IDATE Conference Nov 19 th – 21 st 2003 TSI Network Consolidation Offering Jody Craft

Portfoliostrategy SPMTSI Network Consolidation Offering

09.09.2003page 1

IDATE Conference Nov 19th – 21st 2003TSI Network Consolidation Offering Jody CraftT-Systems InternationalEVP, Product Management IP


09.09.2003page 2

TSI Network Consolidation Offering Market Trends.

Source: DETECON 05/03, Gartner 06/02, IDC, OVUM 09/02, EITO 2003,Pyramid 02/03,GfK

Two digits growth rates: IP services, Mobile services, Hosting services

Worldwide Retail-Market: 2003-2006

0

50

100

150

200

250bn €

BusinessVoice

LegacyData

IP Solutions

MobileSolutions

HostedServices

CAGR2,0 %

CAGR1,1 %

CAGR11,6 %

CAGR41,3 %

CAGR23,5 %


09.09.2003page 3

Enterprise Telecom Outsourcing Drivers

Consolidation pressure is a demand driver for alternative platform sourcing concepts to

strengthen carrier competitiveness in future markets

Innovation drivers: Need to reallocate resources for new

technologies Access to leading edge know-how of

suppliers Benefit from converging technology

trends

Strategy drivers: Refocusing resources to core

competencies Detachment of non core activities „Enabling marketing“: increased

Customer Satisfaction & Loyalty

Outsourcing Decision

Financial drivers: Reduction of capital cost and

investment volume OPEX Reduction Fix/Variable cost shift

Political/Regulatory drivers: International trend for network

infrastructure sharing Regulation pressure Need for increased flexibility


09.09.2003page 4

networkplatforms

The Traditional Approach Today: Different network applications have different communication requirements.

Headquater

Home-Office

Branch Office

Production Site

Internet/Intranet

Leased Lines/ATM-PVCs

Public Telephony


09.09.2003page 5

TSI Consolidated Infrastructure Approach

Peering Router

s

Internet

Partners

Remote Users

Site x

C

ASP/eMarket Services

CPeering Router

s

Internet Services

Hosting

Services

C

e-Service Area

MXCache/Proxy

Collaboration

UMS, VoIP

MX-Relay

FW, VW, IDS,

Cont.Sec.

Web, DNS

Firewall services

PSTN GSM

Dial PoP Dial In

Services

Site B

Site A

Voice Services

CoS

CoS

Service Management Center (SMC)

VPN Services

MPLS

PSTN


09.09.2003page 6

T-Systems e-Service AreaThe MultiCustomer eSA provides the infrastructure for solution modules.

IPLS

PSTN/GSM

Internet IP2

Firewall servers

Authentication

serversUnified

Messaging server

Mail servers

Internet web server

Intranet web server

B2B exchanges (extranet)

hosted corporate

applicationsIntranet

shop solutions (MyCSM)

Internet shop

solutions

corporate mobile portals

Voice services(ToIP)

Hosted web application

s

Encryption services

other

DSL access

Mobile access

Dial Access

eService Area

Intl. access

DSL ATM concentrator Platform,Partner, ...


09.09.2003page 7

T-Systems –IntraSelect MPLS

StandardServices & Modules

Individual Solutions

IntraSelect MPLS offers a coordinated system of solution modules that fit exactly.

Combinable with each other to fit exactly

Clearly and transparently defined services

Absolutely compatible High degree of scalability Extremely flexible


09.09.2003page 8

TSI Customer Network Consolidation StrategyValue Proposition: Cost Reduction Cost Reduction Roadmap I (Example)

Cost

CoO2: Router Management

Additional Feature:Standard web services,Portals,BPO

S2M PSTN Access

CoO2: Internet Security & Remote Access-Services

CoO2: PABX, Voice Equipment, Servers

CoO2: Web & Enterprise Application Servers

Intranet Access

Internet Access

Leased Line / ATM / FR

ITC Personnel

Corporate Network Consolidation

Additional Feature:Internet Access

Additional Feature:Telephony over IP

ITC Personnel ITC

Personnel ITC

Personnel

ITC Personnel

timeCoO2: Cost of Ownership

Process-Solution/Portals


09.09.2003page 9



S2M PSTN Access Rental




Intranet Access

Internet Access Rental

TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap II (Example)


IT Personnel



IT Personnel IT

Personnel IT

Personnel

IT PersonnelC

ost



Unified IP MPLS platform replaces dedicated IP, ATM and Leased Line Infrastructure:

Reduced access cost

Unified IP MPLS platform replaces dedicated IP, ATM and Leased Line Infrastructure:

Reduced access cost



09.09.2003page 10







Intranet Access

Internet Access

TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap III (Example)


