IT as a Service. delivering IT services. Ilkka Korkiakoski IT as a Service Evangelist. Corporation Tieto

Transcription

1 IT as a Service New way of buying and delivering IT services 2010 Tieto Corporation Ilkka Korkiakoski IT as a Service Evangelist

2 Content IT market evolution what are new ITaaS / Cloud services? Customer demand d and examples of ITaaS /Cl Cloud services Impact on IT Service industry and Tieto Q&A 2 25/11/2010

3 Where is ITaaS coming from? Google Apps, Gmail, Search Youtube Twitter Facebook Apple itunes + devices Picasa Personal Computing Networked Economy Process Automation Data Centre Design Virtualization Automated Provisioning Real-Time Infrastructure Grid Management Discipline Utility Models Consumer di driven services Evolution Technology di driven computing

4 Evolution accelerating in 2010 s 1990 s Internet 2000 s Industrialization 2010 s IT as a Service Internet t technologies Standardization di ti As a service models Consumer services Offshoring Internet of the things Networked processes Global delivery Big data Mobility Lean IT Real time economy Technology Industrialization ti Business models 4 25/11/2010

5 Major technology trends shaping this decade Next generation mobility Context aware IT Augmented reality Internet of the things Social media IT as a Service (cloud) Big Data Sustainability / eco-efficiency Shrinking atom level l technology 5

6 A Spectrum of Cloud Service Providers Business/E Enterpris se Influe enced System Application Application and Process Infrastructure Infrastructure Information Con nsumer/w Web In nfluence ed

7 New services drive growth in IT Worldwide IT market, USD billion New type 5% ITaaS / Cloud services of services SaaS, PaaS and IaaS % Supporting services 28 Private cloud implementation 400 Service integration Embedded software Traditional services -1 to -3% Current IT services Consulting Systems integration IT outsourcing Source: Forrester 7 25/11/2010

8 IT as a shared business enabler Business -driven Consulting App development & integration i Custom solutions Application management Vertical / horisontal platform-based BPO Software as a Service 1-to-1 IT as a Service 1-to-many Infrastructure outsourcing Desktop mgmt outsourcing Help desk outsourcing Managed Services Infrastructure utility (capacity, storage, network) IT - driven 8 25/11/2010

9 IT as a Service and the change in the business model Traditional business model IT as a Service business model Operation Integration Software Customer builds a solution Integration Hardware Operation Software Customer buys a service Hardware Different agreements for all parts One agreement covers all parts 9 25/11/2010

10 IT as a Service is driving new business and value creation models From.. Price / hour * Utilization Buying work......delivered as projects......metered by utilization......and governed by service level. To... Buying outcomes and results Price per unit * Volume delivered as a service...metered...and governed from Cloud ecosystem by use... by service value. ITaaS business model is more investment driven compared to traditional IT Services 10

11 Business Managers have huge expectations to cloud Do you believe that use of cloud computing could drive value at your company? What are the most significant ways you expect your company to realize value? No Don t know 9 16 Increased business flexibility 70 Increased ability for IT to scale/shrink 55 Yes 75 Lower unit cost of IT Disaster recovery and business continuity Percent Other 5 11 Source: McKinsey Quarterly

12 and the barriers to cloud are perceived differently Rank the top 3 barriers, if any, your company has overcome or still faces in realizing value from the cloud? IT executives Non- IT executives Evaluating and managing security or business continuity risks Managing regulatory risks or exposure Developing a compelling business case for using cloud systems Adapting existing business processes to cloud systems Addressing issues with migration or interoperability Lack of awareness or interest in cloud systems in our company Adjusting technology governance processes for cloud systems Developing the right set of skills to build, manage, and support cloud systems 12 Source: McKinsey Quarterly Percent 21 Leaders expect high reward, and manageable risk

13 Business and IT leaders need to share two different agendas Enabling IT Business specific IT enablers Innovation & experimentation Consumerization & service experience Industrial IT Global Delivery Cloud Agile dev t Platforms Harmonization Industrialization 13

14 What customers are asking today Get rid of data centres Get rid of platforms Platform Get rid of software Application Process Automate processes Application Platform Infrastructure Digitalised Process Application SW More business agility, cost reduction and flexible IT Convert current dedicated infra to cloud services Savings could exceed 50% Unified communication based on Microsoft cloud offering Sigificant cost savings and enhanced efficiency Legacy converted to cloud services Integration as a Service, Desktop as a Service /11/2010

