God Morning SMBs! I’m Telecom Italia Cloud, How may I help You?

Vincenzo Riccardi

Story-lineThe scope of the speech is to explain, giving some figures on cloud market, how TI isfacing SaaS market. The gotomarket strategy is based on the right mixture of:‐ broadband traditional services‐ professional services‐ innovative SaaS (the Open‐Xchange Summit 2013 is the right place)to help SMBs to move safely in the cloud.

The CEO and the Cloud (A parable)What do you mean by cloud computing?

3 | OX Summit 2013: ((speaker co. name; presentation title

Something

to Internet

Somethingconnectedto Internet

Desktop asa Service

On‐line Data StoreI’ve never

use ITEmail in 

Datacenter

Email in your

Datacenter

A virtualserver

Something

to Internet

Somethingconnectedto Internet

Desktop asa Service

On‐line Data StoreI’ve never

use ITEmail in 

Datacenter

Email in your

Datacenter

A virtualserver

Public Cloud forecast in ItalyDescriptio

n

4

€ mln

Analysts Agreeon the trend

Analysts disgreeon the figures

There is a big ISSUE on taxonomy!

Taxonomy is usefull only to speakbetween operators!

The Customer: «Taxonomy? Who care!»

Public Cloud Market: WW, WE and ItalyDescriptio

n

7

Cloud Market in Italy: Clustered by Provider

200,8  230,1  270,7  319,5  363,0  411,8 146,1 

158,5 172,2 

193,8 224,7 

259,6 

72,2 86,7 

103,9 

116,9 

132,1 

148,8 

53,9 68,3 

84,2 

100,0 

118,7 

138,6 

21,1 

28,0 

34,6 

44,1 

58,2 

72,0 

15,0 

18,5 

24,0 

31,2 

40,1 

50,4 

10,2 

19,8 

32,3 

45,3 

‐

200,0 

400,0 

600,0 

800,0 

1.000,0 

1.200,0 

2010 2011 2012E 2013E 2014E 2015E

MSP

Distributori, VAR e Dealer

Over the Top

Systems Integrator

ISV Nazionali

Internet Companies

IT Companies

Telcos

CAGR 12‐15

37,7%

64,5%

27,9%

27,6%

18,1%

12,7%

14,7%

15,0%

8Febbraio 2013

mln euro

IaaS Services in Italy: clustered by Provider

CAGR 12‐1527,7%

48,8%

51,3%

36,4%

23,4%

10,7%

9,8%

13,1%160,9  184,0  210,9 

243,5 273,6 

305,4 

93,9 97,0 

101,8 110,1 

121,5 

134,7 

40,8 43,7 

47,6 

52,7 

58,6 

64,5 

16,0 20,5 

24,3 

29,6 

38,0 

45,8 

5,9 

7,6 

10,4 

14,7 

20,0 

26,3 

16,5 

24,4 

32,3 

2,2 

2,7 

3,6 

5,5 

8,3 

11,8 

‐

100,0 

200,0 

300,0 

400,0 

500,0 

600,0 

2010 2011 2012E 2013E 2014E 2015E

ISV Nazionali

MSP

Distributori, VAR e Dealer

Over the Top

Systems Integrator

Internet Companies

IT Companies

Telcos

9

mln euro

Telecom Italia

11

Group’s business unit and main brands

Italia Brasile

Media

Argentina

Olivetti

International Footprint

12

Latin America: Brazil and Argentina

International Wholesale ServicesItalyTI Sparkle is a leading global service provider, providing Voice, IP and Data solutions for fixed‐line and mobile operators, ISPs and multinational corporations (MNCs)

31.7 million TIM lines in Italy, 72.2 million TIM Brasil customers 6.9 million retail broadband customers in Italy13.5 million retail connections to the fixed network in Italy4.1 million fixed lines, 1.6 million bb accesses,  19.3 million mobile lines in Argentina 2.4 million mobile lines in Paraguay 

The Group’s key numbers in the first half 2013

Technology is the Main Enabler

Expand Customer Base through FMS

Pursue High Potential in Mobile BB Penetration

Continue Network Evolution

Capture Data Wave, while Optimizing Capex

Further Build on our Market Share and our Fixed and Mobile Platforms

Enlarge Network Capacity

Support Premium Position on Mobile to boost BB Revenues

Fully Grasp the High Data Demand of the Country

Stabilize Revenues

Defend Market Share on Traditionalthrough Quality of Service

Grow on Innovative Services leveragingon both Access and Applications Services

Encompass Regulatory and Technology Developments in UBB Plans

Further opportunities in  the 4th largest Mobile Market 

Enhance our Revenue Leadership

Leveraging on our Unique Infrastructure 

Italy  Brazil  Argentina

Upgrade Network Capexfor Growing Data Demand

Strengthen Position on Cloud Services (reinforcing IaaS, building PaaS and SaaS)

2013-15: Pervasive Innovation in all Countries & Services

The Local Operator Develops the local Go TO MARKET Strategy

ENTREPRISE

SMESME

Telecom Italia Group

Local Operator(Tier 2 -3)

Reseller

SparkleOlivetti

Accenture

Telecom ArgentinaTIM Brasil

IaaSStorageCPUOperating System

PaaSUnified CommunicationMobile Device managementVirtual PBX…….

