Managed Grid Services and Saa S at COLT

Managed Grid Services and Saa. S at COLT Service Migration and the CGP Frank Falcon COLT Managed Services

COLT today MAN with Data Centres IP/MPLS MAN > 15, 000 km European fibre network COLT connected city cities connecting 100+ Ethernet Operational network > Typically 96 fibres/route managed end-to-end > Latest 10 Gbit/s optical technology DWDM Amsterdam Hamburg London Berlin > 5, 000 km access networks in 32 European cities > Industry-leading services > First Ethernet service in 1993 Brussels Zuric > Switched Ethernet services from 2005 Turin > 14 data centres fully integrated with fibre network Madrid > Security Operations Centre 2 Frankfurt Paris > Ethernet over SDH from 2003 > 60, 000 sq metres data centre space SDH Barcelona Milan

COLT evolution Embracing Innovation within COLT > Innovation is a fundamental driver for Colt as it evolves and it has embraced appropriate innovative developments to create a compelling company-wide Vision Helping customers evolve > Colt has recognised that Service Providers need to work closely with customers to help them with the transition from the IT-centric world of today to the web-centric world of tomorrow 3

Evolutionary drivers 1. Legacy applications > Virtualisation of delivery capabilities at every level of the stack is driving Service migration > Services are moving to “on demand” > Migration path to the emerging Web-centric world > Seamless and cost-effective > Continuity of operations > NO re-engineering of application software 2. Web-centric applications > New applications from “mashing” plus ASP-type hosting > Incorporate New and Legacy applications into delivery model What are the challenges for each ……? 4

1. Legacy applications challenges Within the Enterprise Data Centre environment App A App B App C Product Infrastructure Staging Environment High Availability DR Staging Environment Test and Development Staging Environment > Lack of agility due to statically-bound resources > Applications are over-provisioned to peak loads > Will not scale dynamically or adapt in any way > Difficult to align resources with business imperatives > Rising complexity and Total Cost of Ownership > Server sprawl – physical and virtual > Rising operational costs > Distributed systems are costly to manage > Increasing space, power, and cooling costs > 5% - 7% CAGR floor space growth > Increasing regulatory compliance requirements > Current monitoring environments only deliver information rather than control 5

1. Legacy applications challenges Within the Enterprise Data Centre environment > Lack of agility due to statically-bound resources > Applications are over-provisioned to peak loads > Will not scale dynamically or adapt in any way > Difficult to align resources with business imperatives > Rising complexity and Total Cost of Ownership > Server sprawl – physical and virtual Meeting the challenges needs: 1. Step-change improvement in operating costs > Rising operational costs > Distributed systems are costly to manage > Increasing space, power, and cooling costs > 5% - 7% CAGR floor space growth > Increasing regulatory compliance requirements > Current monitoring environments only deliver information rather than control 6 2. Future-proof environment for continuing operation

1. Legacy applications – addressing the challenges > Currently challenges addressed on an individual basis > Hardware configurations and efficiencies upgrades > Operational Process revisions > New management/information systems > Produces incremental gains but no “step-change” > Deliver “step-change” improvement through holistic services > Undertake three key actions > Harness virtualisation > Create Service Migration Path > Create suite of services > What does this model look like…? 7

1. Legacy applications - Services migration layers ns o i t lica p ath p P A cy ion a t g a Le igr M ice v r Se STATIC Private circuits ON DEMAND VPN WAN/LAN Network Layer 8 STATIC Dedicated storage ON DEMAND Virtualised storage STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Virtualised Applications Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

1. Legacy applications - Services migration layers ns o i t lica p ath p P A cy ion a t g a Le igr M ice v r Se STATIC Private circuits ON DEMAND VPN WAN/LAN Network Layer 9 STATIC Dedicated storage ON DEMAND Virtualised storage STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Virtualised Applications Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

Application virtualisation – NO code re-engineering > Usually application virtualisation is partial in that the application software is allocated to a Cluster within which execution can be managed across the cluster resources > Full application virtualisation is the complete separation of the application software from the hardware it executes upon. Run-time execution is directed across clusters by an intelligent device on a task-by-task basis > Typically provided by wrapping the native application in a wrapper that specifies all the run-time parameters and submitting to the runtime intelligent controller 10