15 Significant cost reductions while reducing the CAPEX Background Savings through flexible offerings yielded significant cost savings Upgraded existing Contact Center platform to a SaaS - CC platform Standard modules with options for additional features (scale up/down) Reduced budget constraints no CAPEX, reduced OPEX Time to Market reduced d ramp-up time Scalable & Flexible pay as you go Lower trial cost no investments needed (i.e. Speech recognition or outbound notification) All cost included : No need to budget for ongoing maintenance of obsolete or aging equipment Reduce time spend on development and maintenance IT/Services cost for the Contact Centre Indexed 100 Previous Solutions -65% 35 CC - SaaS Reducing one-off costs as well as monthly license and platform costs 15

16 Private cloud agile and cost efficient Background Faster response to business changes and shorter service implementation times Platform Operating cost Indexed License Cost Indexed Consolidated and optimized services and IT Governance 50-70% 50-80% model Installed Infrastructure to meet future requirements through standardized processes and automated services Previous ITaaS Server installation time Indexed Previous ITaaS Operating cost small systems Indexed -50% -40% Previous ITaaS Previous ITaaS 16

17 Proven value of Tieto s TaaS concepts Reduce test related cost immediately Improved Quality Cost per test area 30-60% Test Management combined with off-shoring yields to significant reductions in spend: Personnel HW/SW(pay as you go) Training Quality level 20-30% Standardized test concepts and automation reduce the chance for human error thus improving i the quality and accuracy Reduced/Correct HW/SW investments Reduced Time-to-Market Standardized test concepts with specialized teams combined with automation - reduce ramp- up time as well as execution Improved capacity 5 x capacity without new investments Standardized capacity testing secures accurate assessments of bottlenecks and actual need for investments i.e. performance tuning allowed for 5 x Capacity without additional CAPEX Time per test cycle Up to 5 x faster 17

18 So, what s the change and the value Business model Tangible Ease of use business benefits Sharing- mindset Technology Agility, timeto-market Simplicity Lifecycle responsibility 18

19 Our path to the leading position Trends Rebalancing economy and new competition IT as a Service becomes a norm Changing customer demand Innovations co-created in networks Strategic intent t and themes A leading service integrator creating the best service experience in IT IT as a service Service experience Targets Market leadership Growth EBIT > 10% Preferred brand Employer of Choice MWBs driving the change Vision Building leaders of the digital world a world of better service, higher productivity it and new opportunities Values We work together. We care for our people & customers. We are committed to quality. We learn and grow.

20 Strategic themes IT as a Service Service experience Productized offerings and services Partnering Service innovation and packaging New business and delivery models Customer know-how Technology expertise Quality of operations Right attitude and accountability A leading service integrator creating the best service experience in IT. Strategic choices 20

21 Future direction of Tieto s offerings Spearhead offerings e.g.: Digital front-office Unified communication Business Intelligence ERP AM B2B transactions Customer interaction Comms., collab&content Enterprise services Core business processes System back-end Product engineering Consulting Applications i development Industry solutions System integration Need to offe er hybrid busine ess models Need to offer hybrid business models Applications management Infra management Majority will be converted into ITaaS Product support 25/11/2010

22 Tieto Cloud Services (Horizontal) Service name Service Type Short Description Tieto Cloud Consultancy services Consultancy From Management to Projects/Technical Financial Value Chain Shared BPaaS einvoicing, eprescription, re-format, etc Sustainability Intelligence Shared SaaS CO2 calculations and tracking QMS Shared SaaS Info gathering and KPI reporting TE Watch Shared SaaS End-user web site interaction monitoring Test Tool as a Service Shared SaaS Test planning & exec based on IBM/HP Personal Assistant aas Shared SaaS Proactive chat with web site visitors Engineering Toolbox Private SaaS Development tools Corporate Info Hub Private SaaS Info capture and transfer to device/media FlexCap Private PaaS Development infra Cross-Advertisment Shared SaaS Enabling cross-sell Microsoft CRM aas Shared SaaS Msft Dynamics aas (Russia) Dynamic Health Shared SaaS Healthcare Digital Advertising Shared SaaS Integrated end-to-end advertisement solution Personec-P Shared SaaSS Payslip on demandd Etuile Shared SaaS Mobile payments for local traffic

23 Tieto Cloud Services (Vertical) Service name Service Type Short Description ElderlyCare aas Shared SaaS Info sharing, planning and monitoring FamilyCare aas Shared SaaS Info sharing, planning and monitoring Procapita Education Learning Platform Shared SaaS S Sh School lif info sharing teacher/pupil/parent t Supplier Finance Shared SaaS Financial funds mgmt Mill in a Box Private SaaS Paper mill app + infra 23

24 Customers need a transformation partner 100% Legacy More agile business, new business and services More flexible and cost-efficient IT 50% IT as a Service 50% Legacy Tieto helps customers make their transformation at a pace that suits them Consultancy Service integration Tieto Cloud Ecosystem Tieto Cloud Amazon, Enterprise Consumer Microsoft, clouds clouds Google 24

25 2010 Tieto Corporation