIMILATION

Total Cloud industry revenue growth @ 57% p.a. IAAS in 2016 at 5.8BTIME
(McKinsey)
IAAS demand in 2017 range between 600M to 1B pesos
(IDC & Gartner)
Philippine Digital Strategy (2011 to 2016)
Four Focus Areas:
• ICT Infrastructure
• Cyber Services
• Human Capital
Development
• e-Governance
The Companies We Work With Today

GLOBAL

LOCAL /
REGIONAL
Why We Believe We Are Poised to Win
• A focused and dedicated organization
• A skilled, certified, set of people and
processes
• A scalable, world-class infrastructure
that’s local
• A set of key partnerships with the leaders
in the industry
• A clear direction of where we want to be
This is for my
country … Buy
Filipino, Cloud
Solutions from
Globe!
“Taking the complexity out of IT.”
Cocoy J. Claravall
fjclaravall@globe.com.ph

Lessons Learned Deploying Cloud Services in Emerging Markets

  • 1.
    Early Lessons Learnedin Deploying Cloud Services Cocoy J. Claravall VP IT-Enabled Products & Services Globe Telecom, Philippines
  • 2.
    Agenda Why We AreHere Ten Lessons to Remember Why We Are Optimistic Positioning for Success
  • 3.
    Where else canwe grow? What do we do, and when do we start?
  • 4.
    IT Enabled Services,the clear adjacency for telcos in the B2B market Projected Business per Industry, YoY 2011 – 2016 Nominal CAGR percent The telecom services business is big and stable, there is still an opportunity to expand albeit with slowing revenue growth … … mirroring global trends due to commoditization (declining ARPU, etc.) and intense competition. Thus we need to do this in order to maintain our momentum while investing for the future.
  • 5.
    We see customershaving a mindset change …
  • 6.
    Data Center COLO Services OPTIMIZING Managed Platforms INNOVATING Shared Hosted Applications Managed Applications World-class facilities,certified people, and processes DISRUPTING Level of Professional Services we can offer End-to-end Business Application Services Shared Dedicated Hosted Platforms Dedicated Enterprise Public IAAS Dedicated Private Cloud … and buying IT services in different ways.
  • 7.
    1. Get theright partners, good synergy is important. Learning from Steve and Woz
  • 8.
    2. Focus onthe job, it’s hard to think blue sky when you are swimming the red ocean. The approach cannot be a BTW, with no focus.
  • 9.
    A New GlobeBusiness 130 ITES Mandate Focus on IT-related products & services Develop new offerings or partner with world-class technology providers Be the preferred IT partner for cloud services IT Enabled Services Group SMB Group Enterprise Group
  • 10.
    Our IT EnabledServices Group Head Sales Engagement Product Marketing Professional Services Program Management Professional Services Software Design and Delivery Project Management Office Service Delivery Service Desk Service Management Service Operations
  • 11.
    In our case,a new group had to be built, whose mission is: To enrich lives through enabling solutions that accelerate the performance of business ecosystems using best in class IT capabilities, platforms and services.
  • 12.
    3. It’s goodto be fast, but sometimes you will stumble if you do not plan ahead.
  • 13.
    4. Building credibilitytakes time, take baby steps.
  • 15.
  • 16.
    5. Creating apipeline of customers is easy, winning deals is another story.
  • 17.
    6. It’s hardto swim upstream, but often that’s where you find the hidden opportunities. The Challenge: • Established global cloud players • Mom and Pop local players • Decision mostly based on the cheapest option The Alternative: • Focus on higher value managed IT services • Evangelize, evangelize, evangelize
  • 18.
    7. It’s notjust about cost, rather, focus on what the customer is trying to solve. “Jobs-to-be-done” theory “The basic idea is that people don’t go around looking for products to buy. Instead, they take life as it comes and when they encounter a problem, they look for a solution—and at that point, they’ll hire a product or service.” Clayton Christensen, Harvard Business School
  • 19.
    8. Traditional marketingis not enough, we need to advocate, and help the customer understand our message. Image c/o ZDNet
  • 20.
    A recent articlerefers to a survey conducted by the Cloud Security Alliance, who surveyed 456 organizations around the world: “Of the 207 respondents from outside the US, 56% were less likely to use US-based cloud providers after the revelations and 10% had cancelled plans to use American services. About a third said the revelations would not affect their provider choice.” 20
  • 21.
    9. Coming froma Telco has both its advantages and disadvantages. Maximize strengths 1. 2. 3. 4. 5. Infrastructure Customers Scale Coverage Ability to offer end-to-end SLAs 6. Billing capabilities OVERCOME WEAKNESSES Perceived lack of Customer-centricity IT and Network Silos Perceived lack of Innovation Speed of Execution “Telco-minded” thinking
  • 22.
    10. Segmentation iskey, the best product will not sell in the wrong market. SOME HYPOTHESIS: • Large and mid-size local companies will be more open to subscribing to managed IT services • More savvy <40 year old decision makers more likely to go with a cloud solution • Non-IT LOB decision makers will grow in influence in how IT budgets are used • Increasing number of bids are looking for a cloud alternative • There are opportunities in highly regulated verticals, but we need to invest on a lot of pre-work and unconventional tactics.
  • 23.
    This is justthe beginning!
  • 24.
    Globe launched In 2011 TORNADO EARLY MARKET THE CHASM REVENUEGROWTH In the Philippines, customer adoption of cloud services is starting to increase but has to cross the chasm to gain traction … BOWLING ALLEY MAIN STREET TOTAL ASSIMILATION Total Cloud industry revenue growth @ 57% p.a. IAAS in 2016 at 5.8BTIME (McKinsey) IAAS demand in 2017 range between 600M to 1B pesos (IDC & Gartner)
  • 25.
    Philippine Digital Strategy(2011 to 2016) Four Focus Areas: • ICT Infrastructure • Cyber Services • Human Capital Development • e-Governance
  • 26.
    The Companies WeWork With Today GLOBAL LOCAL / REGIONAL
  • 27.
    Why We BelieveWe Are Poised to Win • A focused and dedicated organization • A skilled, certified, set of people and processes • A scalable, world-class infrastructure that’s local • A set of key partnerships with the leaders in the industry • A clear direction of where we want to be
  • 28.
    This is formy country … Buy Filipino, Cloud Solutions from Globe!
  • 29.
    “Taking the complexityout of IT.” Cocoy J. Claravall fjclaravall@globe.com.ph

