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2 NTT Communications Global Cloud Vision 2013 Initiatives to date and future developments Akira Arima President and CEO NTT Communications

3 NTT Group Regional Regional ICT solutions International long distance System integration Mobile IT infrastructure and services The No.1 telecom company in the world (32 nd in 2013 Fortune Global 500)

4 Key Subsidiaries of NTT Communications

5 Service Vision for Enterprise Customers Global Cloud Vision (Announced October 2011)

6 Management Issues of Customers New businesses responding to market changes Business expansion into emerging countries Risks such as natural disasters and cyber attacks ICT reforms are the key for the customers management innovations

7 Value Proposition Global Total ICT Outsourcing based on Global Cloud Vision enables customers to focus their resources on their management innovation (1) Build flexible, low-cost, and secure ICT environments to respond to business challenges (2) Optimize ICT environments on a global scale

8 Value Proposition Global Total ICT Outsourcing based on Global Cloud Vision enables customers to focus their resources on their management innovation <Current> On-premises-centric <After ICT Reform> Cloud-centric Cloud Location A Location B Location C Location A Location B Location C

9 Global Cloud Vision Contribute to customer s management innovations by realizing cloud-centric ICT systems through Global Total ICT Outsourcing, an optimal combination of services Image of Global Total ICT Outsourcing HQ Global Integration Security Other Locations General Apps Customised Apps Cloud クラウドサービス Service Colocation Network System Integration + Operations Management Services グ ロ ー バ ル 運 用 管 理 サ ー ビ ス

10 Customer Case Study: Manufacturer A Transition of ICT environments to Cloud in all global offices <Before> <After ICT Reform> # of servers # of systems installed locations # of telecom carriers : 1,700 : 180 : 20 ICT Cost Reduction approx. 34% # of servers # of systems installed locations # of telecom carriers Cloud : 500 : 50 : 1 Location A Location B Location C Location A Location B Location C

11 Target Revenue for Cloud and Data Center 99 billion yen (990M USD) Over 200 billion yen (2B USD) (1USD = 100 JPY)

12 9 Key Features of Global Cloud Vision 2013 Develop competitive advantage through features Integrated General Infrastructure Customer Portal Application Cloud Network Cloud Migration Managed Security Operations Management Partnership

13 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Data Centers: Cloud Operations Cloud Robust Tier III IV-equivalent with Migration globally uniform quality Network Managed Submarine Cable Systems: Industry-leading Security low latency Management Partnership

14 Number of Data Center Locations 138 DCs 158,000m2 142 DCs 170,000m2 125 DCs 136,000 m2 March 2012 March 2013 Current (Figures in square meters indicate server floor space)

15 Global Deployment of Data Centers Newly launched global DC brand: Americas (7 locations/ 6 cities) Europe (13 locations/ 8 cities) China/ Hong Kong (10 locations/ 4 cities) Japan (93 locations/ 49 cities) APAC (19 locations/ 11 cities) 3 locations 7 locations 1 location (Scheduled for June 2014) 4 locations (As of September 2013)

16 Deployment of New Data Centers Japan Tokyo No. 6 Hong Kong Financial 1 st Tower UK Slough2 April 2013 May 2013 May 2013 India Bangalore 2 Malaysia Cyberjaya 4 Thailand New Data Center December 2013 May 2014 June 2014 Shanghai New Data Center Q Hong Kong Financial 2 nd Tower Q India Mumbai Vikhroli 5 Planned

17 Deployment of New Data Centers UK Hemel Hempstead 3 Q2 2015

18 Shortest Route to Asia Industry s Lowest Latency Route to Asian Major Cities Japan PC-1 US Hong Kong Malaysia Singapore :NTT Com Data Center ASE Philippines Asia Submarine-cable Express (ASE) Connect Japan to Singapore with the industry s lowest latency Achieve high reliability by avoiding the area which is prone to suffer damages by natural disasters

19 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Enterprise Customers: Cloud Operations Cloud Cloud that Migration supports core Management systems Web Applications Managed / Developers: Network Partnership Reasonably Security priced public cloud

20 Price Cloud Services Enterprise Cloud (Hosted Private Cloud) Cloud n (Public Cloud) High Enterprise Cloud Cloud n Low Standard High Performance

21 Deployment of Enterprise Cloud World s First Commercial Service to Introduce SDN 8 countries, 10 locations 9 countries, 11 locations (End of 2013) Australia (May 2013) Malaysia (Mar. 2013) Thailand (Mar. 2013) Germany (End of 2013) Singapore (Feb. 2013) Hong Kong (Jun. 2012) Japan (Jun. 2012) US (Feb. 2013) UK (Feb. 2013)

