Red Bull Racing

• Introduction - Matthew Parker, Sales Director

• ‘Stormy Weather’ Perils of the Cloud – Paul Court, Technical Director

• Simplifying Application Management – Ralph Lorkins, Solutions Architect Manager

Break

• The changing face of UK connectivity – Martin Saunders, Marketing Director

• Partnering with Claranet – Darren Metherell - Corporate Sales Manager

• Panel Q&A

Lunch

• Red Bull Presentation – Steve Nevey

• Red Bull F1 factory tour

• Summary & Closing statement - Matthew Parker, Sales Director

Agenda

Attendees

Claranet’s market view• We believe:

• Companies will consume more technology over the next 10 years

• Companies’ ability to manage technology internally will decrease

• Providing a wide range of managed services as a single service is key

We make our profits by providing a high quality service that improves efficiency, and enables our customers to focus on their core capabilities.

What the Analyst’s say….

‘These are times of transition. The economy is transitioning from recession to recovery. Enterprises are transitioning their strategies from cost-cutting efficiency to value-creating productivity. Technologies are transitioning from ‘heavy’ owner-operated solutions to ‘lighter-weight’ services. In turn, CIO’s are transitioning IT beyond merely managing resources to taking responsibility for managing results’ Gartner 2010 CIO Report

The opportunity• Mid-market companies need us (or others like us) to

help them• Save money

• Grow their business – quality and flexibility of MSP services as contributor

• Change the game with more relevant SLAs – focus on application availability (connectivity and hosting)

• Build a profitable business based on providing consistent high quality.

• Managed Service provider delivering integrated application and network services under a single, business relevant SLA.

Who are we?

A technically astute partner offering Networks, Hosting and Managed Applications Services

A technically astute partner offering Networks, Hosting and Managed Applications Services

An experienced company with 36,000 business customers An experienced company with 36,000 business customers

With an International footprint across 7 countries With an International footprint across 7 countries

Our Claranet UK revenue in 2009 was £39 million Our Claranet UK revenue in 2009 was £39 million

A Managed Services Provider A Managed Services Provider

International Footprint

• 7 countries• 14 Offices• 520 employees

Our Managed Services Stack

GLOBAL SERVERLOAD BALANCER

CO-LOCATION

SHAREDHOSTING

DISASTERRECOVERY

DATASTORAGE

MONITORING

SOFTWAREENGINE

DATABASEADMINISTRATION

WEB SERVER

MANAGEDEMAIL

ETHERNET

DSL

MPLS

NETWORKMONITORING

NETWORKS HOSTING

APPLICATIONS

MANAGEDSERVICES

Solution Management

Our Customers

Our Vendor Partners

Stormy WeatherThe perils of the ‘cloud’Paul Court - Technical Operations Director - Claranet UK

A technically astute partner offering Networks, Hosting, V Cloud and Managed Applications Services

A technically astute partner offering Networks, Hosting, V Cloud and Managed Applications Services

An experienced company with 36,000 business customers An experienced company with 36,000 business customers

550 employees spread across 7 countries 550 employees spread across 7 countries

A Managed Services Provider A Managed Services Provider

Who are we?

Eyjafjallajokull – Big Clouds

The perils of the ‘cloud’ ?

Unlike children (or Volcano's), it is generally considered a good thing when technology is ‘disruptive’ because, in theory, it has improved a product or service in ways the market did not expect.

Hosting, Challenges for a new eraStormy Weather

“Cloud Will save you Money”

“Virtualise your estate and Save!”

“Cloud is the future of Services Computing”

“Unrestricted Cloud Computing – All you Can Eat”

“The future is Virtualisation!!!”

The Hype

Back to Basics, What’s Cloud ??Stormy Weather

The Standard Server Model

Virtualising a Server

OptimiseConsolidate

Traditional server can only support a single Operating System and Application

A server running a Hypervisor can support multiple Operating Systems, each supporting a different application

Fault Tolerance

The Virtualised Server Model

Fault Tolerance

The Cloud Services Model

Why Cloud ?• Agile in deployment.• Flexible in resource allocation – i.e. rapid resource

increases/decreases – increased during sale period and decreased after.

