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1 See what cloud can do for you. Uncomplicating cloud business

2 Table of contents Introduction 3 Why cloud is relevant for your business? 4 What is changing? 4 Why organizations are moving to cloud 5 What are the real world effects of cloud? 5 What about my existing IT? 6 How do I know what cloud can do for me? 6 How to adopt the change 7 What is the real business value of cloud for me? 7 Cloud solutions don t feel enterprise ready and safe 8 Our existing IT assets have not yet reached end of lifecycle 9 Combining traditional IT and cloud is difficult. 10 Your current vendors are not proactively bringing new and innovative cloud solutions to you 11 How to manage the growing number of cloud providers? 12 Is hard to judge which cloud vendor will create sustainable business value over time 13 What sets apart from other cloud partners? 14 Contact us for further information 15 in brief 16 2

3 Introduction I want to focus on business opportunties and be sure that I can integrate and scale actively, according to market trends The business environment is constantly changing and requires flexibility and foresight to drive continuous innovation, operational efficiency and agility. Finding the right enablers that align with your business strategy is a complex proposition. is committed to uncomplicating cloud business. Instead of focusing on the technology, we approach this evolution of IT from the business perspective. We focus on questions like: How do we make sure the solutions are relevant to your industry, what about your existing operations and can we future proof your investments? And, we show what cloud can do for you. We ve identified the key barriers that decision makers face and we demystify those by providing insight and best practice examples. This will help you to accelerate an informed decision process within your organisation and assess what approach brings the most value to you. 3

4 Why is cloud relevant for your business? I want to be sure that I can get my application project finished on time. To find the competitive edge over competitors and to transform organisations, top business management expects IT to contribute significantly by enabling innovation and new business models. The disruptive forces such as cloud, mobility, social media and big data, among yet emerging technologies like 3D printing, are expected to be the drivers that could be leveraged for competitive edge over competitors and transforming organisations. IT delivers value to your business, but to truly use it to your advantage and rewrite the rules of competition, you need to redirect your focus from optimizing IT s direct costs to transformation of the business and see these new possibilities as a source of agility and innovation. What is changing? IT is rapidly transforming into asset free services where you consume the needed technology elastically as a service, Instead of making upfront investments for own hardware or software assets. This gives you the ability to turn services on quickly, scale those up or down, and turn those off, on demand close-to real time. These resources can be dedicated to one organisation (private cloud), shared between few organisations (industry cloud), available to any organisation (public cloud), or even a mix of these models (hybrid cloud). In any of these models, both provisioning and deprovisioning of resources happen in a policy-based and fully automated manner without human work involved. The users can manage these services using self-service interface and all use of resources is measured and billed accordingly based on actual use. Differentiate business leveraging IT as a source of agility Based on our insight most organisations are here Transform business leveraging IT as an innovation driver Optimize business processes leveraging IT Leverage IT to improve productivity Reduce cost of IT 4

5 What are the real world effects of cloud? Many companies leverage cloud as a way to minimize bureaucracy and offer rapid deployment of new applications, functionality and services. As a result, their IT environment becomes more agile and responsive to changed business needs. Cloud based environments can take advantage of advanced features such as elasticity, scalability, global networking and security options while at the same time enabling organisations to remove lower-level tasks, such as infrastructure installations. The result will be simplified IT operations and reduced costs because of the scale advantages that cloud service providers enjoy. Adopting cloud also opens the possibility to move to a more flexible cost model. IT budgets can be substantially shifted from capital expenditure (capex) to operating expenditure (opex). While cost reduction was the primary factor in the early years of cloud computing, the market has matured, and agility has been the primary driver now for the last few years. Next we will see an increased focus in using cloud to improve speed of innovation. Why organizations are moving to cloud 5

