HORIZON / OUR CLIENTS, OUR PROJECTS P.02ABOUT US / VIRTUALIZATION P.10GRAND ANGLE / IMS IS HAPPENING NOW P.12

PerspectivesNUMBER 1 www.atosorigin.ch

IMSTHE UNSTOPPABLE

Atos Origin is best placed to helpclients with this new generationof network technology.

JUNE 2009

is happeningnow

ATOS ORIGIN’S RANGE OF ENTERPRISE SOLUTIONS IS SECOND TO NONE.

Perspectives June 2009

I have the pleasureto introduce the first issueof PerspectivesThe current market situation is experiencing a difficult economic condition and clearly many industries are impacted by this recession period. The stock exchangeduring the first quarter in 2009 demonstrated many uncertainties and can be considered of what the rest of the year will look like. On the contrary last year,we had faced during the same time an optimistic beginning and a relatively stable environment for the IT industry.

As a consequence now the recession demands companies to have increased control over the costs, understanding of how to develop the right value propositionsto increase loyalty and customer acquisition. Under these circumstances almost all our customers from different sectors have been forced to review their strategieswith cost-reduction implications. In the IT area cost-reduction can be translated as resources rationalization, little or no space for long term ROI, alternativesourcing solutions, IT consolidation and long reflection on the decision-making process, in many cases jeopardizing important decisions in several projects.

In such a complex scenario Atos Origin is the right choice for customers since this scenario is part of our daily business. Our business model towards therationalization and reduction of the TCO (Total Costs of Ownership) of applications and IT Infrastructure provide both assurance of local presence and globalcapabilities. For this reason, Atos Origin is the ideal partner to better match clients’ needs. The success of Atos Origin relies on its ability to analyze existingbusiness operations, optimizing them whilst developing suitable solutions.

Overall, whilst the outlook is unquestionably difficult, good companies will materialize stronger and be more capable after the recession period... the ones whowill have acknowledged the high priority projects supporting their strategy and delivered them with an extreme focus on the required business.

As Atos Origin in order to be one of these good companies we have made it our business to contribute and assist our clients in achieving the same goal.

In this first issue of our magazine, Perspectives, you will find information on our solutions, partner interview, news on the Vancouver 2010 Olympic Games andcorporate news among many other interesting content. We hope you will enjoy reading Perspectives and we welcome your comments on our magazine.

Most sincerely,

Herbert EnderCEOAtos Origin in Switzerland

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ATOS ORIGIN AND THEINTERNATIONAL OLYMPICCOMMITTEE EXTEND CONTRACTTHROUGH TO 2016Atos Origin, the Worldwide InformationTechnology Partner and Top Partner ofthe Olympic Games, today announcedthat it has extended its contract with theInternational Olympic Committee (IOC)to serve as the IT systems integrator forthe Games for an additional four-yearperiod, until 2016. After Vancouverin 2010 and London in 2012, Atos Originwill provide IT systems for the SochiOlympic Winter Games in 2014 in Russiaand the Olympic Games in 2016, thehost country of which will be announcedon 2 October 2009.

“Atos Origin, our long-term partner, isthe brains behind the technologyoperations for the Olympic Games,consistently delivering high-qualityservices on schedule. The BeijingOlympic Games were spectacular andAtos Origin provided a crucial role inensuring the success of the event froma technological perspective, and inmaking sure that the IT systemsfunctioned perfectly. We are confidentthat Atos Origin will once again deliveran outstanding job for future Games”,said Jacques Rogge, President of theInternational Olympic Committee.

NOVELL HANDS OUT EUROPEANAWARD TO ATOS ORIGINAtos Origin, an international IT servicescompany, has won the prestigious Novellaward “Best EMEA Partner of 2008 forIdentity & Security Management (ISM)”.The award was won based on Atos

Origin’s consistent quality delivery acrossthe region, proactive support withcustomer wins and effectiveimplementation of Novell’s Identity &Security Management technology withcustomers across all market sectors inEMEA (Europe, Middle East and Africa).

Atos Origin and Novell have a long termworldwide strategic partnership that wasextended last year to include Identity &Security Management as this areacontinues to be an important topic inboardrooms around the globe.Companies must manage users andcontrol their access, mitigate securityrisks, and comply with a growing list ofgovernment and industry regulations.The combination of Atos Origin’sexperience integrating new solutionsinto existing IT environments, andNovell’s commitment to buildinginteroperability into its products,eliminates the need to rip-and-replaceexisting infrastructure to implement thesecurity controls that clients need.

COMPANIES WITH MORE MATURESUSTAINABILITY PROGRAMS ENJOYHIGHER PROFIT MARGINS,GENERALLY A FULL 2% OR HIGHER,REVEALS NEW EUROPEAN RESEARCHEuropean research launched today byIDC, a leading global provider of marketintelligence and sponsored by AtosOrigin, an international informationtechnology services company, revealsthat companies with more maturesustainability programs enjoy higherprofit margins, generally a full 2% orhigher than industry margins. Theresearch based on a survey of 165 senior

executives in the manufacturing andretail sectors clearly demonstrates thatthe business case for environmentalexcellence is real.

Even in the current economic climate,the survey indicates that companies areplanning to stay the course as theyexpect to reap above average returnsas a result of their sustainability efforts.Information technology is identified asa key tool for driving sustainableinitiatives with 70% of those interviewedsaying that IT will play a role in reducingtheir businesses’ environmental impact.

PHILIPS SIGNS NEW CONTRACT WITHATOS ORIGINPhilips signed a new contract with AtosOrigin for the delivery of consultingservices confirming Atos Origin as a firstleague IT services provider to Philips.The services focus on business criticalprojects and application maintenancein SAP and Microsoft applications andwill be provided from the Netherlandsand India. This contract will help Philips’IT strategy which is focused on reductionof complexity, a service based deliverymodel and lower IT costs for its marketsectors worldwide - consumer lifestyle,healthcare, and lighting.

Atos Origin becomes a key sourcingpartner which enables Philips’ ITapplications to deliver high qualityprojects and services, increase theircustomer focus and achieve significantcost reduction in the total service chain.

Philips will work with a team of sourcingpartners and Atos Origin experts on keyIT application projects to eliminate waste

rizon... horizon...

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in the service chain resulting in significantcost reduction for the client. Atos Origin’srole is to build, implement and manageapplications in SAP and Microsoft.During 2 years around 150 Atos Originexperts will work on this program.

SAP AND ATOS ORIGIN TO DELIVERADDED VALUE TO CLIENTS IN KEYBUSINESS AREAS THROUGH NEWGO-TO-MARKET AGREEMENTSSAP AG (NYSE: SAP) and Atos Origintoday announced the extension of theirglobal services partnership. In addition,they are cooperating further via new go-to-market agreements through their localsubsidiaries to help customers reducethe total cost of ownership of deploymentsof SAP® solutions by improvingapplication reliability and performance.Such cooperation takes effectimmediately across key geographies inEurope, including France, Spain, theNetherlands, the United Kingdom andGermany.

“Atos Origin has worked together withSAP for many years and is pleased toextend its relationship through thisagreement,” said Thierry Breton,chairman and CEO of Atos Origin.“With over 5,000 consultants globally,SAP services are one of the cornerstonesof our business. The market alreadyrecognizes that Atos Origin is a leadingintegrator of SAP solutions in themanufacturing sector worldwide.”

“Atos Origin has a proven track recordfor delivering projects globally, includingsome of the largest and most complexones,” said Léo Apotheker, co-CEO,

SAP AG. “Through this expandedrelationship, we aim to offer customersan accelerated return on their investmentin SAP solutions, lower TCO andultimately help them to thrive in today’schallenging business climate. Expandingour relationship with Atos Originunderscores our commitment to ourecosystem strategy, with the objectiveof bringing more value to all of ourcustomers.”