22 Europe Americas APAC Number of locations (NTT Com Survey) 2 countries 2 locations 2 Expansion of Cloud Coverage 8 countries 10 locations countries 11 locations June 2012 Current End of 2013 <NTT Communications> <Reference> 5 countries 10 locations countries 8 locations V A <Other Provider>

23 Software-Defined Networking(SDN)Benefits Realize immediate delivery of services Servers Before Data Center Virtual Servers After Data Center Network Controller Customer Portal Manual Configuration Automatic Configuration L2SW LB L2SW FW VPN, etc. SDN OFSW * OFSW * LB FW VPN, etc. Changes take longer due to complex configurations Network Controller enables immediate changes * OFSW: OpenFlow Switch

24 Services Utilizing SDN On demand Global Data Backup at low cost Customer Portal US Data Center Japan Data Center Enterprise Cloud Network Controller Enterprise Cloud OFSW SDN between Data Centers Data Backup OFSW

25 Hybrid Service (Cloud and Colocation) Hybrid service between Enterprise Cloud and Colocation, utilizing SDN Colocation Data Center A Hybrid Service Enterprise Cloud Hybrid Service Data Center B Colocation SDN SDN Customer s Physical Servers Customer s Physical Servers

26 Major functions of Enterprise Cloud Compute Resources Shared Type CPU/Memory Standard (Best effort) Standard (Standard disk) Storage Premium (Guaranteed) Premium (High-speed disk) Dedicated Type Premium (High-speed disk) CPU/Memory Dedicated equipment Storage Premium Plus (High-speed disk) Other Functions Backup Global Data Backup (Entire virtual server) Image backup (Entire virtual server) Database Oracle MS-SQL

27 Enterprise Cloud Customer Portal Functions 1) Visualization Contract Information Settings Information Performance Alarm Inquiries etc. 2) On-demand Configurations Creation of VM Resource Allocation Network Appliance Settings/Changes SDN Settings/Changes etc.

28 Enterprise Cloud Customer Portal Video Demonstration

29 Enterprise Cloud Customer Portal Video Demonstration

30 Cloud n Highly reliable, low-cost public cloud service with AWS-compatible API US (March 2012) Japan (2 locations) (June 2012/March 2013) APAC (Scheduled in 2013)

31 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Arcstar Universal Cloud One: Operations Cloud Available in 160 Migration countries and Management regions Network Managed No network charge for connecting to Enterprise Cloud Security Partnership

32 Cloud Seamless Network Arcstar Universal One is connected to Enterprise Cloud seamlessly <Other Providers> Cloud Services <NTT Communications> Enterprise Cloud Extra charges required for network and data transfer between cloud and VPN VPN Services Gateway Arcstar Universal One Free of charge

33 World s First Automated Connection Realize automated connections between Cloud(VM) and WAN(VPN) by SDN Technology Automatic (Immediate) Current Cloud Controller Network Controller Manual (requires 10+ days) Gateway Arcstar Universal One Customer Portal

34 Realize further automation by SDN Automatic (immediate) World s First Automated Connection Current Planned Cloud Controller Network Controller Customer Portal Manual (requires 10+ days) Gateway Automatic (immediate) New Gateway developed in-house New Network Controller developed in-house Arcstar Universal One Arcstar Universal One

35 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Cloud Operations Globally Common Customer Portals: Cloud Visualization Migration Management Network Managed On-demand Configurations Security Partnership

36 WideAngle Managed Security Services Biz Desktop Pro Enterprise Enterprise Cloud Cloud n Arcstar Universal One Current Integrated Customer Portal Realize One-stop Visualization for major services Arcstar SIP Trunking Arcstar UCaaS WideAngle Managed Security Services Biz Desktop Pro Enterprise Enterprise Cloud Cloud n Arcstar Universal One Q Customer/ NTT Com Operator

37 Integrated Customer Portal Realize One-stop Visualization for major services WideAngle Managed Security Services Biz Desktop Pro Enterprise Enterprise Cloud Cloud n Arcstar Universal One Current Arcstar SIP Trunking Arcstar UCaaS WideAngle Managed Security Services Biz Desktop Pro Enterprise Enterprise Cloud Cloud n Arcstar Universal One Q Integrated Customer Portal Customer/ NTT Com Operator

38 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Smooth Transition Cloud to Cloud: Operations Cloud Systems Migration Consultation, Management Standardized Migration Menu Managed Network SDN Technology Security Partnership

39 Cloud Migration Services Dedicated team supports smooth migration Customers' On-premise Systems Survey Customers Current ICT Cloud Migration Consultation Analyze Cost Reduction Effects クラウド 移 行 プラン 策 定 Develop Cloud Migration Plan Standardized Migration Menu ICT Infrastructure Migration Data Migration General Applications Migration Customized Migration Menu * Customized Applications Migration * Service offered through partnership NTT Com's Cloud