SaaSSyndicatedHosted and TI Solutions

Platform  as a ServiceTelco OrientedCloud Services

Professional Services: Competence Centre

Customer Support

Connectivity Network 

OFFER

InvestmentOptimization

RevenueSharingModel

Core Business Protection

New Lines of Business

Cloud Business Model B2B2C

Telecom Italia Sales Channel

15

Sales Channel and Porfolio

1.720.000 Customers1.720.000 Customers

Top &  PAC 215  Customers

Strategic Private&Public1.000 Customers

Large Private&Public9.300 Customers

Medium Enterprise14.000 Customers in defense

Small Enterprise1.700.000 Clienti

DIREC

T CH

ANNEL

INDIREC

T CH

ANNEL

234 KAM

319 Area Manager

145 Senior Account

(104k Customers in defense) 

95 Sales Agencies (1.500 Sales Agent) 60 VAR (100 sales Agent) 350 ITIS 3.000 Impresa semplice Shops 10 Call Center 1 Web Portal

16

(*) dato relativo ai soli Data Center Nazionali

Main Information  Datacenter geographic distributionNational Data Center

Regionale Service Centers

Tot

System rooms

Net surface

Production System rooms

(used)

TLC System rooms

(used)

DR System Rooms

(used)

Electrical Power

Installed Server / active

managed

Managed Equivalent Server

MIPS installed(*)

Storage (*)

Used Storage (*)

Backup Transf/month(*) 

Backup average use/month (*) 

Employes

mq

mq

(mq)

mq

(mq)

mq

(mq)

MW

7

4

11

127

34.176

30.155

(22.932)

2.295

(1.850)

1.725

(1.492)

47,8

22.829

15.432

32.501

7.570

16.824

10.774

10.553

15.864

236

TB

TB

TB

TBCentri Servizi Regionali

Data Center Nazionali

IDC CesanoMaderno

IDC Rozzano

DC Bologna

DC Padova

DC Bari

IDC Pomezia

Palermo

Firenze

Torino

Napoli

DC OrioloRomano

Campus Metropolitano NO

Data Center: some figures

God Morning SMBs! I’m Telecom Italia Cloud, How may I help You?

It isn’t the right question!

God Morning SMBs! How may I help You to concentrate on

YOUR CORE BUSINESS!!

I’m Telecom ItaliaWe’ve the best connectivity!

We have the best professional services!and we have the best SaaS Partners!

Thank you for your time

&

Stop by the Scality Demopoint

Differential Cloud Market TrendsDescriptio

n

Telecom Italia Confidential 19

La crescita del Public Cloud in Italia mostra un certo ritardo rispetto alle altre economie (cresciamo l’8% in meno dei Paesi più evoluti).Viceversa nelle economie emergenti, anche in virtù di una condizione iniziale di più bassa informatizzazione e quindi minori legacy, la crescita del Public Cloud è molto più vivace mostrando tassi di sviluppo dell’ordine del 25-30%. Oltre alle “solite” India, Cina, Russia e Brasile, emergono nello scenario europeo Turchia e Polonia, mentre molto promettenti sono i tassi di crescita attesi in Argentina e Brasile

NGN BackboneCoperturaCapilllaritàServizi

ASSETS

NEXT GENERATION DATA CENTER

NETWORKING

VIRTUAL DATA CENTER NETWORK

CENTRI SERVIZI

DATA CENTER

SharedVirtualizedArchitecture

Control Room ITSOCNOCCNA

7 DC Nazionali

Cloud Computing: gli asset distintivi di Telecom Italia

Valori in € mln

Drill down Cloud Public and Virtual Private in ItalyDescriptio

n

Telecom Italia Confidential 21

835,1

982,7

1.144,4

1.343,9

CAGR 2013‐2016

TOTALE CLOUD

11,3%

6,7%

39,4%

25,5%

43,6%

20,3%

17,2%

Le componenti di Cloud Public presentano tassi di crescita più sostenuti rispetto alle componenti Virtual Private che viceversa, almeno nella parte Infrastrutturale, rappresentano ancora un forte contributo al valore assoluto delle revenues.

Elaborazioni MKT su dati SIRMI

Cloud Computing…le preoccupazioni da sfatare!!

22

«Il nostro business non è adatto al cloud…»

«Il Cloud è una moda che passa…»

«Il Cloud non è sicuro…»

«Non c'è trasparenza...»

«Non offre abbastanza controllo…»

«Non si integra con i sistemi esistenti…»

«Violazione della Privacy...»

«Se la Rete non è disponibile...»

«Perdita dei dati...»

«Continuità nell’erogazione del servizio...»

Complessità Progettuale

Com

plet

ezza

e fl

essi

bilit

à de

ll’of

ferin

g

HostingEnterprise

Self Data Center

Complex Outsourcing

Custom ProjectsDC in a box

Parallel NGDC – Vmware based AnyTech.

Unmanaged(*) ManagedServ.

WebHosting, Virtual Hosting Infrastructure OutsourcingOff.ta

IaaS Offering