BT21CN and New Services
BT GroupYung Kim

The changing landscape

Convergence
Costtransformation

Regulation

M&A
activities

Customer
expectation
Technology

BT’s strategy to the changing landscape
Helping ourcustomers
thrive in achanging
hiworld

Defend traditional▬ Improved service▬ Price innovation▬ Cost transformation▬ Aggressive &creative marketing

Grow New Wave

21CN
a globalinnovation
platforml tf– Networked
IT services– Broadband– Mobility &convergence... Consistent delivery

Q4 2007/8 – revenue by customer

Carrier
25%
23%

Consumer

Corporate40%

12%

BusinessStrength in mix of customers and businesses

21CN – objective remains unchanged

Legacy network

21CN platform
PSTN Migration

Converged CoreClass 5Call Server

Fibre orCopper

WWW
DSL

IP-MPLS-WDM
ContentEnd
User~5knodes17 networks to ONE global platform~100nodes

ISPBT21CN Global MPLS

Product Life Cycle positioning

Global view
FranceItaly
IrelandSpain
CEE
Latin America
Middle EastHigh Margins
ChinaHigh Pre -sale Costs
India

UK
Germany
Benelux
Switzerland
Nordics

NorthAmerica
Other Asia Pac

AfricaRussiaProduct
Attribute
Customer
Attribute

EarlyAdopter

Early Majority

Majority

Greatest Volumes
Acceptable Margins to Volume

Declining Margins

Late Majority

Laggards

Notes

The country positions represent Global MPLS (defined as sending traffic cross border)
sold out of this Geography, it doesn’t represent domestic usage
The overall maturity of the Global MPLS market is shown by the Orange dot

Innovation strategy
Hosted applications(IPT, Security, etc)with iVPN core
BT MPLS

BT iVPN withi t
integrated
t dapplication
management
Next generation Networkwith Service OrientatedArchitecture supporting web
based services, IPv6, etc

Customer Journey

TIMENotes
Continued Innovation drives the refreshing of product life cycles. This in turn maintains
BT’s market leading position and providing customers with valued services that meet theirbusiness needs.
Providing a seamless and easy customer journey is key to the success of this strategy

Product Evolution(VPN product family)

2007/08

20010/11

2009/10

2008/09

AC VPN

Closure &Clmigration
dates TBA

IVSIntelligent VPN
BT MPLSBT ATMBT Frame Relay

Start Migration

Closure &Migration
Sept. 09

Product closure, migration complete

Stop selling, start sellingNetworks Evolution● Our customers requireqsolutions for a varietyy of sites with very
y different needs.
Differences in▬Security▬

Speed▬

Resiliency▬

Class of Service▬

A d off course, Costs
AndC t● Our commitment is to provide, in a vast number of countries, the range ofsolutions they seek▬

Ethernet LAN SAN▬MPLS via Leased lines, Premium /Plus DSL▬

HybridyVPN solutions▬

Network to Network Interfaces in domestic partners

World Class Access● Strategy is to ensure co-ordinated efforts to offer the most cost effective solution foreach location – and to ensure we meet our customer’s
customer s requirements

Business Size

AccessTechnology/Product

Data Centres

Ethernet Access

1 Gig

100 M

Leased line
Branch Office
Small Office

Ethernet 10 M

10 M

N x E1/T1
Premium DSL

4M

Home OfficeStandard DSL

Remote offices

Hybrid VPN

Number of locations per customer

2M

Sppeed34 M/ 45 M

Hybrid VPN Network diagram● Hybrid VPN is the easiest solution to bring global access to our customers.
● Solution to answer the following needs▬

Country coverage – expand DSL solution to 150+ countries▬Extremely cost efficient Back Up to leased line access solution▬Lead-time reduction, where customer already has a local connection to the www● Regional Gateways (Americas, Europe, Asia Pac) – with addition of local
variances where necessary

IP Sec tunnel

ISPCustomerPremises

BT MPLS
STM-1

SSNG MPLS PE
CE Routermanaged by BT( Pre-configured withLoopback IP address)

R t /Modem
Router/M dprovided
by Broadband
supplier

B db d ffrom 3Broadband
3rddP
Partyt supplierli

3 Year Roadmap overview

2008/09

Launch of intelligent VPN – focus on Application centricity
Expansion of Global Network (all regions, but Middle East & Africaand LATAM are major focus )),World Class Access: roll out of competitive Ethernet,
DSL & Hybrid VPN Access, Network Interconnections.
Be Number 1 for customer Service
Multicast Network enablement

2009/10

Continued Expansion (focus on Americas & Asia Pac),
Launch of Globally available
available, native Multicast
Focus on Customer Self Service & Portals
Integration of Internet based access to MPLS
Standardisation of Satellite Access

