3-6mthsService

Organization

TraditionalInfrastructure/

Software

Cloud-basedInfrastructure/

Software

1-2yrs

6-10yrs

Cloud IT meets fast changing business needs.

Cloud IT meets Cloud IT meets shortened IT cyclesshortened IT cycles

“Inflexible IT cannot support varying business needs any more”

“However, cloud IT can give answers to changing business needs”

Business NeedsI. Introduction

With data explosion, computing service is moving towards cloud IT era

System network is important System network is important

1980 2000 20101990

Web ITEnterprise IT Cloud IT

Dedicated network Dedicated network

Appliance HW Appliance HW

Licence SW Licence SW

Scalability Scalability

Open API Open API

High-density High-density

Open Source SW Open Source SW

Multi-tenancy Multi-tenancy

Predictable IOPS Predictable IOPS Unpredictable IOPS Unpredictable IOPS

Switch & Transport NW Switch & Transport NW IP Network (Shared) IP Network (Shared)

Internal only (Silo) Internal only (Silo) For service For service

On-premise, Manual On-premise, Manual

Commodity HW Commodity HW

Multitenancy, automation Multitenancy, automation

Expert only Expert only Expert/Operator Expert/Operator Everyone Everyone

Usag

e

En

v.

HW

/S

W

Standardization& Integration Standardization& Integration

CDN CDN

Small size data Small size data Massive data Massive data

NW

No network issue about AppNo network issue about App

Data TrafficData Traffic

Data ExplosionI. Introduction

“The Network is the computer”

“If network can handle in equivalent speed with

computer processing, a computing resource will be

shared and diffused into network.”- by Sun Microsystems

Cloud computing will be in the air, thanks to high performing computing power and networks

Google solutions for 500 Million SMB to move into the cloud?

“The right thing for any small business is … to do everything in the cloud.… Need more integration with existing databases, more languages, and workflow.”

“So we've gone from a world where we had reliable disks and unreliable networks, to a world where we have reliable networks and basically no disks… “

-Eric Schmidt, Google CEO (2010)

Computer and NetworkI. Introduction

KT pursues ‘Global Top Cloud Service Partner’ with strategies based on its core competence

Business NeedsI. Introduction

Control

Low Cost (Capex/Opex)

Clustering1

Speed(Agility)

Capacity Elasticity

Scalability

- How many cores in a certain node / rack / CDC

- SW control, connecting low capacity equipments

※ Intel’s Strategy: Actively Drive X86 Market

- Economy of Scale- Reduce vendor dependency- HW Commodity, Virtualization

2

Measurement- SW & HW Separation / SW Oriented- How automatically mgt tools operate- Support cloud system

3

% of Amazon / Rackspace Price

% of Current Legacy TCO

Automation Management

Clustering, Automated Management and Low Cost

Major Factors for Quality Cloud ComputingI. Introduction

KT’s Core Competencies for Cloud ServiceI. Introduction

※ 1)LTE(Long Term Evolution), 2)3W(WCDMA, Wibro,

WiFi)

Fixed and Mobile Network(LTE1) + 3W2) + Landline )

The Best and Largest Data Handling Capacities (Some Decades of Peta Data)

Knowhow for Billing and System Operation

Assets such as Land and BuildingsHands-on Experience through

Internal Migration“Sales of Experience”, not Sales

Experience

KT cloud service shows more competing performance than global leaders in some areas

• 70% of Amazon’s price

• Better than global leaders in areas such as CPU, memory and disk performance

• Physical, data and system security• Security system with DDoS, VPN, IPS /IDS and Firewall

• Service installation within 5 minutes

Low Price

1

5 Minute Installatio

n

4

Security

3

Performance

2

II. KT Cloud Service Features Competitiveness

Competitive ‘list price’ guarantees world beating network/storage benefits as customers transmit and store more data

※ 1 년 약정 기준

CS-Public

1Vcore

2Vcore

4Vcore

8Vcore

Memory

8GB

Storage

100GB

200GB

300GB

400GB

-

-

140,00

0

2GB

40,00

0

60,00

0

-

-

4GB

-

75,000

105,00

0

-190,00

0

1GB

30,000

-

-

-

16GB

-

-

-

250,00

0

Pricing Scheme

2 Minimise Customers’ Network Cost

Minimise customers’ network cost, as more data are transmitted and stored

3 Free Mass Storage

Maximise customer benefits, considering the increase of digital content

1The Most Competitive List

Price The most competitive list price, compared to other players’

Network : Free Shared 10Gbps(Bandwidth) Traffic : Free 50GByte/month, 100 KRW/month per

