1. www.idc.com October 29, 2007 9 th Greek ICT Forum The Future of Information Technology as a Service Trends and Implications Tatiana Hinova, Managing Director SEE Region,IDC CEMA

2. Agenda  Changing Role of IT in Getting the Business Done  The What’s and How’s of IT Delivery  Role of Service Delivery  Outside Influences on Business & IT Environment  Greek IT Market  Conclusions and Recommendations

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7. Greek ICT Market Outlook 2007 SW PC SHHD 11.9% 41.1% 5 % 3.6% 11.9% 5 %

8. Business Expectations and IT Implications More Value for Less Money Generate Growth Enhance Productivity Improve Customer Service Lower Cost

9. The WHAT’s and HOW’s of IT Delivery  Better IT Alignment with Business Needs Actual and useful data for business decision making Responsive – time to market  Simpler/cheaper  Flexible Variable cost structure Scalable  Innovation  Dynamic IT Departure from IT Silos Reusable components (SOA) Modular – based on standards  Automation/Consolidation  Performance Oriented Management Monitoring  Innovative and Integrated Delivery Models What How

10. Changing Characteristics of IT Delivery in Getting the Business Done Pre-2000 2000-Now Technology Led Infrastructure Applications/Middleware Characteristic Led by Type of IT Environment Proprietary Mainframe Distributed IT vendors Internal Staff Delivered & Managed By Commoditization Prop. & Open s. High availability Service Delivery Led by Update Led By Future Application layer Proprietary Turnkey solutions Standardized Proprietary Distributed LAN & WAN Proprietary On diff. and also open platforms Distributed Role of integration 3-layer architecture Services/Business P. Led BPO.B. sol. Plethora of providers IT vendors & ITS providers Telco providers, Captive c. Implementation Break & Fix System integration Managed services BPO Int.Infrastructure Svcs.

11. IT Services Delivery Evolution of Innovation Hardware support Software support Storage services Security services ‘Packaged’ Services (2 or more point services) Managed Services (flexible outsourcing) Full IT Outsourcing BPO & Horizo ntal O. Utility Computing Global Sourcing Evolution of IT Services Delivery Point Services More complex services (higher value) 0% of IT infrastructure outsourced 100%

12. The Balance: Outsourcing & Managed Services Long Short All None High Low Complete Discrete All None Contract Length People Transfer Contract Value Completeness of Solutions Asset Transfer Flexibility High Low Outsourcing Managed Svcs.

13. EMEA Trends & Drivers  IT is a business enabler, not just a cost center  Increasing Complexity of the infrastructure  Security drives the need  Service Level Agreements supersede cost reduction  The network has become the center of the enterprise: –CxOs all perceive communications as vital  Change in buying pattern: more proactive and all- encompassing, pushing the emergence of high value, complex services. –Bundled, high value services –Move up the value chain drive the need for complex SLA, which requires more robust reporting –End to end solutions, underpinned by high levels of service

14. EMEA Trends & Drivers  Regulatory compliance is a factor pushing enterprises to have tight processes in place to manage their system  ITIL certification is also a major push for enterprises –To “rubberstamp” their infrastructure –To ensure quality of the integration / systems –To future proof the infrastructure  Convergence is emerging fast

15. Where Greece Stands in Terms of IT Services Procurement, 2007 US$M US$ 660 M US$ 1,482 M US$ 1.072 M US$ 3,509 M IDC BB Q2 2007

16. Growth Expectations Greek IT Services Spending, 2007 Source: IDC, 2007 Value $ (M) 1.7% 2.7% 3.1% 2.9% -0.3%

17. Quo Vadis? Business Processes Enterprise Applications IT Infrastructure Operational Costs Global Delivery Vertically Integrated Services On-Demand, Utility Computing Outsourcing, managed services, hosting Project Based (consulting Integration) Services Delivered Onshore Offshore High Cost Low Cost/Margins

18. Other Influences on Business Environment Mergers & Acquisitions Users Providers Skills Issues Lack of qualified staff Future profiles in demand Compliance & Regulations SMEs

19. Implications for Your Planning  Better Alignment of IT and Business CEO must decide about strategy but CIO should be involved and help to drive innovation Utilizing dynamic IT platform – innovative technologies and deliveries  Outsourcing/Managed Services The success of Outsourcing/Managed Services will hinge on the right balance of Cost, Internal Control, and External Contribution Outsourcing is not a silver bullet, however it can improve Operational Efficiencies and create a New Business Value through IT  Other Factors Skills issues, Compliance,  Smart Sourcing Combination of internal staff – focus on value-added services Third-party expertise delivering IT services & BPO Leveraging offshore and near-shore capacities

20. Thank you thinova@idc.com +420 221 423 155