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Keeping Your Internet Business IT
                      Asset Light
                               for
POINTS WE WILL COVER


● Business  LifeCycle of an Internet Centric Enterprise (ICE)
● IT Challenges for an Internet Centric Enterprise
● Technology Investment Options Available
● IT Asset Landscape
● Impact on Cashflow
    ● CapEx
    ● OpEx /
    ● Pay-per-use
● Options
● CaseStudies
● Recommendations

Confidential Netmagic Internal Use Only
BUSINESS LIFECYCLE




                                                     New Idea



                                      Market                           Develop
                                     Feedback                          and Test




                                          Grow and              Deploy and        Discontinue
                                           Expand                Market             Service




Confidential Netmagic Internal Use Only
TECHNOLOGY CHALLENGES


             Dynamic business

             Use of latest in technology

             Bottomline and cashflow friendly investments

             Flexibility to scale up and scale down

             Faster time-to-market

             Delivering consistent (but nuanced) user experiences

             Security threats, compliance requirements

             Ever-growing pool of technology tools and platforms



Confidential Netmagic Internal Use Only
CHALLENGES FOR IT

High
Cost
                           • Insurance                                         • Telecomm
                           • Government                                        • Banks
                           • ERP                                               • Securities and trading
                                                                               • Payment gateways
  Compliance requirement




                           • Back-office applications                          • Ecommerce
                           • Education                                         • Online travel and leisure
                           • Manufacturing                                     • Market and Stocks
                           • Services                                          • Media & Entertainment




Low                                                                                                          High
                                                          Performance / without glitch availability          Cost
Cost

                Confidential Netmagic Internal Use Only
IT LANDSCAPE OF RETAILER




                Robust and Scalable IT Infrastructure (Compute, Storage and Network)

Confidential Netmagic Internal Use Only
TECHNOLOGY INVESTMENT MODELS


                                                 SW /                    Management
Option                                    HW              Connectivity
                                               Licenses                   Services


CapEx                                                        X             X

OpEx                                                                      

Pay-per-use                                                               X




Confidential Netmagic Internal Use Only
TECHNOLOGY PROVIDERS
AVAILABLE


                                                                                          Management
Option                                        HW          SW / Licenses   Connectivity
                                                                                           Services


CapEx                                         OEM             OEM              NA           In-house


                                            IT Service       Service         Service         Service
OpEx                                         Provider       Provider        Provider        Provider
                                           (Netmagic)      (Netmagic)      (Netmagic)      (Netmagic)

                                          Cloud Service                   Cloud Service   Cloud Service
Pay-per-use                                  Provider         SPLA           Provider        Provider
                                           (Netmagic)                      (Netmagic)      (Netmagic)




Confidential Netmagic Internal Use Only
IMPACT OF ASSETS ON FINANCE


                                          Investment in
Option                                                         EBIDTA               Cash Flow
                                           Fixed Assets
                                                                                Need upfront funds
                                                          Good for short term
CapEx                                         High                              and need to service
                                                              EBITDA
                                                                                    the capital

OpEx                                           Nil        Impact on EBITDA      Good for cashflow



Pay-per-use                                    Nil        Impact on cashflow     Best for cashflow




Confidential Netmagic Internal Use Only
LEVERAGING CLOUD


Use Cloud to rationalize new investments


● Options:
1.       Start on Cloud
2.       Start with connecting to public
         Cloud for capacity expansion,
         new service roll out, etc.
3.       Use Cloud for demand
         management / Scaling Out
4.       Provision application servers on
         public and let the DB on
         dedicated server.


Confidential Netmagic Internal Use Only
INDUSTRY TRENDS


            95% of ICE customers prefer the Opex or Pay-per-use model



            Prefer to outsource IT infrastructure management and keep the
            application management in-house


            80% of ICE customers are moving some piece of their IT Infrastructure
            on the cloud (pay-per-use)



            Demand for stringent Service Level Agreements



            Increasing focus on end-user experience driving SLA demands



            Hybrid IT Infrastructure Models (Pay-per-use, Opex and Capex)




Confidential Netmagic Internal Use Only
Case Study Snapshots


     Most
India’s
Popular TV                                                         online
Talk Show in                                                       managed
2012 hosted with us.                                               marketplace in
Truth Prevails!                                                    India hosts with us




Asst light, completely on                      Dedicated Hosting      Asset-light model -      Dedicated Hosting
cloud - easy setup, scale                           (OpEx)           completely on cloud,       (OpEx) model to
 on demand and reduce                                              migrated from US to India     CapEx model

     Confidential Netmagic Internal Use Only
ADVANTAGE OF MOVING TO AN
ASSET LIGHT IT SERVICE MODEL

              Start a company with “0” capex



              Unlimited Innovation – don’t “select” ideas



              Manage business not IT



              Stay ahead of the IT infrastructure refresh curve


              Flexible throughout the business lifecycle (move to different
              investment models based on business demand)


              Control through business focused SLAs


              Build technology team to manage business applications and not IT
              infrastructure


Confidential Netmagic Internal Use Only
WHO WE ARE…




                                          14
Confidential Netmagic Internal Use Only
ABOUT NETMAGIC


                    Netmagic: End – to – End IT Infrastructure Solutions Company

    We own the complete cycle of Planning, Designing, Procuring, Integration,
24x7 Monitoring and Management of mission-critical IT Infrastructure hosted out of
  our state-of-the-art datacenters. We deliver these services on a flexible Opex
                           (Service) commercial models

                              Single Window Access to best practices and capabilities to
                                  architect, manage and host your IT Infrastructure.