• Provides high availability.• Does not inhibit growth.• All for less money, on a pay as you grow basis – i.e. start

small and grow when business does.

Why Cloud ?• To use another analogy, if you as an individual pick up a

telephone, you get the same dial tone and ability to make calls as Barclays or Sainsbury. You just pay less because you use it less.

• Cloud should enable you to affordably have access to, and use of, the same world-class information technology as any FTSE / Fortune company.

Some of the Types of CloudStormy Weather

Private cloud vs. Public cloud• Public Cloud (Contended) – Cloud services that have

contended resources (processing and storage open to all)

• Public Cloud (Shared) – Cloud services that are publicly accessible with shared resources (processing and storage divided into reserved chunks)

• Private Cloud (Dedicated) – Cloud services but all resources dedicated to a single client or company.

What are the Risks ?Stormy Weather

Security Risk Assessment

Virtualisation Model

Standard Model

Cloud Model

LOWRISK

HIGHRISK

Compliance vs PCI StandardPCI Requirment

Standard Virtual Cloud

Requirement 1: Install and maintain a firewall configuration to protect cardholder data

Requirement 2: Do not use vendor-supplied defaults for system passwords and other security parameters

Requirement 3: Protect stored cardholder data

Requirement 4: Encrypt transmission of cardholder data across open, public networks

Requirement 5: Use and regularly update anti-virus software

Requirement 6: Develop and maintain secure systems and applications

Requirement 7: Restrict access to cardholder data by business need-to-know

Requirement 8: Assign a unique ID to each person with computer access

Requirement 9: Restrict physical access to cardholder data

Requirement 10: Track and monitor all access to network resources and cardholder data

Requirement 11: Regularly test security systems and processes

Requirement 12: Maintain a policy that addresses information security

Key:- Compliance Very Diffi cult / impossibleCompliance Requires ThoughtCompliance Possible

Compliance Level

Is it possible to run Compliant Services in the Cloud ?

Stormy Weather

Yes, of Course

• But with Caveats…..

Break Down

As enterprises start to run their systems on the cloud without thinking about the bigger picture, existing certifications and compliances can start to break down and business risks go up.

Some Common Issues

Most certifications assume that the enterprise controls everything, and it's all located within their direct control.

In certain cases, compliance will be impossible, It is difficult with Cloud to take full responsibility for who can access data, who sees it and how it is stored.

Since the premise of the cloud is that customers don't necessarily need to know or care where their data is, this makes compliance “interesting”.

Some Common Issues

Virtual servers will typically have multiple functions running on a single physical server. Section 2.2.1 of the PCI DSS, for example, states that a server should perform only one primary function. ?!

Companies looking to reduce their IT costs and complexity by tapping into Cloud computing services should first make sure that they won't be stepping on any privacy land mines in the process…

What do I need to know / ask ?Stormy Weather

Check List

What are the goals of the project ?

What compliance do I need ?

Where is my data ?

How does the system currently work ?

How am I connecting to it ?

What are the goals of the project ?

• Increased abilities ?• Outsource responsibility ?• Reduce Capex and/or Opex ? • Simplify management ?• Reduce risk ?

What compliance do I need ?

• PCI-DSS for merchants with card data• FISMA, HIPAA and SOX etc for financial data• DPA for systems storing customer data • ISO 9000 / ISO 27001 for business compliance

Where’s my data?• Some may already be with a 3rd party (Payment

Provider)• If it’s on your systems, is it encrypted/encryptable• Who / What needs access to it ?• How Dangerous is the data ?

How does my system work ?• Can system elements be separated ?

• Website can normally be sliced by element type – Graphics, HTML, Scripts, Downloads – can any of these be placed on the Cloud ?

• It there a reliance on other systems / places• From a line to the office to 3rd party data providers

• Does the system naturally Cloud ?

