Cloud Computing Opportunity for Service Providers

1. Cloud Computing Opportunity for Service Providers Syed Hashmi Founder & CEO Hosting Controller Inc.

2. Agenda • The Business Case for Service Providers • The Opportunity • Challenges in Offering Cloud Computing • The Hosting Controller Solution • Conclusion

3. 1. The Business Case • Gartner Says Worldwide Cloud Computing Market has surpassed $68 Billion in 2010. • Forrestorsays Cloud Spending would hit $160B by 2020 • Independent studies suggest it could hit $240B by 2020

4. SMB Cloud Market Size

5. Communications Service Providers

6. Leverage the Network Any CSPs biggest asset is its access network. Cloud Computing offers itself as the candidate for the next wave of value added services to generate additional revenuesover existing network.

7. Increasing Loyalty and Reducing Churn Opportunity to earn more from existing customers.

8. Differentiation of Services cloud computing provides a way for service providers to differentiate their services from the competition.

9. Peer Pressure With more and more service providers offering some type of cloud computing service, the competition is increasing.

10. Market Leadership By entering into the market first, you become the de-facto market leader of highly profitable business domain of messaging, collaboration and communication. From customer prospective; as this will be additional offerings from existing vendor, many of prospects will automatically opt for such services.

11. Monetization of Access Network Cloud Computing offers an added range of high value services over the same access infrastructure; offering better avenues of monetization of same network.

12. Low CAPEX Offering Cloud Computing services is a low capexventure. The nature of business is basically pay as you grow with little CAPEX and all OPEX is directly related to revenue.

13. Extension of Technology Service Providers are technology driven industries and already have expertise in managing and monitoring their core networks. Adding cloud computing to their offerings does not add any significant requirements in terms of expertise or equipment.

14. Higher Margins Cloud Computing comes with multiple avenues with higher margins: • Providing managed services, • Monitoring of services, • Maintenance and Upgrades of services • different levels of support and so on.

15. 2. The Opportunity • Infrastructure and Virtualization • Enterprise Application Platforms • Unified Messaging • Unified Collaboration • Unified Communication • CRM and Others • Software as a Service

16. Infrastructure and Virtualization Offering computing Infrastructure as a Service has become a big industry of its own and offers a lucrative addition to any Service Providers’ existing portfolio of services. Gartner estimates that the IaaS market will grow from $3.7 billion in 2010 to $10.5 billion in 2014

17. Enterprise Applications Enterprise Applications market size including Unified Messaging, Unified Collaboration and Unified Communications is expected to be $4.3 billion by 2013

18. Software as a Service Software as a Service (SaaS) Providers go a step further on the value chain and also provide the software that runs on the infrastructure. A study by Renub Research shows estimated value of Worldwide Cloud based SaaS market is expected to grow to $25 Billion by 2013.

19. 3. Challenges in offering Cloud Computing Challenges in adding cloud computing to the existing service offerings are an extension to the ones faced by CSPs when data got added to telephony and when voice got added to ISP servicesas part of converged services.

20. More Complex Products Service Providers are going beyond their basic Internet Access or Telco Services. A fusion of service providers and cloud computing models is created in the world of multiple services.

21. Unified Provisioning Enterprises have seen their communications technologies evolving towards greater unification

22. Unified Billing and Payments Subscriptions on Cloud Computing side need to be integrated with existing or other back end billing systems and charged to customer’s unified billing accounts

23. Integration of Operational Requirements in CSR Portal Existing Customer Service Representative Portals need to be enhanced with all the new requirements of cloud computing services.

24. Unified Self-Care Portal Self-Serve is a basic requirement of any cloud based service. With multi-tenant servers, self-serve needs to enforce security and make sure that one tenant cannot read/edit/delete data of another tenant on the same shared server

25. Monetization Options Different cloud computing applications and servers offer multiple features and the service provider would like to offer plans and packages allowing monetization of such services down to a single feature available.

26. Automatic Service Management A Service Provider needs to have automatic interfaces and provisioning APIs to be able to easily integrate them into their existing billing systems to able to suspend or resume services based on available credit.

27. Multi-Tenancy Layers and Self-Service Portal Many applications offered in cloud computing specially the Enterprise Applications were not designed to run as Multi-Tenant applications. An extra layer of provisioning is required to enforce multi-tenancy options.

28. Operational Reporting Operational reporting is required for monitoring, resource availability, resource utilization and others.

29. Plan Manager and Quota Enforcement An important job of the plan and quota manager is to allow the Service Provider to monetize different features/services offered Provisioning through Self-Serve needs to be done within the bounds defined by a Plan & Quota manager

30. Service Metering Many services need to be metered for their actual usage done by Customers and metering agents are needed to monitor and report that usage.

31. Single Bill to Customer A reporting interface is required between the cloud computing layer and the back end billing systems to allow generation of single bill.

32. Support for Value Added Resellers Separate layer to Support B2B (Reseller) and B2C (Customer) channels. Service Providers may choose to provision umbrella quotas for resellers and they can then provision through their own self-serve for individual customers.

33. Abstracted Out Provisioning Layer Service Providers need a layer of provisioning that abstracts out the underlying infrastructure and applications and offer a unified provisioning interface for all applications on all operating systems whether Windows or Linux.

34. 4. The Hosting Controller Solution A comprehensive solution for Service Providers that intend to offer cloud computing services.

35. Hosting Controller Deployment

36. HC Virtualization Solution Offers automation of all infrastructure and virtualization services for both Windows and Linux. Supports automatic provisioning of virtual machines on vmware, Citrix Xen and Microsoft Hyper-V

37. HC Enterprise Applications One of the few solutions validated by Microsoft that enables Service Providers to offer Microsoft Exchange and related Products as a Hosted Service. http://x.co/exchg

38. HC SaaS Module Provides automated hosting of a large number of common SaaS applications including web server, FTP Server, Email Server, DNS Server and web applications on cloud. Windows: http://x.co/hcwin Linux: http://x.co/hclnx

39. Master Console • HC offers a set of three web based portals for self-serve for both Windows and Linux: • Customers • Value Added Resellers • Administrator

40. APIs for Integration A large list of web service based APIs allow integration of all the supported use cases with front and back end services and orchestration engines.

41. Automatic Provisioning for Windows and Linux When an order comes from the Order Management system, resources need to be provisioned on servers within the multi-tenant sandbox created for the user

42. Multi-Tenancy Hosting Controller enforces multi-tenancy layer on top of all Enterprise Applications and SaaS applications that it supports.

43. APIs to Integrate in Existing Billing System Management APIs is to suspend and resume services that provide easy integration with back end billing systems.

44. Flexible Service Plan Manager Allows creative productization and monetization of newer services which can be easily integrated and billed to customer based on consumed resources.

45. Quota Enforcement Managed through HC plan manager that restricts all customers to only provision resources through self-serve within the purchased quotas.

46. Service Management Hosting Controller providers full support for Service Management through APIs. This includes basic use cases of Suspend Service and Resume Service that can be integrated behind any billing system.

47. Operation and Maintenance Support using Administrative GUIs Master Console offers multiple use cases for Administrators to manage their infrastructure and resources.

48. Flexible Report Generation HC offers detailed operational reports that can be integrated with any external BI system.

49. Granular Monetization Hosting Controller allows Service Providers to define each and every single feature available in the underlying service as a chargeable entity and enables them to monetize on different features of the cloud based services.

50. Topology Hiding of Infrastructure It totally hides the topology of the underlying infrastructure from the Orchestration layer if needed.