6 What about my existing IT? Many companies are now turning to an evolved operating model, a hybrid cloud, where public cloud services are used for non-critical applications and data while more critical ones and traditional IT is using private cloud. This means exploiting the public cloud s strengths where it makes sense, without putting the digital assets of the company at risk. In this model, the IT organization or external 3rd party acts as a broker to all IT services, whether it s traditional, private cloud or public cloud. As the intermediary of IT services, the broker can offer a price, capacity and provisioning speed of the public cloud while maintaining the security and governance that is required for critical applications and data. The value of the broker is reflected on how well it can facilitate the integration between these elements.? Traditional IT Private Cloud Industry Cloud Users/Business Hybrid IT Broker Public Cloud How do I know what cloud can do for me? To give a better insight on how your organisation can benefit from cloud, we ve identified some of the key barriers that decision makers face and outlined the most critical ones. With real world examples of how these issues can be solved, we ll show you how cloud solutions will be a part of future proofing your business. 5

7 How to adopt the change Common challenges associated with cloud adoption and how to overcome them. Common challenge 1 What is the real business value of cloud for me? Insight 1 Cloud can be adopted step by step Cost savings are the most commonly established benefits of cloud, but how do you really benefit from the cloud? Not all businesses are the same. The best performing organisations understand already that agility is not just about delivering old things faster, but also about rapid innovation and doing things differently. But the journey to agility isn't the same for everybody. Cloud offers different solutions to different companies. Choose a partner that understands you and your industry and how cloud is beneficial for you. Also choose a partner that moves you to the right cloud at the right pace for your organisation. Then you will really benefit from cloud. promise 1 We will help your transformation to the right cloud Instead of isolating innovation inside the company, we at believe in collaboration with our ecosystem partners in order to create synergetic value. Together with our partners we create a joint vision, develop skills to cooperate and gain mutual trust - and provide you with more robust value than we could alone. With you will experience a journey into a world where value is created. We will be your guide in choosing the right cloud for you, taking you there at the pace that is suitable for you, making sure you have the tools you need. 6

8 Common challenge 2 Cloud solutions don t feel enterprise ready and safe When looking into moving your mission-critical applications to the cloud, you will have difficulties in finding enterprise ready solutions on the market. You will be facing issues regarding configuration, flexibility, price, service levels, performance, integration, security and availability. These may prevent you from hosting your critical applications in the cloud. So, even if recent studies show that 79% of organisations using cloud are happy with their experiences, they will struggle to move past the easy use cases into a broader use. The challenge is, how to be able to realize the full value of cloud services and move your critical processes into cloud? Insight 2 Find a broker that can deliver in your context Cloud service brokerage and ready solution bundles will greatly simplify the consumption of cloud services. A cloud service broker will act as an intermediate between the cloud provider and the cloud consumer. The broker will help to customize and integrate various cloud solutions, and more importantly, create ready bundles of cloud solutions for certain business purposes. Finding a good broker who adds value with ready solution bundles will greatly accelerate your move to cloud. promise 2 We will show what cloud can do for you, and deliver provides you with enterprise-ready cloud solution bundles relevant for your business and developed for local conditions. We both broker and develop own cloud solutions, industry specific and horisontal. Our cloud portfolio is the widest in the Nordic region. will help you to move smoothly and fast into the new enterprise cloud world. 6

9 Common challenge 3 Our existing IT assets have not yet reached end of lifecycle You are judging whether it would be better just to wait and let your existing assets to amortize first further. You might be prohibited from moving your application to the cloud due to licensing constraints or additional costs because some of your software and hardware vendors do not license their product in a cloud friendly way. Thus for you, there is no way to transfer your existing licenses to the cloud provider or service, leading to duplicity of license purchases. Insight 3 Don t wait until end of life cycle, bridge old IT to new world One opportunity to ease the challenge of bridging old IT to new world is to leverage ready cloud platform solutions. These solutions will isolate workloads further from underlying systems and capacity services and provide ways to introduce cloud based elastic services even for old IT landscapes. These same platforms can also be leveraged in extending and customizing new cloud based applications to match specific requirements of the organisation and to enable new cloud services to work seamlessly together with existing applications and data. promise 3 We put you in charge of your IT again can ease your cloud transition challenge with ready platform solutions. With over 40 years of experience of customers' IT landscapes and with our heavy investments into ready cloud platform solutions we make transitions and modernizations easier. We also know that your employees already today are likely to use non-authorized cloud solutions. We want to help you to be in charge of your IT environment again. We help you implement consumer ready cloud solutions and help bridging your old IT into the new world. 7