IaaS vs. PaaS

• Two Levels of Service• IaaS – Infrastructure As A Service

– Colo infrastructure replacement with the availability and manageability advantages of the Cloud

• PaaS – Platform As A Service – servers + OS + managed software engine / DB engine with

the availability advantages of the Cloud

Which Bits ?

Database

Virtual Servers

Physical Firewall

Physical Firewall

How am I connecting to it ?• Connectivity will now become a Major factor in

uptime.• Is that old single ADSL still viable?• Should I look at new gen products.

• Ethernet

• FTTC

• FTTP

• What resilience do I have ?

TasksStormy Weather

Cloud Computing tasks

• Here are the new Cloud Computing tasks that are coming your way that you’re going to have to find ways to staff or find partners who can help you with and or take ownership of:

Cloud Computing tasks• Extend: you’re going to have to come up with ways to create

bridges between your existing network environment and the cloud. then you’re going to have to maintain those bridges.

• Pick: you’re going to have to pick a couple of cloud service providers. Once you’re in bed with them, you are going to have to have staff to monitor how they are performing and to provide the human interface to fix the issues that always show up.

• Monitor: forget outages, what about day-to-day issues? You are going to need staff to monitor and mange the apps that you have running “in the cloud”.

Cloud Computing tasks• Identify: who on your staff is allowed to do what? Since

the old rules about getting access to boxes no longer apply, you’re going to need new rules and new staff to enforce and update them.

• Encrypt: since you are now going to be storing data off site and “out there, where ever There is”, encryption becomes more than a nice-to-have, now it’s a necessity. Somebody on your staff is going to have to be double checking everything all the time to make sure that it REALLY IS encrypted.

Cloud Computing tasks• Plan: for the worst. Data link outages are going to be a much

bigger deal then they ever used to be. How will you handle being disconnected from your cloud for an hour, a day, a week? Somebody had better be put in charge of solving this problem and keeping this solution updated.

• Mange: your bandwidth. Now that the link between you and your cloud has become critical to how the business runs, you had better have someone on it at all times.

Final words of wisdom• Gartner predicts that by 2012, 20 percent of

businesses will own virtually no IT assets. • Your IT department will eventually use cloud

computing. it makes good economic sense and so all other objections will be worked out over time.

• If your vendors can’t give you their opinion or strategy in relation to your Applications, Cloud and Compliance, should they be your vendors ?

Claranet Solutions• Shared Virtual Platform (IaaS)

– This is where Claranet provides the physical infrastructure and enable clients to purchase slices of said infrastructure.

• Private Virtual Platform (Iaas)– This is where a client has a dedicated Virtual Platform

(exactly the same as SVP but dedicated) and can utilise the whole infrastructure themselves.

• Shared Virtual Cloud (PaaS)– Built on top of the SVP above, with client solutions

compartmentalised and managed to maintain security.

• Private Virtual Cloud (PaaS)– Built on top of the PVP above.

And Finally

We’re looking at a brave new future.

Do you have the right staff with the right set of skills together with the right partners in order to make the most of it?

Any questions?

Ralph Lorkins - Solution Architects Manager

Claranet Managed Application Hosting:Simplifying Application Management

What are applications?• Formerly - client-server model

• Now - era of web-enabled applications

• 3 tier stack

• Line between back office and web less distinct

Single SLA and MSA Contract

Application Management

OS Management

OS Support

Hardware Support

Datacentre Infrastructure

Network Infrastructure

Claranet Managed Application Hosting

Single SLA and MSA Contract

Application Management

OS Management

OS Support

Hardware Support

Datacentre Infrastructure

Network Infrastructure

Claranet Managed Application Hosting

Platform as a Service

Wrapped into a comprehensive SLA

Technologies - snapshot

• Windows & Linux. IIS/Apache

• .NET, Java EE, ColdFusion, PHP, Python +

• MS SQL Server, MySQL, PostgreSQL, Oracle

• Microsoft suite: Exchange, SharePoint

• VMWare, Hyper-V

Why use MAH?