1. Legacy applications - Services migration layers What services will deliver the Step-change? ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se STATIC Private circuits ON DEMAND VPN WAN/LAN Network Layer 11 STATIC Dedicated storage ON DEMAND Virtualised storage STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Virtualised Applications Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

1. Legacy applications - Services migration layers Utility Compute STATIC Network Layer 12 ON DEMAND STATIC Private circuits ON DEMAND VPN WAN/LAN STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications Virtualised storage Dedicated storage Virtualised Applications ON DEMAND ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

Utility computing model > A “dynamic-infrastructure” only play within Providers‘ environment > Service Providers create capability for on-demand provisioning and sharing of their IT resource platform > Service Providers offer Enterprise customers access to specified parts of this remote compute environment on pay-as-you-go basis > Applications/tasks allocated onto infrastructure assets > Sophisticated Load-balancing and Cluster management ensure performance parameters met by manipulating assets in pool > Supports wide variety of real/virtual servers, OS, databases > Customer benefits: NO software re-coding required; Low Capital expenditure; Peaks met without having to address own internal IT utilisation inefficiencies; cost-effective e. g. Sun Utility computing $1. 00/cpu/hr; AT&T $0. 35/cpu/hr > Customer dis-benefits: No application-level guarantees; Must plan ahead and forecast needs accurately; Staff with expert team; Self-Manage operations; Still statically-bound at runtime 13

1. Legacy applications - Services migration layers Grid Compute Utility Compute STATIC Network Layer 14 ON DEMAND STATIC Private circuits ON DEMAND VPN WAN/LAN STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications Virtualised storage Dedicated storage Virtualised Applications ON DEMAND ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

Existing grid computing model GRID Computing > Application & dynamicinfrastructure play > Grid engines incorporated within the Enterprise customer’s own LAN / Data Centre(s) > Virtualises customers own IT assets raising utilisation rates from 5 ~ 10% to above 70% AND > Provides dynamic mapping of Users and Applications to resources (decouples jobs from underlying infrastructure) > Applications/tasks allocated on a “pull” basis (polled) 15 > Customer benefits: > NO software re-coding required; > Substantially reduces TCO (40% reduction in hardware possible); > Improves ROI by addressing utilisation inefficiencies > Embryonic SLAs by Application performance management & flexibility controls > Multiple simultaneous application-execution instances economically feasible > Customer dis-benefits: > Staff with expert team; > Self-Manage operations; > IT asset base limited by Firewall; > Multi-node enterprise cannot utilise geographicallyspread assets easily. > Network connectivity still “statically” provided

Grids today & next steps > Well-established model > Many operational Enterprise Grids (some saturating) > Provides application services to end-users Enterprise WANS LANS > Shares transparent resources across multiple users > Operates to parameters set by Grid Administrator Next step > Provide explicit Application-level SLAs with QOS guarantees to users Grid Engine 16

Extending the grid concept – the CGP > Create Grid platform with Network Enterprise WANS > Add Network controls to virtualise connectivity – Adaptive Networks LANS > Use these to dynamically link to additional IT resources across Grids > Add controls for the whole virtualised infrastructure through set of configurable policies > Encapsulate control within a Policy Engine LINKED to Grid Engine > Creates the COLT Grid Platform - the CGP What does the CGP enable…? 17 Existing Grid Engine IPVPN COLT IT Assets COLT Networked Grid & Policy Engine

Extending the grid concept – the CGP enables COLT to provide > Managed Grid Services with explicitly specified Application-level SLAs Enterprise WANS LANS > Pro-active management of application performance within secure environment And additionally > Provides a future-proof Service Migration path… > …through Managed Grid Services Existing Grid Engine IPVPN COLT IT Assets COLT Networked Grid & Policy Engine 18

1. Legacy applications - Services migration layers Managed Grid Services Grid Compute Utility Compute Virtualised ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se STATIC Private circuits ON DEMAND VPN WAN/LAN Network Layer 19 STATIC Dedicated storage ON DEMAND Virtualised storage STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Applications Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