20010/11

Focus on the feasibility and rapid introduction of new technologies
IP Version 6,
6 WiMax,
WiMax integration with Ethernet VPLS and VLAN
Next Generation of Application centric technology
Feasibility of multiple vendor strategy to keep prices competitive

Convergence sits at the heart of the future

Voice and Data
A true multi media
experience
which willtransform
the way wecommunicate

Comms and IT
Enablingbusinesses
to deliver the mostappropriate informationor communication
when and whererequired

Fixed and Mobile
A fusion
which allows
customers toenjoy thebest of bothworlds

Media &entertainment
Reinventing
homeentertainment

The Convergence Proposition model
Converged LAN Makes Collaboration easier

U ifi d Communications
UnifiedCi ti& Collaboration
C ll bti Applications
A li tiCorporateFusion

OnevoiceGlobalManaged /hosted voice
TDM / IP
Voice

Wireless/GSM
Wil/GSMsolutions
Corporate fusion
Dual modesolutions

CRM
Self Servicesolutions IPcontact Centre
Hosted services
Professionalservices

Identity
Managementg

Unified Comms& Collaboration

Security
proposition for
managedauthentication

MS Suite ofmanaged services –E2K7, LCS,
sharepoint

Infrastructure – Operational Efficiency
IVPN / AAI

Converged LAN

Intelligent, application
aware WAN services

Managed LAN/IPTservice

Data Centre
Services

Mobile Xpress
Global mobile access

Hosted MS / storage

Building a “Unified Comms Ready” infrastructure

The BT Global Services Roadmap

Traditional Data
Infrastructure• Private Ccts
• Frame Relay• ATM• Any-to-Any• Class ofService• Gigabit/s• Security• Wireless LAN• Home-worker• Roaming• Reduced
Building Estate

ConvergedgFlexible
WorkerBT MPLS Data
Infrastructure• Collaboration

Converged
Voice & Data
(Network)• PABX’s• Voice VPN’s• Key systems• Integrated
Applications• Greater
Efficiency& Conferencing• Converged(Network))Intelligent
Convergence(Desktop)

IP Enabled
Voice Estate

Traditional Voice
Estate• IP PABX’s• IP Handsets• VoIP• IP Telephony• Call Centres• IPT Apps• Presence• i-Bridge
i Bridge• Live Meeting• Meet Me• Conferencing

UnifiedCommunications

AAI for Consolidating Communications

The Virtual Data Centre is a services platform built on the back of BTs
own infrastructure transformation*
Legacy Data Centre

Virtual Data Centre - VDC

Applications

Virtual Applications

Operating Systems

Virtual OS

Physical Hardware

Virtual Hardware

Mixed Storage

Virtual Storage

Networks

Virtual Networking

Management

Virtual Management*A substantial amount of software has been developed from scratch & in partnership with Microsoft and HP

BT will employ a set of professional services developed into aContinuous Migration Process to aid our customers transformation

Reduce number of servers
Lower capex & operational costs
Increased automation
Environmental benefits from reduced resources(power & cooling)

CConsolidateConsolidate common capabilities to “farms”
Drives standardisation & governance
Facilitates Licence rationalisation
IT support savingsFewer supported platforms
Independence of underlying hardware
Lowers operational complexity & skill base
Further Reduces licence cost base
Address end of life support
pp challengegVVirtualiseTransformmBenefits

20% HWutilisation

20% HWutilisation

20% HWutilisation

60% HWutilisation

One Voice• One Voice
Basically BT One voice is BT Global Services key voice proposition
proposition, linking all voice areastogether. As you can see, BT One voice is made up of a number of different key elements.

Built on a single platform (VDC) we offer a selection of propositions and anumber of business models to our customers•The platform allows BT to beflexible with customers

HostedPPropositions
iti•VDC has some success already•BT AP has some good customerengagements:

VDC ‘In A Box’
BT Exchanges

UCC

Contact Centre
Efficiency

VDC Client IslandsCore DCs

SecureNetworking

VDC

IT/IP
Outsourcing
Outsourcing &Consulting
Propositions

VDC ‘On Demand’Core DCs

Infrastructure
O i i i &Optimisation
TransformationVDC On-Site
Customer Sites

Simple
VDC“Normal Sale”
Propositions

Open platforms

End customer created services
3rd ppartyy services
BT services

Common software building blocks
Global network and computing

Servers

Storage

Concept-tomarket

Lead-to-cash

Converged
bandwidth

Trouble-toresolveFrom traditional telco…

Keys toour evolution
Real time
GlobalOpen… to leading services provider with global capabilities

Thank You

BT Group
Yung Kim
yung.kim@bt.com