1GByte

Storage : 7,500 KRW/month per 50GByte

(Unit: KRW, USD : KRW = 1: 1,100)

II. KT Cloud Service Features Price

Performance : KT vs. Global Leading Providers

CPU Performance

Disk I/O Performance

Memory I/O Performance

Program Language

Encoding/Encryption Performance

2

1

6

5

3

4

1

2

5

3

4

2

4

6

1

5

1

3

2

5

6

2

3

5

1

6

4

3

4

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

II. KT Cloud Service Features Performace

H/W Commoditisation1

Open Source SW2

Security-Oriented3

Cloud Data Centre with High Density and Efficiency4

High density rack (up to 32 servers accommodated) Cost leadership with standardisation and commoditised HW

High performance, with the orchestration of open source SW and commoditised HW

Isolation through VLAN Data encryption and vaccine DDoS, IPS/IDS, HW/SW Firewall in CDC

Green Data Centre with cutting-edge ‘Hot Aisle’ cooling system and high density racks

KT Cloud Computing

Orchestrating commoditised HW and open source SW, KT cloud provides stable and high-performed computing power

II. KT Cloud Service Features Key Features

Rack • Improved performance with high density and Active-Active system

- One rack accommodates up to 32 servers

Server • Improved computing power usage rate by

virtualisation

- More than 15 times efficiency

Storage

• Provides high availability and cost efficiency, using commoditised Hardware

- Enhanced Storage IOPS through S-Node

Switch• High quality bandwidth with 10Gbps shared

Network

• Improved stability and quality, minimising complex

Horizontal Networking between systems

Storage node

Storage

(JBOD)

Server

10G Switch

Storage

(JBOD)

1G Mgt Switch

Rack Architecture

Cloud architecture with high density racks and high performance

II. KT Cloud Service Features Hardware

S/W DescriptionCloudStack IaaS management Solution

PlateSpin P2V migration solution

NexentaStor Storage mgmt. function on virtualized environments

MySQL Database Program

Citrix Xen Virtualization Solution

Hyperic Software to manage Web Application

Spring Application Framework for the Java Platform

Splunk systemLog datagathering and analysis

ZFS VirtualizationFile System

Nagios Physical server &Network monitoring

Cacti Monitoring Data’s History management & Reporting

Apache tomcat

Web/Application Server Program

Chef AutomationProgram of server

installation/composition

Open VPN VPN Solution for network between KTIS and Cloud

CAMS Monitoring Solution for VM & Middleware(WAS,DB)

Openstack swift

Distributed Storage resource management Solution

1 Vendor Independency

2 HW Commoditisation

3 Evolution

4 Rapid Rack Configuration

5 Flexible Scalability

Only 4 hours needed (from 7 days)

High performance by orchestration

Cost reduction based on open source

Flexible customisation with open source

“Usage maximisation of

open source S/W”

7 days (It took over 3 months)

Improved cost efficiency and flexibility, utilising open source S/W

II. KT Cloud Service Features Software

Outstanding security by isolation with VLAN as well as DDoS, IDS/IPS and fire wall

Kornet

DDoS System

Abnormal Traffic Extermination

Normal Traffic

Abnormal Traffic

Bypass

Traffic Info.

Mgt System

Operator(KT)

Jump Box

X

Firewall

IPS

Prevention(1) Isolation Area(2)

User A

Service System

RVM

VM(DB)

VM(Web)

Disk

Disk

RVM

VM(DB)

VM(Web)

Disk

Disk

Operator(Customer)

Cloud Portal

Customer User Hacker KT

ID/PasswordAuthentication

Status Monitoring

Data Encryption/Decryption(3)

ID/Password Authentication

II. KT Cloud Service Features Security

With high density and efficiency, KT Cloud Data Centre provides more stable service for customers

1) Dynamic UPS(Uninterruptable Power Supply) doesn’t waste batteries 2) BMS(Battery Management System)

Easy and flexible to expand

Modularised Data Centre componets

- such as electricity and cooling system

• Installed DDoS and IPS/IDS

• Enhanced stability through dual redundant power system

• Earthquake-proof design

Utilises Data Centre space with high density racks Saves 40% fan energy with Hot Aisle Containment, cutting-edge cooling system Decrease waste batteries through dynamic UPS1) & BMS2)