Of all the businesses who undertake software development projects...only 34% deploy successfully.

Source: Standish Group Report

SUCCESSFUL34%

FAILED15%

CHALLENGED51%

Application Deployment Challenges

• Inadequate scope – functional and technical

• Focus on the service, not the application

• Services to do not exist in a vacuum

• The “Technology Trap”

• Application Development is not Application Management

Claranet Managed Application System

How we do it - overview

BUSINESS DRIVERS

SLA

SOW

RUN BOOK

TIME SCALE IN MINUTES

AlertESCALATION

Fix FAQ

DOCUMENTATIONCHANGE MANAGEMENT

REPORT & APPLICATION

OPTIMISATION

Real Time Monitoring

Application

Network

Infrastructure

How we do it – application platform

Pre Production

DEVELOPMENT VERSIONING

TEST

PRE PRODUCTIONCHECK OUT

CHECK IN

Fix FAQCMS PRODUCTIONROLLBACK

CUTOVER

DEPLOYPATCHING

CONFIG CHANGES

CUSTOMER

CLARANET

RELEASE

CHANGE MANAGEMENT

DEPLOY

What about developers?• Communication and collaboration

• Testing, Operational Support Plan, initial Runbook

• Examples:• CDS. In house team. SaaS

• Ann Summers. 3rd party developer. Two platforms.

• Five TV. Silos. Expanding requirements

• Allows them to focus on development

Foundations of Service Management

• Process• Operational Support Plan

• ITIL-based runbook

• People• Skills

• 24/7 support, holiday cover

• Technology• Vendor agnosticism

CSI

• Continual Service Improvement• Availability Management

• Capacity Management

• Data Management – Security

• Integration

• Consolidation

• Partnership

Summary – Managed Application Hosting

• What is it?• Reduced costs.

• Peace of mind.

• How do we do it?• People. Processes. Technology.

• Why use it?• Allows all parties to focus on their core strengths

Click icon to add picture

Click icon to add picture

The changing face of UK connectivity

Martin Saunders – Marketing Director

Agenda• Trends of the past• Service developments for the next 12 months• How this might effect the applications

Increasing speeds• 1996

• Small business – 33.6Kbps – V34

• Big business – 128Kbps – ISDN• 2000

• Small business – 512Kbps – ADSL

• Big business – 2mbps – E1 leased line• 2004

• Small business – 8mbps - ADSL

• Big business – 10mbps – Ethernet• 2008

• Small business – 16mbps – ADSL 2+

• Big business – 100mbps – Fast Ethernet• 2012

• Small business – 40mbps – VDSL2

• Big business – 1Gbps – Gigabit Ethernet

1

10

100

1,000

10,000

100,000

1,000,000

1996 2000 2004 2008 2012

Business

Residential

Increasing reliability

1996 2000 2004 2008 2012

V34 –modem# of Engaged

tone

Sm

all

b

usi

nes

sB

ig

bu

sin

ess

ADSLContention

ADSL MaxUpload Speed

ADSL 2+Latency and packet loss

VDSL2Quality of Service

128K ISDNContention

2mb LeasedUpload Speed

10mb EthernetLatency and packet loss

100mb Fast EthernetQuality of Service

1Gbps EthernetApplication awareness

Increasing reach of next gen networks

Next Generation networks

Legacy networks

1996-2005 National networks only went to Metro PoPs, all further connectivity provided by BT legacy networks

2005-2010 National networks extending to exchanges through LLU and 21CN, rest still on legacy networks

2010 - 2015 National networks extend further again to Cabinets, legacy now only for last 400m

London Metro PoPs Local Exchanges Street Cabinet Customer sites

1 ~120 ~5500 ~100k ~3m

2012 - 2020 National networks extend all the way to individual customer sites

Local Exchanges Street Cabinet Customer sites

FTTC – VDSL2• BT’s first service based on ‘Sub-loop

unbundling’ – Fibre to the ‘Cabinet’• Speeds up to 40mb down and 10mb up• Currently limited availability (10m homes by 2012)• Service levels same as DSL (contention/Time to fix etc.

