BT Ireland and the Cloud

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1 BT Ireland and the Cloud Beyond the Cloud v

2 v

3 The Promise Ease of Use New Features Agility Reduced Cost v

4 It is everything you expect or More expensive than you think Contracts that favour Service Providers Reliability issues New supplier relationships to manage Shadow IT Integration and Migration Issues New skills and knowledge required Challenging to manage and support v

5 More Expensive than it appears? IT services are being transformed by low cost cloud services i.e. managed, multitenant, readyto-use IT services (infrastructure, applications or business processes) priced per user per month. Rapid Price drops in base service costs for many services, due to standardised, multi-tennent services Examples: , SAP application & Infrastructure services Service Providers offer traditional, utility, and cloud based services Avoid traditional pricing models being offered by service providers utility pricing seen as way forward for to achieve value for money v

6 Price Comparison Hosted Pay As You Go IaaS Benchmark 2010 Internal Cost of hosting 1CPU-4GB RAM Source: Gartner September 2011 (G ) 4,476 per Year Hosted IaaS Today Source: BT Compute Pricing April vCPU-1500Mhz-4GB RAM, 80Gb Disk, VM ESXi, Windows PAYG (PAYG annual equiv) Reserved Monthly Reserved Annually The extras: Primary Storage 80GB Secondary Storage 80GB Internet Bandwidth 512Gb per month Public IP Addresses 2 Total 0.16 per Hour 1,399 per Year 1,358 per Year 1,169 per Year 250 per Year 150 per Year 870 per Year 425 per Year 2,864 per Year v

7 Price Comparison Private Cloud Private Secure Cloud service for a closed community (ROI Health Sector) Source: BT Ireland August 2013 No of Users 500 1,500 2,700 5,000 Price per user per month (3Yr term) Price per user per month (5Yr term) 6.30 Quick Spec: Exchange , Calendar, Contacts, Task List 2Gb per user online (7Gb, 22Gb optional) Webmail, IMAP, POP3 access 2Gb Archive per user, retained for 7 years Data Backup filtering and malware protection Disaster Recovery ediscovery / Legal Hold Excludes: Hosting Network Migration Active Directory v

8 v How to do manage and support something you don t control?

9 v Negotiate your contracts

10 v

11 v We ll get to you shortly Is it good enough for you?

12 Get the most out of Virtualisation Building and running a hosted private virtualised infrastructure service. Source: BT Ireland August 2013 Capital Annual Software 81,000 73,000 Hardware 183,000 23,000 Professional Services 110,000 - Data Centre Hosting - 16,000 Network Bandwidth 65,000 Support and Maintenance - 120,000 5 Year Total 2,189,000 Cost per VM per Year 1,368 Quick Spec: 8 node 26TB infrastructure (V+C+E) Capacity for 320 small virtual servers VMWare virtualisation 500Mb Internet Bandwidth Dual hardware load balancers Dual hardware Firewalls and IPS Management network and servers Single Site Excludes: Virtual machine OS Secondary storage / backup v

13 v Price Comparison Storage Virtualisation

14 Look to move up the?aas stack Historically seen as a necessary cost. Further agility and cost reduction. Removes need to manage infrastructure Platforms (PaaS) User Applications (SaaS) This is were the value in IT exists for users and the organisation Business Process (BPaaS) What if the users didn t have to use IT at all? Infrastructure (IaaS) Cost IT Value User Value Business Value v

15 BT and the Cloud v

16

17 Setting the scene BT corporate cloud platforms BT Contact Cloud Contact, Auto Contact BT One One Cloud, One Voice, One Enterprise, One Collaborate BT Assure Gateway services, event correlation and analysis BT Compute On Demand Compute, Private Compute BT Connect All BT Cloud services are underpinned by BT s world class Next Generation Network

18 5 Practical Lessons Preparation is key to achieving your goals Have a roadmap that allows you to replace, not just add services. Encourage and support cloud services adoption amongst users. Look for utility services models. Plan for services aggregation, data integration and migration Rationalise your existing estate in preparation. Prepare your identity management, network, IT support applications and integration platforms for cloud. Get the most out of Virtualisation If you are going for private cloud, consider that virtualisation on it s own will get you 90% of your cost savings. Build in self-service to reduce user support costs. Look to move up the?aas stack It is the application and business process services that add value to your users. Platforms and Infrastructure add cost, complexity. Negotiate your contracts, control consumption, and watch your costs! Contract commercials are negotiable within limits. Costs will quickly escalate if you don t work hard to manage consumption. Watch out for the hidden costs and optional extras. v

19 The Cloud needs a different, conscious approach Understanding and safely navigating the cloud, knowing what works and where, and the practicalities of service migration, integration and support are the required new skills in a cloud service world. If I had asked my customers what they wanted they would have said a faster horse Henry Ford

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