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8/14/2019 Consider Outsourcing
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2008 Tata Communications, Ltd. All Rights Reserved
Consider Outsourcing
Vinay NagpalDirector, Product Management
Hosting & Data Center ServicesTata Communications
Computer World Forum
Data Hot-House Summer 2008
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Considering Outsourcing?
Why buy the cow if you need only the milk?
Why run your own data centers when you can just pay to have your
machines hosted or have your computing resources supplied as autility?
There are cases where it may make sense to have your own farm!
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The CIOs conundrum
Need to show the value of IT to the business
Need IT infrastructure to support mission critical applications"
SLAs aligned to needs of the business? the performance cost trade-off
Business needs changes implemented quickly but we need to get it right
Users are getting more and more demanding. There is a deluge ofinformation to manage, and the underlying infrastructure is complex"
Our internal admin costs are too high
We need to improve business performance
We dont know what we have got out there
We need to be more customer oriented
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Global Data Center
Marketplace
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The New World
Globalization Web 2.0 India & China
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Data Center Market Trends
Various Sourcing models
Enterprise data center/IT consolidation
Convergence of network & IT realms SPs adopting Virtualization/SaaS
Utility Computing
Increased volume of digital media
Flexibility and support to scale ITinfrastructure web, apps, databases
Increased power/cooling requirements
Space constraints driving next-generation
data center
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Business Drivers for Outsourcing
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Global Data Center Market
IDC has forecast that the market will grow from $29.57 billion in 2005, to$48.37 billion in 2010 (CAGR of 10%).
Worldwide IT and business services: Focus on SMEs, global assets, globalsourcing for innovation, and industry focused BPO
IDCs latest forecast for the Asia/Pacific market (excluding Japan) in IT
Services: 2010 China will overtake Australia
In 2011 India will overtake Korea to become the third largest market in theAsia Pacific region.
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India and China will improve their position in the APAC DC market
APAC Data Center Market Split by Country (%)
INDIA Data Center Outsourcing ($ million)
Source: Gartner
As China and India increasinglyredefine the future of technologyand innovation, knowing how to
map a course into that future willbe a core competency of the most
accomplished travelers Gartner
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Asian Data Centre Space Forecast: 2006 to 2010
Chart 1 - Data Center Space Growth Forecast 2006-2010 by country
(Source: BroadGroup)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2006 2007 2008 2009 2010
China
Hong Kong
Indonesia
India
Japan
Korea
(South)Malaysia
Philippines
Singapore
Taiw an
Thailand
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Asian Data Centre Market Forecast: 2006 to 2010
Asia Data Center Space Forecast 2006-2010 (figures in '000 square feet)
Space forecasts are based on carrier neutral facilities, carrier owned data centers, and space provided by hosting or IT service firms.
11.51958017330169501533513420Total
513001250120011501100Thailand
5950950900850800Taiwan
917501700160015001300Singapore
81200115011001000900Philippines
151500140013001200900Malaysia
1014001350125011501000Korea (South)
342004100400039003800Japan
2437003500300025001900India
40530480400360320Indonesia
1317501550130012001100Hong Kong
3514501150900725600China
CAGR%20102009200820072006Country
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Outsourcing of IT and application development demands infrastructure
and managed services
Entry into new markets requires IT infrastructure and capabilities
Drivers of Data Center Growth
Globalization &Outsourcing
Regulation &BusinessContinuity
Alternate IT infrastructure and services for business continuity and
compliance, particularly for Banking and Financial Services companies
Data privacy and security issues
Time to MarketConsiderations
Serve customers quickly and locally to improve experience Application and services roll out to emerging markets such as India,
China and South East Asia
Data Center Infrastructure easily available for applications
Reduced ITBudgets
Rising costs of real estate and power
Technology obsolescence, manpower churn, management overheads
Skills of M&E not necessarily core to IT
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Availability and cost
Proximity to fiber andchoice of providers
Space size and scalability
Commitment - contract vs. lease
Statutory approvals and regulations
Power infrastructure and costs
Fire suppression
Environmental controls M&E
Maintenance
Monitoring
Staffing and retention of skills
Challenges in building your own Data Centers
Real Estate
Core Infrastructure
Operations
Heating, Venting, AirConditioning (HVAC)
Security (manned,
access, surveillance)
3 Ps: Pipe, Power, Ping
24x7 support (3 Shifts)
Security Multiple vendor contracts
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Selection criterion to Outsource IT infrastructure
