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SAFE HARBOR STATEMENT
Some of the statements herein constitute “forward-looking statements” that do not directly or
exclusively relate to historical facts. These forward-looking statements reflect our intentions,
plans, expectations, assumptions and beliefs about future events and are subject to risks,
uncertainties and other factors, many of which are outside our control. Important factors that
could cause actual results to differ materially from the expectations expressed or implied in the
forward-looking statements include known and unknown risks. Because actual results could differ
materially from our intentions, plans, expectations, assumptions and beliefs about the future, you
are urged to view all forward-looking statements contained herein with caution. Tata
Communications does not undertake any obligation to update or revise forward looking statements,
whether as a result of new information, future events or otherwise.
Presenters / Speakers Title
Mahesh Pratap SinghWelcome, Introductions, Safe Harbor
Disclosure and Today’s agenda
Vinod Kumar Strategy update
Anthony BartoloUnified Communications and Collaboration
(UCC) – Overview and Strategy
Sumeet WaliaGlobal Enterprises Segment - Overview
and Strategy
All Q&A
AGENDA
5
ST TELEMEDIA AND TATA COMMUNICATIONS ENTER
INTO A STRATEGIC PARTNERSHIP TO EXPAND DATA
CENTRE BUSINESS IN INDIA AND SINGAPORE
• ST Telemedia will acquire 74% majority stake in Tata Communications’ data centre business in India (TCDC) and
Singapore (TCX) for an estimated 100% enterprise value of INR 31.3b and SGD 232.4m respectively.
• Both companies share a very similar ethos, set of values, impeccable commitment to customer service
excellence, and are long term investors, focusing on performance, value and growth.
• Tata Communications will remain as a significant shareholder, holding the remaining 26% stake in the businesses.
• This new joint venture partnership will now allow us to hone our strategic focus on advanced services within the
data centre that enable digital transformation for our customers, in addition to infrastructure services.
• Tata Communication will continue to focus on the development and introduction of its advanced managed
services portfolio (including IP, cloud enablement and unified communications services), and continuing to invest
in its strategic partnerships globally
6
SUCCESSES
Named an Aon Best Employer India
2016. Recognised for high employee
engagement, compelling employer
brand, effective leadership and a
culture that enables high performance
Continued to make in-roads in global enterprise
space winning against global giants. We signed,
amongst others, a Landmark Deal with AF/KLM that
aims to “Unleash a Digital Transformation”. This
reflects our success in changing narrative with
enterprise CIO from supplier to true partners
“Leader” in Gartner Magic
Quadrant¹ for Network Services,
Global for the third consecutive
year
We continue to outgrow most of our
peers and our Capex continues to be
relatively lower than Industry spend
validating high quality services led
nature of our growth
Partnership program
continues to gain traction.
Several new partnerships
established.
Hitting operational milestones in line
with our strategic plan for
transforming business mix, enhancing
profitability, improving FCF and ROCE,
and reshaping our business portfolio
¹ Gartner, Inc “Magic Quadrant for Network Services, Global” Neil Rickard, Bjarne Munch, 14 January 2016. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only
those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with
respect to this research, including any warranties of merchantability or fitness for a particular purpose.
7
CHALLENGE
• Weak year for voice segment driven by structural industry headwinds and competitive pressures
Continued volatility driven by competitive pressure on volume and margin
Although dependency on India termination is less, expect volatility to persist
Remain focused on driving cost and operating efficiencies coupled with fine tuning go-to-market approach
• However, moderation in voice segment is something we had anticipated long back and adequately
cautioned and prepared for
Pressure in voice segment
As presented in
our May 2013
Analyst meet
9M FY16 Net Revenue Mix
Current (9M
FY16)
Voice
15%
Data
85%16
Voice
13%
Data
87%
8
UPDATE ON NEOTEL
• Vodacom deal lapsed due to regulatory complexities
Agreement between the parties lapsed due to regulatory complexities in concluding the transaction
• It is Business As Usual at Neotel and Neotel has a strong asset base and operating platform
Remain committed to our customers, partners and employees in South Africa