ATOS ORIGIN ACQUIRES A LEADINGSAP NATIONAL IMPLEMENTATIONPARTNER IN CHINAAtos Origin, an international IT servicescompany, today announced it hasacquired Shanghai Covics BusinessSolution Ltd. (Shanghai Covics), aleading Chinese SAP consultancy andSAP system integration servicesprovider. It’s the first acquisition carriedout by Atos Origin in China and in theAsia-Pacific region as well.

Through the acquisition, Atos Origin, thecompany that has successfully deliveredthe IT systems for the Beijing 2008Olympic Games, will reinforce itscapability all through the full SAP cycleof consulting, implementation,maintenance and hosting in China, notablyBeijing, Shanghai and Guangzhou. Inaddition, it will be able to double thenumber of its local experienced SAPconsultants.

Shanghai Covics is a pure Chinese SAPplayer with over 100 staff led by a strongmanagement team. It has an excellentteam of qualified SAP consultants anda number of outstanding projects

delivered to date. It is also one of themost successful All-in-One SAP projectintegrators in the China market.

TRAVELEX SIGNS NEW CONTRACTWITH ATOS ORIGINAtos Origin, an international IT servicescompany today announced that it hassigned a contract with Travelex todesign, build and support an IT systemto securely manage the process forcashing all travellers’ cheques as andwhen they are presented worldwide.The new Travellers Cheque System willbe available at all Travelex offices laterthis year. It is being built using .nettechnology and provides secure accessover the internet from anywhere in theworld. It will include increased auditingand monitoring functionality to moreaccurately track travellers’ cheques andhelp protect against fraud. The systembeing built by Atos Origin is based on aprototype created jointly with Travelex.

ATOS ORIGIN WINS EUROPEANVMWare INNOVATION AWARDAtos Origin, an international IT servicescompany, received a prestigiousinnovation award ‘EMEA North PartnerAward 2008 for most innovative use ofvirtual infrastructure’ at the 2009VMworld event in Cannes. This awardwas given to Atos Origin in recognitionof its innovative use of VMWare technologyacross its customer base in Europe.Atos Origin and VMware forged a globalpartnership late last year in order toaddress the growing demand forvirtualization technology.

To learn more, please visit theNewsroom section of atosorigin.com

Olympic Game Destination:

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THE WORLD’S LARGEST SPORTS RELATED IT CONTRACT

s the Worldwide IT Partner for the Olympic Gamesand Top sponsor, Atos Origin integrates, managesand secures the vast IT system that relays results,

events and athlete information to spectators and media aroundthe world. The Atos Origin contract with the InternationalOlympic Committee (IOC) is the world’s largest sports relatedIT contract. Here the company brings extensive internationalIT experience to the Olympic Games, including global expertiseand leadership in consulting, systems integration, operationsmanagement, information security and software applicationsdevelopment.

Building on its successful delivery of the IT systems thatsupported the Olympic Games in Salt Lake City in 2002(operated as SchlumbergerSema), in Athens in 2004 and inTorino in 2006, Atos Origin has primary responsibility forinformation technology including consulting, systemsintegration, operations management, information security andsoftware applications development for the Vancouver 2010Olympic and Paralympic Winter Games. The Group will managea consortium of best-of-breed technology expert partners andsuppliers, under the Vancouver Organizing Committee for the2010 Olympic and Paralympic Winter Games’ (VANOC)technology Department supervision.

QUALIFYING A WINNING IT TEAM FOR THE VANCOUVER2010 OLYMPIC AND PARALYMPIC WINTER GAMESRight after completion of the Games in Turin, the Atos OriginMajor Events team, had already delivered key softwareapplications for the Beijing Olympic Games in 2008 and begunpreparations for the Vancouver 2010 Olympic and ParalympicWinter Games. In June 2006, only months after completionof the Torino 2006 Winter Games, Atos Origin dispatched IT

managers and engineers to already start working on theVancouver project.

During the 2010 Winter Games, Atos Origin will manage thetechnology consortium team estimated at 2,000 staff, including400 Atos Origin experts, made up of locally hired staff, localvolunteers and overseas Olympic Games technology experts.During the first six months the focus of the Atos Origin teamin Vancouver has been to run and staff the technology Helpdesk for the Vancouver 2010 Olympic and Paralympic WinterGames and on planning for the next four years.

KNOWLEDGE AND EXPERIENCE TRANSFER:A CRITICAL COMPONENTAtos Origin is responsible for designing a complex and securehigh quality IT infrastructure on time, to specification andwithin budget. While designing the IT architecture for eachGames, Atos Origin considers the next Games and how totransfer the knowledge gained. For the Torino 2006 Olympicand Paralympic Winter Games for instance, Atos Origin used95% of the operational procedures and knowledge gained atthe Athens Games.

The complex, massive IT infrastructure of the Olympic Gamesis deployed by large teams of people into different cities indifferent countries every other year. Such a major task is allabout risk management capitalizing on the knowledge gainedfrom previous Games Operations. This knowledge andexperience transfer is critical in keeping costs down and inlowering the risk of future Olympic Games.

As perhaps the world’s ultimate symbol of excellentperformance, the Olympic Games serve as a metaphor forour commitment to helping companies deliver excellence.

es: Vancouver

5Perspectives June 2009

Our team in Barcelona and the other Olympic cities haveplayed a large part in successfully delivering services toVANOC, from taking over the help desk in August 2006 towhere we are today – having successfully delivered all of thesport events, having used all of our software, and having allof the services we plan to use during the Olympic Games.

Perspectives: The Group develops, implements and managesa critical, but invisible, IT system allowing Atos Origin to be inthe competition since Salt Lake 2002 and Athens 2004, Torino2006 all the way to Beijing 2008, Vancouver 2010 and London2012. What do you think is the most critical point on theselection of Atos Origin to be the continuous IT Partner?MA: Atos Origin is recognized by the IOC and by the organizingcommittees as being the foremost expert in the IT field. Wehave been the Worldwide IT partner since Salt Lake City 2002and everything worked flawlessly each time. We are recognizedas a company that is able to deliver highly visible, pressureladen integration projects on time and on budget – somethingthat is not easy to do. In short, the single most critical pointfor them to continue working with us is our proven ability todeliver excellence.

Perspectives: Sustainability, we all know, is one of the top issuesaround the world, in all companies and institutions. Systemsand solutions are being created all the time to improve theenvironment, minimize the negative effects of industrialization onthe environment. Can you tell us briefly how we are doing thisin the 2010 Vancouver Olympic Games?MA: Sustainability is an important issue in Vancouver, Canada.Examples of how Atos Origin has minimized negativeenvironmental impact and help sustain local workforce include:> Choosing computer models that consume half of the

electricity than those used in Beijing 2008.> To limit travel, thus transportation costs and its environmental

impact, we are providing application and information systemsover the internet including the remote Commentator Information System and the Volunteer portal. The Vancouver2010 Volunteer portal is paperless since the entire applicationprocess is done electronically.

> In an effort to create long term value in the IT industry in Vancouver, we hire and train local staff. In addition, we hire qualified immigrants so they can acquire job experiencein Canada.

Perspectives: Magnus, as the Chief Integrator for the 2010Vancouver Olympics games, can you tell us in brief your roleand responsibilities?Magnus ALVARSSON: My role is to manage the program for AtosOrigin and to ensure that, from an IT perspective, we are ableto deliver the Olympic Games to the world without any errors.It is a challenging project due to the complexity associatedwith the number of partners, suppliers, customers and therelationships between all of us. More importantly, once theOlympic Games starts on the February 12, 2010 everythinghas to work flawlessly because in this project there is nosecond chance, it must be on time and on budget – AtosOrigin must deliver excellence. Having said all of this, I amvery thankful to the team I work with here in Vancouver, theyare excellent people and I am very confident that we will besuccessful.

