Post on 19-Feb-2019
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialSP Market Evolution Version1.00 1
Managed Services
Moawyah ElWazerRegional Manager, Service ProvidersNorth Africa and LevantJune 2010
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 2Moawyah ElWazer
Changing World for Service Providers
What is Managed Services?
Managed Services Case Studies
How Cisco can Help
Next Steps
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 3Moawyah ElWazer
2007 2012Sources: Gartner, Ovum, Cisco IBSG
Worldwide SP Business Revenue (Excludes Consumer)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Legacy Core:PSTN , Leased Lines, Packet
Unmanaged Data: IP, VoIP, BB, Internet Svcs
Mobile Voice
Mobile Data
Managed IP Svcs
-6.8%
+11.7%
+2.8%
+20.4%
+27.6%
US$
MA Decline in Legacy $$ and….. a Shift in Network Services
Overall CAGR 5.6%
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 4Moawyah ElWazer
Access service is reaching maturity
Managed IP
Telephony
Metro Optical
High Growth High Return
Managed Security
Residential Broadband
VPN
Hosting
IADDSL
Intranet
Frame Relay
ATM
DS3
DS1 PRI
Internet Access
MAN SONET
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 5Moawyah ElWazer
The “Perfect Storm” is Fueling Adoption of MS
Managed Services$190B+20% CAGR
(2013)
ConnectivityServices
CollaborationServices
Compute Services
Source: Cisco, IntelliComm
Create new revenue streams Increase customer loyalty Increase mobile-wireline synergy Develop “on-demand”
services platform
Managed Service Providers
Economy, forcing alternativesLow cost broadband, new technologyGreen movement / culture of efficiencyConsumerization of IT: “X as a service”Acceptance of “virtual” over “in person”
Environment
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialGCAB_APR2009 5
Business
Enterprise Lower infrastructure costs Increase employee productivity Improve business processes Increase speed of innovation
SMBServe customers betterScale expertise Leverage resources
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 6Moawyah ElWazer
Changing World for Service Providers
What is Managed Services?
Managed Services Case Studies
How Cisco can Help
Next Steps
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 7Moawyah ElWazer
What Are Managed Services?
Information technologies delivered as finished solutions, managed remotely by highly skilled professionals from a network operation center (NOC)
Managed services are proactively monitored and providers can troubleshoot incidents from the NOC, according to defined service level agreements (SLAs) negotiated with end users
Managed services are often offered on an operating expense basis that requires no capital outlay for the end-user customer
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 8Moawyah ElWazer
The Value of Managed Services for SPs
IP NGN
ManagedServices
Revenue $$$
Capital Efficiency
Churn
Margins $$$$
Customer Value
ROI
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 9Moawyah ElWazer
Adding Value to Commodity Product
Graphic: BusinessWeek, 2005
Minimum
Commodity
$0.23$0.04
Good
$1.48$0.74
Service
Source: Pine and Gilmore, The Experience Economy, 1999
Maximum
IP Access $ Managed Services$$$$
$4.98$1.99
Experience
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 10Moawyah ElWazer
The Building Blocks of Customer ExperienceFor any given customer segment:
+
+
Product Experience
Transaction Experience
Interaction Experience
=Customer Experience
Access
SalesOutlets
Managedservices
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 11Moawyah ElWazer
The Building Blocks of Customer ExperienceFor any given customer segment:
+
+
Product Experience
Transaction Experience
Interaction Experience
=Customer Experience
Access
SalesOutlets
Managedservices
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 12Moawyah ElWazer
Management Continuum
Enterprise Responsibility
Service Provider Responsibility
$
Serv
ice
Prov
ider
Com
plex
ity
RESALE
Most Basic• Installation• Maintenance
$$ $$$ $$$$
PROVISIONED SERVICE
Managed CPE
Connectivity +:
MANAGEDSERVICE
Time to Market
MANAGED / HOSTED SERVICE
Time to Volume
• Design• Installation• Monitoring
Provisioning +:
• Bundled services• Advanced
services
+ Time-to-Market:
• Data Center used for Managed Services to offer XaaS
• Repeatable and consistent
• Scalability with hosted model for SMB
For Each dollar of Managed Services, Service Provider can plan to secure 1-3 Dollars of high Margin connectivity
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 13Moawyah ElWazer
LocalStorageBackup
Router
e.g. SMB Customers, Branch officeData Center
UsersCisco ISR With WAAS
Security
Voice
App/file/printServers
WLAN
Managed Services Scenarios:
NMS
DC is the Service Delivery Center (SDC) for Managed Services:•WAAS•Unified Communications•NOC/ SOC, NMS•Security Services•Conferencing •Managed Storage•Managed Hosting Service•Managed Backup•Co-location•Disaster Recovery
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 14Moawyah ElWazer
e.g. SMB Customers, Branch officeData Center
UsersCisco ISR With WAAS
Managed Services Scenarios:
NMSManagedServices Cloud SaaS
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 15Moawyah ElWazer
