Tatiana Hinova Managing Director SEE Region IDC CEMA

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

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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Greek ICT Market Outlook 2007 41. 1% 11. 9% 5% 5% 3. 6% SW PC SHHD

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

The WHAT’s and HOW’s of IT Delivery What § Better IT Alignment with Business Needs üActual and useful data for business decision making üResponsive – time to market § Simpler/cheaper § Flexible üVariable cost structure üScalable § Innovation How §Dynamic IT üDeparture from IT Silos üReusable components (SOA) üModular – based on standards §Automation/Consolidation §Performance Oriented ü Management ü Monitoring §Innovative and Integrated Delivery Models

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

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

The Balance: Outsourcing & Managed Services Outsourcing Long All High Complete All Low Managed Svcs. ength Contract L nsfer People Tra alue Contract V olutions eness of S Complet sfer Asset Tran Flexibility Short None Low Discrete None High

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: – Cx. Os all perceive communications as vital § Change in buying pattern: more proactive and allencompassing, 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

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

Where Greece Stands in Terms of IT Services Procurement, 2007 US$M US$ 3, 509 M US$ 1, 482 M US$ 1. 072 M US$ 660 M IDC BB Q 2 2007

Growth Expectations Greek IT Services Spending, 2007 Value $ (M) 3. 1% 2. 9% 2. 7% -0. 3% 1. 7% Source: IDC, 2007

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

Other Influences on Business Environment Skills Issues üLack of qualified staff üFuture profiles in demand Compliance & Regulations Mergers & Acquisitions üUsers üProviders SMEs

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

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