Perspectives: As the worldwide IT Partner for the Olympic gamesand TOP Sponsor, Atos Origin integrates, manages and securesthe vast IT system that relays results, events and athleteinformation to spectators and media around the world. Whichpart do you think is the most interesting?MA: The most interesting part is the integration of the peopleand processes, rather than the technology. We are responsiblefor getting a large consortium of technology partners, suppliersand customers to deliver the IT portion of the Olympic Gamesflawlessly on time and on budget. Further, inherent with workingin this environment is a large number of cultures (in fact, VMEis composed of about 30 different nationalities), as well as anarray of different corporate cultures. Having such a diverseteam makes it more interesting, adds to the dynamic, and Ifirmly believe is one of our major success factors.

Perspectives: With less than one year to go, I believe we have90 AO staff, based on the VANOC premises. When did thepreparations start for such a big magnitude of an event?MA: Initial communication with VANOC started in 2005; howeverthe official project start was June 2006. The team consistedof few personnel in the beginning but since the start of 2008,the team has grown with approximately 1 person per week.During the Olympic Games we expect to have around 275people in Atos Origin uniforms leading a technology team ofapproximately 2,000 head strong.

Magnus ALVARSSON,Chief Integratorfor the 2010 VancouverOlympic Games,Atos Origin

Corporate Suswithin Atos Ori

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As an IT service provider, Atos Origin has started by deploying a responsibleGreen IT policy in house that is designed to:> Improve the environmental performance of our data centers and desktop assets> Change individual behavior> Implement a responsible purchasing policy

We also offer our customers solutions to shrink their own environmental footprintby reducing and optimizing their energy consumption. These include:> Innovative consulting and technologies to reduce the amount of electricity

used by data centers and servers> Environmental tracking and decision-support resources> Paperless solutions and virtualization services

We never forget that sustainable development also concerns individuals. Withthis in mind, we take actions towards our human resources and we encourageour subsidiaries and employees to take their own initiatives to save energy,protect the planet and help the surrounding community.

OUR COMMITMENTCompanies that operate in the global economy, such as Atos Origin, have boththe ability and responsibility to positively influence their employees, clients,partners and suppliers, while also ensuring that they benefit the environmentand communities in which they operate. Key to this is our approach to CorporateSustainability.

Corporate Sustainability is often defined as development that “meets the needsof the present without compromising the ability of future generations to meettheir own needs.” It covers a wide range of issues such as human rights,working conditions, building a sustainable enterprise and the environment, andis often referred to under the 3Ps:

People - providing social equityProfit - creating economic prosperityPlanet - ensuring environmental quality

Atos Origin is committed to operating in an economically, socially andenvironmentally responsible manner that is transparent, measurable andsatisfying to all its stakeholders.

Atos Origin’s primary objective is to deliver success and profit for its customers,shareholders and employees. It does this by focusing on the creation of aprofitable and growing business itself.

Although the business is driven by profit, the company works to achieve thisin a way that also delivers benefits to people, communities and businesseswithin its areas of economic, social and environmental influence.

Any activity is tested against the need to provide measurable social, economicand environmental benefits - to ensure that the company’s activity provideslong-term and sustainable gains wherever possible whilst still meeting thecommercial objectives of the company. The aim is to develop the measurementof sustainable activity into a best practice for other companies to follow.

Atos Origin has committed itself to integrating the 10 UN principles for CorporateSustainability in all its business processes.

The H@rmony ProgramATOS ORIGIN COMMITS TO SUSTAINABLE DEVELOPMENT WITH H@RMONYThe quest for ways to achieve responsible growth is an integral part of AtosOrigin’s approach, which, as part of the Group’s overall strategy, involvesidentifying and circulating best ethical practices at the economic, social andenvironmental levels both within the organization and among our stakeholders.

This commitment took form in 2007 with the publication of our H@rmonysustainable development program. Based on the European Foundation forQuality Management’s (EFQM) model, H@rmony provides a roadmap for action,sets operating targets, defines the internal transformation program and identifieskey indicators (KPIs). Although the charter covers all aspects of sustainabledevelopment, environmental issues are the priority for now. Today Informationand Communication Technologies (ICTs) account for nearly 2% of global CO2emissions-as much as the aviation industry.

Worse still, if data centers continue to grow at their current pace, greenhousegas emissions from information systems are expected to increase by 50% by2020.

GLOBAL SUSTAINABLE PURCHASING POLICYA significant part of our clients have developed and implemented a CorporateSocial and Environmental Responsibility. Motivations are diverse: the threemain reasons are promotion of the company reputation, required compliancewith regulation and perspective of savings (energy, process optimisation). WhileAtos Origin shares this vision, the most important driver to launch a sustainablepurchasing initiative is the market demand. To be more specific, Atos Origin

tainabilityigin

Perspectives June 2009 7

has to meet the increasing client demand to comply with sustainable bestpractices.

The appropriate response to business expectations was to launch a Globalinitiative with positive ripple effects on internal and external practices.

Purchasing is the first Global Function to launch a Sustainable initiative at aGroup Level. Marjo Lazaro Atos Origin CPO has designed a new SustainablePurchasing Policy, in total consistency with the H@rmony program.This initiative is based on:> The evolution of purchasing processes to introduce sustainable criteria all

along the supply chain (requirements specification, selection criteria, suppliermanagement)

> An available guidance (Sustainable Supplier charter, code of conduct for purchasing…) to develop a sustainable responsibility (internal and external)

> The evaluation of the environmental, social and ethical performance of a suppliers sample (through an external customised solution)

> A communication/training program to develop purchasers awareness of sustainability

> A performance monitoring device (“one can only improve what one can measure”)

Main expected benefits per countries and service lines are:> Enhancement of Atos Origin's reputation (attractiveness for investors)> Business development (keep on being referenced by clients and prospects)> Risk reduction (compliance with regulation, image)> Saving improvements (energy efficiency, TCO reduction, improved use of

resources)

GREEN OLYMPICS GAMESAs part of its partnership with the Olympic Games, Atos Origin helps theorganizing committee and the International Olympic Committee deploytechnological solutions to shrink the Games’ carbon footprint, from reducingthe consumption of paper to cutting down on travel.

For the Beijing Games in 2008, we developed the first remote informationsystem for sports commentators. The system allowed them to access competitionresults in a fraction of a second from their home country studios usingtouchscreen computers. This significantly reduced travel and CO2 emissions,as well as expenses.

In another first, a 150-person team developed and operated a platform for the

2010 Winter Games in Vancouver, BC to process more than 50,000 applicationsfrom volunteers in 100 countries, without having to travel or use any paper.

Atos Origin is taking all possible measures to deliver innovative technologicalsolutions with a limited environmental impact to reduce the carbon footprintof the Vancouver Olympic Games, and the two most significant examples arethe deployment and provision of remote applications, such as the informationsystem for sports commentators, and the recruitment portal that managesvolunteers’ applications electronically.

In particular, we decided to:> Use more energy efficient computers than in Beijing> Reduce the number of servers> Greatly reduce paper consumption> Limit the number of business trips

The goal for London 2012 is to measure the direct, indirect and associatedlevels of carbon generation and seek to deliver tangible improvements.Our actions include work to optimise the technology infrastructure and configureit in a sustainable way, along with improvements that could be delivered byusing low-energy data-centres, as well as placing an emphasis on publictransport (2012 is also the public transport Games) and by focusing on asustainable supply chain across the construction and operation of the Games.

In an interesting development, 2012 may also provide an ideal opportunity todeliver improvements outside the scope of most projects. For example, withan audience of billions, Olympic sponsors are already in the process of launchinglow-energy, low-emission products or services as a catalyst to promote theiruse across the world.

If London 2012 can successfully deliver a measurable reduction in carbonemissions, along with some of the other social and economic benefits, it willserve as a model of how organisations can bring together the different valuesof service, profit and sustainability to mutually beneficial effect, finally deliveringthe promise of sustainable business.

