This is the slide deck for the Avaya sponsered Information Week Webinar. Miss out or want to re-read again? This deck contains the following. -Trends in Cloud and Managed Services -Differences and Cloud Options -Global Standards -How Cloud Services improve TCO

1. What we will be covering:
Trends in Cloud and Managed Services
Differences and Cloud Options
Global Standards
How Cloud Services improve TCO

2. Trends and Innovation in Cloud and Managed
Services: Current Analysis Perspective
October 22, 2013
Bruce Page
Vice President, Custom Research
Washington, DC / London / Paris
© Current Analysis Inc. All rights reserved.
2

3. Enterprise Communications Management: A Balancing Act
Keep the lights on while…
Enabling Business Initiatives & Competitiveness
Driving improved Return on IT Investment &
Assets
Managing a Growing Base of Increasingly
Complex IT Applications
Maintaining / Improving Service Quality
Complying with Regulatory & Compliance
Mandates
Enabling Increasingly Mobile Workforce
Achieving IT & Business Agility
AND always doing More with Less
© Current Analysis Inc. All rights reserved.
3

4. Cloud & Managed Services Leveraging Supply- and Demand-Side Trends
Globalization, cost control, & and service innovation are key drivers
• Compete in new locales
• Expedite technology
deployment
• Accelerate product
development
• Speed time to market
• Continued fiscal challenges
• Need to be more agile
• Greater efficiency
Cloud &
Managed
Services
• Broader and deeper
provider solution sets
• Better integrated
security
• Improving delivery
© Current Analysis Inc. All rights reserved.
• Advances in virtualization,
automation, and
orchestration
• Increased network
connectivity and bandwidth
• Maturing service provider
business models
4

5. Rapid Move to the Cloud Across All Key Industries, 2012-2014
By 2014, 28% of organizations plan to deliver over 20% of their overall IT
application burden via Cloud architectures
© Current Analysis Inc. All rights reserved.
HP Restricted
5

6. Enterprise Apps and E-Mail Most Commonly Deployed to Cloud
E-mail, UCC, and Storage Lead Cloud Procurement Plans
Top 7 Cloud Applications for Cloud Deployment
Currently there
Bandwidth on-demand
Expected
17%
Computing on-demand
5%
24%
E-mail
Don't know/Can't say
79%
10%
66%
40%
Desktop applications
22%
36%
Enterprise applications
8%
48%
Storage on-demand
26%
0%
20%
56%
8%
36%
Unified communications
38%
44%
13%
51%
15%
40%
60%
60%
80%
100%
Source: Current Analysis 2012 Collaboration Research
© Current Analysis Inc. All rights reserved.
6

7. Staff time is at a premium… how best to optimize their time?
For data networks, voice, video, cloud IT, collaboration, mobility…
Self-Manage own CPE
Maximizes control
over enterprise IT
systems; agility
But requires more
staff time & training in
order to manage
increasingly complex
networks & systems
3rd Party Managed CPE
Allows re-allocation of
staff time & training
But requires strong
process definition &
governance
Full Outsourcing & Cloud
Removes capex
investment
requirements
But requires strong
organizational
alignment with service
provider
Optimize IT resource allocation within each service domain
to best support the business’s goals
© Current Analysis Inc. All rights reserved.
7

8. Growing preference for Cloud & Managed UC & Collaboration
Which deployment model is preferred for your UCC project?
Premises-based, self-managed
Service provider hosted cloud
Vendor hosted cloud
Premises-based, service provider
managed
Service provider hosted dedicated
Partner hosted dedicated SaaS
Vendor hosted dedicated
Premises-based, 3rd party (VAR, etc.)
managed
Total 0% US
5%
Europe
10%
15%
20%
25%
Source: Current Analysis 2012 Collaboration Research
© Current Analysis Inc. All rights reserved.
8

9. 60-70% of enterprises plan to use Mobile Device Management Services
Enterprise adoption plans for management services for Smartphones
Expense management
Network services
Device management
Logistics (i.e., ordering)
Configuration and trouble shooting
Next 12 months
13-24 months
Software / version management
Security
Device procurement
Application management
0% 10% 20% 30% 40% 50% 60% 70%
© Current Analysis Inc. All rights reserved.
9