 System Integration                         24x7 IT Infra Management            Managed Hosting
                                             Monitor  & Manage the entire IT    Colocation
 Plan, Design, Size
                                              Infrastructure stack               Hardware   on OPEX,
 Procure & Manage Hardware
                                                OS                              Internet Bandwidth with
 Deploy, Consolidate / Migrate
  / Transition Datacenter                       DB                               domestic/ global peering
  Infrastructure                                Network                          capabilities
                                                App                             Remote Hand Support,
 Architect / Build / Manage
                                                Managed Security                Cloud (IaaS) – Public / Hybrid
  Private Cloud Environment
                                             24x7x365

                                                                                                                   15
Confidential Netmagic Internal Use Only
NETMAGIC AT A GLANCE


c




                                          c




Confidential Netmagic Internal Use Only
NETMAGIC AT A GLANCE (Contd…)




Confidential Netmagic Internal Use Only
NETMAGIC AT A GLANCE (Contd…)




Confidential Netmagic Internal Use Only
CLOUD SERVICES PORTFOLIO

                                                                                                    High




Moderate                                                                                        Public Cloud /
                                                                                                    IaaS
                                                                                  Cloud-in-a-
                                                                                     Box        SimpliCloud
                                                                  Private Cloud
                                                 Hybrid Cloud /
                                                    Cloud                          SOaaS
                                                                    Custom
                  Enterprise DC                    Connect          Clouds
                  Consolidation
                       and                        HybriCloud
                  Virtualization

                                                                  DR on Cloud

               Netmagic Datacenter / Customer Datacenter                            Netmagic Datacenter


High                                                   Time to deploy / consume services                         Low
                                                                                                                       19
       Confidential Netmagic Internal Use Only
CUSTOMER SNAPSHOT




                                              15 of top 20 broking
                                                 firms in India
                        90% of Mobile VAS                            5 of top 10 Indian
                         providers in India                          media companies



                                                Customers
                   Leading International                               ALL TOP online travel
                   players from the BFSI
                                                                        companies in India
                          vertical
                                              Strong presence
                                                   in the
                                               Manufacturing
                                                   Sector



Confidential Netmagic Internal Use Only
                                                                                               20
http://www.linkedin.com/c   http://twitter.com/netmagic   http://www.facebook.com/Ne   http://www.youtube.com/u
ompanies/netmagic                                         tmagicSolutions              ser/netmagicsolutions

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Keeping Your Internet Business IT Asset Light By Mandar Kulkarni