The Sustainable

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nvironmental and ethical policies may be an essential part of the corporate toolkit but,with many customers now asking for more than just statements of intent when it comesto a company’s green credentials, isn’t it time for a more systematic approach to delivering

the sustainable agenda?

IT can play a key role in helping to reduce the environmental impact of an organisation, but muchof the early promise has failed to translate into measurable results. However, with a recent surveyrevealing that one in five vendors makes an effort to select goods and services that have a lesserimpact on the environment than the alternatives, businesses now have the opportunity to turnwhat was once perhaps just corporate altruism into a significant marketing opportunity.

The first challenge for any business is to find a way of quantifying the benefits of its actions. It’sall well and good putting in place a new initiative or claiming to have reduced energy consumption,but the imperative today is to turn this into facts and figures. The IT resources that are so essentialto corporate efficiency are also amongst the most power hungry, greatly adding to the carbonfootprint of the organisation. So, for management, it’s essential to establish accurate measurementsthat can be used to gauge progress against the company’s targets. For example, just how muchenergy is being saved by your new data-centre? What is the reduction in carbon footprint thathas been achieved by the installation of low-power PCs? In short, what’s the payback?

Fortunately, many of the major manufacturers have already made a move in this area and provideuseful data regarding the energy consumption of their systems. It’s a good start that allows youto assess the progress that your business is making when it comes to the environment but, toreally stand out from the crowd, you need to put in place a comprehensive strategy of improvement,measurement and review that takes a complete view across your entire business.

When it comes to measuring the main areas of influence that any business has, it may help todivide it into four categories: direct, indirect, associated and out of scope. These measures allowyou to identify the places where you can achieve the greatest ROI and focus your resourcesaccordingly. At the same time, by providing a picture of your company’s peripheral impact, italso enables you to complete the circle of sustainability by engaging with third parties, such assuppliers and customers, enabling you to develop a more flexible strategy based on an holisticapproach to ethical and environmental policy.

So How Do We Define Those Four Categories?DIRECT AREA OF INFLUENCEThis is the immediate impact that your business activity has on its surroundings. Obviousmeasures include energy consumption, waste generation and levels of recycling. Attacking thedirect issues is the starting point for most organisations and many have already made significantinroads in this area. However, it’s easy to become complacent by simply putting a number ofmeasures in place and then forgetting about them. To remain ahead of the competition, yourinternal policies should be under continual review.

Francisco PINHEIRO,Director of Innovation at the

Group Innovation Team,Atos Origin

HOW BUSINESSES CAN TURN SCEPTICISM INTOCOMMERCIAL ADVANTAGE BY PROVING THAT THERE’S

MORE TO THEIR SUSTAINABILITY CLAIMS THANJUST MARKETING HYPE.

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e AgendaINDIRECT AREA OF INFLUENCEThis covers those areas of activity that, whilst not directly concerned with your business, neverthelessare an essential component of your product or service provision. For the most part, this is yoursupply chain and, working in partnership with your suppliers, you should seek to optimise theefficiency of your purchasing and delivery processes. Of course, this makes sense from a businessperspective too, delivering benefits in terms of cost-saving and improved delivery times.

AREA OF ASSOCIATED INFLUENCEThis area is much harder to manage. What are your customers doing to reduce the impact oftheir activities? How about your employees? Before dismissing this as too broad a goal, considerthe possibility of engaging with your customers to discuss how you can work with them in areaswhere the supply of products or services overlaps with opportunities for sustainable improvement.They are under equal pressure and, by helping them address this, you may build a strongerrelationship and foster greater loyalty.

OUT OF SCOPEThere are activities that cannot easily be measured but have an influence. It is difficult for anybusiness to exert direct influence in this area. Instead, this is where overall strategy starts tohave an impact: for instance, in the energy efficiency of own and partner products (for example,an electronics firm providing low-emission televisions for the expected four billion viewers of theOlympic Games) or through the longer-term green benefits of sustainable consultancy tacklingthe ‘bigger picture’ of corporate environmental impact.

Those broad categories are not definitive, instead acting as a starting point or baseline uponwhich to build a credible and practical sustainable business strategy. To see how it translatesinto the real world, let’s look at how these principles are guiding the delivery of a project thatexists under the microscope of media and public scrutiny: the Olympic Games (see below).

There are a number of technological innovations that can help improve a company’s performancein these areas. For instance, the emergence of communication and collaboration as a methodof remote working will also alleviate some of the travel requirements for many businesses- alongwith intelligent transport systems and utility networks that can even address areas of influenceoutside the scope of the organisation.

Organisations should seek to embed innovative policies within their day-to-day business practices,supporting them with a set of measurable criteria that can be targeted and assessed. By defining,building and operating an enterprise-wide set of sustainable practices, a company can transformits approach and build a long-term, profitable strategy that will deliver its commercial goals withinthe framework of the new sustainable agenda.

The pressure is now on for businesses to start showing the substance behind their claims. It’sa challenge, but it’s also an opportunity for innovation, and those businesses that win the integritybattle and emerge as front-runners in the new race will leave their less-than-green competitorsgreen with envy.

Perspectives June 2009

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ThinApp AGENTLESS APPLICATION VIRTUALIZATION SOLUTIONLong before Thinstall was purchased by VMWare, Atos Origin Switzerland wasalready working with ThinApp and has gained comprehensive experience ofthis software virtualization solution. We have well trained technicians that areable to support customers, which are using this solution in their daily businesswith their virtualization needs. We support and consult these customers fromstart till to the end of the lifecycle of the solution.

THE MARKET FOR VIRTUALIZATION SOLUTIONSDespite of all the consolidation efforts, the number of applications that businessesare supporting is steadily growing. They need to operate simultaneously andseamlessly integrate in given desktop environments. These become increasinglycomplex and by this also fragile, increasing the cost of software deploymentas well as support to astronomical heights. Months of multi-application regressiontesting, difficult user support and downtime caused by unforeseen applicationconflicts are common problems of IT staff today.

Keeping It SimpleVMware ThinApp (formerly Thinstall) is an application virtualization technologyacquired by VMware to extend its reach into the desktop environment. TheVMware ThinApp platform has been in development since 1999. ThinApp iscurrently leveraged on well over 1 million deployed clients and has beenintegrated with many of the leading packaging tools such as Acresso AdminStudioand PC configuration management solutions from vendors such as Microsoft,LANDesk, BMC, matrix42, and Symantec.

APPLICATION COMPATIBILITYThinApp is compatible with a vast majority of applications across a variety ofoperating systems. Using ThinApp application virtualization technology enablesrunning 32-bit applications on 64-bit systems or supporting legacy NT applicationson XP or Vista machines to enable system consolidation and decommissioningof hardware without loosing the applications needed.

AGENTLESS SOLUTIONThinApp platform does not need any proprietary management agents. Virtualizedapplications run on any current Windows based platforms, can be deployedas MSI files and integrated with most existing software management toolsets.ThinApp increases endpoint flexibility while limiting the complexity associatedwith managing heterogeneous environments.

PACKAGING SIMPLICITYBecause ThinApp supports standard .MSI/.EXE packaging, it simplifies the

application virtualization process and eliminates the need of training administratorson yet another new packaging process.

SUPPORTING MOBILITY“Thinstalled” applications don’t need an agent and are therefore highly mobile,enabling IT organizations to deploy applications on numerous media typessuch as USB flash drives.

SIMPLIFYING OS MIGRATIONSSince ThinApp virtualizes the OS to the application, IT applications can easilybe from one Windows platform to another.

