Agenda
Business overview - Jane Aikman
Hull and East Yorkshire - Cathy Phillips
National Network Services - Iain Shearman
BREAK
Enterprise - Stephen Long
Investment in core assets and capabilities - Sean Royce and Jane Aikman
Summary - Jane Aikman
Wine and canapes
Investment focus Targeted investment Investment light/
customer funded
Income and capital growth
Hull and East Yorkshire Enterprise National Network Services
Communications services for
the region’s consumers and
businesses
Connectivity-based services
for organisations nationwide
IP-based communications
and collaboration services for
UK enterprises
Growth opportunity Manage for value Income
Creating shareholder value
140,000+ homes
7,000+ small &
medium businesses
Our network and data centre assets
HEY network covering 205k premises
KCOM’s own Private Cloud (e.g. leased data centres capacity)
National network
Our network and data centre assets
HEY network covering 205k premises
KCOM’s own Private Cloud (e.g. leased data centres capacity)
Access to Public Cloud (eg. AWS, Azure)
National network
Our network and data centre assets
Layer 4 Applications
Layer 3 Control
Layer 2 Transport
Layer 1
Buildings / facilities
Layer 0 Passive layer
Various leased
Hull National
Core capabilities
> Connectivity capability
> Contact and collaboration
> Cloud professional services
> Partner and vendor relationships
> Project delivery
> Service delivery
> Customer service
Investment to improve
scalability, efficiency and
to support the strategy
Connectivity capability
Virtualised Hybrid Connectivity
DSL MPLS 3G/4G Ethernet Optical
Cloud
Connect
Private
Cloud
Programmable
Dev ops Orchestration
Secure
Virtual firewall
Policy Management
Connectivity capability
Our people, expertise and
heritage Robust proven delivery
and support processes
In-depth customer
visibility and control
• Managed 1,000 cloud
instances
• Award winning billing and
reporting capability
• Management tools
• Over 50 national WAN
customers
• 129,000 broadband customers
• 190 Cisco certifications
• 7 Fortigate certifications
• ITIL accredited
• ISO9001
• First to deliver Cisco UK WAN
optimisation
• First UK PSN deliveries
Customer first…….
> We put in front of the customer the technical team that will design, build, and support and deliver the solution proposed
> We are able to be flexible and bespoke elements of customer solution at pace
> We map our values with customer values so we support their business goals
…….increasing the level of customer intimacy
Contact and collaboration
capability
> Building on our Telco heritage and
connectivity capabilities
> Combined with our knowledge in customer
experience
> We have successfully designed, installed and
managing the largest contact centre in Europe
for HMRC
> We have a strong omni-channel proposition
> Cisco gold partner status
> Small number of competitors
> Currently achieving 15-20% of the market of
contact centres over 500 seats in private
cloud*
* Sources: KCOM internal analysis; Proprietary research,
Cairneagle 2017; “UK contact Centres 2018-2022, the State of the
Industry”, ContactBabel; “RPA state of the Market”, Everest.
Contact and collaboration - strength in partner relationships
Cisco Cisco Cisco eGain Verint
Calabrio
Cisco Collaboration
Partner of the Year
EMEAR 2015
Cisco Cloud Contact
Centre Partner of the
Year EMEAR 2014
eGain World Partner
award for 2015
Verint Best New
Partner for EMEA
2015
Eco system built on Best of Breed Partners
Corporate Telephony Unified Comms Contact Centre Workforce Optimisation CRM Web
Our cloud credentials
2010 2013 2014 2018
Partnership
achieved
AWS partnership
formed
KCOM private cloud
solution
Microsoft Azure
partnership formed
2016
Google partnership
formed
> Long heritage in a relatively new market puts us ahead of competition
> Gone from lifting and shifting to the development of Cloud native skills – ability to architect solutions in the
cloud that can only be done in the cloud
> Market leaders in Identity Management Services with well established API capability
> Well placed in the IoT market with our licensed Telco credentials and ability to build platforms, gather data and
present it for analysis
Core capabilities
1of 3
UK HQ’d
premier
partners
Cloud
Big data solution
Identify habits and trends
£1.7bn PAYG payments
processed
Contact and collaboration
1,000 users
31 site UCaaS solution
Live rapid evaluation
22,000 agents in world’s
largest cloud-based
contact centre
197 certifications
Connectivity
Cloud Connect
WAN Virtual Firewall
89,000 pizza a day
2.3m Home deliveries 2017
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Hull and East Yorkshire
EYE
OLA
HCC
East Yorkshire Expansion
6k Consumer customers (27%)
0.4k Business customers* (18%)
City of Hull Boundary
81k Consumer customers (69%)
5.8k Business customers* (89%)
Original Licensed Area
Outer
52k Consumer customers (87%)
4.3k Business customers* (93%)
With differing demographics, competitors, opportunities and regulation
* Via direct and indirect channels
Our HEY market – three distinct areas
Don’t use Mobile
(cost) Outside home Mobile
(choice) Fixed basic Fixed
typical
Fixed
savvy
The Service Proposition Model
Our Internet User groups
shape the need
Our Customer Charter
forms the guidelines for
everything we do
End to end propositions