Local Loop Unbundling

Sub Loop Unbundling

Ethernet fibre backhaul

• BT’s alternative to FTTC where there is no Cabinet• Speeds of +100mb down and possibly up to 40mb up• Currently very limited availability (2.5m homes by 2012)• Service levels same as DSL (contention/Time to fix etc.

No CabinetLocal Exchanges Customer sites

Ethernet fibre backhaul

FTTP

Summary of access optionsIn

cre

as

ing

lin

e s

pe

ed

Dis

tan

ce

fro

m t

he

ex

ch

an

ge

ADSL1 ADSL 2+FTTC

15M - 40Mbit/sFTTP

up to 100Mbit/s

0 – 4Mbit/s 44% of ADSL1 EU’s see no increase by moving to ADSL2+

Likely to see significant benefit up

to 40Mbit/sNot available

4 – 7Mbit/s39% likely to see

increase of ~1 – 3Mbit/s

Likely to see significant benefit up

to 40Mbit/sNot available

7+Mbit/s6% likely to see

increase of ~ 3 – 6Mbit/s

Likely to see significant benefit up

to 40Mbit/sNot available

‘Exchange only’ lines11% lines are all likely to see increase of up

to ~13Mbit/sNot available

Likely to see significant benefit up

to 100Mb

Service Harmonisation• Industry lead program to simplify

and improve copper repair levels• Care Level 4 - game changer

CARE LEVEL 1 - BASIC ANALOGUE LINES ONLY

1CARE LEVEL 2 - BB STANDARD CARE

CARE LEVEL 3 - BB ENHANCED CARE

CARE LEVEL 4 - BB ENHANCED CARE +

4End of next working day +1 working day, fix Monday – Friday

2End of next working day, fix Monday – Saturday

3Report am fix pm. Monday-sunday

6 hours repair

Impact on applications• Higher availability and

reliability = good news• More reliable and faster network

access enables consolidation / cloud

• Use of QoS and Care Level 4 makes low cost connections more dependable

• Lower cost of bandwidth enables bandwidth hungry applications,e.g. Video

• Greater ‘digital divide’ = bad news• Many customers will never get

FTTC or FTTP

• Postcode lottery will becoming increasingly important in site selection

• Applications will need to be designed to cater for multiple levels of connectivity

Any questions?

Click icon to add picture

Click icon to add picture

Claranet Your IT Partner

Darren Metherell – Corporate Sales Manager

Questions• Can you meet current and pending Regulatory

compliance requirements – such as PCI?• Has your IT network or hosted infrastructure

caused you to lose revenues as a result of unplanned downtime?

• Do you have access to on demand computing power as you require it for unforeseen requirements or short term projects?

• Is retention of key IT staff a challenge?

Click icon to add picture

Click icon to add picture

Established Business Approach

CUSTOMER

Traditional Direct

CLARANETAggregated services from multiple suppliers wrapped into single contract and SLA

Provides cost effective business solutionwith single contract and supplier relationship

Reseller/Partner Approach

RESELLER

CUSTOMER

CLARANET

ClaranetService

Value Added Service

£££

£££ Reseller

Terms

Composite Solution Offerings allow you to choose what’s right for your business/client Wrapped into a comprehensive SLA

Single SLA and MSA Contract

Application Management

3-tier (presentation, Application engine, Database)

OS Management

Tuning, security, Troubleshooting

OS Support

Patch Management, Monitoring

Hardware Support

Firewall, Load-balancers, storage, backup, servers,...