NO IMPACT ON EXISTING INFRASTRUCTURESAlthough application virtualization is a relatively new technology, applicationmanagement infrastructures are not. They are pervasive and tend to rely onintegrated product suites that perform software and hardware asset discoveryand inventory. For application virtualization to be successful as a model, it willneed to extend the capabilities of these platforms without adding to the existingmanagement complexity. With ThinApp’s agentless solution, virtualizedapplications can easily be distributed to clients using the existing managementinfrastructure, while simplifying the application landscape on the clients.

CHALLENGES/OPPORTUNITIESOne of the most uniquely and differentiating characteristics of the ThinApp’sapplication virtualization approach is its agentless nature. It is largely thischaracteristic that enables the capabilities listed earlier, such as integrationinto existing management infrastructures for inventory, distribution, andcompliance reporting. However, the lack of an agent on the endpoint devicealso means that thinstalled applications are dependent upon another systemsmanagement platform. But for many users, this reliance upon anothermanagement framework is a benefit given the large investments that theirorganizations have already made in these infrastructures.

CONCLUSIONBy providing a separation between application and operating system, IDCbelieves that application virtualization technology will be an integral part of thedynamic desktop environment of the future. Further, compared with other VCCtechnologies, such as server-hosted virtual desktops, application virtualizationrepresents a technology that can potentially offer short-term ROI benefits bylimiting costs associated with the testing, deployment, and management ofapplications.

Virtualization

Perspectives June 2009 11

ATOS ORIGIN ROAMexAtos Origin ROAMex is making your environment compliant with RAEXrequirements and supports integration with existing systems and DBs. ROAMexkeeps your sensitive information in house and brings you all benefits of costeffective and time saving electronic exchange of roaming agreement data,including IOT (Inter Operator Tariff):> Resource saving for AA.14 inputting> Data accuracy and reliability> Resource saving across the team on finding contacts, generating mailing lists> Ability to generate reports for Customer Care, Faults, Fraud and Finance teams> Better audit process and proof of delivery

THE SOLUTION INCLUDES:RAEX Editor - Intuitive GUI, following guidelines of current Word version of AA.14template and supporting: initial creation of your first electronic RAEX document,full version control including draft and pre-release versions, document sharingand user right control, export to PDF for "normal" distribution.

RAEX Reader - Automated tool validating and importing RAEX document receivedfrom your roaming partner into internal repository and providing GUI, displayingcontent of received RAEX document. Open, fully documented repository structuresimplifies integration with any external system. Atos Origin AG provides youon-site consulting services, helping to integrate RAEX into your existing RoamingManagement and TAP processing systems

RAEX Reporter - powerful reporting tool, supporting generation and automateddistribution of reports and notifications, based on RAEX data and providing:automated comparison of 2 versions of RAEX documents with generation of"cross-check" revision information, based on detected differences, generationand automated distribution of notifications, based on revisions in RAEX documents,generation of the reports, based on content and revision information of yourown RAEX documents and documents, received from the roaming partners.

ATOS ORIGIN NEETRIXAtos Origin NEETRIX - implementation of mandatory NRTRDE (Near Real TimeRoaming Data Exchange) is fully integrated into your productive environment.NEETRIX implements creation, validation, rating and format conversion for

TD.35 (NRT files). NEETRIX automates sending and receiving of NRT files andsupport creation of Fraud management reports.

The fully configurable, template driven NRT Creation module supports variousnative switch and custom build formats and can be incorporated into virtuallyany processing environment. The NEETRIX creation implements filtering ofroaming calls and produces NRT files based on flexible creation rules individuallyconfigurable per roaming connection.

Using the preconfigured delivery targets, NEETRIX fully automates sending ofNRT files and tracking of delivery information and helps in analyzing of potentialfraud claims and investigations.

Atos Origin’s NEETRIX performs complete validation of each incoming NRTfile, based on rules defined by TD.35 and protects your system fromincorrect/incomplete implementations. The NEETRIX reporting implementsmandatory File Delivery and Error reports, helping in troubleshooting process.

Depending on your requirements, NEETRIX performs rating of incoming NRTfiles, applying your own retail rates or simulating tariffs of visited network andextracts content of the NRT file in the predefined format for further processingin Fraud Management System.

The NEETRIX Fraud Reporting module supports generation of threshold-basedfraud reports and classical Multi-Network High Usage Report (HUR).

RAEX (Roaming Agreement Electronic eXchange) as well as NRTRDE (Near Real Time ROamingData Exchange) are fully supported by the Atos Origin TAP3 - Roaming Solutions. While AtosOrigin ROAMex and NEETRIX are modules for easy integration into the existing BSS landscapeboth are also incorporated into ROAMit - the state of art roaming billing and clearing system.

Atos OriginRoaming

Solutions

Billing System

Fraud ManagementSystem

TAP-Out

NRTRDE-Out

TAP-In

NRTRDE-In

EDI

MSC and/orCharging Gateway

ROAMIT RoamingPartner

Overview showing ROAMit in relation to the network, the billing and fraudmanagement systems and EDI software, respectively the roaming partner (VPMN, HPMN).

12

IMShe European telecommunications landscape is undergoing a revolution that is transforming

the industry. End User (both consumer and corporate) needs are driving this revolution as they look for the services they use on their PCs at home to be available on the move

via their 3G mobile handsets, with consistency of experience, taking into account the quality ofthe service delivered and resulting in a single unified bill at the end of the month. Added to that,new technologies are enabling a whole host of devices that combine communications with video,text, graphics, sound and more.

As a result, the battle for the attention of customers immersed in a multi-channel content richenvironment has never been more intense and each participant in the creation and delivery ofvoice and content services is looking to change the status quo to their benefit.> Network Operators are looking for ways to differentiate themselves from their competitorsthrough the introduction of new services and more extensive service bundling, whilst at the sametime defending themselves against the expansion of hosted Internet services, such as Skypeand Google, that threaten to reduce them to mere ‘bit pipes’.> Content Providers are looking to establish direct relationships with End Users in an effort toleverage maximum value from their brands and improve revenue by removing Network Providersfrom the mediation and aggregation role they currently fill.

The IP Multimedia Subsystem (IMS) holds the promise of fulfilling many, if not all, of the aspirationsof End Users, Network Operators and Content Providers. In doing so however, the model ofservice delivery which it describes has the potential to alter the current industry norms beyondrecognition. Although many see this change as inevitable, there are a number of technicalchallenges to be overcome, and commercial battles to be fought, before IMS can truly beconsidered a reality. Atos Origin stays abreast of these challenges, has intimate knowledge ofthe marketplace and, with unrivalled consulting skills and systems integration capabilities, isbest placed to help its clients get the most out of this new generation of network technology.

WHAT IS IMS?IP Multimedia Subsystem (IMS) is a new network architecture and framework that enables theconvergence of data, speed and mobile technology over an IP-based infrastructure. It emergedfrom the standardization work undertaken by the Third Generation Partnership Project (3GPP)for 3G mobile phone systems in UMTS networks and is becoming the de facto standard for real-time multimedia communication services.

IMS allows users to easily share content with their peers, be it real-time video, Voice over IP(VoIP) calls, or multi-party games. It was created to be a standardized reference architecturewhich could be implemented by Network Operators to enable the delivery of next generation

Unstoppable change withIMS-IP Multimedia Subsystem

Perspectives June 2009

services. To achieve this, IMS uses standardized protocols, such as SIP andSDP, in conjunction with a set of defined IMS entities to handle key functions,such as Session Management, Interworking, Charging, management of UserProfiles, etc. IMS holds the promise of enabling a globally interoperable marketfor multimedia terminals (such a 3G mobile devices, PCs, Digital TVs) whereusers can access and share services irrespective of the device they are using,or the access network they are currently connected to. It has the potential toturn the 3G dream of flexible, content-rich mobile Internet into a reality. IMSfocuses on products, services and software integrated across five layers of thenetwork.