10. Cloud & Managed Services: Right Solution, Right Time?
As IT management challenges mount, Cloud and Managed
services solutions are also maturing, becoming attractive
to a new set of potential customers
Cloud &
Managed
Services
Solutions
© Current Analysis Inc. All rights reserved.
10

11. Communications Managed Services: Differentiators
“Operational Excellence:” Easy to say, but harder to deliver
Demonstrated TCO improvement
from similar use cases (domain-level,
engagement type)
Performance metrics as measured by
SLA commitments, variances and
penalties
Standardized processes used in
service delivery
Maturity of customer management
processes & service management
Platform used to monitor and
manage the customer’s environment
© Current Analysis Inc. All rights reserved.
Geographic reach, including inregion language support
Capabilities of the service provider’s
customer portal across the
engagement lifecycle
Ability to integrate customer’s
existing communications solutions
Capability to manage multi-vendor
environments
Modular service offerings with tiered
service levels
Regional and Local support
capabilities
11

12. Thank You
Bruce Page
VP, Custom Research
Current Analysis, Inc.
bpage@currentanalysis.com
© Current Analysis Inc. All rights reserved.
Proprietary and Confidential
12

13. Trends and Innovations
in Cloud and Managed Services
Roberto Schmidl
Vice President , Global Cloud Sales

14. The Market We Are In…The Perfect Storm
Consumerization
of IT / BYOD
Collaboration
Driving Growth
The Age
of the Cloud
 Over 1 Billion tablets
by 2016
 400 Million PCs in 2014
to be VDI
 Cloud computing market
is a $74 Billion industry
 72% permitting employee
devices for business
 Video soft clients increase
400% from 2010-13
 Mobile devices spending
will exceed PC 4x
 ¾ of all mobile apps have
been be integrated with
enterprise services since
2012
 “Digital universe” grew to
2.7B in 2013, up over 50%
from 2011
© 2013 Avaya Inc. All rights reserved.
 Over 80% of new apps
will be deployed/distributed
on clouds
*Source Marc Randall SVP Avaya Networking, Technology forum 2012 based on Gartner and Yankee Group 2011info
14

15. IT Leaders Under Siege
Day-to-day
Distractions:
 Budget constraints
 Legal and regulatory
requirements
 Demands of internal
corporate governance
 Human resource issues
Perhaps the
Most Complex:
Managing the communications
component of the IT domain
 Customers
– Communications are now
very personal, creating greater
demands and challenges
from user organizations
and business units
 Technological Change
– Fast-paced, often tumultuous,
and ongoing; winners unclear
© 2013 Avaya Inc. All rights reserved.
15

16. Mastering the Current Environment
Strong Technical
Knowledge
Incorporation of Exciting,
New Technologies
A critical foundation to build
on, but only one of several
factors that allow the IT
executive to anticipate
events, control outcomes, and
lead
 Should enable the corporate
vision without slowing
the forward march of the
organization
 Should align with line of
business (LOB) objectives
 Should empower employees
and enable choices
For example, business
users self-deploying
smartphones and tablets
© 2013 Avaya Inc. All rights reserved.
The hard-and-fast boundaries between work and home devices
and applications are quickly evaporating
The incorporation of collaboration, like SharePoint, personal
video, mobile UC apps, etc.
Tie it together - provide access to business critical information
16

17. Cloud and Managed Services Can Help
Customers Want to Realize Benefits of New Solutions
Mitigate Risk
Optimize Solution
Performance
Reduce TCO
Drive Business
Value
© 2013 Avaya Inc. All rights reserved.
Increased Solution
Functionality &
Complexity
Technology
Adoption
Gap
Adoption
optimizes
the business
value
Ability to Consume
Functionality & Complexity
17

18. Who Knew “Cloud” Could Mean So Many Things?
CaaS
Private
Hosted
What is Cloud?
Per User
AOB
Utility
High Water
Billing
Rental
Public
Managed Services
are often included but
not the same as
Cloud
© 2013 Avaya Inc. All rights reserved.
18