built around customer
need – One Size will
not fit all
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Broadband and voice
Broadband and Voice
> Consistent year-on-year HEY Consumer revenue growth
> Mix change away from fixed voice revenues to broadband ISP and data revenues
> Growth underpinned by broadband acquisition and fibre conversion
£0.0
£10.0
£20.0
£30.0
£40.0
£50.0
£60.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Re
ven
ue
(£m
)
Other Revenue (£m)
Total Broadband Revenue (£m)
Voice Only Revenue (inc calls) (£m)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Pe
ne
trat
ion
rat
e (
%)
Bro
adb
and
Cu
sto
me
r s
(No
)
Fibre Connections ADSL Connections BB Penetration of Customers
Broadband and Voice leveraging our fibre network and services to deliver profitable growth
Lightstream roll out Performance and reliability
Driving customer connections through our
superior infrastructure offering faster
and more reliable service
Personalise our portfolio and offering
flexibility as customers can choose their
speeds and data usage as they need
Flexible Portfolio Monetise usage of broadband
speeds and data
A broadband portfolio that allows flexibility
as customers can self-serve e.g. upgrading
speed
Bundled Services Tailored options
Current Next Future
A shift in approach to meet customer expectations
Meet customers’ basic expectations
Customer expectation gap
Where KCOM own and support Where customers experience KCOM
Exceptional customer experience
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
In-home / office
In-Home Proposition To support broadband growth and increase customer satisfaction
In-home Improve Wi-Fi connectivity
in and around the home
Enhance the in-home customer
experience through improved
onboarding and proactive support
services such as:
> Wi-Fi health checks
> Remedial solutions
> Priority service options
Support the use of more devices and
offer safety, management and control
of the online world through:
> Improved parental controls
> Anti-virus software
> Wi-Fi device control app
> Discounts
Optimisation Flexibility and control
Enable Support customers to
do more online
Support the use of more internet
enabled devices:
> Laptops, tablets, mobiles, games
> OTT services
> Smart home products
Current Next Future
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Mobility
Mobility proposition To acquire new customers, drive share of wallet and leverage our fibre asset
to provide a unique proposition
> Capture both fixed and mobile data
in and out of the home/office
> Leverage our fixed asset and
offload mobile data
> Become a leader in our local market
Expand offering Strategic: consolidate Fixed and mobile
convergence
> Re-iterate the customer journeys
to address all core segments and
start developing leadership
position
> Enhanced MVNO capability that
allows KCOM to truly differentiate
itself in the market place
> Innovative commercials that blur
the boundaries between fixed and
mobile data
Current Next Future
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Cloud
Voice and contact Business apps Networking and security
> Maximise opportunity with KCOM’s
current business cloud telephony
and VoIP solution, evolving
cloud-based call management and
PCI capabilities
> Evolve KCOM’s relationship with
Microsoft to drive uptake of O365
and the wider portfolio and identify
other suitable business apps
> Deliver KCOM’s managed Wi-Fi
and network security propositions
(Meraki). Enable secure hybrid
inter-cloud working
Cloud Propositions To meet change in customer behaviours and increase share of wallet
Current Next Future
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Wholesale
Wholesale propositions Be the partner of choice with a range of access products that deliver best value
> Deliver growth through revised
Ethernet pricing and introduction of
fibre access. Driving large capacity
1 GIG and 10 GIG as standard
> Provide flexible branch network
solutions with easy enablement of
new services
> Leveraging our Software Defined
Networks developments, create
managed options that provide
innovative and compelling ways to
connect
Refresh Expand Manage
Current Next Future
Broadband
and voice
In-home /
office Cloud Mobility
Income
Wholesale
Core assets and capabilities
Hull and East Yorkshire
Managed
Wide Area
Networks
Health and
Social Care
Network
Call
Management
Manage for value
Core assets and capabilities
National Network Services
NNS value of customer segments
500 (3%)
750 (3%)
20,000 (94%)
Customer numbers by segment
44%
31%
25%
Margin (£) contribution by segment
Grow
Maximise
Manage
Defining the NNS market – Segmentation approach
Grow Maximise Manage
Distributed
Government and
public funded
organisations,
both national and
regional bodies
Businesses
present across
several regions
and able to serve
a national market
Regional and
specialist
businesses
Lifestyle businesses
or those growing to
be established in
chosen market
Large-scale orgs
that provide
expertise in
adoption of IT and
managed services
Large businesses
that provide
managed ICT
Internationally, often
with own
infrastructure
Consumer, home
office and micro
businesses
Local, trusted
providers of network
products and
services
Large channel
partner with strong
brand presence
Need to embrace
modern working.
