GRUPPO TELECOM ITALIA SMAU 2007 MILAN, 18 OCTOBER ICT Services MAURO NANNI HEAD OF TOP CLIENTS & ICT DIVISION
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1 MILAN, 18 OCTOBER 2007 ICT Services MAURO NANNI HEAD OF TOP CLIENTS & ICT DIVISION
2 Agenda ICT strategic guidelines Offer portfolio Targets & Results 1
3 TI Group strategic guidelines International Growth Adjacent market development hi Market attractiveness medium ICT Services low Maintaining Leadership low medium Competitive positioning hi 2
4 IT addressable market (business customers) Bln euro SME/ SoHo BPO Professional Services ,6 3, ,0 3, ,3 3,1 3,5 3, ,8 1, CAGR % 10.1% -0.9% 4.6% 3.6% Application Services 2,2 2,3 2,5 2,6 5.1% Top, Large Infrastructure Services 3,5 3,7 3,9 4,1 5.3% Network Services 0,5 0,5 0,5 0, % Interesting market with a good growth, Infrastructure and Application Services grow faster than Network services Italian ICT market shows a low concentration, market leader has around 10% of market share N.B. Addressable market includes IT Services and HW/SW embedded, HW and SW sold on a stand alone basis are not included Source: IDC, Bain & Co, internal estimate 3
5 ICT strategy Customer Portfolio Strengths significant market share of business segment about 80% Asset & know how broadband penetration of business customers regional presence of Data Centers more than 200 skilled IT people and 600 dedicated to voice and data outsourcing services Sales force 500 pre-sales engineers 850 account managers 358 VAR Customer Care state of the art & dedicated to business customers Focused organization dedicated caring IT marketing Offer enrichment offer segmentation focus on Top/Large customers with tailor-made and customized solutions additional targets on SMEs/SOHOs with standard solutions Partnership Program selected a portfolio of strategic partners launched a partnership agreement Next generation program to reach the customers and increase revenues NGN2..and other strong points leveraging new platforms to enrich offers and services portfolio Telecom Italia is able to meet the challenge of becoming a leader in Italy s ICT market by leveraging its telco strengths and developing a distinctive approach to ICT business 4
6 ICT portfolio development Telecom Italia has developed a specific approach to each segment target with different business models and go-to-market strategy IT platforms dedicated to specific segment needs portfolio offers stemming from each IT platform e-government Tourism e-healthcare Finance & Corporate Payment Infomobility Logistics Public Sector SME Productivity Business Continuity Security SoHo 5
7 Vertical platform and portfolio offer HD and interactive TV, Video and Music on Demand, Multimedia streaming, Gaming on line and real time Tourism Environment Energy Multimedia Virtual presence Teleworking E-learning Traffic and Mobility Management Next Generation Network 2 Net Centric enabling platform Real time passenger information Fleet /Asset Management Mobile Payment Vehicle tracking and navigation Intelligent Transportation Systems Productivity SME e-health Electronic Health Record (EHR) Pharmaceutical Risk Management TeleConsult Alarm crash and detection Net Centric Infrastructure and Application Services, Shared Services Center,... 6
8 Next Generation Network Model Network and Service Management Access MOBILE ACCESS FIXED ACCESS OPTICAL PACKET METRO POP BUSINESS & OPERATION SUPPORT SYSTEM (BOSS) OPTICAL PACKET BACKBONE (OPB) Backbone CONTROL LAYER SERVICE LAYER PERSONAL TO PERSONAL COMMUNICATION ICT SERVICES MULTIMEDIA SERVICES Applications 7
9 Agenda ICT strategic guidelines Offer portfolio Targets & Results 8
10 Offer Portfolio: an overview e-healthcare Intelligent Transportation Systems ehealth Platform ehealth Solution Book ehealth Territorial Platform E-government Applicative Cooperation Broadband Cities Seamless Municipal Services Land Register Tributes Integration and On Line counter service Tourism Cicerone: virtual tourist guide on handheld devices Public Sector SoHo Finance & Corporate SME Business Customers: Fleet Freight Services Corporate WFM Consumer Customers: Blue&Me Nav Insurance Blue Box Mobile Payment Public Administration: Fleet Blue Box Fleet Public Transport SME Backup Workplace Net Centric Antivirus & Antispamming CRM solutions ERP solutions 9
11 Brand strategy e-health SME MyENERGY Applicative ICT Offers MyCOMPANY ERP by Telecom Italia (IBM, SAP, Almaviva, open..) MyCUSTOMER CRM by Telecom Italia (Microsoft, open ) MyTOOLBOX PMI Applications Suite for business productivity of SOHO and SME Infrastructural ICT Offers MyNETPOWER MyCENTER Netcomputing and Utility computing Data Center Services 10
12 3 Q 07 new ICT Offer E-tourism Municipality Link VERTICAL Cicerone, multimedia guide on windows mobile terminals GPS/GPRS and WIFI Target: local Public Administration Suite of management application for small and middle size Public Administration Integrated management of Front End and Back Office for various core activities/services. Deliverable in On Site mode or Netcentric on Netcomputing platform. MyENERGYgas management MyCUSTOMER Telemetry, Telecontrol and Alarming Systems for Utility nets. Tanks Telemetry and Telecontrol applications with alarming systems and event management. Target: Utilities. HORIZONTAL CRM based on Microsoft Suite that runs on Telecom Italia Net Computing Platform Pricing: Pay per User MyNETPOWER Net Computing Offer Target: Top Clients & Partners Pricing: Prepaid MyCENTER Data Center Services Offer New pricing and Sales flexibility Dedicated SME hosting 11
13 Partnership Strategy Our purpose Two distinct types of partners Enrich offer portfolio by Identifying Partners specialized in vertical application services Integrating best-of-breed solutions developed by other IT Big Players Strategic Partners Signed long term agreement with IT Big Players to define a structured approach to portfolio offer development Additional business opportunity in new services or customer segments Leveraging on partners customer portfolio (eg Regional Data Centers) Consolidating presence within specific regional areas (eg Industrial Districts) IT Channel Partners Exploiting opportunities within specific business areas through shared commercial targets 12
14 Strategic Partnership: state of the art Partner Collaboration area Partner Collaboration area Licensing All-in-One Licensing Business-One SAP Hosting Partnership Program DB Rescue Complex Outsourcing, IT consolidation Disaster Recovery Finance System (AS/400) Infomobility Open Source platform Leverage on AS/400 Utility Computing Security System LAR agreement Licensing Dynamics System (Server blade) Healthcare and service consolidation System (PC/Server) 13
15 IT Channel Partnership Selection process completed for 70 Partners Vertical Public Sector Banking & Insurance Corporate Large SME Application S.E.M. Cross Application Managed services Infrastructure services HW & SW 14
16 Agenda ICT strategic guidelines Offer portfolio Results 15
17 Key figures and business highlights 2006 EoY ICT Revenues: 600 million euro 4.7% of TI retail fixed revenues ICT Revenues: >15% 2007 June (Total IT Market growth +1.7% Addressable Market growth +4%) 250 Top Clients in TI Data Centers 2007 EoY market share expected up to 8% of addressable market 16
18 Top Clients new customers Desk top Management Applicative Cooperation ICT Outsourcing Regione Campania ICT Outsourcing Disaster Recovery, storage Microsoft Licensing Comune di Bari Disaster Recovery, Security Infomobility, Desk Top Management Business Continuity, Disaster Recovery Provincia di Napoli E-Government Microsoft Office Government Open Licensing 17
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