Benefits of offering managed services for Service Providers Capitalize on the Service provider’s
core competencies and existing assets
Reduce the cost of market entry Increasing lifetime revenue Build a trusted long-term relationship
with their customers’ IT executives Competitive differentiation Attract new business customers Strengthen the loyalty of existing
customers Additional higher-margin revenues
from Managed Services Increase the return on investment
from the IP NGN
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 16Moawyah ElWazer
Benefits of Managed Services for Customers
Reduces costs, including traditional service fees, hardware, IT operations, and transport
Eases adoption of new business processes
Increases levels of support and network availability
Makes the IT budget more stable and predictable
Provides access to the latest technology with limited risk
Provides access to an enhanced skills base
Makes it easier to adapt to changing business conditions
Enables the IT group to focus on the core business
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 17Moawyah ElWazer
Managed Services targets different market segments
Price Sensitive
Agility
Trust oriented
Governm
ent
Corporate
Mid Market
Small Biz
SOHO
Residential
Retail
Real State
Financial
Healthcare
Hospitality
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 18Moawyah ElWazer
Changing World for Service Providers
What is Managed Services?
Managed Services Case Studies
How Cisco can Help
Next Steps
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 19Moawyah ElWazer
Cisco Managed Services…Today’s reality
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 20Moawyah ElWazer
Managed Services Network
HQ
HQHQ
Branches
Branches
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 21Moawyah ElWazer
Managed Services for Commercial customers
Basic Services • Voice (Telephony)• Data (Internet Access)• Video (IPTV)
21
Managed Services •Application Aware VPN •Managed Wireless/LAN•Tele Presence•Application acceleration•Unified Communication•Managed Metro Ethernet•Managed Security•Managed IP VPN•CPEs•Data Centers•Call Centers•Integrated command and Control•Webex
Cisco Advanced Managed Services •Digital Signage•CCTV•RFID
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 22Moawyah ElWazer
Qtel Office in a Box Feature Set
Broadband Internet Access
Broadband Internet Access
Managed Firewall
Intrusion Prevention
System
3G / HSDPA Backup
Upgradeable in 512 Kb/s
increments
IPT
Qtel Managed Centralized IPT
Cisco 7911 or 7940 IPT handsets
Voicemail
E-Mail notification of
Voicemail
Business Class E-Mail
Fully Redundant
Carrier Grade platform
Anti-virus & Anti-Spam
Shared Calendars
Company Address Book
Microsoft Outlook
Connector
Web Hosting
Business DNS registration
1 GB Web space
FTP account
Faxing
Ability to plug a conventional Fax machine
Cisco ATA adaptor
included as standard
Fax extension included as
standard
Slide 22
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 24Moawyah ElWazer
Example of Managed Services for SMB
SMB Bundle Easy Inclusive Office (activation: 185 €)Always on Internet at 10 Mbps (or DSL 2Mbps)5 Mailboxes w. Antivirus/Spamm5 Internet AccessUnlimited on-net voice callLocal (20h) National (10h) calls 160 €
SecurityVPN activation 300 €VPN monthly rental 150 €Firewall activation (<10 users, 11-44) 100-200 €Firewall monthly rental (<10 users, 11-44) 50-100 €
FastWeb One (Voice over IP for SMB)IP Phone activation fee 55 €IP Phone monthly rental (depends on type) 33-83 €Switch monthly rental 48-128 €Voice traffic add €
Flat Voice OptionFree local and national long distance calls: € 20/seat
Solution:• Cisco routers with managed Unified CallManager Express (CCME)
• Lower TCO for SMBs • Customized telephony – CCME lets customers pick and choose features
• Expanded managed service offering
Results• Significant increase in new customers – Over 900 CCME customers; 80+ new subscribers/mo
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 25Moawyah ElWazer
“Office SuperHero” All-in-one: UC500 + Wireless + IP Phones + TUS services (120mins local calls)
Sales Strategy: next-day delivery + try-and-buy + aggressive pricing
For advanced users: availability of customized bundles ("a-la-carte")
TUS Telekom UC500 for SMB
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 26Moawyah ElWazer
Managed Service for the SMB
In the Office
Out of the Office
GSM
WiFi Unified Communications
BlackBerry Smartphone ↔ Wide-Area Mobile SIM ↔ WiFi to IP-PBX
SP Managed Service
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 27Moawyah ElWazer
Oi Connected EducationContext • Healthcare and Education are top priorities for the Brazilian Government.• Oi, the biggest Service Provider in Brazil, with its Network footprint can reach all the Hospitals and the Schools in Brazil. • Oi with this offer provides technology solutions, as Managed Services, to improve the Public healthcare and education services, working in strong partnership with Ciscoin order to integrate telecommunication services, IT infrastructure and solutions
Target MarketStates and Local governments that require technology solutions with high quality standards to improve quality of Public services. Target is to reach all the 55,000 Brazilian schools and the 40,000 Brazilian Hospitals.