Aligned to
frameworks and
cost-conscious
Trusted advisor
who can deliver
increasingly
complex
connectivity and
cloud needs
Ability to own and
control customer
experience.
Seeking value and
great support
Technology advice
and enablement.
Like local
relationships
Strong market
proposition with
excellent service
management and
continual
improvement
Capability bridging
to fill in network
reach. Usage based
commercial models
Highly mobile
solutions, tech
education and
tailored solutions
with robust support
Reliable, simple
solutions that
support mobile
working. Want
immediate service
Multi-solution
supplier with ease of
doing business.
Price-led and need
to self-serve
Wh
o
Defi
nit
ion
N
eed
C
om
pe
titi
on
Multi Site
Orgs
Public
Sector
Service
Provider
Small
Connectors
SI &
BPO
Carrier &
DC
Commodity
Connector
Consumer
& SOHO
Reseller
What are we selling?
Iterating our national WAN
proposition with SDN/NFV capability
Developing our HSCN peering
capability
Call Management additional value
both direct and through the channel
Competitors
Why KCOM?
UK WAN market is large
WAN is critical to business proposition
delivery in key segments
Increased demand for agility and
flexibility to support cloud adoption
> Design and delivery approach
> Not tied to particular access network
> Market positioning – size and agility
> Core network investment – flexible by
design
46,000 Connections / 14000 sites to be
replaced by 2020
£42m per annum spend
NHS continuing digital enablement
of services
> Design and delivery approach
> Not tied to particular access network
> Sector references
> Framework positioning; RM1045 or
RM3825
Over 20B minutes per annum. 43% of call
routing in the cloud
Customers struggling to innovate due to
legacy environments and licence costs
Award winning solutions from KCOM
> Ease of implementation and change
> API availability
> Education programme for channel
partners
SI &
BPO
Multi Site
Orgs Public
Sector
Public
Sector
Multi Site
Orgs Service
Provider
Managed
Wide Area
Networks
Health and
Social Care
Network
Call
Management
Manage for value
Core assets and capabilities
Managed Wide Area Networks
Managed Wide Area Network
Cloud enabled Improving TCO
Software Defined A more agile network
> One single infrastructure
> Readily scalable
> Choice of carrier
> Simple deployment
Hybrid Enhanced IT resilience
> Adaptable policies and control
> Enhanced security
> Flexible bandwidth and access
> Improved use of IT resources
> Easy network orchestration
> Virtualised network services
> Integrated cloud consumption
> Optimised billing system
Advance our national WAN proposition with Software
Defined Network (SDN) / Network Function Virtualisation
(NFV) capability promoting growth across core target
segments
Current Next Future
Maximising life time customer value
Wires only
network
Cloud
connect
Professional
services
Managed
firewall
Colocation Call
management
Public cloud
Wren Kitchens overview
> Trusted partnership
> Fully resilient
> Journey to cloud
> Customer experience
“KCOM has just the right scale and capability
to support us through this growth period, but
perhaps more importantly balances this with
the flexibility and consultative approach we
need as we look to more than double the
size of our business.”