IT Personnel



IT Personnel IT

Personnel IT

Personnel

IT Personnel

Cost



Multiple decentralized

internet access lines are integrated into the corporate

IP MPLS core: Reduced access cost and optimal

security

Multiple decentralized

internet access lines are integrated into the corporate

IP MPLS core: Reduced access cost and optimal

security



09.09.2003page 11







Intranet Access

Internet Access

TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap IV (Example)


IT Personnel



IT Personnel IT

Personnel IT

Personnel

IT Personnel

Cost



On-net telephony integrated into the corporate IP core:Only one access line per site, cost

effective IP-Telephony

On-net telephony integrated into the corporate IP core:Only one access line per site, cost

effective IP-Telephony



09.09.2003page 12






Intranet Access

Internet Access

TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap V (Example)


IT Personnel




IT Personnel IT

Personnel IT

Personnel

IT Personnel

Cost



Integration of standard and

dedicated hosting solutions: Only one

access line per site, reduced server cost.

Integration of standard and

dedicated hosting solutions: Only one

access line per site, reduced server cost.



09.09.2003page 13

MPLS based IP-VPN ServicesValue Proposition for Corporate Customers

ScalabilityFrom Low to Very High speed

access for Sites/UsersUse Any Access TechnologySmall to Very Large number of

Sites

Security GuaranteesFR/ATM equivalent without

needing encryptionProtection from the open

Internet

FlexibilityAny-to-Any communicationEasily Add / Remove

Sites/UsersIP addressing freedomReady for Future Applications

Performance GuaranteesMultiple Classes of Service for

Data Voice & Video Applications

SLAs with predictable latency, throughput, availability, packet loss, jitter

Coverage & ReachONnet Coverage for highest

performance, functionality and SLA

OFFnet, Global coverage for far-away Sites, Extranet extensions and Remote Users

Price/Cost EfficiencyLeverage IP’s lower price per

bitOne Access Line, One NetworkOutsourced Solution


09.09.2003page 14

The tailored modul for every request for Hosted Services:

Hosted Services opens the view to horizons. Solid and flexibel.

Application Hosting:

eCommerce, Datenbanken, E-CRM, Intranet/Internet Provider Services ERP, e-Learning, Terminal-, Web-Server, Content Mgnt.., e-Service Area

Basic Web Hosting: (Hosting-Area)Managed Hosting Services, Messaging, Storage, eMail, Housing (Colocation)

Security-Module Administration-Moduls

IP-VPN (as platform) IP-based virtual privat network

Collaborative Services:Mobil Portals Exchange Services, Business Process Services

Telecomunication ServicesStructure


09.09.2003page 15

Back Up


09.09.2003page 16

Forecast: Europe’s Managed Network Services Market, 2003 To 2008

Sourc

e.

Forr

est

er

Rese

arc

h,

20

03


09.09.2003page 17

IP Services – IP VPN based on MPLSIntraSelect MPLS - Coverage

Telekom owned Network infrastructure – core network MPLS-enabled IP network since 2003 with 53 countries and more than1000 PoPs (excl. Germany)


09.09.2003page 18

T-Systems International & LDComPartners in France for a Strong Future

LDCom is T-System International’s preferred partner in France as a reseller of T-Systems’ International Network Services

LDCom ensures a nationwide coverage in France for T-Systems’ corporate customers

T-Systems International provides international connectivity and reliablilty worldwide along with end-to-end management

Customers in France benefit from global knowledge and service with a local face to the customer


09.09.2003page 19

Needs for higher bandwidth in companies through the increasing use of ERPs (SAP, Siebel, Citrix etc.)

