Next generation enterprise communications

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1 Next generation enterprise communications Peter Hall Principal Analyst July

2 Agenda Top CIO/IT manager issues The role of managed services and outsourcing Evolution of players - the expanding role of telcos in IT services Managed services networking, voice and mobility The role of cloud computing Key messages 2

3 About Ovum The largest European headquartered ICT advisory and consulting company Global client base Resolutely independent Offices in Europe, US. Middle East and Asia Pacific 150 ICT analysts worldwide Part of Datamonitor Group Ovum Consulting customised advice for end users, service providers and vendors Ovum Advisory online research, analysis and access to analysts 3

4 The CIO/IT manager agenda Improve business processes to market Improve customer service Align with business priorities Manage risk Reduce business Reduce costs Reduce Reduce IT IT costs costs CIO agenda Telco CIO agenda The CIO s role gets more complex 4

5 Top CIO/IT manager issues Cost reduction more for less and efficient use of ICT budgets and resources Applications projects improving productivity, process efficiency, customer service, time to market Rationalisation platforms, networks, suppliers, systems, processes Cost, performance and security are key 5

6 The role of managed services and outsourcing Dependence on supplier and loss of control Full outsourcing Enterprise contracts provider to build, run and manage IT infrastructure/network Requires little or no in-house resource and skills Managed services/ Out-tasking Enterprise buys managed service (eg IP VPN, managed security) Requires some in-house resource and skills In-house management Need specialist in-house skills Enterprise buys and manages IT infrastructure/network components - servers, storage, private lines, CPE Requires significant in-house resource and skills 6

7 Business benefits of managed services Higher levels of support and availability 24x7 support, SLAs Predictable costs and reduced TCO Access to latest technology contractual technology refresh Access to enhanced skill base - reduced internal skills required Flexibility to reflect changes in business (growth and down-sizing) Opex rather than Capex model Suits many companies more than full outsourcing We have seen growth of managed services during the global recession 7

8 End user choices for managed ICT partnering are growing Managed Network Services Managed Voice/UC services Managed Security Services Managed IT/Applications Services WAN LAN Remote access Mobile comms Hosted IP PBX IP centrex Hosted contact centre Conferencing and telepresence Messaging/ Firewall Intrusion detection Anti-virus Anti-spam Unified threat management Disaster recovery Managed desktop Data centre services Applications hosting Apps management Software as a service Cloud computing and storage IT services players/sis Telcos 8

9 The business benefits of IP convergence Lower TCO (total cost of ownership) and simplified management - one enterprise network for voice, data and multimedia Support new applications that can improve productivity and lower, business costs unified communications, fixed mobile convergence, video conferencing/telepresence Maintain high performance of business critical applications by prioritising use of bandwidth Managed solutions available with minimal CAPEX requirement Support growing range of video applications digital signage, IP security cameras, video to desktop 9

10 The evolution of enterprise networking (WAN) technologies IP VPN TDM private lines Ethernet ATM Frame relay X.25 Emerging Growing Mature Declining Obsolete IP VPN & Ethernet are rapidly replacing legacy networking technologies 10

11 Business benefits of MPLS VPNs Private IP solution - high quality of service (not public Internet) and similar security to frame relay and ATM Allows mission critical business applications, and voice and multimedia, to be prioritised over and web browsing Wide geographic reach for global networks (200+ countries) Supports many access methods eg DSL for small sites, private lines or Ethernet for HQ and data centre sites Simplified management - usually provided as a managed solution ie with router monitoring and management Have become the most popular WAN technology Supports cost optimisation of network infrastructure 11

12 Unified communications - device and network independent access to applications Applications , voice, IM, UM, web conferencing, video Presence, shared directory, open standards Networks DSL, IP VPN, Ethernet, GSM, 3G, WiFi, WiMAX 12

13 Mobility solutions are a key component of UC Deskbound Semi-mobile Road warrior 60-80% 60-80% of workforce can benefit from mobility solutions 13

14 The evolving UC landscape IP PBX vendors eg Cisco, Avaya Real-time collaboration Presence based applications IM, web conferencing, UM, voice, video Software vendors eg Microsoft, IBM Strength in voice (eg IP PBX, terminals) Adding collaboration capabilities and interworking with desktop applications Strength in desktop applications and collaboration Adding voice capabilities through IPT interworking or building IPT features This gives more choice to end users and ease of use through integration of IPT and software collaboration 14

15 Growing choice of deployment models for IPT and UC Managed service provider e.g. a telecoms operator IP network (eg MPLS IP VPN) Premise-based user-managed Premise-based provider-managed Service provider hosted and managed Managed/hosted solutions can be a cost effective approach 15

16 Benefits of service provider hosted IPT/UC Hosted IP PBX IP centrex SaaS Service provider owned and managed In their data centre Multi-tenant carrier grade network based platform GREATER FEATURES Multi-tenant in the cloud delivered over public Internet LOWER COST No capital outlay - monthly per seat pricing Fully managed solution Minimal in-house skills/resource required Lower total cost of ownership (TCO) Benefits in terms of disaster recovery Hosted IPT/UC can benefit companies of all sizes 16

17 Cloud computing: on demand IT as a service Software as a Service (SaaS) Business Productivity Online Suite Platform as a Service (PaaS) Infrastructure as a Service (IaaS) The leading players will come from a variety of backgrounds 17

18 Barriers to cloud computing Ovum survey of 150 enterprises worldwide Cloud Computing deployment: Please rate the main barriers to the adoption of Cloud Computing (1 low, to 4 high) Data governence and privacy Security Use of public Internet infrastructure Loss of control Service level agreement concerns Lack of standards 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18 4=high 3 2 1=low

19 Important considerations when evaluating Cloud Computing? Suitability of workload/application for hosting in cloud Security, privacy and compliance issues, physical location of data Data networking constraints Public Internet vs. private networks (MPLS VPN or layer 2 networks) Service Level Agreements Cloud platform availability, network availability Pricing models pay as you go vs. monthly subscription 19

20 Key messages Telecoms and IT managed services can deliver high performance whilst helping to control costs and allowing companies to benefit from new technologies with minimal capital investment The choice of partner for managed ICT services will continue to grow and enterprises should be open minded in potential service providers to evaluate New managed business models such as Cloud Computing have a role but enterprises should beware of the hype and take time to evaluate solutions and providers Cost is only one issue when selecting partners skills, performance, SLAs are often more important 20

21 Thank you 21

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