Next generation enterprise communications

Next generation enterprise communications

Peter Hall

Principal Analyst

July 2010

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

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

vendors

Ovum Advisory online research, analysis

and access to analysts

The CIO/IT manager agenda

to market Reduce

Reduce IT costs Improve

customer service

Telco CIO agenda

Align with business

priorities Improve

business processes

Reduce business

Reduce IT costs Improve

customer service

Manage risk

Telco CIO agenda

Align with business

priorities

CIO agenda

costs

The CIO’s role gets more complex

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

The role of managed services and outsourcing

• Enterprise buys and manages IT

infrastructure/network components - servers, storage, private lines, CPE

• Requires significant in-house resource and skills

• Enterprise buys managed service (eg IP VPN, managed security)

• Requires some in-house resource and skills

Dependence on supplier and loss of control

In-house management Managed services/

Out-tasking

Full outsourcing

Need specialist in-house skills

• Enterprise contracts provider to build, run and manage IT infrastructure/network

• Requires little or no in-house resource and skills

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

End user choices for managed ICT partnering are growing

Managed Network Services

WAN LAN

Remote access Mobile comms

Managed Voice/UC services

Hosted IP PBX IP centrex

Hosted contact centre

Conferencing and telepresence

Messaging/email

Managed

IT/Applications Services

Managed desktop Data centre services Applications hosting Apps management Software as a service Cloud computing and storage

Managed Security Services

Firewall

Intrusion detection Anti-virus

Anti-spam Unified threat management Disaster recovery

IT services players/SIs

Telcos

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

The evolution of enterprise networking (WAN) technologies

IP VPN & Ethernet are rapidly replacing legacy networking technologies

Mature Declining Obsolete Growing

Emerging

TDM private

lines

X.25 ATM

IP VPN

Ethernet

Frame

relay

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 email 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

Unified communications - device and network independent access to applications

Applications

e-mail, voice, IM, UM, web conferencing, video

Networks

DSL, IP VPN, Ethernet, GSM, 3G, WiFi, WiMAX

Presence, shared directory, open standards

Mobility solutions are a key component of UC

Deskbound Semi-mobile “Road warrior”

60-80%

60-80% of workforce can benefit from mobility solutions

The evolving UC landscape

• 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

Real-time collaboration

Presence based applications IM, web conferencing,

UM, voice, video

IP PBX vendors eg Cisco, Avaya

Software vendors eg Microsoft, IBM

This gives more choice to end users and ease of use

through integration of IPT and software collaboration

Growing choice of deployment models for IPT and UC

Premise-based user-managed

Premise-based provider-managed

Service provider hosted and managed Managed service provider

e.g. a telecoms operator IP network

(eg MPLS IP VPN)

Managed/hosted solutions can be a cost effective approach

Benefits of service provider hosted IPT/UC

Hosted IP PBX IP centrex

Service provider

owned and managed In their data centre

Multi-tenant carrier grade network

based platform

•

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

Multi-tenant “in the cloud”

delivered over public Internet

SaaS

GREATER FEATURES

LOWER COST

Cloud computing: on demand IT as a service

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

The leading players will come from a variety of backgrounds

Business Productivity Online Suite

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)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Data governence and privacy

Security

Use of public Internet infrastructure

Loss of control

Service level agreement concerns

Lack of standards

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

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

Thank you