10 Common challenge 4 Combining traditional IT and cloud is difficult Most enterprises consuming cloud services will soon operate in a complex hybrid model in which they must secure, manage and govern what is already in their environments as well as external cloud services including those that have been acquired without IT involvement. Managing the different operational service processes in a consistent and secure way is going to be a real headache. Insight 4 Choose a partner who can make hybrid IT governance easier - Even if managing hybrid IT is complex, you should not try to avoid it and push back. Instead, invest in finding a partner to make the governance easier for you in a secure way. Someone to help you get the best from the cloud and tackle the challenges. Remember, that ultimately it is not the IT organisation who decides whether IT really works, but the end users. You have succeeded if their experience when using the blend of internal and external, traditional and cloud based services is seamless and safe. promise 4 will uncomplicate the cloud journey for you knows how to manage and integrate services, both traditional and cloud based, on behalf of you. We act as a multisourcing service integrator investing actively into our delivery ecosystems and cloud management capabilities. We take your service experience seriously. Our cloud solutions are enterprise-ready and give you the visibility, control and compliance you need to trust your critical business processes to us. Our ultimate goal is the happiness of your end users. 7

11 Common challenge 5 My current vendors are not proactively bringing new and innovative cloud solutions to me Many traditional IT service providers still fear, that introducing cloud services would cannibalize their tradtional service offerings which have been very successful and profitable. Many are struggling to define their path in cloud services, as they face challenges in delivery, growth and profitability. True, many customer organisations accept certain slowness of change because of their existing vendors aren t in a hurry to renew current services. At the same time, many customers expect their current vendors to be more proactive in bringing new innovative solutions and ideas to them in order for them to be able to act as a source of innovation for the business. Insight 5 Ensure access to innovation and new opportunities No organisation has ever operated completely autonomously. What distinguishes an ecosystem from a more casual community or association, is that in a particular ecosystem companies depend on each other for mutual success and/or survival against competition. Rich ecosystems, powered by cloud-based industry platforms, will be essential drivers in the ongoing digitalisation of all businesses. These platforms will enable organisations in the ecosystem to integrate with each other automatically and effortlessly and thus accelerate shared innovation and value creation. At the same time, globalization, provider strategies and the increasing interconnectedness of businesses mean that ecosystems are becoming more important and more complex. promise 5 brings you innovation that matters together with partners We at believe in collaboration with our ecosystem partners to create synergetic value. has a role in chosen major global technology ecosystems like Google, IBM, Microsoft, Oracle, SAP and Opensource. We have access to their R&D results and future roadmaps so we can utilize something already thought and experienced and add s expertise on top. This way, we can bring new cloud-related innovations into your context. and provide you with more robust value than we could alone. We have in the past year introduced a number of new innovative private and public cloud services to the market to support you in accelerating your business. We will continue to do that in the future since we are committed to innovation that matters. We strongly believe in ecosystems, and aim to master our own cloud based industry platforms in the future. They will enable our ecosystem parties to connect with us and others in an automated manner and drive increased agility and value. 7

12 Common challenge 6 How to manage the growing number of cloud providers? Many companies are working with a growing number of cloud providers. The largest cloud providers tend to dominate when it comes to building strategies, assessing providers and dealing with issues. However, organisations also employ many small, niche cloud providers to solve very specific business and technical problems. These providers are fulfilling business requirements due to a unique application or narrowly scoped use case or by bringing in new ideas and innovation. Insight 6 Multisourcing service integrators increases the need for cloud management skills Cloud computing is taking multisourcing to a new, more dynamic level, changing the operational model for IT. For an IT provider, a new core competence is acting as a trusted broker for services delivered from many, changing providers. The average number of external IT service providers that buyers use is increasing. According to Gartner, in 2005, the average grew from 3.75 to more than 12 in 2010 on a global level and reached 19 in North America and 26 in Western Europe in Vendor relationship management is a key skill for CIO organisations, and getting all the time more important. To make the task easier for you, you need to identify partners who can take part of the workload by brokering smaller service players on your behalf. Even the most complex delivery structure should provide seamless services as expected by end users. Also, any needed changes should be executed through the whole service chain in close to real time. promise 6 can make Hybrid IT governance easy and secure s hybrid model means that we take the role as a multisourcing service integrator regardless of source or style of service delivery. Our strong ambition is to be the leading cloud integrator in the Nordics for our customers hybrid environments running on different technologies. Our self-service channel gives both end users and IT management powerful tools to adjust the services to their needs. It also gives improved control, visibility and transparency for our customers. We believe that offering the most innovative and flexible services from a variety of cloud ecosystems, integrated and optimized according to our customers' needs will simplify the governance of cloud providers for our customers and make the transition to a hybrid cloud model more efficient and secure. 7