Craig Douglas, CIO, Wren Kitchens
Managed
Wide Area
Networks
Health and
Social Care
Network
Call
Management
Manage for value
Core assets and capabilities
Health and Social Care Network (HSCN)
Health and Social Care Network
Connectivity Improved access
WAN integration HSCN as a ‘bolt-on’
Future A more agile network
> Core connectivity
> Compliance and efficiency
> Wider WAN development
> Hybrid integration
> Cloud integration
> Software Defined as a Service
Complete HSCN accreditation and build our health proposition
Current Next Future
Maximising life time customer value
Managed
WAN
HSCN
Connection
Security Wi-Fi Public Cloud
DELT shared services overview
> HSCN Stage 1 compliance created engagement
> WAN replacement urgently required
> RM1045 procurement
> Public Cloud agenda in near future
Professional
services
Application
Performance
Management
Customer independently sought
feedback from public sector peers
regarding “the KCOM experience”.
Recommendations received
help to secure business
Managed
Wide Area
Networks
Health and
Social Care
Network
Call
Management
Manage for value
Core assets and capabilities
Call Management
Call management
for direct channel
Evolve with value added
voice services
Support and educate
> Maximise NNS direct opportunity
through cross-sell of a call
management solution
> Utilise existing KCOM capability
and repurpose for the channel
> Evolve portfolio
> PCI Compliant Voice
> Voice biometrics capabilities
> Omni-channel offering
> Maximise existing direct and indirect
channel
> Further evolution with SIP delivery in
line with NGV programme
> Education programmes to grow
existing relationships and
maximise value
> Develop further support offerings
to assist direct customers and
partners with service enablement
and changes
Call Management
To maximise direct relationships
Current Next Future
Maximising life time customer value
Internet
connect Professional
services
DSL Wi-FI Call
management
Elite Telecom and Nexus overview
> Trusted partnership
> Portal and self management tools
> National relationship extends in to East Yorkshire
> Direct and Indirect sales model supported
“We genuinely enjoy working with
KCOM, they go the extra mile in terms
of service, technical support and
providing guidance around contracts.”
Rob Sims, CEO at Nexus
Managed
Wide Area
Networks
Health and
Social Care
Network
Call
Management
Manage for value
Core assets and capabilities
National Network Services
Customer
Contact
Services
Enterprise
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Customer
Contact
Services
Customer contact services
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Contact Centre as a Service continues to grow, as organisations
put more focus on the customer journey
Source: Cairneagle 2017
0
100
200
300
400
500
600
2012 2016 2020
62%
61%
29%
27%
29%
12%
11%
10% CAGR
+14.3%
333
568
59%
CAGR
+19.6%
163
Small (<50)
Medium (50-500)
Large (>500)
Size of UK CCaaS Market (£m)
Market drivers and trends:
Contact Centre as a Service
> Customer experience is increasingly vital to
customer loyalty
> Consumers expect seamless communication
with organisations – via traditional and digital
channels
> Several UK businesses are re-shoring their
contact centres to take closer control of the
customer experience and journey
> More businesses are migrating to more flexible
Opex-based cloud platforms
> Omni-channel capabilities, underpinned by
intelligent automation and self service, can
reduce contact centre costs and improve
customer experience
KCOM currently has 15-20% of
the market greater than 500
seats
Contact Centre as a Service
> Our success includes:
> Putting in place, and managing, the largest
contact centre in Europe for HMRC
> A strong omni-channel proposition and
Cisco Gold partner status provides a
distinct edge over rivals
> Small number of competitors
> KCOM experience in connectivity an
advantage
> Currently achieving 15-20% of the market of
contact centres over 500 seats in private
cloud*
* Sources: KCOM internal analysis; Proprietary research,
Cairneagle 2017; “UK contact Centres 2018-2022, the State of the
Industry”, ContactBabel; “RPA state of the Market”, Everest.
