How Does Mobile Cloud Affect Asset Ownership

Eduardo Méndez PoloTelefónica Spain

Telefonica is now a benchmark for the global Telco sector ...

• 1st International integrated Telco operator by customer base

• 1st European integrated Telco operator by market capitalisation

• Among the 50 largest companies in the world by market cap

• Among the 75 largest companies in the world by revenues (Fortune Global 500)

About 257,000 professionals• 31.1% in Europe• 68.1% in Latin America• 0.8% in others countries

Revenues (Jun’10): 29,053 Mill.€OIBDA (Jun’10): 10,905 Mill.€Net Income (Jun’10): 3,775 Mill.€

277.8 million accesses (as of Jun’10)• 101.7 million in Europe• 176.1 million in Latin America

Operations in 25 countries• 6 in Europe (1)

• 13 in Latin America (2)

• 3 through strategic and industrial alliances (3)

• 1st Telco in Dow Jones Sustainability Index

(1) Plus Morocco (2) Plus U.S.A. and Puerto Rico(3) China, Italy and Portugal

... as it enjoys an unique diversified portfolio among the largest operators worldwide

* Data Fixed Broadband of Vodafone as of as March 2010** Total of America Movil + Telmex + Telmex international*** Data UK of Deutsche Telekom as of as March 2010Total accesses (as reported by companies) =Fixed Lines + Mobile Customers + Narrow and Broad Band Internet + Pay TV

Top 10 - Total accesses worldwideMillion accesses as of June 2010

DIVERSIFICATION PROFILE Q2 2010

Accesses by Business

OIBDARevenues

Accesses by Region

T-Spain32.1%

Others & Eliminations 1.3%

T-Latam41.2%

T-Europe18.7%

T-Spain40.1%

Others & Eliminations 0.0%

T-Latam63.4% T-Europe

19.6%

T-Spain17.0%

T-Latam41.5%

T-Europe25.1%

152.4

158.7

182.0

215.3

258.0

277.8

301.6

313.9

352.4

554.0China Mobile

Vodafone *

China Telecom

China Unicom

Telefónica

AMX+TMX+TII **

Deuts. Telekom***

France Telecom

at&t

TeliaSonera

Wireline Data &

Internet 6.5%

Wireline 15.0%

Pay TV 1.0%Wholesale 1.5%

Mobile 76.0%

… which is valued by the markets placing Telefonica in the Top 5 in the global Telco sector

Telco sector worldwide ranking by market cap (US$ bn)

Source. Bloomberg 08/09/2010

57.4

59.5

68.5

71.9

84.4

102.8

107.7

130.1

158.7

216.5China Mobile

at&t

Vodafone

Telefónica

América Móvil

Verizon

NTT DoCoMo

NTT

Deutsche Telekom

France Telecom

Telefonica Cloud Services

mstore

saas (aplicateca)

security

storage as a service (disco virtual)

vlan

virtual hosting

The Cloud

Source: open cloud manifesto

Who are the service consumers?

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• Haga clic para modificar el estilo de texto del patróno Segundo nivel

Tercer nivel

The Archives of Ontario Visual Database

Focusing

• End User to Cloud: Applications running on the cloud and accessed by end users

• Enterprise to Cloud to End User: Applications running in the public cloud and accessed by employees and customers

• Enterprise to Cloud: Cloud applications integrated with internal IT capabilities

• Private Cloud: A cloud hosted by an organization inside that organization’s firewall.

• Enterprise to Cloud to Enterprise: Cloud applications running in the public cloud and interoperating with partner applications (supply chain)

• Hybrid Cloud: Multiple clouds work together, coordinated by a cloud broker that federates data, applications, user identity, security…

End User to Cloud

Supporting the infrastructure basefor VAS

Enterprise to Cloud to End User

Source: utdallas.edu

Regular Cloud services: IaaS (Virtual Hosting, Storage), SaaS, ...

What do consumers want?

DATA SECURITY

REGULATION

COMPLIANCE

AVAILABILITY

LOCK-IN AVOIDANCE

COMPETITIVE PRICE

What do consumers want?