Scope Telecommunications and IT Managed Services solutions, to improve KPIs across the entire Healthcare and Education value-chain. This will improve local autonomy, political and technical decision making processes, end user experience and will meet high Healthcare and Educational standards.
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 28Moawyah ElWazer
Oi Connected EducationBenefits
Monitor state owned schools Infrastructure status Keep the schools safe Real time information availability for teacher, parents and students Monitor parents participation in school activities Build a school database Manage meal distribution Build a communication network between schools, students, parents and
communities; Control the activities from home and school Integrate different educational programs Improve Public education Reduce students dropout rate Improve school performances
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 29Moawyah ElWazer
Operating Model Building Blocks
Service Oriented Active Network
CISCOTechnology and solution provider
OiVoice & Data
Mobile and fixes services
Passive Network
MetasysProvider of Education
applications
Platform: Single point of contactBilling, Customer Care, Provisioning, CRM, Portal
BullResponsible for the end to end
solution
End Customers
Teachers
Schools Local Government
Students Parents
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 30Moawyah ElWazer
Connected Education Solution
InternetADSL
Cisco 877
Metasys ServerServidor(es) da Escola
LAB’s with PCs DisklessStudens and Teachers
COBO SFE2000P
• Major Data Server • Data Backup Server• Data Update Server • Monitoring Server
School WEB Portal
Oi Datacenter
AIR-LAP1131AG-A-K9Access point
Classroons with Classmate PCs
Studens and Teachers
Wireless Lan Controller
WCS –Wireless Monitoring
Location Server (RFID)
Cisco VS Media Serverand Storage System
CIVS-IPC-2500
Operations ManagerVideo Surveillance
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 31Moawyah ElWazer
Context • Public Safety is one of the key Country priorities. • Oi in partnership with CISCO and Dominion developed a compelling Managed services offer to cover 4 specific areas of Public safety.
Target MarketStates and Local governments that require technology solutions with high quality standards to improve: • safety and security in open spaces, • asset security, • vehicle security• public security services (19x).
Scope Telecommunications and IT Managed Services solutions, to provide an efficient platform to enhance Public Safety standards across Brazil.
Managed Public Safety
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 32Moawyah ElWazer
Benefits
• Reduce response times of Police, Fire Brigade, forces;
• Improve citizens perception of security;
• Ability to monitor assets, and staff and visitors access to buildings;
• SOC (security and video monitoring center);
• Quicker and more rich communication system;
• Real time Voice and data;
• Interoperability among different departments/institution ( Police, Fire Brigade etc..).
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 33Moawyah ElWazer
Campus
Routing and Switching
xDSL
3G
GPRS
Media Servers
Operations Manager
Virtual Matrix
IP Contact Center
IP Phones
IPCC Solution
Vehicle Camera
(3rd party) Outdoor Camera
Dome Camera
Video Analytics
IT Security (Partner)
Service Provider Cloud
ASA 5500ASA 5500
MARSSecurity Team
IPS
Auditing
(CUSTOMER)
HD Camera
Internal Camera
Customer Branch
Video Surveillance
Managed Public safety Solution
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 34Moawyah ElWazer
Managed Public safety Solution
HDTVHDTV
HDTVHDTVHDTV
IPICS
UCTELEPRESENCE
VIDEO CONFERENCING
PSTN
PSTN
MPLS with QoS and Multicast Enabled
TELEPRESENCE
PTT Radios
VIDEO CONFERENCING
REMOTE SITES
R&S
PSTN
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 35Moawyah ElWazer
Changing World for Service Providers
What is Managed Services?