La
rge
En
terp
rise
S
ME
Custo
me
r
Fo
cu
s
Hosted/Private Hyper On-premise
(Today)
(Interactive
Intelligence)
Source: KCOM analysis Platform type
Large telcos dominate in on-prem and hosted cloud
Hyper cloud solutions aren’t yet viable for enterprises
This is set to change. KCOM is the only organisation working
with AWS to deliver Amazon Connect in the UK
La
rge
En
terp
rise
S
ME
Custo
me
r
Fo
cu
s
Hosted/Private Hyper On-premise
(Today)
(Interactive
Intelligence)
Source: KCOM analysis Platform type
(Future)
A hyper cloud contact capability could grow KCOM’s
addressable market by £475m – or 1,110%
£69m
Addressable by KCOM
Today - 2017
£105m
250 seats +
Lower seat count as customers demand less voice
£184m
Hyper cloud
Adding hyper cloud capability: workplaces 2.0 and AWS Connect
£544m
Digital service
Forecast market for robotic automation
1,110%
Market
Growth
vs. 2017
Customer
Contact
Services
Cloud propositions
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Continuous market volatility and rising customer expectations are framing the business context
New buyers are making new technology investments to meet rising customer expectations and drive operational flexibility
Business processes are being re-built to address continuous change
Firms are working with different kinds of suppliers to build new classes of systems with modern architectures
Composable software assets become the accelerators for the digital business
Five trends drive a fast-changing world. Organisations need to
be agile to meet the expectations of customers
Old New
Source: Forrester, 2017
Gartner and Forrester see accelerating hyper cloud spend, with
global Platforms growth >100% to 2020
September 2016 February
2017
This is replicated in the UK, with spend doubling to £2.2 billion in
2020. Whitehall is an early adopter
Source: TechMarketView, 2018.
* IaaS: Infrastructure as a Service
PaaS: Platform as a Service
CAGR: +28%
2017-2020
0
0.5
1
1.5
2
2.5
3
3.5
2016 2017 2018 2019 2020
UK Cloud Professional Services Market Growth
£1.9bn
£1.5bn
£2.8bn
£3.3bn
CAGR: +21%
£2.3bn
Network
Capabilities
Business
understanding
Architecture
/ design
Application
development
Ability to
competitively
price
Brand
awareness /
reputation
KCOM is competitive with both cloud specialists and large
professional services organisations
Source: Cairneagle, 2017
Customer
Contact
Services
Cloud Native Innovation
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Our first cloud proposition, Cloud Native Innovation, uses advanced
features only available in hyper cloud
We help our customers re-imagine and create their future, using advanced cloud platform features
Source: www.computerworlduk.com
Strategy and Development
Microservices
Architecture
Cloud PaaS Services
TODAY
Our “Cloud Native” services develop applications (and the architecture behind them) using features only available in hyper cloud.
Often using server-less technology, this is faster, less costly, and far more flexible than traditional IT (including private cloud).
KCOM’s application knowledge and extensive cloud experience gives it a leading position in this market.
NEXT
> Bespoke “born-in-the-cloud”
applications and architecture
> Post-migration, re-architect
applications for greater
efficiency and features
FUTURE
> Templated solutions,
focused on industry
verticals, to drive scale
Customer
Contact
Services
Migration Services
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Migration Services enable customers to make the most effective
move to hyper cloud, at a pace to suit them
The migration of traditionally hosted IT infrastructure into a cloud environment
Cloud Architecture
Individual Workload Migrations
Cloud connectivity
Path to Cloud Advisory
TODAY 83% Of Enterprise
workloads will be in the
cloud by 2020
• 41% of enterprise
workloads on hyper cloud
platforms by 2020
• 20% on private-cloud
• 22% on hybrid cloud
platforms by 2020.
(source: LogicMonitor for Forbes.com.
Jan 7th 2018)
NEXT
> Mass Migration
> Extended visibility of our
hybrid cloud option
FUTURE
> More choice of platform
> Azure Stack
> Google Cloud Platform
Customer
Contact
Services
Identity Management Services
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Centralised sign on for multiple and distributed systems. Identities and access rights stored centrally
and securely.
TODAY
Voice Biometrics
(Nuance)
Identity & Access
Management
(Forgerock)
Advisory Skills
Managed Services
We deploy Forgerock and Nuance
software, customised to meet the
needs of our customers, on either
private or hyper cloud platforms.
