NTT Cloud Strategy Copyright 2015 Nippon Telegraph and Telephone Corporation
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1 NTT Cloud Strategy Copyright 2015 Nippon Telegraph and Telephone Corporation
2 - 1 - Copyright 2015 Nippon Telegraph and Telephone Corporation NTT Cloud Vision NTT Cloud offers customers a step-change in capital and opex productivity a secure and easier way to manage global infrastructure a fast path to extend IT delivery a platform for CIOs to foster innovation, digitization, & agility
3 NTT Cloud Strategy NTT Cloud Strategy 1 2 Focused on mid to large enterprises... anchored on Cloud enabled managed hosting (VPC/DPC) 1 infrastructure Full stack, full lifecycle Cloud Advisory Security 3 with full lifecycle (Advisory, migration, mgmt. across private cloud, CEMH 2, and public cloud 3 ) Management Application, Solutions Migration 4 differentiated through full stack capabilities Data centers, Networks 5 and OTT (owned and partnered) Operations 1 VPC, virtual private cloud ; DPC, dedicated private cloud ; 2 CEMH, Cloud Enabled Managed Hosting; 3 Public cloud but only where management is appropriate Copyright 2015 Nippon Telegraph and Telephone Corporation
4 1 Focused on mid to large enterprises Customer needs vary across multiple dimensions, and there is no one-size-fitsall solution Sample customer requirements High Complexity of customer demands Advisory and design Heavy support during build and migration to augment capabilities Proven ability to manage and migrate legacy environments Scalability and complexity management Ability to finetune & support custom workloads and bespoke SLAs Homogenized across geos Customer needs vary by size and the complexity of infrastructure needs Current players focus on meeting specific needs, but no one solution meets all Low SMB Packaged SaaS solutions with focus on storage and data-backup Cost is a decision driver Mid-size Customer size Large Mid- to largeenterprise space present an attractive segment that is not yet locked up by top players Copyright 2015 Nippon Telegraph and Telephone Corporation
5 1 Focused on mid to large enterprises Customer needs vary across multiple dimensions, and there is no one-size-fitsall solution Sample customer requirements High Complexity of customer demands 2018 TAM: $100 billion Traditional enterprise HW/SW vendors app vendors System integrators Multinational telcos Customer needs vary by size and the complexity of infrastructure needs Current players focus on meeting specific needs, but no one solution meets all Low SMB Hyperscale SaaS vendors Hyperscale Cloud service providers Mid-size Large Mid- to largeenterprise space present an attractive segment that is not yet locked up by top players Customer size Source: NTT s calculation based on inputs from McKinsey, etc Copyright 2015 Nippon Telegraph and Telephone Corporation
6 2 anchored on Cloud-enabled managed hosting infrastructure Private Cloud Cloud Enabled Managed Hosting (VPC/DPC 1 ) Public Cloud Multi-Tenant User owned IaaS IaaS SaaS / BPaaS 3 Legend $25-30 billion (15% CAGR) $40-45 billion (20% CAGR) $35-40 billion (25% CAGR) $ billion (15% CAGR) Estimated Market size in 2018 (worldwide) ( CAGR) N/A Medium Medium N/A Estimated profit pool 4 Cloud SI 2 (Cloud advisory, migration, management) Target market $55-60 billion (40% CAGR) High Hybrid cloud 1 VPC / DPC market also includes backup and DR; 2 include cloud advisory, migration, and management ; 3 Includes SaaS based business apps, BPaas, and other aas ; 4 Profit pool range based on estimated profit pool size and profit margin Source: NTT s calculation based on inputs from McKinsey, etc Copyright 2015 Nippon Telegraph and Telephone Corporation
7 - 6 - Copyright 2015 Nippon Telegraph and Telephone Corporation 3 with full lifecycle of (advisory, migration, management, and operations) Multiple clouds will become the norm, and > 50% of CIOs prefer a single provider supporting across cloud lifecycle Advisory Advisory Strategy and design to define cloud computing vision, architecture and road map Migration Cloud application and infrastructure migration to move some or all of the business to the cloud Multiple clouds will become the norm, with greater need for that provide common operating platform across environments - Fortune 100 bank Management Security Application, Solutions Data centers, Networks Migration Operations Cloud application and infrastructure as a service to enable business agility and lower cost of ownership Management 65%+ of market value for cloud infrastructure and is in single-vendor deals - CIO survey result Operations Manage applications and infrastructure across private Cloud, CEMH, & public Cloud where needed to provide secure and resilient delivery OTT (including security) Sophisticated product and service offerings with 24x7 global support and a cloud focus to provide customers peace of mind 53% of CIOs surveyed prefer a single provider for all cloud advisory, app migration, & infrastructure mgmt. - CIO survey result
8 - 7 - Copyright 2015 Nippon Telegraph and Telephone Corporation 4 differentiated through full stack capabilities Cloud Enabled Managed Hosting (VPC/DPC 1 ) System integrators Telcos application vendors Hyperscale SaaS vendors Traditional enterprise vendors Unified svcs portal App and workload svcs Limited capabilities Infrastructure mgmt. svcs Advisory, migration svcs Network and security svcs Through partnerships IaaS/SaaS and DC svcs Hybrid cloud
9 5... and OTT (owned and partnered) Microsoft EMC vendors Oracle SAP NetApp Riverbed OTT Partnerships SaaS providers Cisco Microsoft (Office 365) Salesforce CommVault Enables a mutually beneficial rich ecosystem Enable direct monetization of application and related Owned/ hosted application Hosted applications Microsoft (Exchange, Lync, SharePoint) Cisco (Unified Computing) CommVault (Backup) SAP, Lawson, Dynamics (ERP) Drives consumption/ utilization of underlying infrastructure Acts as a channel for rapid customer acquisition and high- retention Owned applications Arcstar UCaaS CLM Copyright 2015 Nippon Telegraph and Telephone Corporation
10 The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of, the effects of competition, the performance of new products, and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission Copyright 2015 Nippon Telegraph and Telephone Corporation
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