computing OP-Pohjola Bank Morning seminar Ilkka Korkiakoski Head of strategy and corporate planning Corporation 2010 Tieto
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1 Cloud computing OP-Pohjola Bank Morning seminar 11 March Tieto Corporation Ilkka Korkiakoski Head of strategy and corporate planning
2 Agenda What kind of a phenomena is Cloud Computing? How does it differ from other IT hypes? What are cloud services? Which areas will implement it first? What does Tieto do in a cloud? Questions & Answers Tieto Corporation
3 Technology and changing g customer behaviour shaping the market Virtualization Consumerization Security Green IT Cloud computing IT in the 2010 s IT as a service Increasing business criticality Consumer-driven digital services Industrialized deliveries SaaS Service design Mobility Open Source Social Media Tieto Corporation
4 Cloud Computing has evolutionary history and many origins Web 2.0 and Mashups Data Center Design Virtualization Subsidized d Cloud Automated Applications Provisioning Services and Web Web API/ Real-Time Googleplex Architecture Infrastructure Web Platforms Internet Grid Global-Class Consumer Applications SaaS Connectivity Information and Browser UI Management Discipline Utility Models Consumer driven services Technology driven computing Tieto Corporation
5 Cloud computing is a paradigm shift Investment Asset Access Ownership One-to-One One-to-Many Charging One-Time As Used Agility Custom Configurable Delivery On-Site Cloud-Based Cost Fixed Variable Tieto Corporation
6 Cloud computing is driving new business and value creation models Hands Projects Price / hour * Utilization Pre-industrialization Industrialized services era 2010 Value creation Cloud ecosystem Delivered as a Service Price per unit * Volume Tieto Corporation
7 Different Cloud Deployment Types Private clouds Building up cloud environment and services for enterprise s internal needs Enterprise clouds (Shared Private Cloud) Provider-owned cloud services offered to multiple enterprises Public clouds End-user/consumer services, owned by enterprise, operated by eg.tieto Hybrid clouds Integrating various clouds, also with in-house systems Tieto Corporation
8 Different Cloud Service Models Process Application Platform Digitalisedit Process Application Platform Infrastructure IaaS Infrastructure as a Service PaaS SaaS DPaaS Platform as a Service Software as a Service Process as a Service Tieto Corporation
9 Effects of Cloud Services Get rid of Servers NW infra Get rid of Platforms Platform IaaS Process Get rid of Software Application Get rid of Processes Platform Infrastructure Application Digitalised Process PaaS SaaS DPaaS Cloud In-house Price model Usage Licenses Agility Hrs/days Weeks Financial OPEX CAPEX+OPEX IT Mgmt Included Own expense Location Off-premise On-premise If you have more than 1000 servers, you can create your own private cloud if you have less don t bother. Traditional outsourcing business model = driven by number of boxes (and low utilisation). Cloud is the opposite pay per use, independent d of number of boxes involved. [Stefan Ried, Feb 2010 Analyst, Forrester] Tieto Corporation
10 Cloud and SaaS development Cloud/SaaS Cloud/SaaS Cloud/SaaS S Traditional IT services Traditional IT services Traditional IT services Tieto Corporation
11 Cloud / SaaS adoption areas Collaboration applications Web applications/web serving 67.3% 66.9% Data Back-up or Archive services Business apps (CRM, HR, ERP) Personal productivity apps Data/Content Distribution services Storage capacity on demand IT Management software Server capacity on demand Business Intelligence/Analytics Application dev/test/deploy platform IT/Information Security 59.4% 55.6% 55.1% 54.8% 52.9% 51.3% 50.6% 49.8% 49.1% 48.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% Tieto Corporation Source: IDC Enterprise Panel, 3Q09, n = 263, September
12 What are your firm's plans to adopt the following software technologies? Expanding/upgrading implementation Planning to implement in 12 months Implemented, not expanding Platform-as-a-service as a service (PaaS) 4%3%5% % % Business process-as-a-service (BP- aas) 3 % 3 % 7 % Infra-as-a-service (Iaas) 7 % 3 % 9 % SaaS 14 % 9 % 9 % 0 % 10 % 20 % 30 % 40 % Tieto Corporation Source: Forrester
13 SaaS adoption by vertical Expand/upgrade Implementing Piloting Public sector 7 % 21 % 8 % FS and Ins 8 % 20 % 9 % Retail & wholesale 8 % 20 % 10 % Business services 8 % 26 % 5 % Telecom & utilities 19 % 17 % 4 % Media and Ent 10 % 34 % 7 % Manufacturing 11 % 31 % 10 % 0 % 20 % 40 % 60 % Tieto Corporation Source: Forrester
14 Cloud adoption speed % of respondents in country using 7 or more IT cloud services* 14% [Gartner 2009] 12% 10% 8% 6% 4% 2% 0% UK NordicsGermany Spain France Benelux Source: IDC European Enterprise Services Survey 2009, n = 533 * Survey list of cloud services included: , financials, app dev, collaboration, CRM, HRM, security, storage/backup, app platform SaaS market value 2008 was 4349 MEUR, increased +27% [Gartner 2009] Cloudified applications stands for 25% of the new growth in IT spending [IDC 2009] Cloud computing ranked #2 on Top Ten Strategic Technologies [Gartner 2009] Tieto Corporation
15 Services as % of average IT budget 40 % 30 % 29 % 34 % 37 % 38 % 20 % 21 % 22 % 24 % 10 % 0% Tieto Corporation Source: Forrester
16 Strong customer value proposition In-house, 100% Service cost reduction of 19-66%, Based on costs of staff, client software, filtering, archiving, storage, server software, server hardware and operating system [Forrester 2009] Minimum, 81% Best-case, 34% No up-front investments Usage-based predictable pricing Flexible scaling up/down Tieto Easy user enrolment & fast TTM Tieto had the lowest IaaS prices compared to international competitors [Compass 2009] Tieto Corporation
17 Different customer adoption styles Company A Organisation B Enterprise C In-house In-house In-house Cloud Project portal Test Cloud CRM Project portal Test Cloud End-user apps. CRM & Collab. Project portal Test Storage Many organisation is already using cloud services sometimes without even knowing it Gmail/hotmail Chat Project Mgmt portals Document sharing Different organisations (will) use cloud for different needs Core/non-core apps Home/new market entries Tieto Corporation
18 Tieto and Cloud 2010 Tieto Corporation
19 Tieto is strongly focusing and investing in cloud services Service integrator Service experience Service value Service packages System integrator Service integration Tieto Corporation
20 Tieto Cloud Services Definition Supply of secure capacity, platforms, applications, and business services on-demand,,provisioned and consumed in a self-service style. Tieto is the Cloud Services provider of the Nordics Tieto Corporation
21 Tieto Understands Cloud Financial Value Chain DPaaS since 1989 Message/ transaction reformatting, encryption and delivery validation 70 % of all Nordic SWIFT transactions Customers: 3000 customers with 500+ million transactions yearly SaaSS IaaS SCapacity Clarity Flexcap PaaS since 2005 Services Project released since 2006 Portal SaaS 2009 since 2009 Customers: Over 200 customers Microsoft, UNIX, Linux virtual machines Volumes almost doubles every year Customers: IF insurance, Nasdaq-OMX, Ruukki, Sodexho, Stora Enso, etc Customers: European Government Tieto-internal development and testing infrastructure and many more Tieto Corporation
22 Questions & answers 2010 Tieto Corporation
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