| 2010 10 20 | CONFIDENTIAL1 | 2010 01 08 | CONFIDENTIAL1

The Power of The Cloud for Your Organization

Evan JenningsSr. Product ManagerBell Business Markets

Agenda

• Business models of computing services

• Why is this important for Data Centre & IT experts?

• How Bell’s experience informed our strategy

Exponential growth in data

The number of files to be managed will grow by a factor of 67.

By 2020, digital information will be 44 times larger than it was in 2009

And storage capacity will grow by factor of 30.

Global IP traffic will quadruple from 2009 to 2014

Industry IT evolution/transformation

1960 201020001970 1980 1990

Mainframe

Minicomputer

Web

Cloud

Virtualization

Client Server

Evolution of IT Economics

Mainframe~ High Resource Utilization ~

Client Server~ Low Resource Utilization ~

Technology View Economic View

Cloud~ Mass Utilization ~

Centralized Compute & Storage

Optimized for Efficiency

Distributed Compute & Storage Optimized for Agility

Large DCsHomogenous

hardware

Better efficiency & agility

Cloud is a delivery model

"The interesting thing about cloud computing is that we've redefined cloud computing to include everything that we already do. I can't think of anything that isn't cloud computing with all of these announcements. The computer industry is the only industry that is more fashion-driven than women's fashion.”

- Oracle CEO Larry Ellison

Challenge Opportunity for IT ProfessionalsRank Reason %

1 Requires less in-house IT staff, skills or cost 45%

2 Easy / fast to deploy to end users 40%

3 Pay for only what you use 35%

4 Encourages more standard IT systems 30%

5 Ease of sharing systems and information with partners 30%

6 Data management and ownership concerns were addressed 25%

7 Lower monthly payments (no big up-front payments) 25%

8 Always offers the latest functionality 20%

Why is this important to Data Centre & IT experts?

Why is cloud computing front page news?

Benefits to the bottom line

Achieving real and meaningful cost savings and operational capabilities

Source: Open Code (http://open.blogs.nytimes.com)

Benefits of scaling

Unprecedented flexibility & dynamism

Source: http://blog.animoto.com/2008/04/21/amazon-ceo-jeff-bezos-on-animoto/

Animoto: Instance Usage

Cloud computing models

So what does it mean to you?

Cloud

• Increases server utilization

• Reduces burden of administrative tasks

• Eliminates DC workloads, freeing up space & capacity

• Reduces number of complicated applications

But there are challenges

• Can be complicated to implement

• Higher utilization can lead to high power densities, which drives cooling & load complications

• Adds a layer of security complexity in terms of user and rights administration

• Creates a number of latency considerations which may not have existed before

Required: Improved data centre risk and optimization practices

How Bell’s experience informed our strategy

......but can take years to virtualize fully

Efficiency

Fast provisioning

Flexibility

Security

BenefitsWhat it does

Virtualization first

Bell IT snapshot

Two 40K sq ft production

DCs

3.5MW critical load

Multiple server farm

sites

4,000+ physical servers

Over 700 applications

6 PB of storage and

backup

IT standard certifications – SAS70, BPM,

ISO

Increasingly standardized

set of technologies

& vendors

Energy challenges

• Power is a top concern for data centre operators

• Amount of energy required to power a data centre = city of 37,134 homes

• Bell set up an energy board to tackle energy consumption challenges by:

• Virtualizing workloads• Decommissioning unused

systems• Forecasting and tracking

growth

• Decommissioned 12 server farm sites and 300+kW in our primary data centre in ~14 months

• Sought and received hydro promotion rebate programs

• Deferred over $30M in data centre expansions

Results

Benefits we achieved

• Improved IT cost structure reduces Total Cost of Ownership

• Higher availability and improved disaster recovery

• Enhanced IT productivity through accelerated deployment and delivery of new applications

• Higher resource utilization increases infrastructure optimization

• Green optimization through reduced power and cooling loads

More progress in store

2006 2011 20160%

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

Virtualization rate• Virtualization program started in 2006

• Increased from 5% to 30% virtualized

• Includes mission critical apps

• Remaining footprint highly proprietary or legacy

• Predict better consolidation ratios with more complicated migrations

Lessons learned

• Asset management strategy and reporting is imperative

• Governance systems (IT Council) required

• Pre-build advanced virtualized capacity to make virtual installs even quicker

• Resist the temptation to over-build data centre capacity

• Applications – start with smaller workloads, web servers, Microsoft.net, desktop virtualization

Data Centre and cloud services expertise

• Citrix – Gold partner

• VMware – Premier Solution Provider

• Cisco – Bell is Cisco’s largest Gold Partner in Canada

• EMC – Premier Partner

• HP - Elite Partner, Converged Infrastructure & Networking

• Microsoft – Silver Partner

• Symantec – Gold partner

Bell is partnered with the leading technologies for enabling virtualization and evolution to cloud computing

Customer case study

A large Canadian insurance company

• Reduced capital expenditures by :

• virtualizing 250 physical servers

• hosting the virtual machines on only 12 servers

• Quicker migration of servers from the customer data centre to Bell Hosted services

• Enhanced business continuity and DR plan

A strategy born out of Vancouver 2010Portal Statistics:

• Visits to the Olympics portal: 300 millions

• Olympic mittens sold in 10 hours once they appeared on Oprah: 10, 000

• Sidney Crosby memorabilia sold following his winning goal: $ 100K per hour

• Internet security events were logged by the portal during the games: 350 million

• Downtime: 0

Golden example

Critical considerations

Cloud solutions from Bell

• Hosted in Bell’s Canadian data centres

• Delivered over Canada’s largest MPLS network and from Bell 5970 Type II certified data centres

• End-to-end performance and availability SLAs

• Backed by 24x7 support

• Supported by industry-leading cloud technology partners

Bell network, data centre and virtualization enable cloud security, availability and performance

What makes Bell data centres different?

Bell national data centre footprint

Info-Tech Canadian Co-location/Managed Services Vendor Landscape – 2011 study

Champions receive high scores for most evaluation criteria and offer excellent value. They have a strong market presence and are

usually the trend setters for the industry.

Bell is positioned as a Champion, displaying proven longevity, viability and breadth of offerings

• Term is new but the concept is not

• Cloud is an operations model

• IT has to be ready for the shift

• Concerns are not new

• There are significant benefits to be gained on the path to Cloud

Summary

Questions?

Please see me during the Coffee Break