Base enterprise business remains stable and have not seen any unusual customer churn
• Support for Neotel can be provided within TCL’s operating financials
From a cash flow perspective, Neotel will need some capital support from shareholders but that is not
going to be a significant number in our overall context
Business has high operating leverage and with growth revival operating profitability will improve
• Several Parties interested in Neotel’s business – assets and customer base
10
THESE PLATFORMS AND SERVICES ARE ENABLING US
IN BETTER LEVERAGING OUR INFRASTRUCTURE
Unified
Communications
We facilitate seamless
collaboration and
communication on every
platform
Hybrid Network
We enable enterprise of
every size to harness the
power of internet and
cloud
Hybrid Compute & Storage
We enable enterprise to
reach the cloud while
maintaining user experience
and security
Data Center Interconnect
SD WAN/NFV
Media Management
SecurityWe help strengthen enterprise security posture for a
hybrid IT environmentManaged: vProxy, virtualized Unified
Threat Mgmt (vUTM), Distributed Denial of
Service (DDoS)
Mobility
We enable MNOs and
Enterprises to leverage
platforms and solutions
for Mobility
MMX Roaming VAS Enterprise Mobility Analytics, M2M, IoTCloud Orchestration
Network Infrastructure
11
NEW PLATFORMS WILL DRIVE TARGET MARKET EXPANSION
FROM $41BN TO ~$57BN BY 2019
149
8
9
79
12
4 71 12
52
71
23
0
3
(5)
12 0
31
3
5 1
33
FY15 Intl.Voice
Carr.N/w O/s
Data -Intl
Data - Ind Cloud BankingSolns
UCC Mobility Media IZO H'care FY19
FY19 TCL Addressable Market (US $ B) US $57Bn
in 2019
Data - India
Intl Voice
Data - Intl
US $41Bn
in 2015
Carrier N/w O/s
CloudBanking Soln
MediaMobility
UCC
CAGR
9%
33%
37%
22%
13%
14%
7%
5%
2%
-10%
Growth driven by Innovation in new services like Cloud,
IZO, Media, Mobility (Innovation Services), Healthcare and
UCC (GHCC, Jamvee, IPT)
NA
109%
HealthCare
Driving significant target market expansion in spite of faster decline in voice segment
12
Executing well and on track on our transformational agenda
Quickly changing tech trends offers significant opportunities as well as risks.
Traditional services facing challenges
Need to invest in new services/innovation to differentiate and accelerate
growth. Remain focused on execution.
On path to maximize shareholder returns by substantially improving Core
business RoCE
1
2
3
4
SUMMARY
CHALLENGES AND STRATEGIES FOR TODAY’S CIOS
ANTHONY BARTOLO | PRESIDENT
UNIFIED COMMUNICATIONS AND MOBILITY SERVICES
MAY 2016, MUMBAI
TAKING A HOLISTIC APPROACH TO GLOBAL COLLABORATION
GLOBAL PHENOMENON
UC GROWTH WORLDWIDE
Of Mid-to-large corporations
have UC deployments
43% Regional | 49% Global
93%Of SMEs have
UC deployments
42% Regional | 32% Global
74%
14
GLOBALLY ACCESSIBLE, GLOBALLY CONSISTENT
CIO’S ASKED TO MAKE GOOD ON
UNIFIED COMMUNICATION (UC) PROMISE
Globally accessible and globally consistent
Enterprises see collaboration
tools as the main competitive
differentiator
58%Enterprises plan to
implement or upgrade UCC
solution in 3 years
61%Enterprises see mobility and collaboration
tools as main trigger to boost productivity
and improve customer service
53%Enterprises expect cloud
computing to impact their
UCC plans
71%
16
2022
$62BTOTAL UCC MARKET
2014 - 2019
16% CAGR
Source: Kable, Global Industry Analysts 2015
Unified Communications and Collaboration End User Survey
All built on our global tier 1 network for performance,
scalability, resiliency and reach
Hosted contact centre
UCaaS & video
managed services
Unified Conferencing
Global SIP trunking
Part
ner
off
eri
ng a
nd inte
gra
tion
Contact centre applications and infrastructure
IP Telephony as a service and managed video
support, supply and installation
Audio, web, video, content, presence, chat
Global on-net access and calling
TATA COMMUNICATIONS UCC SOLUTIONS SUITE
A COMPLETE PORTFOLIO OF CLOUD-HOSTED SOLUTIONS
17
IT’S NOT WHAT YOU DEPLOY, IT’S HOW YOU DEPLOY AND CONSUME ITWE TAKE ON A HOLISTIC PERSPECTIVE
Inte
gra
ted S
LA
Physical Transport
MPLS / IP
SIP
Data Centre
e.g. contact centre, UCaaS
unified conferencing, VCaaS
Applications
>99.9%UPTIME
>99.9%UPTIME
Look deeper – the dependencies are relevant
18
98%GDP intl LD
termination
4+ billion minutes
• One service
• Multiple countries
• Single SLA
• Single contract
• Single operating procedure
E.G. GLOBAL TRUNKING
CUSTOMERS CONSIDER:
GLOBAL SOLUTION ELEMENTS WHERE POSSIBLE
Plug-and-Play UC Connectivity
94%GDP intl
toll free
SIPbased services
19
SIP ENABLING CONVERGENCE OF SILOS
Video
Telephony
Audio
& Web
Collaboration
Messaging
Collaboration
Apps
Network
Mobility
20
As a result of this consolidation and SIP’s key
role in the transition, TCL is becoming more
of an early Trusted Advisor.