19. Avaya Collaborative Cloud™ Portfolio
Customer Choices
Public
AvayaLive™
Connect
Avaya
UC/CC/Video
as-a Service
Next Gen
Public
Cloud
Hybrid
OPEX
Subscription
License
Cloud
Private
CAPEX
Perpetual
License
On-Premises
Avaya
Operations
Services
Avaya
Collaboration
Pods
Avaya
On-Premise
UC/CC/Video
Products &
Services
Cloud
Enablement
for Video
Managed
Private Cloud
COS and
COS Ex
Managed
Private Cloud Contact Center
Private
Cloud
Build Out
Build
© 2013 Avaya Inc. All rights reserved.
Hosted Cloud
Enablement
Public Cloud
Cloud
Enablement
for UC and CC
Manage
Enable
Deliver
19

20. Customers Are Seeking Creative Business Models
Customer Drivers for OPEX Models
 Cash Management:
OPEX MODELS
– Consume all network, telephony
and applications as a service
– Use capital in other areas of business
 Flexible Delivery Options
– Up-scale, down-scale on demand
– Hosted, On Premise Managed, Hybrid
 Managing and Reducing IT
Complexity
Managed Services
Outsourced (COS)
Hosted
Assets on premise
Owned by Customer
Managed by 3rd Party
Assets on premise
Owned by 3rd Party
Managed by 3rd Party
Assets hosted by 3rd Party
Owned by 3rd Party
Managed by 3rd Party
– Reluctance to hire staff to manage
VoIP/UC technology complexity
– End-to-end SLA
 Total Cost of Ownership
– Potential for cost savings, including
people, capital & operating cost
– Virtualization and shared infrastructure
lowers the cost to deliver services
 Managing Obsolescence
– Refresh as technology evolves
 Corporate-wide Standardization
 Customer facing differentiation
Implication:
Dedicated
(Private)
Shared
Multitenant
(Public)
Hybrid
(Assets on Premise
Apps from cloud)
Cloud
Services
Avaya Offers Flexible Business Models
Large Enterprises are not quite sure as to what implications Cloud will have on their
business, but are expecting a solution that offers cost savings, control, leverage and security
first and scalability, flexibility, standardization and homogeneity in the long-run
© 2013 Avaya Inc. All rights reserved.
20

21. Public vs. Private Cloud
Public
Private
Hybrid
 Multi-Tennant – more
than a single customer
uses a shared platform
 Built specifically for that
customer
 On or off premise
options
 10-15% more expensive
 Lower cost/price and
usually lower features
 Total flexibility in the design
 Standard configurations
offered
 Limited “custom”
options – usually rate
carded
 Hosted off premise
 On or off premise options
 Cloud option for
enterprises with security or
shared tenant issues
(Financial / healthcare)
 Limited “custom”
options - usually rate
carded
What does this mean in Avaya?
AV UCaaS/CCaaS
Public
AOS Opex Model
Private
AOS COS Express
Model Hybrid
(Management Services
Optional add-on
(AOS Management
included)
(AOS Management
included)
© 2013 Avaya Inc. All rights reserved.
21

22. Avaya Cloud Transformation Offers
Services for the Enterprise
Communications
Delivery Strategy
Assess and determine most
optimal communications
delivery model
Cloud Transformation
Strategy
Determine the most appropriate
cloud communications solution
and delivery model for the
organization
Cloud Design
& Integration
Prepare designs for
communications integration
of a client’s business process /
back office apps
© 2013 Avaya Inc. All rights reserved.
22

23. Service Delivery and Support
Core Value and Model
Implementation &
Program Support
 Solution Design
Engineering Support
 Program Management
Office
 Seamless Service
Assumption and Transition
Process through To “Day
2” Production Support
 Program Governance &
Ownership
 Underpinning AOS Quality
Governance Program
Service Delivery
Support Model
Governed by ITIL
Standards
End to End ITIL Process
Driven
Dedicated/Designated
Solution Support
Engineering Teams
Core Competencies and
Dedicated
Client Management
Experience
Dedicated Client Service
Executive and Program
Director
Dedicated/Designated
Service Delivery Manager
and Liaison
Dedicated/Designated
Client Business Manager
Service Level
Management
Risk and Financial
Management
CSAT Champion
Currently Managing:
3.5M plus UC /Telephony
ports
350,000 CC agents
1.3M plus Data and
Ethernet ports
56,000 hours of managed
video support
Avaya Matrix Management Platform
95% + Incident
Detection
Platform Enabled
ITIL Processes
Vendor
Agnostic
Bi-Directional eBonding (Ticketing
and/or Inventory Systems)
Transparent
Customer Portal
Backed up by Contractual Service Level Agreement and Underpinning Contracts
© 2013 Avaya Inc. All rights reserved.
23

