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June 2014 Governance in a Software defined world

Topics Who we are? What is ServiceFrame? Managed Services and Outsourcing in an SDN\NFV environment What does it mean for the service consumer and the service provider Business value in Governance Relationship Management

Company Directors Diarmuid Barry, CEO Formerly Group Head of Global Engineering Services Outsourcing at Microsoft, managing a global team of 40 Daniel Berman, CTO Formerly Outsourcing Project Delivery Manager at Accenture – Financial Services & Telco Sectors Enda Cunningham, Non-Executive Chairman Over 20 years of plc. Board and corporate finance experience Directly responsible for IPO, MBO transactions Cristina Lancaster, Non-Executive Director Co-founder and COO of SDL Plc. a FTSE 250 company 1992 to 2011 Led expansion to 29 operating countries

What is ServiceFrame?

ServiceFrame is a Technology Platform designed to bring the people, information, and processes together to ensure success in Network Outsourcing and Managed Services Automating Governance, SLA monitoring, Reporting Measuring performance across dimensions Aligning service delivery with business imperatives

ServiceFrame Mission Modern Enterprise delivering or receiving complex infrastructure and platform services need good Governance to be successful* Governance excellence demands a technology enabler ServiceFrame is the market leader in high capability Relationship Governance software in: Managed Services Network Operations Infrastructure and Platform as a Service *“20% Outsourcing deals fail in first 2 years. A further 30%+ are not renewed” - Gartner Group Survey

ServiceFrame Platform Successful services relationships depend on clear data, the ability to turn this data into business information, and a structure to manage this information in the context of a formal relationship. ServiceFrame provides these elements in an integrated package which supports the relationship with both structured (quantitative) and unstructured (qualitative) information, strong analytics, and the end-to- end governance processes. ServiceFrame is a SaaS based product, hosted in the Cloud. It is designed to be a multi-tenant application, with the flexibility to provide standalone applications for organisations who require complete segregation. It is built using a distributed architecture resulting in a highly scalable and robust platform.

Circulate Information, Direct Processes, Regulate Performance Business Intelligence Visualisations ServiceFrame Functional Proposition

Governance and relationship management Opex Reduction – fewer people capturing data, calculating Kpi metrics, validating data, and producing reports Operational Efficiency – deliver on governance reporting obligations, initiating and driving Governance Processes: Risk and Issue Management, Service Liability Management, Performance Improvement planning, Change Control etc. Information Resource – A single source of the information necessary to govern the relationship presented in a flexible and attractive form, proving visibility and control Ease of Implementation - Easy and relatively rapid to implement and deploy Effective high capability Governance – accurate, reliable, evidence based, supporting decision making, driving the right behaviours across the organisation and relationship Automation – drive down manual effort, improve capability Internal Resource Optimisation – releasing people from data capture, analysis and presentation for more valuable work Collaboration – information shared transparently between supplier and customer, in attractive visual form on any device Performance Management – strong, proactive, visible control of provider performance Aligning service delivery with End User Satisfaction objectives (Net Promoter Score, Sentiment Analysis, CSAT, etc) Benefits

Software Defined Networking, Outsourcing, Managed Services

Software Defined Technologies Defined Networking Defined Storage Defined Data Centre … virtualization of the underlying component and accessibility through some documented API to provision, operate and manage the low-level component…… Open Networking Foundation Flexibility, Efficiency, Cost Reduction, Rapid Transformation, New Services and Solutions, Opportunity Complexity, Churn, Competitive Pressure, accelerated ROI expectations, Commoditisation

Managed Services Multivendor environments proliferate, become the norm Vendor transition greatly simplified through interoperability Operating environment may become more complex Equipment specific Managed Service with aggregation at the abstraction layer for overall network management Abstraction facilitates vendor change, managed network services become more commoditised, switching vendors is more frequent Non-traditional vendors may enter the market as prime contractors – equipment management is more commoditised and abstracted from the network – possibly opening the door to large IT services vendors where this trend is well established

Outsourcing Expectations of suppliers are heightened Change and innovations should accelerate Vendors must manage change faster, understand impact and adapt Contract term reduces? Business cases will evolve – higher or faster returns anticipated Margins for SP’s will be pressurized in what is already a race to the bottom

Customers Opportunities: Access to more capability as limitations on vendor choices removed Cost benefit\Efficiency improvement Respond very quickly to market change, flexible business and delivery models Challenges: Managing multivendor environments is challenging Prime sub contractor performance aggregated – understanding where challenges exist\accountability\responsibility Benchmarking, comparative performance analysis essential

Service Providers Opportunities: Service delivery models are simplified, become more flexible Deployments faster and cheaper Customer pool increases with ubiquitous connectivity between things Challenges: Potential for churn significant risk both the revenue and margin Retaining influence a challenge Who will fill the prime vendor role Business model must evolve

The Value in Governance

What is Governance? Ensuring all the available information required to support decision making is available on time to the appropriate stakeholders Ensures that the organizations responds accurately and consistently to that information – the right things are done by the right people at the right time. That evidence is retained to illustrate why decisions were made It serves as the historical record and a guide to potential future outcomes

Governance Vendors with strong governance and relationship management capability are strategic Governance ensures good service management and customer alignment Clarity in process, clarity in metrics, clarity in change and impact Competitive differentiation Note again: 50% outsourcing engagements fail. When they fail there is always a failure in governance.

Outcomes Service Consumer Outsourcing is done to reduce cost – is it delivering on the promise? Financial performance correlated with service performance correlated with market performance correlated with customer experience Are the right results being delivered? How can they be maintained? What can be improved? Service Provider The service delivery programme is designed to delivery a target contribution, a % margin Where is profit leaking? Can contribution be enhanced? Are their selling opportunities?

When things go wrong! Deepwater Horizon – BP cost $42.2bn

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