Scale
SCALABLE SOLUTIONS WITH A GLOBAL FOCUS
CENTRALIZE COMPLEXITY, DISTRIBUTE SIMPLICITY
21
UCaaS
• Provides scale and complements unified
conferencing and SIP trunking
• Drive momentum towards cloud
• Disruptive offerings for emerging markets
Modular
UCaaS UCaaS
UCaaSHosted CC
• Provides a uniform and global customer experience
• Greater flexibility and cost control in resource management
• Enabling MNC’s to provide segmentation based on economic and
customer factors
Hosted CC Hosted CC
Hosted CC
25k
Taking best-in-class technologies global
SBI EXCLUSIF
Anytime – Anywhere - Any channel
#1 India’s largest PSU bank
200
300Mn
16,333
191
year old banking firm
customer base
branches
offices in 32 countries
BUSINESS NEED
1st
Indian bank to adopt cloud technology
Omni channel contact center in the
banking sector
Remote video expert service
WHAT INSTACC GLOBAL DELIVERED
Omni-channel contact center on cloud
– Video, Mobility, Voice, Chat & IVR
4 locations addressing entire HNI base
104 E2E implementation days
365 x 24 x 7 Managed Service
99.9% E2E SLA
100% continuity across channels
WHAT SBI ACHIEVED
As the #1 bank in India, SBI had complete range of
services minus Wealth Management portfolio
Mobility was key for their business strategy to
address HNI customers who are more tech savvy
Need for a partner who could understand their
business demands and address it end-to-end
WHO IS SBI
POWERED BY INSTACC GLOBAL
22
WE’RE NOT ‘GOING IT ALONE’WHITE-LABELLING, CO-BRANDING AND BEYOND…
Tata Communications global network
Strategic partner API
Strategic partnerships
Leveraging API and network
to foster broader and
deeper relationships
Internal API
Tata Communications
Leveraging API and network
to build retail offerings
Public API
Smaller ecosystem companies
Leveraging public API and network
to build offerings
Unlo
ckin
g innovati
on
via
ecosy
stem
23
PARTNER FOR THE LONG TERM
24
Modular, integratable
services enabling a
phased roadmap
Unparalleled reach from
a leader in voice and
network services
Scalable, Resilient,
Ubiquitous, Persistent,
Utility Models
Services built on the bedrock
of Tata Communications’
Tier 1 infrastructure
• Customer-centric UCC rollout
• Tangible improvement in user experience and functionality
• Support businesses with their UCC transformation
• Application platforms with globally distributed PoPs
• Multiple access methods
• Focus on global capillarity for traffic termination
• Best-in Class Functionality
• Don’t Build Yourself
• Rapid Deployment, Ramp Costs with Benefits
• Fully integrated end-to-end SLA and accountability
• Services architecture = global application fabric
• Designed for scalability, resiliency, disaster recovery
Modular
Services
Global
Reach
Cloud
Enabled
High
Availability
Tata Communications provides the building blocks for UC Strategies
PARTNERING FOR GROWTHENTERPRISE BUSINESS UPDATE
SUMEET WALIA| PRESIDENT,
GLOBAL ENTERPRISE SERVICES
MAY 2016, MUMBAI
55% of S&P 500 32% of FTSE 350 60% of PWC 100of the
Fortune 50070%
MANUFACTURING E-COMMERCE MEDIA / ENTERTAINMENTHEALTHCARE /
PHARMACEUTICAL
3,600 ENTERPRISE CUSTOMERS GLOBALLYContinue to add over 600 new customers each year
BANKING / FINANCIAL IT / ITES SERVICES AVIATION
2016New opportunities in
video, Skype for
Business, SIP voice,
IZO
• CIO
• CFO
• CSO
• BU heads
Upsell Security
(DDoS)
• Head of Telecom
• External
consultant
A superfast
intelligent network
to power mission-
critical systems
across 170 sites
• CIO
• External
consultant
• 5 year contract
FROM SUPPLIER TO
STRATEGIC PARTNER
2 contracts closed
• Telecom
department
2012
“Investing in cutting-edge
digital technologies is at the
heart of our growth strategy.
