Beyond connectivity

Sally Davis, President, Products and ServicesBT Global ServicesNovember 20, 2003

BT - embracing the future• A profitable and cash generative company

• Financially sound, standing out from our peers

• Focused on organic growth

• Great European ICT success story

• World-class system of strategic partners

• Using a sustainable model to win

Our customers face challenges

Consolidation &

restructuring

Connected world

Globalisation More for less

Industry growth will clearly come from value-added services

Worldwide IT/Communications Services and Product Enterprise Spend

Source: IDC; Gartner; Forrester; ADVENTIS Analysis

0

500

1000

1500

2000

2500

2002 2005

$ in B

illio

ns

CAGRTotal 12%$2,312Bn

$1,646Bn

End-UserApplications 20%

ApplicationInfrastructure19%

CommunicationServices 24%

Core CommunicationElements 5%

Ap

plic

atio

ns

an

d V

alu

e

Ad

ded

Basic

BT’s answer – offer value, not just connectivity...

Business Application

Services

Business IP Services

Business Transformation Services

Incr

easi

ng V

alue PeoplePeople

SoftwareSoftware

HardwareHardware

… and create new value through a constant flow of innovation

SolutionSolution

PackagePackage

ComponenComponentt

CustomisedCustomised

IndustrialisedIndustrialised

CommoditisedCommoditised

Drives Drives innovationinnovation

Captures valueCaptures value

Carries fixed Carries fixed costscosts

This is what attracts our customers

Managing international networks is a complex business

Router management LAN Management

Billing reports

Fax equipment

Telephony UPS and PABX battery back up

Dial up remote access service

PABX/ Telephony services/ associated systems and applications Ancillary PABX systems; e.g. voicemail, call information logging equipment

PABX telephone handsets Numbering plans Mobile services (telephones & pagers)

Audio conferencing services Calling cards Video conferencing All voice network and carrier connections Freephone services All data network and carrier connections

We can then add applications...

Local branche

s

Head office

Estate agent

s

BT Data

centre

CUSTOMER

• 220 building society branches

• 309 estate agency branches

• 42 surveyor officess

• 8,000 users

SOLUTION

• Managed WAN

• Managed Lotus Notes

• Extranet access

• Disaster recovery

Managed Wide Area

Network

Business partners

… which are what our customers care about most

Critical Finance & E-Commerce site

Servers, Security & Network

High Availability Architecture

First French total Microsoft .Net architecture

Intranet & Internet Hosting for world-wide group

So connectivity is the

foundation…Voice-orientedCentralisedClosed interfaces

Multi-media capableDistributedOpen interfaces

Narrowband64kbit/sCircuit switching

Multi-serviceIPPacket switching

2Mbit/s networkHands-onMix of old and new

150Mbit/s networkDirect fibreOptical networking

Overlapping technologiesLimited integration

Aggressive DSL roll-outTransformation designIntegrated access

Network Intelligence

Switching & Routing

Core Transmission

Access Network

Serv

ice O

rien

ted

Arc

hit

ectu

re

Services not products

End to end not stovepiped

User session based not product feature

based

Value not connectivity

… on which services can be

built

WAN LANIT

Infrastructure

Web Services& Integration Apps

Functional Applications

Vertical MarketApplications

eHR/ERM

SupplyChain

Procurement

CRM/PRM

Collaboration/Office

Finance

Bespoke/Legacy

EnterpriseMgmt Tools

Voice Related

Applications

Retailers

Financial ServicesGovernment

We believe that a network-centred approach is best for our customers

SOFTWARE PARTNERS

• Microsoft

• Oracle

•PSO PARTNERS

• Accenture

• CSC

HARDWARE PARTNERS

• emc2

• HP

Questions?