Cloud computing involves providing dynamically scalable computing resources as a service over the Internet. Major players like Google, Amazon, and Microsoft have large server parks and are expanding into computing services. Telecom operators are also pursuing opportunities in cloud computing by leveraging their network infrastructure and data centers. The presentation identifies several potential roles for Telenor in cloud services such as a network service provider, cloud customer, cloud reseller, PaaS or IaaS provider, and SaaS enabler.

1. Cloud Computing and Software as a Service
Looking behind the hype
Telenor Group Business Development & Research
Breakfast Meeting
Senior Researcher Hilde Lovett
Fornebu November 10, 2009

2. Cloud Computing – Should Telenor care?
Hype Cycle for Emerging Technologies, 2009
Cloud Computing Yes! because:
• Technology is maturing
• Players are starting to
achieve productivity gains
• Players are innovating with
shorter time-to-market
• Players are starting to
create and take new roles

3. Agenda
What is Cloud Computing
explained through examples
Other operators offering
Opportunities for Telenor

4. Agenda
What is Cloud Computing
explained through examples
Other operators offering
Opportunities for Telenor

5. Increasing use – increasing needs!
Enormous Internet usage
Green IT
Consumption & contribution
from all types of terminals
50* Mobile Data traffic
in 3 years Powerful Publishing &
Distribution Platforms
Iphone/ iTouch growth
57 MM users
Mashing-up services with each other
Source: Personalizedmedia: http://www.personalizemedia.com/
Source 2:Morgan Stanley: http://www.scribd.com/doc/21362476/MS-Economy-Internet-Trends-102009-FINAL

6. From thousands to a small number of very large hosting,
cloud and content providers
Google is becoming an ASN*
Accounts for 6% of all internet traffic
Hyper Giants
One of the fastest growing origin ASN
30 large companies now generate and
consume 30% of all Internet traffic
Source: Arbor Networks: http://www.arbornetworks.com/en/
arbor-networks-the-university-of-michigan-and-merit-network-to- *: ASN: Autonomous System Number:
present-two-year-study-of-global-int-2.html Uniquely identifies each network of the Internet

7. What is Cloud Computing?
Definition
Cloud computing is Internet ("cloud") based development and use of computer
technology ("computing").
Conceptually it is a paradigm shift whereby details are abstracted from the users
who no longer need knowledge of, expertise in, or control over the technology
infrastructure "in the cloud" that supports them.
Technically it typically involves the provision of dynamically scalable and often
virtualised resources as a service over the Internet.
Characteristics of Cloud Computing
• Resource Pooling
to serve multiple consumers
• Rapid Elasticity
to quickly scale out and in
• Broad Network Access
by thin or thick client platforms
• On-demand self-service
without human interaction
• Measured Service
monitored, controlled and reported
Source: Wikipedia & NIST

8. Cloud Computing is the sum of
Software and a Service (SaaS )
and Utility Computing
Client platforms
Service Models
SaaS Provider
SaaS: Software as a Service
Use the provider’s applications
Utility
running on a cloud infrastructure SaaS Provider
Mash-up through APIs computing
PaaS: Platform as a Service
Deploy applications onto the cloud PaaS Provider
infrastructure
IaaS: Infrastructure as a Service
Provision processing, storage,
networks, and other fundamental IaaS Provider
computing resources
Inspiration: Wikipedia & “Above the Clouds: A Berkley View of Cloud Computing”, 2009
End-user: consumer, business user & own employees

9. Cloud Providers are expanding core business into
computing intensive products
• Server parks in containers
– Specialization, concentration
and improved logistics
– Location matters
(real estate, competence,
electricity, climate)
? • Virtualization and other sw
mechanisms enables efficient
hardware utilization
– Elastic applications
– Shared resources

10. Server parks Platforms
• Main Server centers in USA & Europe • Merchant
• Content Delivery centers also in Asia • Traffic
Business rationale • WebStore
• Enterprise
• Three lines of business
• Fulfillment
1. Consumers; E-commerce business: (25-30 B$)
2. Merchant business: white label & on Amazon web • Labor
site: (30-40 %) • Digital Media
3. Web services: “growing at a crazy rate”
• Infrastructure
• Internal & External Cloud in parallel (Amazon Web Services)
• Reduce time spent on common, basic problems • 600.000 customers
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11. A comprehensive platform offered
as self service
Explore Products
Calculate Costs
Manage from Web-dashboard
Develop for popular App platforms

12. Example: Bjørn's invoice (Amazon Web Services)
Monthly bill for serving Telenor Developer Site (prototype)

13. Server parks (based on rumors) Platforms
• 2 mill servers – 36 datacenters • Internal Cloud
(California, Virginia, Georgia, Oregon, • Identity management
Ireland and Belgium)* • Resource management
• Envisions 10 mill servers • Data storage, File system
• Computing
• 10% of servers – world wide
• Test bed
• 45 000 servers in 45 containers on one • External Cloud
data center • GoogleID
• 3 years lifetime per server generation • Google Data APIs
Business rationale • Project hosting
• AppEngine
• Started as a way to optimize core • Google Wave (beta)
business; search & advertisement
• Gov Cloud
• Way to get fast T2M – Internal Cloud
• Open for external innovation – Public
Cloud
Gov Cloud
Gov Cloud
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14. Microsoft
Server parks Business rationale
• Data centers world wide • From license of SW to SaaS
• Chicago: 220 000 servers
• Cloud services to support own SaaS
• New data centers use Microsoft containers,
containing 1800 – 2500 Servers in each • Taking a new role as Cloud provider
• 500 M$ per central
• New partnership models, supporting
• Data center in Dublin small data hosting companies
• Server racks -> containers in next phase
• Cooling based on air – Irelands' mild climate • Starting with
• own employees (3.000 in London)
• Coca Cola, Glaxo Smith Kline ++
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15. Cloud Computing is the sum of
Software and a Service (SaaS )
and Utility Computing
Client platforms
SaaS Provider
Utility
computing SaaS Provider
PaaS Provider
IaaS Provider
Inspiration: Wikipedia & “Above the Clouds: A Berkley View of Cloud Computing”, 2009
End-user: consumer, business user & own employees

