Ponencia de José Antonio Ces Franjo, Director de Oferta y Comercialización Empresas en Telefónica España, en el evento HP Discover 2014: "Do you construct or consume Cloud?" Más información sobre tendencias cloud en http://ow.ly/KFkL7

1. Do you construct
or consume Cloud?_
November 2014 | Barcelona

2. A global leader in communications and ICT_
More than 315 million accesses
• 90 million in Europe
• 224 million in Latin America
Strong financials (1H 2014 - Mn €)
• Revenues: 24,957
• OIBDA: 8,055
Operations in 45 countries*
• 18 full network operations
• 22 commercial & operational offices
• 5 remote operations
• 129 countries extended MPLS
126,500 employees*
• 31% in Europe
• 68% in Latin America
• 1% in other countries
* July 2014

3. 90 years of progress and transformation_
• 1924 CTNE is set up in Madrid; ITT is one of its initial shareholders (1924)
• 1971 1st European Data Transmission Special Network
• 1990 Internationalization process starts; enters Chile (CTC) and Argentina (TASA)
• 1998 Wins the tender for Telesp in Brazil
• 2000 Acquisition of BellSouth assets in Latam: Venezuela, Ecuador
• 2005 Acquisition of Cesky Telecom
• 2006 Acquisition of O2 assets in UK, Germany and Ireland
• 2013 Acquisition of Eplus in Germany, divestment in CZ and Ireland
1989
• 12 MN customers
• 1 country
• 71,000 employees
• 4,273 MN EUR Revenue
2013
• 323 MN customers
• 24 countries
• ~130,000 employees
• 57,061 MN EUR Revenue
Internationalization
has driven
significant growth
Spanish Telephony
Operator
Global ICT Provider

4. Our global ICT capabilities_
San José
México
Houston
New York
Bilbao
UK
París
Frankfurt
Munich
Zurich
Milán
Washington
Atlanta
Boca Ratón
San Juan Lisboa Barcelona
Guatemala
Panamá
Caracas
Belo Horizonte
Fortaleza
Salvador
Valencia
Ecuador
Arica
Chile
Curitiba
Argentina
Brazil
Peru
Madrid
Miami
Emergia Fiber Route
Extended Fiber Route
Co-owned routes
La Rioja
Colombia Canaries
Network Node
Data Center
2014 Awards – Uptime
Institute
Alcalá Data Center
“Telefonica
prioritized efficiency,
financial viability, a
system of
accountability, and a
world-class result for
its internal and
external clients…”
Mexico

5. Telefonica Spain ICT portfolio_
Voice
VPN
Enterprise size Enterprise size
Corporate
Enterprise
Corporate
Enterprise
Movistar Fusión
Empresas
Movistar
Fusion Pro
Unified Communications
Unlimited 2 GB
Calls

6. Our Enterprise IT portfolio_
IaaS
Systems and
Applications
Management
IT
Infrastructure
Data Center
and Comms.
Infrastructure
DVR Remote Backup VDC Virtual SAP
OS DDBB
Middleware SAP
BRS
Storage
SAP
Backup
Private cloud
Monitoring
OWN Data Center TIER IV
LAN & SAN Network Data Center
Data Centers interconnection

7. Shared IT Services and dedicated solutions: An
integrated approach_
Developing
services and
shared platforms
“components”
Industrializing
infrastructure
operation and
services
With skills
and models to
prepare a
“customized“
solution
Standard
Project
Tailored
Project

8. …within a comprehensive methodology_
From conceptual definition to deployment & operation
Transformation
vision
Proposal
Transition /
Transformation
On-going Service
Current situation
analysis and
alternatives assessment
Technical & economic
proposal, trading
and due-diligence
Contract implementation,
takeover and
transformation
to the new model
On-going service
operation in the
new model
Continuous Management
• With capacities and models for customized solutions
• Ensuring transition/transformation and minimizing risks

