1. BTs Outlook for a Cloudy Day Stefan Van Overtveldt VP, Emerging Technology & Innovation

2. flexibility Respond to change Adherence to regulation Speed Manage global information transforming cost Information Security & Compliance Employee Retention Sustainability Speed to Market Simplification Innovation for Competitive Advantage Cost control Customer ServiceSpeed to Market New services Focus on core vs context 3. CIO Priorities Source: Gartner:Align Enterprise Architecture to the Top 2009 CIO Priorities, July 2009 4. A brief history of IT Evolution to a world of chaos? Product Centric Customer Centric Information Centric Business Networks Single Product Component Based Application Svcs (SOA) SaaS/Mashups Dedicated Server Shared Server Virtualization Cloud Computing Application Specific Single Technology Platform Transparent Access Private & Dedicated Private & Shared Virtual Private Adaptive Networks Business Process Applications IT Infrastructure User Access Networks 5. A brief history of IT Evolution to a world of chaos? Product Centric Customer Centric Information Centric Business Networks Single Product Component Based Application Svcs (SOA) SaaS / Mashups Dedicated Server Shared Server Virtualization SLA Orchestration Application Specific Single Technology Platform Transparent Access Private & Dedicated Private & Shared Virtual Private SLA Based Business Process Applications IT Infrastructure User Access Networks Integrated Service Level Management? Service Levels Measurable &Manageable 6. A brief history of IT Changing Nature of Security Product Centric Customer Centric Information Centric Business Networks Single Product Component Based Application Svcs (SOA) Mashups Dedicated Server Shared Server Virtualization SLA Orchestration Application Specific Single Technology Platform Transparent Access Private & Dedicated Private & Shared Virtual Private SLA Based Network Protection Endpoint Protection Information Protection Business Process Applications IT Infrastructure User Access Networks 7. Clouds on the Horizon

The concept of cloud services is likely the most (over)hyped concept in the IT industry, and typically covers

• Cloud Infrastructure

• Software as a Service

• Platform as a Service

• Business Process as a Service

Cloud Services is gaining relevance at a CxO level

Drivers

• The need to deliver IT capabilities as a Service

• Shift from Capex to Opex models

• The need for deployment agility, both from a timing and geographical perspective

Inhibitors still include Security, Data Management outside the organization, and Regulations & Compliance

From an enterprise perspective, do we want as a Service or with a Service models?

8. Cloud Services by Delivery Model - Private Definition:Deployment of Cloud Services within the boundaries of an organizations private network and for usage internal to the organization, and/or deployment of the technologies that enable the creation and delivery of service-based capabilities Examples:server virtualization, internal compute grids and SOA Organization A Virtual DC Application Services Internal SLA No SLA Internet 9. Cloud Services by Delivery Model - Public Definition:Subscription to and Usage of Cloud Services that are delivered over apublic network , where the service isshared unmodifiedbetween multiple subscribers and any SLA is purely based on availability of the service. Examples:Amazon EC2, Google Mail, SalesForce.com, Organization A Internal SLA No SLA (Virtual) DataCenter Cloud Applications Internet Cloud Compute Low Cost GRID job 10. Cloud Services by Delivery Model Virtual Private Definition:Subscription to and usage of Cloud Services that are delivered over aVirtual Private network , where the avirtual private instanceof the service is based on ashared implementation,and anintegrated SLAbetween the service and the delivery method,with business relevant metrics,is offered. Organization A Service ProviderInternal SLA No SLA (Virtual) DataCenter Cloud Applications VPN Cloud Compute Extra Capacity Low Cost GRID job 11. Cloud Services by Delivery Model - Federated

• Definition:Subscription to and Usage of Cloud Services that are delivered over a private network, where Private, Public or Virtual Private Cloud Services are linked together to deliver a business solution and where either the service consumer or the service provider delivers an integrated Service level aligned with business priorities

Organization A Internal SLA No SLA (Virtual) DataCenter Cloud Applications VPN Cloud Applications Cloud Compute 12. Abstraction The Enterprise Cloud Journey (Idealistic) DIY vs. SP 95/5% Traditional

Buy HW & SW

Manage multiple contracts andservice levels

Fixed price contract

90/10 Adopting / Adopted

Buy H/W or SP and S/W

Manage multiple contracts & Service Level

Fixed price contract

60/40 Cloud (today)

Buy S/Wand service

Fewer contracts

Integrated SL

Flexible contract

10/90 Cloud (tomorrow)

Buy Service / Deliver Service

Single contract

End to end SLA

Utility contract

Physical Application Process Operating System Virtualised Operating System Physical Process Application Dynamic Dynamic Operating System Application Operating System Application Dynamic Operating System Application Operating System Operating System Process Physical Federated Federated Federated Operating System Application Operating System Application Operating System Application Operating System Operating System Process Physical Multiple Provider 13. BT Vision 14.