16. Cloud Computing vs. Hosting:
Radically lower cost ($, time & risk) & standards (tech, $, SLA)
Shift from Capex to Opex
Maximum
cost savings
Buy
“Packaged” Hosted “Software as
Application “Packaged” a Service”
Build “Home Built” Hosted Cloud
Application “Home Built” Platform
Maximum
Control
On premises Net centric In the cloud

17. Ready for Cloud Computing?
Challenges & Barriers
Security
Data and Application
Interoperability & AJAX & HTML 5
Portability
Location of data
Metering and Monitoring Internet Standards
across multiple cloud
Communication (HTTP & XMPP)
providers
Security (Oauth, OpenID, SSL/TLS)
Syndication (ATOM)
Solution Stacs (LAMP)
Data (XML, JSON)
Common Cloud Initiatives Web Services (REST)

18. In summary Cloud Computing enables
Biz Opportunities
“I expect a small number of very large players but a
lot of very small players who are specialists.” Eric Schmidt, CEO Google
Opportunities for SaaS providers
due to low entry barriers SaaS Providers
easy to fail – easy to scale
faster time-to-market
reach larger audience
innovation with third parties
Opportunities for Cloud Providers
Cloud Providers due to economies of scale
strengthen core
augment customer network
new revenues
innovation with third parties

19. Agenda
What is Cloud Computing
explained through examples
Other operators offering
Opportunities for Telenor

20. Where do Cloud Providers & Telcos meet?
Google and Telcos share a speciality in operating IT
systems at very high scale - either the traditional
switching, data centre and call centre capabilities of the
Telcos, or the cloud computing infrastructure Google
specialises in. Telcos have a lot of work to do to rival
Google on cost and adaptability, but in general terms,
this is an area where they have little choice but to
compete - carriers are building up cloud computing
capability, while Google is investing in dark fibre and
other Telco-related services.
20 29/11/2010 Source: STL, Telco 2.0

21. Forrester: “The big telco bet is on cloud
Infrastructure as a Service (IaaS) enablement
and delivery”
Telco players
• Leveraging in-place assets
• convergent global wide-area
network (WAN) management
• data center services
• network-based security services
• Some Software as a Service
21 29/11/2010 Source: Market Overview Of Cloud IT Services From Major Telcos, Sept 09, Forrester

22. AT&T is working to differentiate its enterprise cloud service
offerings based on leveraging assets and capabilities associated
with its global IP backbone network and data centers
22 29/11/2010 Source: Forrester: Overview Of Cloud IT Services From Major Telcos

23. BT Global Services appears to be positioning itself as a service
aggregator with a strong in-house network and data center
capability
23 29/11/2010 Source: Forrester: Overview Of Cloud IT Services From Major Telcos

24. Orange plans to aggressively expand its
portfolio of offerings for enterprise customers
• Flexible Computing
private “cloud”, guaranteeing security and quality of service.
• Allows businesses to outsource a part or all their IT infrastructures, based
on virtual technology
– Intranet
key applications supported by
an Orange Business Services VPN
– Internet
Virtual Private Computing: the roadmap
institutional web sites,
e-shopping, SaaS platforms, etc.
Partners
Source: http://www.orange.com/en_EN/press/press_
releases/cp090629en1.jsp
Source: Forrester: Overview Of Cloud IT Services From Major Telcos

25. Agenda
What is Cloud Computing
explained through examples
Other operators offering
Opportunities for Telenor

26. Potential Telenor roles; 4. Cloud Market place
Supporting, Using or
Providing 3. Cloud Reseller
Cloud Services
2. Cloud Customer
5. SaaSProvider
SaaS Provider
SaaS Provider
6. SaaS Enabler
PaaS Provider
7. PaaS Provider
IaaS Provider
8. IaaS Provider
1. Network Service Provider

27. To develop Internet positions Telenor must understand the
Internet way of innovating, producing & distributing services
Ensure third-party Help end-user customers be
innovation in our networks part of Internet innovation
Make our core assets
available & relevant for
other networks
Ensure that Telenor employees
are part of Internet Innovation
Requires rethinking of
partnerships & ownerships!

28. 1. Cloud Computing is a reality
2. Telecom operators are making moves
3. There are several opportunities for Telenor

29. Thank you for you attention
Hilde Lovett
Senior Researcher
Telenor Group Business Development & Research
Thanks to my colleges in iLabs, Telenor 2.0 and SaaS/Cloud projects
Bjørn Remseth, Kjell Martin Holen, Frank Elter, Lars Bakken, Stein Tømmer
Petter Nielsen, Finn Tore Johansen, Evi Zouganeli, Else Nordhagen …
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