24. Accountability Through SLAs and a Single Point
of Contact and Management
Service Level
Agreements
Single Point
of Contact
Flexible SLA
progression is
available to meet your
business needs
Proactive global
service for all
of your account
needs
Maintain your
workforce’s
performance
Delivered 24 X 7
in language
© 2013 Avaya Inc. All rights reserved.
Integrated
Management
Supported by
Avaya Matrix
Built with industry
standard components
& Avaya IP
Delivered through
personalized web
portal experience
24

25. Strong Governance and ITIL® Alignment
Ensures Success of Your Environment
Governance
Model
Ensuring you are kept
aware of activity in your
environment through:
Security and Access
Reporting
Escalation
Project Coordination
and Planning
Management and
Oversight
© 2013 Avaya Inc. All rights reserved.
ITIL Alignment
What It Means
 Single, definable,
repeatable, and scalable IT
framework for the entire
organization
 Clearly identifies roles and
responsibilities for Service
Management
 Defines IT in terms of
services
rather than systems
Benefits
 Helps reduce capital
IT costs
 Improves communication
between IT and other
departments
 Supports improvement
of IT performance
 Enhances ability of IT
to adjust to changing
business needs
25

26. Transparency Gives You Easy Access
to Your Information
Interactive
Management
Client Portal
Interactive tool
giving visibility into
your network
Web-based interface
for enterprise
application users
 Incident Management
 Change & Release Management
 Problem Management
 Configuration Management
 Service Request Management
 Ordering & Billing
 Knowledge Base
 Reporting
© 2013 Avaya Inc. All rights reserved.
 Customizable landing page
 Role based personalization
 HTML 5 based for browser
access from any device
 Two-factor authentication (2FA)
 Multiple language support
 Single sign on
26

27. Summary - Challenges and Value Proposition
Today’s Challenges
 Limited IT budgets, Limited
to No Capital
 Increasingly complex application
environments
 Limited IT resources. Increasing
cost to attract, retain and train.
 Increasing costs to purchase
and maintain IT tools.
 Challenging to manage system
obsolescence and integration
 Aging Infrastructure but limited
to no capital available
 Require flexibility on users
(up/down)
© 2013 Avaya Inc. All rights reserved.
Services Value Proposition
 Reduce Total Cost of Ownership
(Operations, Staff, Tools, Training, H
W/SW)
 Business Model
– Opex
– Predictable Cost
– Simple, Flexible
 Outsource Complexity
– System Integration
– Obsolescence Management
– IT Communication Skill sets
 Improve Productivity
– Advanced Applications
Deployed Quickly
27

28. Snapshot: Global Manufacturer
UC Deployment Success
Challenge
Solution
Results
 Aging TDM infrastructure not
meeting the client’s business
needs
 Complex global solution
supporting 75,000 ports over
700 sites
 Complete Avaya Aura®
Transformation over the
next three years
 Requiring a next-generation
UC platform migration path
 Migration path to Avaya Aura®
 Creation of regional, primary
core data centers in the
Americas, EMEA, and APAC
to support all users
 Limited capital budget so
client did not want to own or
operate any equipment
 Total Avaya Opex Utility
Model solution
 Avaya/client process and tool
integration
 Complex global billing
solution
 Reduction in total cost of
ownership
 Fully operating expense
solution with predictable
pricing and global reach
Support mission to fully own and operate network
Transform to next-generation UC platform
© 2013 Avaya Inc. All rights reserved.
28

29. Review and Close
Trends-
Strong Growth in Cloud and Managed Services
Public, Private and Hybrid- Options depend on your business
Global Standards- Ensures connectivity and reach
TCO – Savings over 20% by Reducing Complexity,
increasing productivity and maximizing performance
Process
© 2013 Avaya Inc. All rights reserved.
People
Presence
Capacity
Performance
29

30. © 2013 Avaya Inc. All rights reserved.
30