9. Design is embedded in our Data Centers Network_
Data Center
Julián Camarillo
Alcala
Data Center
Energy Efficiency
Power Scalability
Availability
Data Centers Network
MPLS Network
Datacenter connected with
our Core Networks

10. Meeting the demands of our customers_
Hybrid
Cloud
Sensible Data
Core Environments
API
Virtual Data Center
Additional Capacity
Non Core Environments
API
Bridge
DEDICATED PLATFORM
RECURRENT FEE
SHARED PLATFORM
PAY PER USE / RESOURCE POOLS
INTERNET AND PRIVATE COMMS
Overflow
Additional Capacity
Recovery
Virtual
Data Center
Private
Cloud
Consume
Cloud
Construct
Cloud
Powered by HP
Technology

11. Do you consume or construct Cloud?_
Core Business Services
• Primary Data Center Customer / Telefonica
• Secondary Data Center Telefonica/Customer
Hybrid
Cloud
VDC
VDC
Private
Cloud
Hybrid
Cloud
Private
Cloud
• Primary and Secondary Data Center on-premise
• Primary Data Center Telefonica
• Secondary Data Center Telefonica
Cost
Private
Cloud
Hybrid
Cloud
VDC

12. Private cloud powered HP Technology_
Opex vs Capex Avoid over
sizing
Reduce
risk
Private
Cloud

• Performance
• Security
• Control
Optimize
Your Apps
Improve
Efficiency
Enable Global
Management

13. Our VDC 2.0 delivers a real Hybrid Cloud promise_
Private
Cloud
Public
Cloud
 • Flexibility
• Agility

• Performance
• Security
• Control
Telefonica Virtual
Data Center 2.0

Hybrid Cloud
Macrolan and VPN IP
• Performance
• Security
• Control
• Flexibility
• Agility

14. Meeting a corporate customer needs_
Internet
VPN
Public
Environments
Storage,
Backup and
Disaster
Recovery
Private
Environments
DMZ
Backend
VDC
Legacy
& physical
environments
Temporal
Environments
Capacity Bursting
Development
Environments
Critical applications
performance & control
1
2
5
6
Flexible
Consumption
Self-service portal for
management and control
Flexible Network
Topologies Deployment
Performance, backup
& recovery of data
4
Integration with
legacy and security
environments
3

15. DraaS: New functionality_
Customer Data Center
Primary Data
Center Protected
VM VM VDisk VDisk
 Protected App
Key Features
 Replications through private VPN
 Automatic copies in near real time (RPO 10s)
 Different versions to restore (RTO 1h)
Recovery
Data Centre
VM VM VDisk VDisk
 Flexible management and contracting:
 Pay per use
 Auto-provisioning web based portal
Primary Data
Center Protected
VM VM VDisk VDisk
 Protected App
Opportunities for your
business:
• Be more competitive:
Add a service
solution for business
continuity
• Perform migrations
in an orderly manner
and without loss of
service

16. We support the emerging new role of the CIO_
Setting a transformation vision throughout the enterprise
Chief Information Officer Role
Before Now Business Leader,
not just IT admin
Data Center
Operation was sufficient
Our Hybrid Cloud assures App
performance and recovery
VDC integrates with Legacy IT
Private Cloud oriented to Sensible
Data & allocated at TierIV DC
Our Hybrid Cloud supports
Pay per use model
Method for integrated proposals
according customers business needs
Improve performance and
efficiency of business units
Improve current investments
Assure regulatory compliance
Balance risk and investment
Understand the role IT plays in the
creation or destruction of value

17. Global
infrastructure
Telefonica is Cloud
Own
Network
Data
Centers
Hybrid cloud
for enterprise:
- Private cloud
- VDC
Conclusions_
+ + =
Cloud is
changing
the face of IT
Trusted
Partnerships are
key across the
value chain
Telefonica
is prepared
This presents
significant
challenges
to CIOs
• Data security
• Regulation
• Global coverage
• Mobility
• Application
performance
• Recovery
And also an
opportunity to
become a business
growth enabler
• Competitive edge
• Efficiency
• Lower cost
• Productivity
• Business focus