Editor's Notes

  • #4 Talk about how we are investing for the future, with core revenues flattening and the Phils crossing over 100% mobile penetration. Broadband has a lot of room to grow though, but for how long? And at what price?2 years ago we started to dabble in Cloud, more so as a sideline rather than a primary initiative.
  • #5 We are ALL in the same boat!
  • #6 Mid to large enterprises are the target - example Cebu Pacific and ICTSI
  • #7 Talk about Disrupting Ecosystems as the end game, that global cloud providers cannot easily executeManaged IT services require local presence, trust, and relationships
  • #8 Who watched or read the biography of Steve Jobs?Start with giving parallels on the relationship of Jobs &amp; Woz, why their partnership worked.They must have an equally good reason why they want to partner with us, and vice versa.Talk about experience with Asticom (VMWare-based) and Morph (Openstack) partnership.The most attractive financial offer is not always the best. Check the capability of the partner, their ability to scale when additional resources are needed.Microsoft’s move to give Office 365 for free to their Enterprise clients is not a good partner arrangement.Talk about Asticom and how we ended up buying the infrastructure.Similar case with Morph when we entered a partnership model then they changed the structure because they are a startup and this affected our ability to execute in the public cloud.
  • #9 Talk about the reorg
  • #10 Over 75% of ITES are technical people in our Professional Services organization!800 people for the whole of Globe Business
  • #11 Talk about in depth number of people, qualifications,etcFrom 800+ people down to 130, with over 75% in a technical role
  • #13 Talk about our initial “failures”, running SAP in a “commodity hardware, with Openstack and Raid ZAlso our experience in the AC BaaS case when we sold the solution which was more than they needed, and now they are asking for many other things to be done which was beyond scope. If we had planned earlier the approach, all terms, scope, and conditions would have been clear.End to end SLA’s need to be determined ahead, before offering We always customize the solution (which vendor, what technology to use in backup for example) in the beginning, rather than standardizing on the approach.
  • #14 Talk about our Professional Services organization, and the inventory of all their certifications.Not just that, but also our data center certifications, and the big customers we initially closed like Cebu Pacific and ICTSI.
  • #17 Talk about the flavor of the month conceptThe need to hire Sales Consultants/Specialists, vs Relationship ManagersSpecialized skillset in selling IT is very different from Core. You get all the awareness and excitement, but follow through and closure is the most difficult. You need the right presales expertise, engineering expertise, selling/TCO mindset, etc.Tell the story of how some deals were lost – STI, while talking about the reverse – 2GO.Typical sales people gravitate toward those activities that will be easiest to sell, install, deliver and bill.
  • #18 Change the Game, DO NOT compete on the Public Cloud arenaHackathons to get developers onboardAsia Cloud participationTrial AccountsDiagnostic Business Consulting – TCO approach
  • #19 Presales is key.Customers want to innovate with cloud.
  • #20 We need Cloud Ninja’s, a startup approach to marketing, non-traditional. Happy customers are one example of good marketing. We also needed to use the services ourselves so we can tell people our own experience. We do this today, for all our VAS services running in our cloud. (TC, etc)Filipino CIOs still think is a traditional manner, so we have to educate them, especially on the TCO. Promoting the Philippines also in ACCA is part of the evangelization.Events like Floods also are a good marketing oppty to pitch DR and BaaS
  • #21 Talk about the Snowden report, hacking of the US meetings in New York
  • #22 End-to-end SLAs, having the telco do everything, BUT good if they agree to higher prices.Capex to Opex traditionally are telco practicesExecution for Telcos traditionally has been slow due to very stringent processes – give example on delays with SaaS onboarding (testing of partner software becomes a pain initially)
  • #24 It’s a tall order for Philippine telcos, but NOT impossible!
  • #25 The early adopters speak to the Innovators as they are both technically oriented. Technology is king.The late majority speak to the early majority as they are both interested in the economic partBut the Early Majority does NOT speak to the Earlyadopters
  • #26 GDP growth highest in ASEAN, 1st semester at par with ChinaWe set up a dedcatedeGov team to focus on this oppty
  • #29 We are here for the long haul, it’s a marathon, not a sprint!