Location: Globally expansive footprint
Ability to deliver consistent services across multiple regions
Data centers in mature markets and emerging markets
Connectivity: Highly available, secure and integrated network
People: Technically competent IT staff
IT infrastructure and management: Well-defined and flexible roadmap
Operational efficiencies
Adherence to compliance
Financial Viability
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and sometimes it makes sense NOT to Outsource
Assets on the ground
Custom/legacy system requirements
Security requirements
Extent and depth of management oversight
Regulatory and compliance issues
TCO consideration
Footprint and facilities requirements
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Data Centers Outsourcing Options in Asia Pacific
Australia & New Zealand Good IT infrastructure
Experienced IT staff
Good service quality Network latency far from Asia
No direct routes connecting India &China
South Korea, Japan & Taiwan Good network to China & HK Service quality and network
performance are good
Far from South Asian countries
Limited capacity to India
High labor and real estate costs
Hong Kong & Singapore Good IT infrastructure
Experienced IT staff
Excellent network coverage Good language skills
High labor & real estate costs
India & China Growing markets Service quality improved but
inconsistent
IT skills are improving
Limited international connectivity
Huge domestic market
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Tata Communications in
the Data Center Market
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Vision
Emerging Markets
Converged IP
Solutions
Managed
Services
INDIA, ASIA incl CHINA, SOUTH AFRICA
NEW WORLD OFCOMMUNICATIONS
NEW WORLD OFCOMMUNICATIONS
Deliver a new world of communications to advancethe reach and leadership of our customers.
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Data center infrastructure in key geographies Presence in both developed and emerging markets
Tata Communications Data Center Strategy
Global Footprint
Integrated withNetwork Services
ConsistentService
Capabilities
Out-taskedManagedServices
Captive DataCenters
Leverage extensive global network integrated with data centers
Network Services: IP, MPLS, Ethernet WAN for DC and end sites Carrier diversity to support redundancy requirements
Data centers are based on consistent standards Tier 3 specifications
Based on global and industry standards ISO 20000, 27001, SAS70
Managed IT infrastructure services servers security and network
Managed Hosting and Storage
Standards-based management for consistent service capability
Leverage in-house experience and expertise along with partners to buildcaptive data centers
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Data Center Services and Capabilities Multiple hosting and colocation facilities
Network Colocation and IT Hosting suite of services
Data Centers build to Tier 3 standards
Integrated with backbone network
Infrastructure
Colocation
Hosting
Services
Racks and cages
Remote Hands Services
IP and Bandwidth Services
Managed Security- Firewalls, DDoS, and UTM
Managed Hosting Services Servers, Storage, Security, Network
Virtualization, DB, Dual Site Recovery Replication in development
24 x 7- operations, management and monitoring and OS level
management; Linux, Solaris, Windows, AIX Centralized Management Platform with customer view portal
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Tata Communications Global Footprint of Colocation and Hosting Facilities
NORTH AMERICACanada
Montreal
Toronto
USA New York, NY North Alameda, LA Santa Clara, CA
Portland, OR Wall, NJ
Guam
UK Stratford, London
Highbridge
Peterborough
EUROPE Lisbon, Portugal
Seixal, Spain
Derio, Spain
INDIA Mumbai Chennai Delhi
Bangalore Hyderabad
Pune
ASIA PACIFIC Shinagawa, Tokyo Toyohashi, Japan
Singapore
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The Road Ahead
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The Next Wave Driving Data Center Outsourcing Energy use and power and cooling management and optimization
New IT systems and infrastructures; alternate sources of power
Cost reductions and savings; environmental impact
Green IT
Virtualization
Captive Data
Centers
Security
Application/Content Delivery
Logical server installed base growth: 65 million versus 45 million of
physical server install base by 2010 Virtual Data Center; from consolidation to dynamic flexible infrastructure
Anywhere Enterprise; DC, Application, Network and Desktop virtualization
BO, BOT models; for the enterprise, but operated, managed as a service
Issues of capacity management, infrastructure upgrades, aligned tobusiness needs
Anytime, anywhere information availability drives shift towards policy-based security management and administration
Networks make it a reality; network as a delivery platform; orchestration ofvirtual resources
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Summary
Key drivers for Data Center Outsourcing
Cost savings by avoiding capex investment
Limited IT skill-set
Technology challenges
Improve performance and availability of IT systems and websites
Asia Pacific region is positioned to take a significant portion of Global DataCenter Market
Singapore is currently the regional hub of Data Center business
Increased focus on emerging markets India & China
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www.tatacommunications.com
Thank you!Thank you!
Vinay NagpalVinay Nagpal
Tata CommunicationsTata Communications