We’re introducing a range of
innovative services, such as
travel apps for smartwatches,
to provide a seamless,
personalised travel
experience for our
passengers. Tata
Communications’ global
next-generation network
will act as the foundation for
these services.”
JEAN-CHRISTOPHE LALANNE,
CIO AIR FRANCE-KLM GROUP
With multi-vendors causing additional work, transition to a single global supplier showed our ability to deliver emerging market solutions.
Web servers were subject to relentless DDoS attacks: our traffic scrubbing farms and 24/7 monitoring ended the problem.
Highly successful dating service needed hosted data centre scalability, along withmanaged security 24/7 and monitoring.
jamvee™ unified communications provided seamless collaboration between 33 factories on five continents.
NRB Industrial Bearings achieved cost savings with fully managed hosting and storage solution.
Diverse, redundant, scalable, managed global VPN enables Fareportal to service customers worldwide and deliver a better user experience.
Our GSIP gives 3Clogic competitive edge while providing best in class voice supporting hostedcontact centre solution.
Adopting Jamvee™ gives Quadmarkcompetitive edgewhile improving theirteams productivity.
FROM POINT SERVICES TO MANAGED SERVICES
ONE OF INDIA’S
LARGEST PRIVATE
SECTOR BANKS
ONE OF EUROPE’S
LARGEST INSURANCE
COMPANIES
2018
Preferred Telecom Partner
2016
Communications, Security & Cloud Enablement
2014
Telecom Service provider
• 3 Products
• 2 year contract length
• 45% Managed Services
• 5 Products
• +35% Size of business
• 5 year contract length
• 63% Managed Services
• ~9 Products
• +95% Size of opportunities
• ~70% Managed Services
• 6 Products
• 3 year contract length
• 53% Managed Services
• 12 Products
• +200% size of business
• 4 year contract length
• 73% Managed Services
• ~20 Products
• +350% Size of business
• ~80% Managed Services
DEEPENING CUSTOMER ENGAGEMENTS
BEING RECOGNISED BY THE MARKET CREATING AN ECOSYSTEM
GARTNER MAGIC QUADRANT
FOR NETWORK SERVICES
FOR THE THIRD YEAR
Frost & Sullivan India ICT Awards:
• Enterprise Telecom Service Provider of the Year
• Enterprise Data Service Provider of the Year
• Enterprise Ethernet Provider of the Year
• Third Party Datacenter Service Provider of the Year
• Enterprise VOIP Provider of the Year
• Hosted Contact Center Service Provider of the Year
INVESTING IN OUR BRAND GLOBALLY
STRENGTHENING OUR GLOBAL REPUTATION
Investment priorities for CEOs:
Source: Gartner 2016 CEO survey
1.Digital Marketing 37%
2.Customer Experience Management 34%
3.Data Sciences / Big Data 34%
4.Smart Processes 30%
5.Cloud based business 29%
$20Bn Target Addressable Market,
Expected to grow at +20% CAGR over
next 3 years
MAJOR IMPLICATIONS ON ICT
VALUE FOR
TATA COMMUNICATIONS
• Global scale and reach
• Customer retention
• Customer advocacy
• Increased share of wallet
• Longer term relationships
• Higher value engagements
• Synergies across cloud,
network and UCC
VALUE FOR
OUR CUSTOMERS
• Access to global markets
• Expertise and co-creation
• Innovative & wide portfolio
• Agility & flexibility
• Utility & OpEx focused
• Cloud & partner ecosystem
• Trust & Integrity
A STRATEGIC PARTNER FOR GROWTH
A SUSTAINABLE PLATFORM FOR GROWTH
THE KEY TO OUR STRATEGY
PARTNERING FOR GROWTH
KEY
STRATEGIC
PRIORITIES
PRESENCE & PARTNERSHIP PORTFOLIO & PLATFORMS PRODUCTIVITY & PROFITABILITY
• Strengthen India leadership
position
• Customer acquisition
through global account
management approach
• Leverage SIs, cloud &
partner ecosystem
• Service growth through
consultative approach
• Grow key platforms & incubate
new solutions
• Drive differentiated customer
experience
• Invest in the Solution
transformation
• Simplify & automate
transactional services
• Customer lifecycle management
KEY
DIFFERENTIATORS
TRUSTED
PARTNER
GLOBAL
SCALE &
REACH
AGILITY &
FLEXIBILITYPARTNERSHIPS
WIDE &
INNOVATIVE
PORTFOLIO