Ban

dw

idth

Req

uir

emen

ts

High

LowLow High

Web-basedApps

Voice

Medical Telemetry

Video Conferencing

Latency Sensitivity

AGILE

SMTP Mail

HTTP Web

Microsoft Exchange

IP Services – IP VPN based on MPLSCustomer applications


09.09.2003page 20

IP Services – IP VPN based on MPLSCoS vs. applications

LOTUS NOTES LAN2LAN

MFG PRO LAN2LAN

MICROSOFT EXCHANGE ACCESS

MIMI (SAP) INTERACTIVE

NA4 LAN2LAN

NOVELL GROUPWISE LAN2LAN

ORACLE INTERACTIVE

PEOPLESOFT INTERACTIVE

PIN LAN2LAN

SAGA LAN2LAN

Application CoS Profile

ACSIS (SAP) INTERACTIVE

AGILE ACCESS

BAAN INTERACTIVE

CADENZA LAN2LAN

CLARIFY INTERACTIVE

CERES LAN2LAN

CFMS LAN2LAN

CITRIX INTERACTIVE

CODA LAN2LAN


DOCUMENTUM LAN2LAN

ENERGY SYSTEM INTERACTIVE

FIN WEB ACCESS

FRIGATE LAN2LAN

FTP ACCESS

HTTP WEB ACCESS

I2 DEMAND PLANNER LAN2LAN

IS LOGISTICS INTERACTIVE

JD EDWARDS INTERACTIVE


09.09.2003page 21

IP Services – IP VPN based on MPLSCoS vs. applications

SALES/SERVICES EDGE LAN2LAN

SAP INTERACTIVE

SCALA LAN2LAN

SIEBEL 2000 INTERACTIVE

SIEBEL 7 INTERACTIVE

SMTP ACCESS

TELNET Interactive

VANTIVE INTERACTIVE



09.09.2003page 22

Shared utilization of available bandwidth: Data traffic (Business & Economy) utilizes reserved

bandwidth of other categories if there happens to be low traffic there at any given time.

As soon as priority data transfers are due, these are immediately given higher priority again.

Result: Capacities are optimally utilized – even at peak times.

Voice

Stream (Video etc.)

Business (SAP etc.)

Economy (E-Mail etc.)

IP Services – IP VPN based on MPLSIntraSelect MPLS


09.09.2003page 23

Features Service Level

Complete

Service Level

Comfort4

Service Level

Compact

Service Level

Entry

SolutionCom

mit

Yes Yes Yes Yes

SAPCommit £1, 2 or 4 hours1

With

compensation3

£4, 8 or 12 hours1

With

compensation3

£8, 12 or 24hours1

Without

compensation3

Best effort

Standard

support level

1/2

Standard Standard Standard Standard

Service

management

Proactive Proactive Proactive Reactive

Contact Point 7x24 hrs. 7x24 hrs. 7x24 hrs. 7x24 hrs.

Typical

Service setup

Fully redundant Non-redundant

with backup

Non-redundant Non-redundant1 According to geographical SAP location2 Optional support levels available on demand: Extended, 7x24h3 Compensation schemes are defined in the separate SLA document4 Comfort Service Level is only available in association with the ISDN/DSL backup option

IP Services – IP VPN based on MPLSIntraSelect MPLS - SLA


09.09.2003page 24

IP Services – IP VPN based on MPLSIntraSelect MPLS: One Platform – Many Benefits.

Site Backup and RedundancySite Backup and Redundancy

Telecommuter ServicesTelecommuter Services

Internet Access IntegrationInternet Access Integration

Flat-rate pricingFlat-rate pricing

Encryption Services via Internet & VPNEncryption Services via Internet & VPN

Intranet Hosting/Co-loServicesIntranet Hosting/Co-loServices

Secure off-net AccessSecure off-net Access

Firewall ServicesFirewall Services

Traveler ServicesTraveler Services

IP Telephony IntegrationIP Telephony Integration

56k – 155M bandwidth56k – 155M bandwidth

53 countries53 countries

4 Classes of Service4 Classes of Service

Dynamic routingDynamic routing

Multiple VPN serviceMultiple VPN service

Dial in via Internet & VPNDial in via Internet & VPN

Voice VPN’sVoice VPN’s

Unified CommunicationsUnified Communications

Private Content ServicesPrivate Content Services

Managed Extranet ServicesManaged Extranet Services

ASP ServicesASP Services

E-commerceE-commerce

End-to-End SLA’sEnd-to-End SLA’s

Virtual ISP ServicesVirtual ISP Services

Video Services (Multicast)Video Services (Multicast)

Web based reportingWeb based reporting


09.09.2003page 25

Forecast: Europe’s Managed Network Services Market, 2003 To 2008

Sourc

e.

Forr

est

er

Rese

arc

h,

20

03


09.09.2003page 26

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Market Share Hosting

Market Share Mobile

Market Share LAN

Market Share IP Sol

Market Share Legacy Data

Market Share Biz Voice

NWS Retail Market share (World)

Market Trends and development

2003

2006

The trend goes to outsourcing and managed IP services!

Source: EITO 2003,Pyramid 02/03


09.09.2003page 27

Internet

T-Systems e-Service Area

Firewall servers

Authentication servers

UnifiedMessaging

server

Mail servers

Internet web server

Intranet web server

B2B exchanges (extranet)

hosted corporate

applicationsIntranet shop

solutions (MyCSM)

Internet shop solutions

corporate mobile portals

Voice services(ToIP)

e-Service Area

Internet (Web)applica

tions

Encryption services

IP VPN

PSTN/GSM

IDATE Conference Nov 19 th – 21 st 2003 TSI Network Consolidation Offering Jody Craft

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