13 Common challenge 7 It is hard to judge which cloud vendor will create sustainable business value over time New cloud based vendors are emerging rapidly. The largest cloud providers tend to dominate when it comes to building strategies, assessing providers and dealing with issues. However, organisations also employ many small, niche cloud providers to solve very specific business and technical problems. When the smaller providers are considered, organizations face a significant concern with their viability. For example, what will happen to customer data if a cloud provider goes out of business or is acquired by a competitor? In addition, IT services market is changing rapidly, and to stay relevant players need to leave behind old habits and business models based on dedicated assets, manual work and technology focus. To be competitive in the future means investing in automation, new competencies and operational models. These are messages that most providers communicate, but the question is, who is actually doing this and what value does it bring to me as a customer. Insight 7 Cooperate with a partner who shows evidence of sustainable change We see that the Nordic IT services market and the demands from customers are transforming rapidly. New demands are emerging and consumer IT solutions are expected in the enterprise world. Whether an IT provider is competitive or not, will no longer be determined by the offering only, but also by the provider s ability to change and transform internal processes and tools in order to operate in the fastest and most efficient way. To stay relevant, any IT provider will need virtualization, standardization and automation of processes but also new kind of management and support functions. As a customer, you should evaluate whether your current vendors are able to change fast enough to stay competitive in the future. promise 7 is committed to developing cloud enabled business for its Nordic customers We see that the Nordic IT services market and the demands from you as a customer are transforming rapidly. is committed to change and we invest heavily into our relevance by modernizing our delivery operations towards a fully automated cloud environment. We are building a true and complete hybrid business model that seamlessly integrates legacy IT with both private and public cloud solutions to better serve your needs. For you as a customer, this means improved business continuity: speed, flexibility and new growth opportunities and the possibility to move into the cloud in a secure way at a pace that suits you. Successful organisations keep their IT partners close and use them cleverly as collaborators to access releases before they go mainstream, to share global insights, success incentives and roadmaps, and to minimize the cost of resets. 7

14 Why? We know how to uncomplicate your journey to cloud enabled business. See what cloud can do for you We build a business case that will help your management to understand how cloud can bring sustainable business value to your organisation. Uncomplicated journey We will lead you on your journey to cloud and bridge your legacy IT with private and public cloud in a hybrid model, fast and secure way. Leading portfolio We offer the broadest and deepest portfolio in the Nordics combining unique industry specific solutions and horizontal cloud solutions as well as exceptional integration capabilities. Innovations that matter We bring real innovations to you through the strongest ecosystem in the Nordics, combining global partners and our own R&D to address your needs and help your organisation to unlock new and sustainable business value. Superior customer experience We provide superior user experience in consuming services. We increase your efficiency through our holistic approach to user experience in all levels of organisation from IT administration to the end users. Committed to cloud for Nordic customers We are committed to cloud, investing in our people, processes and infrastructure. This makes us the ideal long-term partner when you're looking for new opportunities and re-thinking your businesses. 8

15 Cloud Solutions Uncomplicating cloud business Please contact us for further details on what cloud can do for you. Would you like to see how can uncomplicate your cloud business? Contact us for your personal demo session on tieto.com/cloud in brief is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. is committed to developing enterprises and society through IT by realizing new opportunities in customers business transformation. Founded 1968, headquartered in Helsinki, Finland and with approximately experts, the company operates in over 20 countries with net sales of approximately EUR 1.7 billion. s shares are listed on NASDAQ OMX in Helsinki and Stockholm.

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