  • 1. Keeping Your Internet Business IT Asset Light for
  • 2. POINTS WE WILL COVER ● Business LifeCycle of an Internet Centric Enterprise (ICE) ● IT Challenges for an Internet Centric Enterprise ● Technology Investment Options Available ● IT Asset Landscape ● Impact on Cashflow ● CapEx ● OpEx / ● Pay-per-use ● Options ● CaseStudies ● Recommendations Confidential Netmagic Internal Use Only
  • 3. BUSINESS LIFECYCLE New Idea Market Develop Feedback and Test Grow and Deploy and Discontinue Expand Market Service Confidential Netmagic Internal Use Only
  • 4. TECHNOLOGY CHALLENGES Dynamic business Use of latest in technology Bottomline and cashflow friendly investments Flexibility to scale up and scale down Faster time-to-market Delivering consistent (but nuanced) user experiences Security threats, compliance requirements Ever-growing pool of technology tools and platforms Confidential Netmagic Internal Use Only
  • 5. CHALLENGES FOR IT High Cost • Insurance • Telecomm • Government • Banks • ERP • Securities and trading • Payment gateways Compliance requirement • Back-office applications • Ecommerce • Education • Online travel and leisure • Manufacturing • Market and Stocks • Services • Media & Entertainment Low High Performance / without glitch availability Cost Cost Confidential Netmagic Internal Use Only
  • 6. IT LANDSCAPE OF RETAILER Robust and Scalable IT Infrastructure (Compute, Storage and Network) Confidential Netmagic Internal Use Only
  • 7. TECHNOLOGY INVESTMENT MODELS SW / Management Option HW Connectivity Licenses Services CapEx   X X OpEx     Pay-per-use    X Confidential Netmagic Internal Use Only
  • 8. TECHNOLOGY PROVIDERS AVAILABLE Management Option HW SW / Licenses Connectivity Services CapEx OEM OEM NA In-house IT Service Service Service Service OpEx Provider Provider Provider Provider (Netmagic) (Netmagic) (Netmagic) (Netmagic) Cloud Service Cloud Service Cloud Service Pay-per-use Provider SPLA Provider Provider (Netmagic) (Netmagic) (Netmagic) Confidential Netmagic Internal Use Only
  • 9. IMPACT OF ASSETS ON FINANCE Investment in Option EBIDTA Cash Flow Fixed Assets Need upfront funds Good for short term CapEx High and need to service EBITDA the capital OpEx Nil Impact on EBITDA Good for cashflow Pay-per-use Nil Impact on cashflow Best for cashflow Confidential Netmagic Internal Use Only
  • 10. LEVERAGING CLOUD Use Cloud to rationalize new investments ● Options: 1. Start on Cloud 2. Start with connecting to public Cloud for capacity expansion, new service roll out, etc. 3. Use Cloud for demand management / Scaling Out 4. Provision application servers on public and let the DB on dedicated server. Confidential Netmagic Internal Use Only
  • 11. INDUSTRY TRENDS 95% of ICE customers prefer the Opex or Pay-per-use model Prefer to outsource IT infrastructure management and keep the application management in-house 80% of ICE customers are moving some piece of their IT Infrastructure on the cloud (pay-per-use) Demand for stringent Service Level Agreements Increasing focus on end-user experience driving SLA demands Hybrid IT Infrastructure Models (Pay-per-use, Opex and Capex) Confidential Netmagic Internal Use Only
  • 12. Case Study Snapshots Most India’s Popular TV online Talk Show in managed 2012 hosted with us. marketplace in Truth Prevails! India hosts with us Asst light, completely on Dedicated Hosting Asset-light model - Dedicated Hosting cloud - easy setup, scale (OpEx) completely on cloud, (OpEx) model to on demand and reduce migrated from US to India CapEx model Confidential Netmagic Internal Use Only
  • 13. ADVANTAGE OF MOVING TO AN ASSET LIGHT IT SERVICE MODEL Start a company with “0” capex Unlimited Innovation – don’t “select” ideas Manage business not IT Stay ahead of the IT infrastructure refresh curve Flexible throughout the business lifecycle (move to different investment models based on business demand) Control through business focused SLAs Build technology team to manage business applications and not IT infrastructure Confidential Netmagic Internal Use Only
  • 14. WHO WE ARE… 14 Confidential Netmagic Internal Use Only
  • 15. ABOUT NETMAGIC Netmagic: End – to – End IT Infrastructure Solutions Company We own the complete cycle of Planning, Designing, Procuring, Integration, 24x7 Monitoring and Management of mission-critical IT Infrastructure hosted out of our state-of-the-art datacenters. We deliver these services on a flexible Opex (Service) commercial models Single Window Access to best practices and capabilities to architect, manage and host your IT Infrastructure. System Integration 24x7 IT Infra Management Managed Hosting  Monitor & Manage the entire IT  Colocation  Plan, Design, Size Infrastructure stack  Hardware on OPEX,  Procure & Manage Hardware  OS  Internet Bandwidth with  Deploy, Consolidate / Migrate / Transition Datacenter  DB domestic/ global peering Infrastructure  Network capabilities  App  Remote Hand Support,  Architect / Build / Manage  Managed Security  Cloud (IaaS) – Public / Hybrid Private Cloud Environment  24x7x365 15 Confidential Netmagic Internal Use Only
  • 16. NETMAGIC AT A GLANCE c c Confidential Netmagic Internal Use Only
  • 17. NETMAGIC AT A GLANCE (Contd…) Confidential Netmagic Internal Use Only
  • 18. NETMAGIC AT A GLANCE (Contd…) Confidential Netmagic Internal Use Only
  • 19. CLOUD SERVICES PORTFOLIO High Moderate Public Cloud / IaaS Cloud-in-a- Box SimpliCloud Private Cloud Hybrid Cloud / Cloud SOaaS Custom Enterprise DC Connect Clouds Consolidation and HybriCloud Virtualization DR on Cloud Netmagic Datacenter / Customer Datacenter Netmagic Datacenter High Time to deploy / consume services Low 19 Confidential Netmagic Internal Use Only
  • 20. CUSTOMER SNAPSHOT 15 of top 20 broking firms in India 90% of Mobile VAS 5 of top 10 Indian providers in India media companies Customers Leading International ALL TOP online travel players from the BFSI companies in India vertical Strong presence in the Manufacturing Sector Confidential Netmagic Internal Use Only 20
  • 21. http://www.linkedin.com/c http://twitter.com/netmagic http://www.facebook.com/Ne http://www.youtube.com/u ompanies/netmagic tmagicSolutions ser/netmagicsolutions