DATA SECURITY

REGULATION

COMPLIANCE

AVAILABILITY

LOCK-IN AVOIDANCE

COMPETITIVE PRICE

Comment to a survey to Cloud experts on Cloud Computing Journal

“I have one question regarding how we can deploy

heavy applications using Cloud Computing. Because it uses Internet and if it is down then it would be difficult to use

applications at that time.”

Some Predictions

By 2012, 20 percent of businesses will own no IT assets

By 2013, mobile phones will overtake PCs as the most common Web access device worldwide.

Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond

When customers need strong support to their professional or personal tools, they usually trust on operators

(Although they frequently complain against us)

How We Retain the Customer 1/2

Source: open cloud manifesto

Cannot be a black box

How We Retain the Customer 2/2

Have you tried turning it off and on again?The IT Crowd, Channel 4 UK

Service Level Management• Service Portfolio Management• Configuration Management• Support

o Incident Management Event Management

o Problem Management• Release Management• Change Management• Asset Management• Capacity Management• Performance Management

itSMF

Service Level ManagementEnterprise Customer Homework

STEPS INTO CLOUD1. Define Cloud Strategy and Identify your Starting

Point1. ROI analysis.2. Define security & compliance requirements3. Resources: Be sure you have the best professionals

2. Define the plan1. Sizing: Just a pair of web apps or the whole IT dept.?2. Management tools.3. Failover, High Availability and Load Balance tools.4. Define Phases

3. Set up Service Mngmt. and Quality Assurance4. Test5. Prepare the handling to migrated site

VirtualizationConsolidationResource

ManagementPrivateCloud

PublicCloud

THE PATH TO CLOUD

RISK MANAGEMENT1. Verify process and applications

independence.2. Integrations are accurately defined.3. Security levels are properly identified.4. Enterprise architecture is healthy.5. Dependence on communications.6. Cost.7. Application migrations

Service Level ManagementEnterprise Customer Homework

STEPS INTO CLOUD1. Define Cloud Strategy and Identify your Starting

Point1. ROI analysis.2. Define security & compliance requirements3. Resources: Be sure you have the best professionals

2. Define the plan1. Sizing: Just a pair of web apps or the whole IT dept.?2. Management tools.3. Failover, High Availability and Load Balance tools.4. Define Phases

3. Set up Service Mngmt. and Quality Assurance4. Test5. Prepare the handling to migrated site

VirtualizationConsolidationResource

ManagementPrivateCloud

PublicCloud

THE PATH TO CLOUD

RISK MANAGEMENT1. Verify process and applications

independence.2. Integrations are accurately defined.3. Security levels are properly identified.4. Enterprise architecture is healthy.5. Dependence on communications.6. Cost.7. Application migrations

“Cloud Computing is not a technologythat can just be turned on overnight”

Peter Tseronis, deputy associate CIO of the Energy Department and

chairman of the US Federal Cloud Computing Advisory Council

Other Issues: Diversity Management

How much diversity can you manage in your technology portfolio?

Will you reject a customer who does not comply with it?

To Sum Up

• Cloud Computing offering must be Customer centered, not Technology centered.

• Cloud Computing adoption must be Service Management centered.• Telco Clouds will provide customers the confidence in quality and

availability for service, infrastructure and communications.

Source: open cloud manifesto

Advance• Time• Tecnology• Specializat

ion

Usage- Users- Usability- Utility

Artisan (99%)

User (1%)

Technology as change driver

ExpensiveExclusiveUnique

ExpensiveExclusiveUnique

CheapPopularSerial

Professional (99%)

From Pottery to CeramicsPottery (job) – Ceramics (product)

Source: Luis Miguel Rosa, EXIN

Artisan (1%)

User (99%)

Profesional (99%)

Technology as change driver

From Infrastructure to ServiceInfrastructure Mgmt. (job) – Service Mgmt. (product)

ExpensiveExclusiveUnique

ExpensiveExclusiveUnique

Usage- Users- Usability- Utility

Advance• Time• Tecnology• Specializat

ion

CheapPopularSerial

Source: Luis Miguel Rosa, EXIN

Contact: emendezpolo@gmail.com