Datacentre Infrastructure

Floor, Cooling, Power, Physical security

Network Infrastructure

WAN, Private Network, Security

Composite Solution

Types of Managed Applications

Web Applications• Extranet Web sites• Ecommerce sites• SaaS• Managed Security• Portals• Web 2.0 / Mashups /

Folksonomies

Business Applications• CRM• DBA• Content Management

Systems• Managed Exchange• Managed Archiving• Staging & Testing

environment

Claranet Managed Application System

Proactive Monitoring & Fixing - 24/7

BUSINESS DRIVERS

SLA

SOW

RUN BOOK

TIME SCALE IN MINUTES

AlertESCALATION

Fix FAQ

DOCUMENTATIONCHANGE MANAGEMENT

REPORT & APPLICATION

OPTIMISATION

Real Time Monitoring

Application

Network

Infrastructure

Staging Environment

Pre Production

DEVELOPMENT VERSIONING

TEST

PRE PRODUCTIONCHECK OUT

CHECK IN

Fix FAQCMS PRODUCTIONROLLBACK

CUTOVER

DEPLOYPATCHING

CONFIG CHANGES

CUSTOMER

CLARANET

RELEASE

CHANGE MANAGEMENT

DEPLOY

• Established Managed Services Provider

• Supplier Aggregator - use best of the best

• Dedicated Account Management team - not just sales

• Flexible commercial approach - single SLA and MSA

• Proven ROI Vs In House projects

Summarising

Any questions?

• Introduction - Matthew Parker, Sales Director

• ‘Stormy Weather’ Perils of the Cloud – Paul Court, Technical Director

• Simplifying Application Management – Ralph Lorkins, Solutions Architect Manager

Break

• The changing face of UK connectivity – Martin Saunders, Marketing Director

• Partnering with Claranet – Darren Metherell - Corporate Sales Manager

• Panel Q&A

Lunch

• Red Bull Presentation – Steve Nevey

• Red Bull F1 factory tour

• Summary & Closing statement - Matthew Parker, Sales Director

Agenda

Claranet’s market view• We believe:

• Companies will consume more technology over the next 10 years

• Companies’ ability to manage technology internally will decrease

• Providing a wide range of managed services as a single service is key

We make our profits by providing a high quality service that improves efficiency, and enables our customers to focus on their core capabilities.

What the Analyst’s say….

‘These are times of transition. The economy is transitioning from recession to recovery. Enterprises are transitioning their strategies from cost-cutting efficiency to value-creating productivity. Technologies are transitioning from ‘heavy’ owner-operated solutions to ‘lighter-weight’ services. In turn, CIO’s are transitioning IT beyond merely managing resources to taking responsibility for managing results’ Gartner 2010 CIO Report

Fault Tolerance

The Virtualised Server Model

The Cloud Services Model

Final words of wisdom• Gartner predicts that by 2012, 20 percent of

businesses will own virtually no IT assets. • Your IT department will eventually use cloud

computing. it makes good economic sense and so all other objections will be worked out over time.

• If your vendors can’t give you their opinion or strategy in relation to your Applications, Cloud and Compliance, should they be your vendors ?

Impact on applications• Higher availability and

reliability = good news• More reliable and faster network

access enables consolidation / cloud

• Use of QoS and Care Level 4 makes low cost connections more dependable

• Lower cost of bandwidth enables bandwidth hungry applications,e.g. Video

• Greater ‘digital divide’ = bad news• Many customers will never get

FTTC or FTTP

• Postcode lottery will becoming increasingly important in site selection

• Applications will need to be designed to cater for multiple levels of connectivity

InformationUser

DATA CENTRE SERVERCONNECTIVITYROUTER SECURITY

END-TO-END SLA

APPLICATIONOPTIMISATION SECURITY

End-to-end Service ManagementMonitoring Reporting Service Management Support

End-to-end Service Management

Why use MAH?

Of all the businesses who undertake software development projects...only 34% deploy successfully.

Source: Standish Group Report

SUCCESSFUL34%

FAILED15%

CHALLENGED51%

CUSTOMER

Traditional Direct

CLARANETAggregated services from multiple suppliers wrapped into single contract and SLA

Provides cost effective business solutionwith single contract and supplier relationship

Reseller/Partner Approach

RESELLER

CUSTOMER

CLARANET

ClaranetService

Value Added Service

£££

£££ Reseller

Terms

Red Bull Racing

Any questions?