Our suite of Identity Management Services has protected customers
since 2013. Now in hyper cloud
NEXT
> A continuation of our services
today
> GDPR and Open banking will
accelerate demand
FUTURE
> Enhance AWS tools for
Identity and Access
Management with our own IP,
to offer a cloud native choice
to AWS customers
> Introduce a similar
Azure-based offering
Customer
Contact
Services
Analytics
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Building the hyper cloud platform architecture to turn complex data into business insights
Source: GrowthEnabler/Markets and Markets April 2017
Internet of Things UK market value c$4.7Bn
(3% of global IoT deals in 2016)
Source: CBI/Growth Enabler
Analytics and IoT are areas where our skills in handling huge
complexity comes into their own
> We create fast, agile and elastic compute
capabilities for the data scientists we
partner with, enabling them to analyse
vast quantities of complex data
Building the hyper cloud platform architecture to turn complex data into business insights
TODAY
Internet of Things projects
Large-scale Platform Analytics
Architecture
Analytics: our plans for the future include a toolkit to deliver scale,
and a Machine Learning offering
Early wins in media, retail, transport and
utilities
NEXT
> A Template Analytics Platform
toolkit will enable us to set up
standard tools in the cloud at
the press of a button
FUTURE
> Extend our offering to
incorporate Machine Learning
Customer
Contact
Services
Multi-cloud Managed Services
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
We provide managed services for hyper cloud, multi-cloud, and hybrid environments
Sources: TechMarketView, 2016; Forrester, “Use Managed Cloud Services To Speed Transformation”, 2017
Break/fix support
24/7, 3 tier problem
management
ITIL certified,
ISO 20000 and 27000
Warranted end-to-end
TODAY
KCOM combines expertise in hyper cloud, private cloud, on-premise, and connectivity. Our service wrapper manages the new
complexities of legacy systems and multiple cloud environments, including AWS and Azure.
Multi-Cloud Managed Services is a proposition still in development,
but we already have the capabilities
NEXT
> Enhanced Services:
> Cost optimisation
> Technical Design Authority –
dedicated consultant resource
FUTURE
> Extend to Google and other cloud
environments
Customer
Contact
Services
Enterprise
Cloud Native
Innovation
Multi-Cloud
Managed
Services
Identity
Management
Services
Migration
Services
Growth opportunity
Analytics
Core assets and capabilities
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Investment in network assets
Packaged
Capex
Contract term
Network
constrained
Physical
asset
Application based
Cloud
Subscription usage
Integrated
Opex
Old World
Network Service Provider New World
Experience Service Provider
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Layer 4
Applications
Layer 3
Control
Layer 2
Transport
Layer 1
Buildings /
facilities
Layer 0
Passive layer
Original Network Layers
Intelligent Service Platforms
Data Networks
Voice Switching
DWDM Optical
Metro Optical and Access
Utilities and Facilities
Operation Support Systems
Buildings
Fibre Optic Cables
Duct and Chambers
14+1 exchange buildings in Hull and East Yorkshire. 90 leasehold, 1
Freehold, 15 Street Cabinets and 17 x 3rd Party Hosing Centres across UK
Fibre and copper access
Hull and East Yorkshire core and access network into 205k premises; CFH leased 2,200km
AC and DC Plant management, facilities contracts,
security, rates etc
Business Support Systems
Layer 4
Applications
Layer 3
Control
Layer 2
Transport
Layer 1
Buildings /
facilities
Layer 0
Passive layer
Billing CRM Orchestration
EM’s, IMS, NFV
Intelligent Service Platforms
Next Generation Voice (VOIP)
Service Creation Platform (IP Core)
Next Generation Transport (OTN)
Metro Optical and Access
Utilities and Facilities
Operation Support Systems
Buildings
Fibre Optic Cables
Duct and Chambers
Business Support Systems
Potential Fully Transformed KCOM Network Layers
Layer 2 (Transport) - Next Generation Transmission
KCOM’s own data centres
Access to public cloud
HEY FTTP network
Other KCOM NGT PoPsd
> Optical transport network - that rationalises 3 platforms into
1 and provides pipework for all applications
> SDN enabled - 5.6Tbs capable, and fully scalable
> Virtualized network operations - partitioning an
OTN-switched network into private network partitions provides
a dedicated set of network resources to each customer
> Flexible - customer driven connectivity and bandwidth
reservation, delivering faster service provisioning
> Dynamic infrastructure – makes network dynamic and
responsive making possible emerging services such as on-
demand/scheduled cloud interconnections
> Secure by design - ensures a high level of privacy and
security, designed with High Availability and individual QoS
Layer 3 (Control) - Service Creation Platform
London Bristol
Manchester
Hull
