Cloud Services – The Future

Stefan Haase – Product Director Data Services

Introduction

• The future of IT

• Market trends 2010

• Economic outlook

• Key challenges

• How InTechnology can help

• Cloud Services– Cloud Connectivity

– Communications Cloud

– Data Cloud

The state of IT

• IT is the latest in a series of widely adopted technologies that have reshaped business over the last 200 years

• For a brief period these technologies open opportunities for forward-looking companies to gain real advantages

• But as their availability increased and their cost decreased they become a commodity

• From a strategic standpoint, they become invisible• That is exactly what is happening to IT today and the

implications for corporate IT management are significant

IT as a commodity

• As the scalability of IT is virtually infinite and technical standardisation takes place, it removes the basis for most proprietary applications

• Why write your own application for e-mail or when you can buy a state-of-the-art application for a fraction of the cost?

• The arrival of the Internet has accelerated the commoditisation of IT by providing a perfect delivery channel for generic applications

• Finally IT is subject to rapid price deflation, which makes even the most cutting-edge IT capabilities available to all

• The opportunities for gaining IT-based advantages have started to reduce already

IT - The future

• In the long run the greatest IT risk facing most companies is simply, overspending

• What’s important is to be able to separate essential from unnecessary investments

• At a high level, stronger cost management requires more creativity in exploring simpler and cheaper alternatives, and a greater openness to outsourcing and other partnerships

• Also companies have been inefficient in their use of IT. That’s particularly true with data storage, which has come to account for more than half of many companies’ IT expenditures.

IT providers

• Vendors rely on business spending heavily on infrastructure technologies which are vital to the day-to-day operations

• Going forward all major technology vendors, from Microsoft to IBM, are trying to position themselves as IT utilities or grid providers.

• Accessing the grid or cloud network allows not only to reduce IT spend, but also vastly improves return on IT investments as well significantly improve IT efficiencies

• Private cloud services enables secure access and delivery of IT services to all users

Technology and market trends for 2010

• WAN networks approaching LAN speeds– Broadband at 20Mb/s, 10Mb/s Ethernet on phone lines– 100Mb/s Ethernet for less than £400 / month

• Growth of IP mobility & mobile business apps– Low cost, high availability wireless broadband– Business ‘push’ services to mobiles such as PTT

• Centralisation & virtualisation of IT service– Applications delivered from data centres

• More interactive working (‘UC’)– Growth of IM and presence as a business tool– Integrated approach to business comms

Cautious economic outlook

IT budgets will grow in 2010 but are unlikely to return to the double-digit rates of the early years of the 21st century

While we will see growth, we will not see recovery

For more than half of IT departments, budgets won't grow in real terms in 2010, while spending will only return to 2008 levels in 2012

IT spending trends for 2010Source: Gartner

Overall IT Budgets

Hardware Spend Flat (no growth)

3.3% growth

Software & Services 4.6% growth

New IT challenges for 2010

• Equipment failures from aging hardware– Cancelled 2009 IT projects to refresh infrastructure

• All CAPEX loaded projects are still being rejected by finance– OPEX budgets are frozen but CAPEX is being slashed

• Reduce costs to free up budget– Extra spending needs to come from saving money elsewhere

• Ensure that the business remains competitive– Need to deliver the best IT services to help grow out of the recession

• Minimise future carbon taxes– Co-location, hardware power consumption, etc

Key messages: So why InTechnology?

• We drive cost out– Network, communications, server infrastructure, etc– Challenge us!

• We increase the effectiveness of your IT team– We look after the routine parts of your IT– Your staff are freed up to focus on more important jobs

• We can help you to migrate and upgrade– IP telephony? Ethernet WAN? Server virtualisation? Green IT? – A fully managed service, often for the same price you are

paying today

Where we can help

Data Centre ServicesData Centre ServicesCo-Lo Servers Backup / Archive Storage / DB

CommunicationsCommunicationsIM Phone E-mail Mobile Video

NetworkNetworkEthernet DSL Internet VPN Firewall

“Data Cloud”

“Communications Cloud”

“Cloud Connectivity”

Connectivity to the Cloud

ADSL2+: Up to 20Mb/sEthernet 100Mb/s: From £395 / month

Ethernet over Copper:Up to 10Mb/s using phone line technology

End to end QoS over ADSL & Ethernet

• ADSL• Leased Line / PPC• Ethernet

Communications Cloud

Hosted IP Telephony

Video Calling / Conferencing

Hosted E-mail, IM & Presence

• Phone System– PBX, ISDN30, call

charges

• E-mail– Server & software

purchase, maintenance

• IM– Unmanaged free

Internet clients

• Video– Poor quality &

expensive room based conference systems

Data Cloud

“Green” Data Centre & Co-Location

Virtual Server Infrastructure

Cloud-Based System & Site Recovery

Server HostingRental, power, cooling, security

Server HardwareEquipment purchase, hardware upgrades

Storage ManagementDisk purchase, replication, performance management

Server BackupsOffsite storage

Disaster recoveryRedundant DC, clustering, replication

Benefits of Cloud Services

Cloud services are provided on-demand, allowing IT departments greater flexibility without the need for long term planning and charged on a pay-as-you-use basis. This enables IT staff to quickly and safely deploy new services without employing in-house specialists to manage it.• Increase or decrease usage of the services at any time • Reduce your IT spend• Let the supplier takes all the financial risk• Short-term projects can be delivered without any capex• New sites can be seamlessly accommodated • Stay compliant & reduce your carbon footprint• Allows you to focus on your core competencies