40 World s First New Migration Service Launched a SDN-based service in June Existing On-premise Systems (Customers' Locations) Enterprise Cloud IP Address A

41 World s First New Migration Service Launched a SDN-based service in June Existing On-premise Systems (Customers' Locations) Enterprise Cloud SDN scaled out to On-premise Systems IP Address A GW SDN GW

42 World s First New Migration Service Launched a SDN-based service in June Existing On-premise Systems (Customers' Locations) Cloud migration using the same IP address of on-premise servers On-premise to Cloud Migration Enterprise Cloud IP Address A IP Address A GW SDN GW

43 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Cloud Network Cloud Operations Security Migration monitoring systems Management with Managed Security Services: proprietary technologies, backed by Managed security analysts Security Partnership

44 Managed Security Service Newly launched global brand: Minimize risk of cyber-attacks by platform and analysts Global Risk Operations Center Security analysts monitoring 24/7 Security System Operation Monitoring Platform Log DB * Engine Report Threat notification Proposed Improvements Customer Operation monitoring and log collection Cloud Colocation Customers' Locations *SIEM: Security Information and Event Management

45 New Security Operation Platform High-speed, automatic analysis at a low cost Device Mobile PC Log Collection Security System Operation Monitoring Platform Correlation analysis Security Device Server Logs External information NTT Lab Database etc. Information Gathering Database NTT Com original blacklists, etc. Regular Analysis Engine Real-time Analysis

46 Global Risk Operations Center More than 200 professionals support the service Global Risk Operations Centre (GROC) Level 3 (4 locations) Level 2 (1 location) Level 1 (10 locations) Built-to-order risk management High-level security analysis Security threat management Device change management Primary customer contact point US Sweden Norway Japan Security Analysts (Follow the Sun) Malaysia US UK Norway Malaysia Japan

47 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Cloud-based Cloud General Applications: Operations Cloud Voice, , Migration Virtual Desktops, Management etc. Network Managed Accessible anywhere in the world Security Partnership

48 General Application Services Provide Voice and Business Applications Biz Desktop Pro Enterprise Biz Mail Biz Storage Biz Mobile Connect Business Current Arcstar Conferencing Arcstar UCaaS Arcstar SIP Trunking Arcstar Extension Voice

49 General Application Services Accelerate global deployment and provide total solution of UCaaS, Conferencing services Biz Desktop Pro Enterprise Biz Mail Biz Storage Biz Mobile Connect Business Arcstar Smart PBX (Planned) Arcstar Conferencing Arcstar UCaaS Arcstar SIP Trunking Arcstar Extension Voice September 2013 and after Approx. 37K customers In 32 countries Provide Conferencerelated service

50 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Globally unified Cloud and standardized Operations Cloud Operations Migration Management Management Services Network to streamline ICT costs Managed Security Partnership

51 Operations Management Services Realize One-stop outsourcing of ICT operations Global Customer Service Center Operation Monitoring/ Automation Tool Global Standardized Menu Report Notification Customer 24/7 Operation, Monitoring and Maintenance Device Network System (Cloud/On-premise)

52 9 Key Features of Global Cloud Vision 2013 Infrastructure Integrated Customer Portal General Application Cloud Network Cloud Managed Security Operations Partnerships with various companies enable one-stop Migration Management Global Total ICT Outsourcing Partnership

53 Diverse Partnerships Provide IT strategy and solutions for business process reform, One-stop development of customized applications Partnerships with Service Providers Globally Application Vendor NTT Com Business Consulting Firm NTT Group Company Sler / Telecom Carrier

54 Awards Telecom Asia Awards 2013 [April 17 th, 2013] -Best Cloud-Based Service Enterprise Cloud was highly evaluated -Best Asian Telecom Carrier Business innovation, market leadership, etc., as a telecom operator were highly evaluated Asia Communication Awards 2013 [June 20 th, 2013] -Wholesale Operator of the Year Global IP Network (GIN)

55 Awards Voice of Customer: Global DATA VPN Customer satisfaction survey conducted by Ocean82 [August 7 th, 2013] - Gold Award for Global DATA VPN Network Operation Network Availability Network Reliability Billing Accurate Bills Bills in Currency of Choice No Hidden Extras in Bills Installation Not Disrupting Installation on Schedule Installation Guarantees Support in Local Languages Secure Data Transfer Indispensable to Customers Top 10 Customer Priorities

56 NTT Communications Group contributes to customers' management innovations through Global Total ICT Outsourcing

57

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