Green

Security

Effec

tiven

ess

Cloud Data

Center

II. KT Cloud Service Features CDC

KT CDC Chilled Water Storage Tank

10 Ton * 2 System

II. KT Cloud Service Features

181) KT’s Cloud Service Brand, 2)VDI: Virtual Desktop Infrastructure, 3)IDE: Integrated Development Environment

ucloud1) Portfolio

BS-DedicatedBS-Dedicated

BS-PrivateBS-Private

CS-PublicCS-Public

CS-DedicatedCS-Dedicated

CS-PrivateCS-Private

SS-PublicSS-Public

SS-DedicatedSS-Dedicated

SS-PrivateSS-Private

ucloud CSucloud CS ucloud BSucloud BS ucloud SSucloud SS

RDBaaSRDBaaS

ucloud DSucloud DS

IaaS

ucloud Home

ucloud Home

ucloud Pro

ucloud Pro

SaaS

PaaS

IDE3)IDE3)VDI 2)VDI 2) CDNCDN

KT ucloud delivers compute, backup, storage, database and so on.

II. KT Cloud Service Features Portfolio

KT Cloud service helps customers reduce TCO and flexibly adapt to unexpected demand for IT resources

III. Value proposition TCO and Process Innovation

TCO and Process InnovationIII. Value proposition

Internal cloud migration is expected to save 80% of server/storage/network investment budget

Cut down $12MM

Investment 2 After Cloud

Investment 1

Before Cloud

Start Cloud IT investmentto internal

service

0

2000

4000

6000

8000

10000

Jan Feb Mar Apr May Jun Jul Sep Nov Jan Feb Mar

• Introducing cloud IT investment

process, KT operates 574 VM’s and

2,755 vCores (Mar. 2011)

• Saves $12MM in HW investment

during 8 months since Jul. 2010

- $30MM savings expected for one

year

- 80% cost down, compared to

former IT

• Migrates 8,271 physical servers in

2011

Investment (Unit: Thousand USD)

• Historical Exchange Rate: 1 US$≒1,100 KRW

Internal MigrationIII. Value proposition

Strategies

Focu

sin

g

※ 1) DC(Data Center), 2) BM(Business Model), 3) API(Application Programming Interface)

Directions

Standardisation and Platform

Establishes SaaS Marketplace

Procures On-Premise Users as Customers

IaaS

Levera

ge

All the SMEs are KT Cloud Customers!

Build the KT-Friendly Application Ecosystem!

Grow in the Two-Sided Market!

• Capturing competitor’s clients (ex. IDC, Telco)

• Becoming Asia cloud hub by attracting foreign clients• Converging various network products for new BMs2)

• Making the company use KT Cloud

• Having strategic partnership with leading SaaS Players

• Playing a role as a SaaS Aggregator through Open Market

• Realising Scale of Economy, procuring Business Customers and Developers

• Establishing mobile cloud through ucloud home and N-Screen• Creating SNS platform connected with mobile

devices• Introducing enterprise SaaS platform

StrategiesIII. Value proposition

• Finish second & third step of KT Cloud transition (~’11.12)

- second: 1,540 servers (’11.2) - third: 7,779 servers (’11.12)

• KT group DC integration

• MokDong CDC open(’11.1Q)

• SaaS (’11.4Q)

• Virtual PC(VDI) (’11.1Q)

• ucloud DS open (’11.1Q)

Architecture

Internal transition ucloud services

Data Center & Network

• PaaS (’11.2Q)

• SaaS (’11.1Q)

• PaaS (’11.4Q)

• Low performance Arch.(’10.8)

• High performance Arch.(’10.11)

• Start Cloud IT investment process (’10.7)

• Finish first step of KT Cloud transition (’10.12)

• CheonAn CDC construction (’10.8)

• CheonAn CDC open (’10.11)

• ucloud CS CBT (’10.11)

• ucloud DS CBT (’10.12)

• ‘ucloud mass/pro’ open(’10.6)

• ucloud CS/BS open (’10.12)

“2010”

• ucloud SS CBT & open (’11.1Q)

“2011”

• CDN (’11.2Q)

1) XaaS : IaaS(Infrastructure as a Service), PaaS(Platform as a

Service),

SaaS(Software as a Service), DaaS(Database as a

Service)

KT Could Service RoadmapRoadmapIII. Value proposition

From ‘must-have’ to ‘must-lease’

Cost reduction effects by cloud go beyond IT itself - US Federal Government invests saved money into civil service improvement

Efficient utilisation of owned asset - community cloud

Entrepreneurship - go or drop easily

Corporate culture innovation

Focus on SLA, not on quantitative outcomes

Additional Benefits

Thank youThank you Th

an

hank you Th

an

k y

ouThank you

Th

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k

you