Possible Benefits Of IMSIMS is being broadly promoted as a ‘good thing’ which will bring benefits toall parties involved in the provision and consumption of next generation voiceand content services. However, as the interests of all parties are not perfectlyaligned some of the benefits anticipated by one party may be in direct conflictwith those expected by another. That means IMS has the potential to radicallydisrupt the current status quo and foster completely new models of contentprovision and consumption. Potential benefits to Network Operators includeenhanced revenues, reduced costs, a future-proofed network, expanded serviceofferings, the ability to be more than a bit pipe, and management of subscriberrelationships. For Content Providers, IMS could mean a direct relationship with

Asia-Pasific

North America

Latin America

Western Europe

Eastern Europe

Middle East and Africa

180.000

160.000

140.000

120.000

100.000

80.000

60.000

40.000

20.000

0

2007 2008 2009 2010 2011 2012

WORLDWIDE IMS FORECASTIMS SERVICES REVENUE BY REGION

the End User, a globally addressable market with low barriers to entry, andindependence from networks and devices.

ENHANCED REVENUESIMS allows new services to be deployed which will generate new revenuestreams as well as allowing more creative charging models to be applied(e.g. differential volume charging based on the content of IP packets). The poorreception that this is likely to receive in practice may mean that it does notoccur for some time.

REDUCED COSTSIMS has the potential to reduce the number of network elements and thecomplexity of operating them, leading to OpEx savings. Additionally, if atransition to VoIP is included as part of the business plan, then major costsavings can be realized by moving out of unused buildings (e.g. where oldstyleTDM equipment was housed). Indeed, the business case for one major Europeandeployment is 80% driven by property considerations. Future-proofed networkand expanded service offerings Because of the multi-layered abstraction modelwithin IMS (where the Transmission and Access layer is abstracted from theSession Control layer which in turn is abstracted from the Services andApplications layer), the future addition of new access technologies or morecreative services can be smoothly accomplished with minimum impact to therest of the architecture.

ABILITY TO BE MORE THAN JUST A ‘BIT PIPE’ AND MANAGE SUBSCRIBERRELATIONSHIPSNetwork Operators are fiercely resisting the notion that they be reduced to thestatus of a utility, blindly providing IP packets to users. They are looking tooffer more value to End Users via bundling of services and by providing brandedcontent in the form of a ‘walled garden’. IMS gives the Operator a furtherjustification for its unique place in the value chain by allowing the Operator tomanage IP policies based on content types, and to charge differentially basedon both content and quality of service.

is Happening Now

13

14

Market Drivers &Opportunities

> Consulting, integration or managedservices delivery capability

> Experienced playerpre-IMS platform in production forunified messaging(1.5M+ end-users)

> SIP-IMS Innovation lab createdA lab dedicated to trials and R&Dprojects for Telecoms players with:- Virtual dashboard,- Web 2.0 collaborative tools,- SIP Phone and Video/TV

> ToIP is implemented in the companyas a “test and learn” approach

> Fixed-Mobile ConvergenceA new communication experiencefor the end-user – one number,universal reach independent fromconnectivity

> Agility for new servicesIMS enables new types of servicesmixing multi-session types ofcommunication

> Costs optimization (for Telcos)

> Time delivery accelerationfor application development anddeployment

Atos OriginAdded Value Risks

Next Steps

> Exploitability

> Initial costs

> Security

> “SIP voice and Video contactcenter” creation

> Ramp-up new ‘rich’ communication experienceservices

Market Drivers &Opportunities

> A pre-IMS Platform installed atour labs in Paris

> A SIP / IMS Skill Center

> Capitalize on our skills> Intelligent Networks> Media Servers> Messaging: IVVR-MMS-SMS-IM

> Being ready to answer the requestsof our customers> IT consulting> Technical architecture> Development & Integration

> Federate our ecosystem ofpartners

Atos OriginAdded Value Achievements

Next Steps

> Anticipating our customersexpectations

> A better understanding of operators’ business to help themanticipate the next generation services

> Strengthen our ecosystem andinvolve our main customers

> Offer packaged solutions based on the new IMS architecture

> Instrument a reliable & scalableevolution towards IMS

INNOVATION SIP- IMS (IP MULTIMEDIA SUBSYSTEM)CONTENT PROVIDERSContent Providers are already anticipating that widespreadIMS deployment will be of benefit by allowing them to fostera more direct relationship with their customers. Announcementsby MTV and Disney imply that these players are already welladvanced in their plans and it will not be long before smallerplayers get on board.

IMS INCUBATIONAtos Origin has created a demonstration facility for its IMSservices in Paris, France. This facility allows for the prototypingof platforms and proofing of concepts meaning that clientscan experience what IMS may bring to their business in atotally safe environment. Such technology trials ensure thatclients enter the IMS arena with a clear view, can see howIMS would impact their business in reality, giving them totalconfidence in their IP Convergent Services solution. Thedemonstration facility is open and many of Atos Origin’salliance partners have already expressed a desire to be involved.

Perspectives June 2009

IMS Services - Intelligent ChargingINTRODUCTION> Operators are looking to enhance revenue by deploying new services such

as VOIP, Mobile TV and IPTV, but are constrained in the development of anoptimal charging strategy by an inability to charge based on user experience.

> The Intelligent Charging proposition offered by Atos Origin in conjunction with it's alliance partners offers a means for Operators to maximise their revenue by enabling charging to be linked with customer experience.

BUSINESS ISSUES> VOIP and Mobile TV present significant challenges for Operator deploying

charging strategy. The technical characteristics of service delivery over IP limit the ability of the Operator to measure individual user experience, and hence the charge appropriately.

> Wishing to avoid the high costs of resolving customer complaints after beingcharged for a poor experience, Operators are currently forced to adopt subscription charging models which can’t maximise revenue in the waypay- per-view charging can, for example.

TARGET AUDIENCE> Fixed Service Providers, Cable Operators & ISPs wanting to ensure optimal

VOIP user experience during early deployments.> Mobile Operators wanting to move away from a subscription model for

Mobile TV.

OUR APPROACH> Atos Origin brings market-leading experience to meeting the challenges of

charging for digital content-The benefits to operator of a client-based qualitymeasurement solution could be substantial Services offered include:

> Measurement of chargeability of end toend customer experience (both Voiceand Video) to overcome the limitations of derived server-side quality measurement and to enable sophisticated charging models.

> Full Integration of an agent-based content charging architecture, included hosted models if desired.

> Quality analysts of video content upon ingest allows the operators to know if the content prouder is meeting the quality SLA.

15

A CUSTOMER’S VIEW OF THE NETWORK IS DIFFERENT FROM A NETWORK’S VIEW OF THE CUSTOMER

DataServices

Voice

Video Streaming Media (core probes ignore packet loss at all hops)

Data Services (core probes can't detect non-transactional completion)

RANUTRAN TX Network

ATM/FRSGSN

IP CoreGGSN

Access IP

The Lean and

16

he introduction of the Mobile Virtual Network Operators (MVNO’s) has had a huge impact on the

telecommunication industry and is there tostay. Initially launched to provide customerswith cheaper calls and SMS’s it forced theestablished mobile operators to adapt theirprice plans in order to stay competitive andnot to lose too many customers. In manycountries this has led to considerable lowertariffs for the customers which left theestablished mobile operators with decreasedmarket share and lower margins.

The first generation MVNO’s entered the marketas a new type of Communication Service Providerthat had telecommunication services as their corebusiness. For those MVNO’s to establish asustainable business they needed the following:> Negotiate an extremely good wholesale

deal with the Mobile Network Operator (MNO)> Establishing a very lean and mean

organization> Using a very dedicated and cost effective

IT infrastructure to support their business

WHOLESALE DEALGetting a good wholesale deal with a MNOwas a difficult task as many MNO’s were notinterested in such deals because theyperceived it as helping a competitor. Incountries where the National RegulatoryAuthority played an active role, the MNO’swere forced to open their networks whichreally helped the uptake of MVNO’s. Themain reason for the NRA’s was to stimulatecompetition that will result in lower tariffs.The key issue here is that the MVNO shouldnegotiate a wholesale price that leaves roomfor them to add the other costs (IT, customeracquisition costs, staff, etc.) and still makea small margin.