> New Cisco IP network - to manage and protect traffic and
customer data streams
> SDN enabled - Cisco 9912’s scalable to 12Tbs
> Replaces 3 x platforms - from ALU, Cisco and Ericsson
> Next Generation Core IP Switching Platform delivering:
> Advanced Layer 2 & 3 Switching and connectivity
> Core data services and enhanced WAN applications
> Enhanced Service protection
> Customer Authentication and Service Assurance
> Full management capability - to deliver NFV functionality
> QOS and policy control – enabled through Procera
Layer 3 (Control) - Next Generation Voice
Plan to transform the fixed line telephone network
M
D
F
O
D
F
System
X Conc
PON ONT
M
D
F
System
X Conc
O
D
F
VOIP PON ONT
O
D
F PON ONT
M
D
F
Gate
-way VOIP
Legacy
Hybrid
Gateway
Future
> By introducing a gateway that
emulates the existing voice
services, whether analogue or
digital, it allows the earlier
displacement of System X support
and power costs
> Otherwise we would have to migrate
all customers to the all optical future
model before the System X could be
displaced
> It becomes a cost effective interim
step in an uncertain environment
> Potential converged mobile
opportunity
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Data Centre Strategy
> We currently have 10 data centre locations across the UK
> Consolidate to 3 data centres – over the course of a five year programme
> True geographic diversity and resilience - with sufficient capacity for customer/internal demand
> Power usage efficiency (PUE) – 50%-100% improvement
Reduced Unit Cost
and Operational
Simplification
Cloudification Opportunity
Network Services
• Transmission
• SCP
Cloud Services
• Virtualisation
• Compute
• Storage
Voice Services
• Workplaces
• ECT
• MetaSwitch
Bristol
Network Services
• Transmission
• SCP
Cloud Services
• Virtualisation
• Compute
• Storage
Voice Services
• Workplaces
• ECT
• MetaSwitch
Hull
Network Services
• Transmission
• SCP
Cloud Services
• Virtualisation
• Compute
• Storage
Voice Services
• Workplaces
• ECT
• MetaSwitch
London
Vodafone
BTW
Virgin
Media
AWS
MS Azure
TTB
Network Access
& Voice Interconnects
High Speed
Transmission and
Service Creation
Platform (SCP) Core
Low Latency Cloud
Interconnects
Key:
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Service delivery - transformation
Network Managed Service
> Exit BTW managed service arrangement – from 1 April 2018
> Provision of low level design, build, monitoring and
maintenance functions by BTW, since 2009 to be in-sourced
with out-tasking explored where appropriate
> End-to-end accountability for service delivery – removal of
hand offs and areas of grey
> Significant capital and opex savings
> Benefit from scale operations within Hull and East Yorkshire
Customer Service Operations Centre
> Single ownership and accountability for level 1 and 2 technical support,
with all services catered for from one common operations centre
> Personalised, but standardised customer experience for all customers
> Single service desk and service Interface for any incident. 80% of
expertise in one place focused on the customer, with resolver groups
available for deeper technical issues
> Combined pool of technical resources across all technologies, giving
faster access to the right technical and support expertise in one place
> Best Practice (ITIL and Agile)
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Project delivery - transformation
> Need to improve capability highlighted by the
issues with the complex software projects
> Strengthening of end-to-end project
governance including Project Assurance
Office – reach and independence
> Creation of a project management
professional community for coaching,
professional development and maintenance of
high standards
> Thorough assessment across entire function
to assess and upgrade capabilities and tools
> Upgrading our Agile capabilities to build a
sustainable offering and delivery technique
> Significant investment in skills and capabilities to
ensure this function is scalable, effective and able
to support the Enterprise strategy in particular
> This will be paid back by efficient and effective
delivery of our projects
71 current Enterprise projects in flight in addition to other capex projects across the business
Investment in core assets and capabilities
> Network transformation
> Data centre rationalisation
> Service delivery
> Project delivery
> Investment and cost reduction
Capital investment driving opex and capex reductions
Significant cost reduction driven by investments in core assets and capabilities
Capex Opex and capex reductions
-
10
20
30
40
50
60
FY18 FY19 FY20 FY21 FY22
£m
BAU Fibre Deployment
Network Transformation Other Transformational Projects
-
1
2
3
4
5
6
7
8
9
FY18 FY19 FY20 FY21 FY22
£m
HEY Capex HEY Opex Enterprise Opex NNS Opex
Agenda
Business overview
Hull and East Yorkshire
National Network Services
BREAK
Enterprise
Investment in core assets and capabilities
Summary
Wine and canapes