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IT as a Service Optimisation of IT Services Funding Daniel Amor, daniel.amor@hp

IT as a Service Optimisation of IT Services Funding Daniel Amor, daniel.amor@hp.com. Key characteristics of a high-profitability FINANCIAL INSTITUTION. Differentiation Selection of a commercial strategy and incentives system Integrated multi-channel approach “Single customer view”

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IT as a Service Optimisation of IT Services Funding Daniel Amor, daniel.amor@hp

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  1. IT as a ServiceOptimisation of IT Services FundingDaniel Amor, daniel.amor@hp.com

  2. Key characteristics of a high-profitability FINANCIAL INSTITUTION • Differentiation • Selection of a commercial strategy and incentives system • Integrated multi-channel approach • “Single customer view” • Pricing policies • Agility and Time to Market • Creation of new products; enrichment of portfolio offering • Industrialization • Adoption of standards (applications and systems) • Planning and use of Components • Standard processes • Product Factory (Internal/External) • Exploitation of economies of scale • Flexibility and operational efficiency Decoupling of product creation and the distribution network. Strategies for the selection of products and networks. Hence an optimal application portfolio is required.

  3. Why IT as a Service? Flexibility of service to adjust fast to new business needs 1 … in both directions: Up and Down 2 No Lock in – short minimum usage period, low minimum order quantities 3 Stay in control of services any time - Web portal to adjust service usage & service levels 4 Cost reduction of 20- 40% and increased cost transparency and - scalability 5 Long track record of experience 6 Secure and compliant operation of IT services out of redundant data center 7 Enterprise ready, Standards, Flexibility, OPEX, Innovation, One Stop Shop, T&T

  4. Many have already started this journey 45% According to recent Forrester research, TOP 3 PRIORITIES for IT leaders are: Updating and MODERNIZING legacy applications; CONSOLIDATING redundant packaged applications and UPGRADING older packaged applications.” of senior executives worldwide say they have recently completed, are in the midst of or are in the planning stages of an IT modernization project. IT modernization: An exercise in alignment, Economist Intelligence Unit, September 2009 Application Modernization and Migration Trends in 2009/2010, Forrester, November 2009

  5. Significant outcomes can be achieved Strategically and financially Alignment Agility Security Business Continuity More $ for innovation & new business projects Knowledge Capture APPLICATIONS COST IMPROVEMENTS DEVELOPMENT COSTS OPERATING COSTS MAINTENANCE COSTS 30% - 60% 50% - 60% 30% - 50% Typical ROI: 18 months

  6. There is a real cost “to doing nothing” The cost of doing nothing • Costs increase year after year • IT risks increase • Application knowledge disappears • Opportunity cost (the cost of doing nothing) increases ONE CLIENT’S FORECAST New projects IT budget Non-discretionary Can you afford to NOT start this journey?

  7. Reduces time-to-market for new products and services Improves customer satisfaction Enhances operational capability Creates new revenue via newly enabled capabilities Reduces IT spending in software licensing, maintenance & support Reduces IT labor needed to deploy new functionality Reduces labor needs by improving work processes Reduces operating costs through improved business processes  Application Modernization delivers business value Increase revenue/profit Reduce costs

  8. In 3 years 45% 55% ROI for Business& IT 10% IT budget as % of revenue 15% 45% 30% Freeing IT investment for innovation— To be more competitive Today 28% 23% Application innovation 5% 72% 30% Infrastructure innovation Application maintenance 42% Infrastructure maintenance Source: HP IT

  9. Applications Modernisation A Suite of Modernisation Strategies We believe that ‘one size does not fit all’ and every client and application is unique. Therefore, we execute the transformation journey by implementing a set of defined modernization strategies delivered by global resources enabling the client to achieve their business objectives by reducing risk and TCO while modernizing to an agile environment

  10. Modernisation – Example Graphs

  11. What problem can you solve consuming IT as a Service? • Unmet Demand • Time To Market Delays • Missed deadlines • Lost Revenues Installed Capacity IT Performance Demand • Over Provisioned • IT Management Costs • Business Opportunity Cost Timeline

  12. IT AS A Service video

  13. HP breadth and depth of experience IT as a Service

  14. Transformation Experience Workshop (TEW) offers key starting point Fast Facts • 2010 introduced TEW to the market with great success • Delivered more than 50 so far in FY11 in EMEA • Faster cost savings, quality improvements, agility and compliance • Realize critical success factors • Identify quick wins • Gain stakeholder buy-in • Traction to any project • Leverage best practices • Develop your roadmap in one day • Clarify vision for enabling technologies including Cloud Dennis Chen CIO SKFH & SKL “It is more than a modernization, it completes my dream as a CIO.” Ivan Chang CIO SKB “Modernization is not only about the challenges we will face, and expectations but also creates hope for us.” Michael Whittaker Unilever “If we had started at the beginning with this workshop, we could have cut the timescales considerably. Very impressive!”

  15. Q&A

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