Gradually MNO’s recognized that MVNO were able to attract (specific) customersmore effectively and at lower costs, or in other words, better than they weredoing themselves. In addition, MNO’s were facing the challenge to maintainsufficient network utilization in order to run their network cost efficient. Thishas led for some MNO’s to adopt a so called wholesale model to achieve theirutilization goals. The simple idea behind this is to fill up the network with trafficgenerated by MVNO’s, given the fact that MVNO’s seems to be better inacquiring new customers than MNO’s.

To complete the equation, the MNO get’s less per subscriber when sellingwholesale minutes to a MVNO but it should be realized that the differencebetween the revenue from the MNO’s own subscribers and the revenue froma wholesale deal (at subscriber level), could be lower than the SubscriberAcquisition Costs (SAC) of the MNO.

LEAN AND MEANThe business model of the MVNO is that their highest spending is on buyingairtime from the MNO. For MVNO’s to make a viable business, it is necessaryto keep the operational costs low in order to maintain a (small) margin. Theseoperational costs comprise IT, staffing, marketing, SAC, etc. It is obvious thatmarketing is key for a MVNO and this is also a substantial portion of theirbudget. Maintaining physical shops is very expensive and therefore does notfit in the business model of a MVNO. That’s why MVNO’s developed a modelwhere customers can buy a SIM card on the internet or in retail shops to beused with a mobile device that is already in their possession. The SIM cardactivation will be done via a web portal of the MVNO. This will allow the MVNOto have a completely automated process of ordering, activation and eventopping up. With this approach, some MVNO’s were able to run the wholebusiness with just a hand full of people.

This model will work best (or only) in countries where the mobile penetrationrate is high (and subscribers having already a mobile device). In addition,countries where mobile penetration is high or has reached saturation, pricecompetition is more fierce and customers more willing to churn (to MVNO’s)in exchange for lower tariffs.

DEDICATED IT INFRASTRUCTUREMost MVNO’s need fully automated processes in order to avoid ‘expensive’human intervention. But they also need flexibility in their service offering toanticipate on the rapid changing market dynamics. As more MVNO wereentering the market, prices came under pressure and changes in price planshad to be implemented on the fly. If MVNO’s would share part of the MNO’sIT infrastructure for Customer Care and billing, they would have to accept to

Gerben A. MENTING,Senior Business ConsultantTelecom,Atos Origin

Mean: MVNO

Perspectives June 2009 17

be part of the MNO’s development and release planning, which can takemonths. This has driven the development of specialized MVNO platforms thatgive MVNO’s the necessary flexibility in defining and changing customer care,service offering and price plans. These “MVNO platforms” are of course closelyinterconnected with the MNO infrastructure for the provisioning or terminationof subscribers or services and the exchange of information such as usagedetails (CDR’s). Sharing the platform and its costs among multiple MVNO’semerged as a way to have access to an “own” IT back office environment atan affordable price. This is where the Mobile Virtual Network Enablers (MVNE)came to market. A central platform linked with different MNO’s, even in differentcountries serving several different MVNO’s became common practice. Evena MVNO organizations itself can be virtual (having management in country Abut a helpdesk in country B, etc.). With the introduction of MVNE’s and at thesame time MNO’s adopting wholesale models, an interesting developmenttook place. MNO’s were starting to offer wholesale to MVNO’s and at the sametime access to Customer Care and Billing from a dedicated MVNE platform.This would facilitate the MVNO’s to operate independently and flexible in theirofferings and price plans but having it all in one deal. Although this seemattractive, MVNO’s will realize that this is also a lock-in buy because they willbe less flexible (or not at all) in changing their host operator in the future.Changing to a different MNO will require a new wholesale deal but also establishinga new IT back office. Different situations exist in today’s MVNO market.

NEXT GENERATION MVNO’SEvery country where the MVNO model has been introduced has witnessed astrong decline in tariffs for voice and SMS. Some countries currently have morethan 50 MVNO’s or different forms of Service Providers. A logical evolution inthis MVNO market is that after the first introduction of low cost or ‘no-frills’offerings, tariffs difference become slimmer and the margins for MNO’s andMVNO’s become slimmer. At the moment price is not a major differentiatoranymore, so MVNO’s will have to look for differentiation such as value addedservices or quality of service if they want to make a difference. The right choiceis greatly related to their current offering and target audience. MVNO’s targetingyoung people might start offering ring-tones, screen savers, etc. whereasMVNO’s targeting business people would probably think about offering betterquality of service and business related services.

The first ever MVNO Virgin Mobile in the UK started as a so called full MVNO.This means the same infrastructure as a MNO except for the radio accessnetwork, obviously a costly and complex exercise. After Virgin Mobile all otherMVNO’s started with a reseller or light MVNO model. The reseller model is thecheapest model that rebrands the service of the MNO with no control over

service differentiation and very slim margins. The light MVNO models dealswith MVNO’s that own or rent the back office IT infrastructure (customer care,biling, provisioning, etc.). This gives the MVNO more flexibility which can resultin service differentiation and consequently can lead to some increase in margins.

Currently we see more and more MVNO expanding into the core network (ofthe MNO) as this is the only way to get control over the service layer andoffering value added services. With the emerging IP-based (SIP) communication,CSP’s start offering new SIP-based services such as Voice over IP (VoIP).These services are competing directly with normal voice services but also withinternational roaming, fixed mobile convergence, computer integration, etc.This development opens lots of new opportunities for CSP’s and leading tofurther competition but also changing business models, new value chains, newservices, etc.

EVOLUTION OF MVNO MODELSThe initial introduction of the first MVNO’s in 1999-2000 has led to an interestingdevelopment of the telecom market in general and for mobile in particular.Some examples are:> Introduction of stronger segmentation of the subscribers> Operating a more cost effective Customer Care by automation and using

internet portals> Leveraging brand awareness

Where MVNO’s were initially focused on offering mobile communication serviceswe currently have a broad range of providers of some kind of communicationservices, such as VoIP, ADSL, TV, long distance calling, etc. hence we bettername them Communication Service Providers (CSP). The introduction of newservices has allowed the CSP’s to offer bundled services such as mobile, VoIP,internet and TV or any combination of them. However this has also openednew opportunities for fixed operators or cable TV operators as they could usethe same model to add additional services to their portfolio. We now seetraditional cable TV operators offering also internet, VoIP and mobile services.

Conclusion The MVNO’s have certainly impacted the telecom market and brought us newand interesting business models. With the telecom industry continuing to moving towards anall IP based layered infrastructure, there will be many more new opportunities, especially fornontraditional telecom service providers. We will see more and more clouds of companies thattogether deliver a service based on some form of revenue share models. Each player in such acloud should be a champion in his or her particular business in order to make the best offer andto survive. Some will bring in their brand awareness where others have their mobile network withgood coverage, price or quality. Technology is the enabler and under continuous developmentbut it are the smart ideas and imagination that are driving the new business.

Partner intervie

18

Perspectives: Would you briefly introduce us Intec and give us brief informationon your activities?Reece DONOVAN: Intec is a global company, listed on the London Stock Exchange,providing billing software to predominantly the telecoms industry including 70of the world’s top 100 network operators. Working at the heart of its customers’operations, Intec enables them to manage and bill their inter-operator ie‘interconnect’ calls with maximum precision and, along with convergent retailbilling management, delivers impactful ROI, competitive edge and optimisedoperational efficiency. We have installations with many major operators acrossthe EMEA region, but at the same time we are working with a number ofemerging operators and are also enjoying conversations with new start-ups as well.

