Telefónica Chile Optimizes Investment in IT with CA Technologies Solutions

CUSTOMER SUCCESS STORY | July 2012

CLIENT PROFILEIndustry: TelecommunicationsCompany: Telefónica Chile ( Telefónica Group)Revenue: US$ 975 million (2011)

BUSINESS Telefónica is one of the world’s largest telecommunications companies. Besides fi xed line telephony, mobile telephony, broadband and pay-TV services, it provides IT services for large organizations.

CHALLENGEWhen Telefónica Chile started to deliver its customer services via the Internet and launched a new range of IT services, it needed to improve visibility of the IT infrastructure to safeguard availability.

SOLUTIONTelefónica Chile uses CA Technologies solutions to monitor its IT infrastructure round-the-clock and as a basis for the IT services it offers to customers. The solutions help identify where infrastructure investments are truly needed.

BENEFITTelefónica Chile now optimizes its infrastructure where necessary, which frees up more money for innovation. It has been able to launch additional IT services to boost business growth.

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BusinessChile’s leading telecommunications providerTelefónica is one of the world’s largest telecommunications companies by market capitalization. Its main services are fi xed line and mobile telephony and broadband, as key tool for the development of both businesses. Globally, the company is present in 25 countries and has a base of 295 million of client access, including fi xed line access, data accesses and Internet, mobile accesses and Pay-TV.

Part of the Spanish group, Telefónica Chile is country’s largest telecommunications carrier in Chile, and also offers a range of IT services. To maintain continuous growth in its business, the company has recently restructured its IT service offerings to better suit the corporate market.

ChallengeEnsuring IT can support business strategyTelefónica is continuously expanding, and its clients are becoming ever more demanding. To address these challenges, in 2011 Telefónica Chile adopted online customer service channels. Luís Urzúa, Telefónica Chile’s IT Manager, comments, “In Chile, we have more 10 million fi xed and mobile telephony subscribers. It was becoming increasingly diffi cult to deal with the volume of services via the telephone, so we transferred the majority of our services to the Internet.”

“ IT must be able to keep up with the pace of change demanded by each business sector.”Luis UrzúaIT Manager, Telefónica Chile

While enabling effi ciency savings, this transformation has put additional pressure on the company’s IT operations. Also in 2011, Telefónica Chile launched a range of new IT services to its business customers. During the fi rst year, the company achieved a volume of sales totaling US$ 40 million now aims to double its income to US$ 80 million in 2012.

Business agility is an important factor for the company’s IT department. Faced with highly demanding clients and increasing competition in the telecommunications market, Telefónica Chile also needed to reduce the time it took to release its products and services onto the market. “IT department must be able to keep up with the pace of change demanded by each business sector,” says Urzúa.

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Historically, every time Telefónica Chile launched a new service, the company doubled its data processing and storage capability, which resulted in signifi cant additional investment. “We needed to identify where the memory and processing capacity bottlenecks were in order to assign investments correctly,” adds Urzúa. “We were keen to minimize unnecessary expenditure in IT capacity in order to be able to invest more in innovation.”

To support its new online customer communications channel, safeguard the quality of new IT service offerings and maximize its investments, Telefónica Chile required better visibility of the IT infrastructure.

SolutionComprehensive monitoring of the IT infrastructureTelefónica Chile has used CA Technologies solutions for nearly a decade. The company originally adopted CA Technologies mainframe solutions to assist with fi xed line telephony and data processing.

To address its more recent issues, the company has now extended its portfolio of CA Technologies to include:

• CA Spectrum

• CA eHealth

• CA Application Performance Management

• CA Business Service Insight.

All solutions have been implemented with the support of NetSol, a CA Technologies business partner. “NetSol is more than just an implementation partner, it has helped us develop the services we offer to our customers using the CA Technologies solutions,” says Urzúa.

The solutions enable the Telefónica Chile to monitor its IT infrastructure end-to-end and identify bottlenecks that could impact customer services. “The CA Technologies solutions help us pinpoint and resolve issues before they cause downtime,” explains Urzúa. “They also help us plan capacity according to current and future needs to prevent unnecessary spend and maximize our investments.”

A foundation for new customer services offeringsAs well as supporting internal IT operations, Telefónica Chile also uses the CA Technologies solutions as the basis of some of its service offered to customers. For example, using CA Service Assurance solutions, Telefónica Chile has created a ‘monitoring-as-a-service’ offering.

The service helps customers manage multiple suppliers more effi ciently. As Urzúa explains, “Our service provides customers with a complete view of what is happening across their IT infrastructure so they can manage it more proactively.”

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Telefónica Chile is now developing new service streams based on other CA Technologies solutions, such as CA Business Service Insight, which will enable customers to manage service level agreements (SLAs) more effectively.

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CA Technologies solutions will also support the company’s move into the delivery of cloud-based services. “Cloud computing is here to stay,” comments Urzúa. “We plan to use CA Technologies to support our cloud computing offerings in Chile, Peru, Argentina, Brazil, Colombia and Miami.”

Benefi tMore intelligent investment to support business growthUsing the CA Technologies solutions, Telefónica Chile can ensure it only invests in additional infrastructure when it really needs to, “The solutions have enabled us to save a considerable amount of money in infrastructure terms by providing us with better visibility,” comments Urzúa.

The solutions have also helped Telefónica Chile to:

• Improve SLA management

• Safeguard the availability of online customer services

• Reduce the time taken to release new products onto the market

• Increase investment in innovation

• Establish additional revenue streams via its new service offeringevos servicios.

Urzúa comments, “We can now provide a wider range of better quality services to our customers, which will help us achieve our goal of doubling our income in IT services over the next year.”

“ The CA Technologies solutions help us pinpoint and resolve issues before they cause downtime.”Luis UrzúaIT Manager, Telefónica Chile

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