Telekom Data Center – conquering ICT BusinessCisco Expo 26-27.May 2011

Igor Matejov, Executive Director Sales & Customer Service, Slovak Telekom

2Slovak Telekom – Cisco Expo 2011

Slovak Telekom Conquering the ICT Business!

IS THE ICT THE AREA ATTRACTIVE?

IS SUCH A DATA CENTER NEEDED IN SLOVAKIA?

WHY SLOVAK TELEKOM?

WHAT IS THE BENEFIT FOR CUSTOMERS?

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Our society is becoming the Gigabit Society!

1960s 1980s 2000 2010

64kbps

1000kbps

50000kbps

100 MBps

2020

1 GBps

?

?

1960s 1980s 2000 2010

64kbps

1000kbps

50000kbps

100 MBps

2020

1 GBps

?

?Fixed

4Slovak Telekom – Cisco Expo 2011

Offering ICT services has been latest target

of major telecom operators

Source: BCG interview; Annual reports; BCG estimates; BCG analysis

It is natural for telecoms to establish themselves in ICT market ...

ICT revenue as %

of total revenue

Telecom products

and services

Network

application

services

Full ICT

services

offering

Organic

growth

Specialized

acquisitions

+ organic

growth

Large scale acquisition

1%

6%

12%

Organic growth Specialisedacquisitions

Large acquisition

With a revenue impact depending on

the chosen growth strategy

5Slovak Telekom – Cisco Expo 2011

The market in it’s growth phase …

14.1

2009

39.4

11.9

18.3

9.2

Housing/hostingmanagement

Applicationmanagement

2014

+11%

NW & workplacemanagement

66.9

16.7

36.0

+7%

+15%

+9%

SK market size of managed services (EUR mln) Managed services share on GDP

Note: Growth as CAGR 2009 – 2014.Source: IDC; EIU, BCG analysis* Only ecl.revenue from mobile segment

0.48%

RO

+62%

GR

0.01%

SK

0.02%

CR

0.06%

SL

0.06%

CZ

0.07%

HU

0.10%

AT

0.11%

0.22%

UK

Reaching Czech MS share on GDP,

the SK MS market could reach EUR

65 M in 2012

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Data centers one of main areas of ICT growth …

80% of data centres in Europe are owned & managed by Enterprises (Source: Gartner 2010)

there are cca. 530 000 sq m of commercial DC in Western & Central Europe(Source: Gartner 2009)

World DC construction size is predicted to grow from 18 bil.USD in 2000 -78 bil.USD by 2020 representing 225% difference (Source: C.Belady, Microsoft)

DC outsourcing spending in Europe is predicted to grow by 2,6% (CAGR) in 2009-2014 (Source: Gartner 2010)

World biggest DC has 102 ths. Sq m (350 EAST CERMAK, CHICAGO USA(Source: www.datacenterknowledge.com)

STRENGHT

BUSINESS

GROW

SPEND

SIZE

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The reasons of the data center consolidation are obvious …

20% reduction in the costs of external IT services

18% reduction in server and storage costs

44% reduction in network hardware costs

Traditional security on the highest level, complying with

local legal requirements & having always virtual &

physical access

Cloud providers are proactively operating their

Infrastructures in a power efficient manner.”

High-quality/low-cost services

FINANCIAL ARGUMENT

SECURITY ARGUMENT

„GREEN“ (COST)

ARGUMENT

ECONOMICAL SENSE

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ST is well possitioned towards the offering

Existing Data centres in 4 locationsComputing services

More than 6 000 m2 data center space in 4 locations 1 strategic twin core data centers in Slovakia New Telekom Data Center now being launched with 1 200 sq m space More than 600 servers (stand-alone and virtualized) over 1,6 peta bytes of storage

THE MOST EXPERIENCED DATA CENTRE SERVICE PROVIDER IN SLOVAKIA

9Slovak Telekom – Cisco Expo 2011

And further investing – new unique Telekom Data Centre

Achieved alignment with TIER III standardAvailability/accessibility min. 99,982%

HIGHEST QUALITY & SECURITY

STANDARDS

“GREEN“ DATA CENTRE

FIRST DC IN SVK

DESIGNED AS A DC

BUILDING

LONG TERM

EXPERIENCE IN DC

OPERATION

Energy independanceEnergy connection integrated into the mainbackbone in BA

Designed and built as DC, Fully redundant Seizmic ressistance, Vibration isolation

Full control on data infrastructure as an infrastructure ownerExperienced IT experts in place

10Slovak Telekom – Cisco Expo 2011

Video

11Slovak Telekom – Cisco Expo 2011

Why shall ST be your value adding partner?

Financially strongest ICT company in Slovakia in terms

of revenue, cash-flow and asset-base

Deep telco expertise combined with the broadest and most sophisticated network

Largest coverage of technical field-force in Slovakia (other IT companies large globally,

but very small in Slovakia)

One of the largest corporate salesforces in SK with deep relationship on CxO level,

especially in mid-sized companies

ST is not bound to any HW or service provider hence is free to choose the best

solution for the client

Financialstability

Independence

Trust & relationshipof salesforce

Size and coverage

Ownership oflargest network

12Slovak Telekom – Cisco Expo 2011

Strong companies cooperating to ensure the highest quality …