Globally we are market leaders in two of the three major segments inOSS/BSS - Interconnect and Mediation. This puts us comfortably as a leadingplayer in BSS and we have just been awarded the ‘Best Billing Solution’ forour work with Polkomtel, at the Billing & OSS Excellence Awards; we were alsoawarded BSS Vendor of the Year 2008 by www.telecommunicasia.com, in theirReaders’ Choice Awards. With over 400 across the world Intec’s customerbase includes wireline, wireless and next-generation operators, MVNOs andCable MSOs as well as customers in non-telecoms industries including financialservices.

Perspectives: Intec has operations in many different locations, with over 70% ofthe world's largest carriers actively using your products. Do you think EMEAregion has a potential for future of Intec’s growth strategy?RD: The EMEA region has great potential for growth, and we are already planningexpansion in the emerging markets. What we’re seeing is a growing propensityand appetite for higher value and innovative value added services, personalisationand more control over the way subscribers consume the services they want.Aligned with this is the growing eco-system of content players who operatorswant to work with and shorten the time to market new, innovative services.In turn this increases the number of partners operators need to manage, andadds to the complexity of real-time partner contract management.

Operators therefore increasingly need solutions that reduce complexity froman operational perspective, while helping to enhance revenues and profitabilityand, mission-critically, support subscribers’ expectations and their experienceof next generation services.

Perspectives: Would you please describe current position of Intec products inthis market?RD: Our products fall into three areas:Interconnect: A large proportion of a telecommunication service provider’srevenue typically comes from partners; through agreements for call termination,routing network traffic, roaming, content settlement, service resale and manyothers. Intec’s Wholesale Business Management System manages theserelationships including billing and settling with the partners and optimising theuse of routing agreements. Intec is the dominant player in this segment with25% market share.

Mediation: Intec’s Total Service Mediation products take charge of all interactionsbetween the service provider’s network and their business support systems,including collecting events for billing and business intelligence, activatingnetwork services and supporting real-time charging for next generation services.Intec’s software leads the market in functionality, performance, reliability andusability and has 25% market share in targeted segments.

Billing and Customer Management: Intec is one of the world’s top five providersof billing and customer management services to the telecommunicationsindustry with 7% market share. Intec’s billing solution, Singl.eView, is uniquein the market as having a completely integrated architecture that supports anytype of service, customer and payment type. Singl.eView’s breadth of functionality,flexibility and scalability make it a popular and reliable choice for serviceproviders attempting to sustainably differentiate themselves from theircompetitors.

Perspectives: What do you think about Telco related products in the future? Howdo you position Intec in the future market?RD: Markets continue to move in the direction of real-time and convergentservice capabilities. Online charging, particularly for mobile broadband servicesand the integration of online and offline charging, approximating to conventionalpre-paid and post-paid services, requires new functionality to manage chargingconvergence and customer support.

The growth of digital content and requirements to support the content deliveryenvironment are clear trends. We are witnessing fast evolution in terms ofcontent distribution models, with the arrival of the ‘Apps Store’ model, a new

Atos Origin’s strategy is focused on working with partners to deliver the most effective andappropriate service to our clients. We understand that our clients want and need to work withthe ‘best of breed’ for their particular business situations, and that a combination of organizationswill form the basis for the ideal solution.

ew: INTEC

Perspectives June 2009 19

way to manage and distribute content. With Apps storesgaining popularity and the development of alternatives totraditional voice services (VoIP in general and P2P servicesmore specifically), operators need to find new ways to managethe value chain and the revenue accruing from these types ofcommercial models.

While we will continue to focus on our core capabilities, newareas of focus for Intec include anything to do with contentand IP based services. In the area of inter-operator settlementthis involves IP interconnection (IPX), but also involves theintegration of value chain management for end-to-end contentpartner settlement.

In the area of mediation we continue to focus on even highervolume transaction management processing, and we are alsoensuring support for low latency next generation activemediation requirements, supporting 3GPP and related IPbased call and session control and management.

From a charging and billing perspective, we are continuing tobuild on our leadership in convergent charging, with innovativeapproaches to online charging as well as integration of onlineand offline customer care and charging models. There is aclear trends among the operators we work with, towards newinnovative ways of providing services to subscribers, usingblended service and charging propositions, and we intend tocontinue to help our customers support these new commercialmodels.

Perspectives: How would you define the relationship betweenIntec and Atos Origin? What steps do you think should betaken to reinforce our partnership?RD: We believe it has been a very effective relationship whereboth parties always have the interests of the customer foremost. In terms of going forward, long-term planning will becomemore important so both parties can better anticipate the needsof customers such as MTN and, secondly, build upon thesynergies and strengths of our respective organisations.

Perspectives: Atos Origin and Intec have not many commonprojects. How do you think we can change this?RD: It’s about sharing our experiences. We should be promotingthe success of our engagement in South Africa through ourrespective organisations, so our sales and delivery colleagues

can understand the nature of the challenge, why it has beensuccessful and how we can leverage that experience elsewhere.

Perspectives: We are working together on the project with MTN,one of the leading telecom operators in South Africa wherewe are implementing a new billing environment usingSingl.eView from Intec. How is this project of strategicimportance to you? What are the biggest challenges youencounter in this project?RD: This programme has been highly strategic for Intec giventhe position of the MTN Group in Africa and the Middle East.MTN SA provides the Group with close visibility of the powerof the Intec applications (Mediation, Interconnect)and it is ouraim to see the benefits it shall bring by adopting a strategicplatform across the Group.� It has certainly been challenginggiven the scope and complexity of the ISIS (and otherapplications) replacement programme.�� We're providingimproved flexibility and more streamlined functionality througharchitecture transformation; the Powerbill programme mostcertainly will simplify the current architecture and provide amore scalable and resilient solution for the MTN business.

Reece Donovan – President, Global Services, IntecReece draws in his understanding of IT service delivery,strategic partnering, general management and businessdevelopment over multiple customer segments to leadIntec’s 1000 strong team of professional service experts,in their engagements with customers around the world.Over the last 11 years, Reece has gained extensiveexperience in a professional services environment wherehe has led the delivery of complex ERP software programs.Additionally, he holds in-depth knowledge aroundimplementing and managing shared services and buildingcompetitive IT capabilities and propositions. FormerlyCOO for Steria’s Enterprise Applications Solutions Business,Reece has a BSc in Electronic Engineering and MSc inMedicine (Biomedical Engineering) from the University ofCape Town. His previous experience also includes workingin the pharmaceutical industry, where he was responsiblefor the design and development of ambulatory ECG analysissoftware.

Reece DONOVAN,President - Global Services,Intec Telecom Systems plc

PERSPECTIVES is published by Atos Origin Eastern Mediterranean and Africa region as informative communication, and is not for sale.Managing Editor : Gözdem Durat • gozdem.durat@atosorigin.comEditorial Committee : Bahad›r Aflar, Meltem Karaarslan, Gustavo Massuia, Ian Mcalpine, Basil Antoniadis, Spyros DamaskosProduction : 217 (www.ikiyuzonyedi.com) • Photography : Getty, Atos Origin

AboutAtos OriginAtos Origin is an international information technology (IT) services company. Its business is turning Client Vision into Resultsthrough the application of consulting, systems integration and managed operations.

The company’s annual revenues are EUR 5.8 billion and it employs over 50,000 people in 40 countries.Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of internationalblue-chip companies across all sectors.

Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Euronext Market Solutions, Atos Worldlineand Atos Consulting.

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Perspectives June 2009

Atos, Atos and fish symbol, Atos Origin and fish symbol, and the fish symbol itself are registered trademarks of Atos Origin SA. October 2006

ATOS ORIGIN AGIndustriestrasse 19CH-8304 WallisellenTel. : +41 (0) 44 877 69 69 www.atosorigin.ch