Managed Services Case Studies
How Cisco can Help
Next Steps
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 36Moawyah ElWazer
2800 Series
1800 Series
Branch Office SMBSmall Branch
3800 Series
Small Office andTeleworker
800 Series
INTEGRATED SERVICES ROUTERS
Head Office
WAN Aggregation
7600 Series7200
Series
Feature Breadth and Scale at
Highest Performance
Embedded Wireless, Security and Data
High Density and Performance for Concurrent Services
Embedded, Advanced Voice, Video, Data and Security Services
Perf
orm
ance
and
Ser
vice
s D
ensi
ty
Cisco Enterprise Routing Portfolio
1841 Only
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 37Moawyah ElWazer
1. Service Creation2. Go To Market Business Models3. Go To Market Programs:
- Cisco Programs (MSCP): Discounts, Co-Branding
“Cisco Powered Managed X”- Cisco Sales Tools (TCO or ROI)- MS University (Train the sales people)- Cisco resellers - Cisco SMB select partners- Customer Advocacy (Consultancy)- Technical assistance- Specialized MS partners conferences- Co-Marketing- Integrated products for different market segments
How Cisco can help you…
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 38Moawyah ElWazer
Service Creation…to Service Acceleration
…….Cisco Can Help you all the Way
Envision• CPP envision kits:
•Market intelligence•Business cases•ROI Tools•MSD
• CA:Advisory services
Build• Cisco Powered Program
Service ArchitecturesSolutions Training
• Cisco validated design
• Cisco Advance Services
• Cisco Technical Services
• White label / Re-sale• BOT
Market & Sell•Service Acceleration
• Cisco ProgramsMSCP CPP
• TCO Tools
• SP University
• Go To Market support
Strategic Concept Design and Plan Develop
Launch, Market, and Sell
LifecycleTest and Trial
Service Creation
Workshop
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 39Moawyah ElWazer
Traditional Roles of
Separation
BUSINESS CUSTOMERS
VENDORS
SERVICE PROVIDERS
Cisco works closely with SPs, Partners and customers to ensure the success of Managed Services
Helping Service Providers Accelerate
BUSINESS CUSTOMERS
SERVICE PROVIDERS
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 40Moawyah ElWazer
Generic VSP Delivery model (illustrative)
Service Provider•Brands, sells & owns customer intimacy
End Users
Cisco• Products, Marketing, Sales Support, Service Creation
P S B
White Labeling Partner and/or CISCO Services
M
Promote
Sell
Provision
Manage
Bill
SLASP is single
point of contact and
1st line support
Seamless 2nd level support
S P
Distribution
•VSP needs to interface/integrate with SP’s Billing and CRM systems•VSP needs to Implement and operate a fully automated self-service customer portal
P S
© 2008 Cisco Systems, Inc. All rights reserved.SP Market Evolution Version1.00 41Moawyah ElWazer
Example of MS University courseDay One - IPVPN0800 Arrival and Registration0830 Introduction
- Preparing to sell Managed Services- Recognising the customer- Understanding the challenges for IT Professionals
0900 Moving to IP Solutions- Explore current trends affecting the communications market- (Activity) – identify the reasons why customers create large amounts of sensitive data- Identify the issues of concern to corporate customers- Review SP’s market and the local market for Managed Services- Consider the opportunities for IP VPN and Security
0930 Networking Fundamentals Review- A brief refresh on networking technologies- Legacy VPNs- IP-based VPNs- VPN technologies
1000 - Break -1015 Understanding Managed Services Strategy for IPVPN
- Why managed IP VPNs are a particularly strong proposition for SP and its sales force- Understand key Emerging Market trends in managed services and the opportunities they create- Explore how customers choose Managed IP VPN services
1130 Selling Cisco IPVPN Communication Solutions- The move from traditional VPN services to those based on IP- Understand and be able to explain the key issues for corporate customers- Outline the Managed IP VPN market and current trends- Recognise, develop and close opportunities to sell Cisco IP VPN solutions- Build a qualification checklist
1300 - Lunch –1345 Role Play for IPVPN
- Apply the content of the day to a customer scenario1445 - Post-Assessment & Close
Day Two – Security0900 Thoughts from Day one0915 Understanding Managed Services Strategy for Security
- The Treat Life-Cycle for Security
- The complexities for customers in dealing with security challenges
- Awareness of the impact of security breaches in different vertical markets
- Identifying triggers for Managed Security opportunities1015 - Break -1030 Selling Cisco Security Solutions
- The ISR product strategy- Winning Managed Security
opportunities with Cisco ISR- Cisco differentiators- TCO and ROI
considerations1200 - Lunch –1245 Role Play for Security
- Apply the content to a Customer Scenario1345 Managed Services Case Study Presentation on IPVPN1430 Post-Assessment1500 Close
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialSP Market Evolution Version1.00 42
Cisco Advanced Services typical engagementBusiness PlanningAssessment of business strategy, delivery of a coordinated strategic plan, business model
Network ArchitectureIntegrated delivery of technical architecture solutions, customer migration planning and operations convergence
Operational ReadinessOperational readiness assessment, transaction models, and operational workflow analysis and development to optimize NGN Operations
Service CreationDelivery of service roadmaps, implementation plans, service plans, market service descriptions and functional and customer experience specifications for new services