Do you construct or consume Cloud?_November 2014 | Barcelona

More than 315 million accesses

• 90 million in Europe

• 224 million in Latin America

A global leader in communications and ICT_

Strong financials (1H 2014 - Mn €)

• Revenues: 24,957

• OIBDA: 8,055

Operations in 45 countries*• 18 full network operations

• 22 commercial & operational offices

• 5 remote operations

• 129 countries extended MPLS

126,500 employees*

• 31% in Europe

• 68% in Latin America

• 1% in other countries

* July 2014

90 years of progress and transformation_

• 1924 CTNE is set up in Madrid; ITT is one of its initial shareholders (1924)

• 1971 1st European Data Transmission Special Network

• 1990 Internationalization process starts; enters Chile (CTC) and Argentina (TASA)

• 1998 Wins the tender for Telesp in Brazil

• 2000 Acquisition of BellSouth assets in Latam: Venezuela, Ecuador

• 2005 Acquisition of Cesky Telecom

• 2006 Acquisition of O2 assets in UK, Germany and Ireland

• 2013 Acquisition of Eplus in Germany, divestment in CZ and Ireland

1989

• 12 MN customers

• 1 country

• 71,000 employees

• 4,273 MN EUR Revenue

2013

• 323 MN customers

• 24 countries

• ~130,000 employees

• 57,061 MN EUR Revenue

Internationalization

has driven

significant growth

Spanish Telephony

Operator

Global ICT Provider

Our global ICT capabilities_

San José

México

Houston

New York

Bilbao

París

UK

Frankfurt

Munich

Zurich

Milán

Washington

Atlanta

Boca Ratón

Lisboa BarcelonaSan Juan

Guatemala

PanamáCaracas

Belo HorizonteSalvador

Fortaleza

Valencia

Arica

Chile

Argentina

Curitiba

Brazil

Peru

Ecuador

Madrid

Miami

Emergia Fiber Route

Extended Fiber Route

Co-owned routes

La Rioja

CanariesColombia

Network Node

Data Center

2014 Awards – Uptime Institute

Alcalá Data Center

“Telefonica prioritized efficiency, financial viability, a system of accountability, and a world-class result for its internal and external clients…”

Mexico

Telefonica Spain ICT portfolio_

Voice

VPN

Enterprise size Enterprise sizeCorporate

Enterprise

Corporate

Enterprise

Movistar Fusión

Empresas

Movistar

Fusion Pro

Unified Communications

2 GBUnlimited Calls

Our Enterprise IT portfolio_

IaaS

Systems and

Applications

Management

IT

Infrastructure

Data Center

and Comms.

Infrastructure

DVR Remote Backup VDC Virtual SAP

BRS

SAP

Storage

Backup

Private cloud

Monitoring

OWN Data Center TIER IVLAN & SAN Network Data Center

Data Centers interconnection

Middleware SAP

OS DDBB

Developing

services and

shared platforms

“components”

Industrializing

infrastructure

operation and

services

With skills

and models to

prepare a

“customized“

solution

Shared IT Services and dedicated solutions: An integrated approach_

Standard Project

TailoredProject

…within a comprehensive methodology_

From conceptual definition to deployment & operation

Transformation

visionProposal

Transition /

TransformationOn-going Service

Current situation

analysis and

alternatives assessment

Technical & economic

proposal, trading

and due-diligence

Contract implementation,

takeover and

transformation

to the new model

On-going service

operation in the

new model

Continuous Management

• With capacities and models for customized solutions• Ensuring transition/transformation and minimizing risks

Design is embedded in our Data Centers Network_

Data Center Julián Camarillo

Alcala Data CenterEnergy Efficiency Power Scalability

Availability

Data Centers Network

MPLS NetworkDatacenter connected with

our Core Networks

Meeting the demands of our customers_

Hybrid

Cloud

Sensible DataCore Environments

API

Virtual Data CenterAdditional CapacityNon Core Environments

API

Bridge

DEDICATED PLATFORM

RECURRENT FEE

SHARED PLATFORM

PAY PER USE / RESOURCE POOLS

INTERNET AND PRIVATE COMMS

Overflow

Additional Capacity

Recovery

Virtual

Data Center

Private

Cloud

Consume

Cloud

Construct

Cloud

Powered by HP

Technology

Do you consume or construct Cloud?_

Core Business Services• Primary Data Center Customer / Telefonica• Secondary Data Center Telefonica/Customer

HybridCloud

VDC

VDC

PrivateCloud

HybridCloud

PrivateCloud

• Primary and Secondary Data Center on-premise

• Primary Data Center Telefonica• Secondary Data Center Telefonica

Cost

PrivateCloud

HybridCloud

VDC

Private cloud powered HP Technology_

Opex vs CapexAvoid over

sizing Reduce

risk

Private Cloud

• Performance

• Security

• Control

Optimize

Your Apps

Improve

Efficiency

Enable Global

Management

Our VDC 2.0 delivers a real Hybrid Cloud promise_

Private Cloud

PublicCloud

• Flexibility

• Agility

• Performance

• Security

• Control

Hybrid CloudMacrolan and VPN IP

• Performance

• Security

• Control

• Flexibility

• Agility

Telefonica Virtual Data Center 2.0

Meeting a corporate customer needs_

InternetVPN

Public

Environments

Storage,

Backup and

Disaster

Recovery

DMZ

Backend

Private

Environments

VDC

Legacy

& physical

environments

Temporal

Environments

Capacity Bursting

Development

Environments

Critical applications

performance & control

1

2

5

6

Flexible

Consumption

Self-service portal for

management and control

Flexible Network

Topologies Deployment

Performance, backup

& recovery of data4

Integration with

legacy and security

environments

3

DraaS: New functionality_

Key Features

Replications through private VPN

Automatic copies in near real time (RPO 10s)

Different versions to restore (RTO 1h)

Flexible management and contracting:

Pay per use

Auto-provisioning web based portal

Recovery

Data Centre

VM VM VDisk VDisk

Primary Data

Center Protected

Customer Data Center

Primary Data

Center Protected

VM VM VDisk VDisk

Protected App

VM VM VDisk VDisk

Protected App

Opportunities for your

business:

• Be more competitive:

Add a service

solution for business

continuity

• Perform migrations

in an orderly manner

and without loss of

service

We support the emerging new role of the CIO_

Chief Information Officer Role

Setting a transformation vision throughout the enterprise

NowBefore Business Leader, not just IT admin

Data Center Operation was sufficient

Our Hybrid Cloud assures App

performance and recovery

VDC integrates with Legacy IT

Private Cloud oriented to Sensible

Data & allocated at TierIV DC

Our Hybrid Cloud supports

Pay per use model

Method for integrated proposals

according customers business needs

Improve performance and

efficiency of business units

Improve current investments

Understand the role IT plays in the

creation or destruction of value

Assure regulatory compliance

Balance risk and investment

Global

infrastructure

Own

Network

Data

Centers

Hybrid cloud

for enterprise:

- Private cloud

- VDC

Conclusions_

+ + =

Telefonica is Cloud

Cloud ischanging

the face of IT

Trusted Partnerships are key across the value chain

Telefonica is prepared

This presents significant challengesto CIOs

• Data security• Regulation• Global coverage• Mobility• Application

performance• Recovery

And also an opportunity to become a business growth enabler

• Competitive edge• Efficiency• Lower cost• Productivity• Business focus