Managed grid services model Network-centric GRID Computing > Application & dynamic-infrastructure including network connectivity play > Grid engines incorporated within the COLT Network > Virtualises customers own IT assets together with the COLT IT assets and network assets > Adds a Policy Engine to the management layer > Provides dynamic mapping of Users and Applications to resources under the control of the Policy Engine > Applications/tasks allocated/moved anywhere into the Pool on a “push” basis by the Policy and Grid engines working in tandem > Full application virtualisation with NO code re-engineering 20 > Provides compete end-to-end virtualisation as a Network-centric Managed Grid Service delivering complete end-to-end managements controls > Pro-active management of applications within a highly secure environment Customer benefits: > Provides Application-Level SLAs; > SLAs provided at differing levels mediated by customers Qo. S requirements against costs > SLAs tailored to meet individual customer’s specific needs > Staged buying/implementation decisions with simple fall-back at each stage

Full application virtualisation - Computational Application Developer Development GRID Services API’s Submission Native Application Policy Engine Registration Self-extracting XML wrapper defining environment Agent GRID Core GRID Engine Existing grid engines send executables and data to capable grid agents in core > Policy Engine enables dynamic DARK-SERVER working > Pay ONLY when server is operational 21 ● Submits ● Retrieves ● Status Under control of a policy engine grid engines send executables and data to specific grid agents across grid cores Native Application Build Module Application User Interface Agent

Providing the step-change improvements > Through the provision of Managed Grid Services COLT will enable customers to implement a step-change improvement in the operation of their existing legacy applications without costly re-engineering of application software …. as they migrate to the future service delivery models > Services and the subsequent migration path will be tailored to meet the differing needs of customers > Customers already running an internal Grid > Customers ready to take the first steps on the migration path > Customers needing to address specific application performance challenges 22

Typical managed grid services suite Services Experienced grid users New grid users Customer-managed network-centric grid service Network-centric grid extension service Pay-as-you-go utility computing Managed resilience grid service Full managed grid service based on application level SLA’s 23

Typical managed grid services suite > For existing Grid users a Grid extension service based on Managed Grid Computing services running on customer’s own virtualised IT assets plus Colt virtualised IT/Network assets > For new customers a Managed Grid Computing service based on the COLT networkcentric Grid Engine. Service initially managed by the customer himself running on that customer’s own virtualised IT assets > For all customers a Utility Computing service on a pay-as-you-go basis, delivered through virtual servers on a variable costs model > For all customers a Managed Resilience Service based on multiple site working and/or multiple application instances working reducing the effect of outages to near zero > For all customers a Managed Grid Computing services managed by Colt running on sites within a “pool” of virtualised assets mediated by “Colt Value Optimiser” requirements. Provides Application-level SLA guarantees of various grades and prices for single and multiple application cases 24

1. Legacy applications - Services migration layers Managed Grid Services Grid Compute Utility Compute Virtualised ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se STATIC Network Layer 25 ON DEMAND STATIC Private circuits ON DEMAND VPN WAN/LAN STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Applications Virtualised storage Dedicated storage Future Services? Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

2. Services migration layers Web-based Applications Tomorrows Business Driver Saa. S Managed Grid Services Grid Compute Utility Compute Virtualised STATIC Private circuits ON DEMAND VPN WAN/LAN Network Layer 26 STATIC Dedicated storage ON DEMAND Virtualised storage STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND Applications Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

2. Web-centric challenges - Saa. S Web-based Applications Tomorrows Business Driver Trend > One of the key trends in tomorrows computing environment will be Software as a Service (Saa. S), where businesses no longer have to buy and maintain software applications themselves, but access them ‘on demand’ via the web (Google’s view is “tomorrow” has arrived …) Challenges > Requires complete separation of Applications and the Hardware Platform they run on > With NO application code re-engineering > Support Application development / mashing / hosting > Support multi-tenancy and multi-users > Provide virtual run-time space for applications > Dynamic, configurable, configuration controls 27 Saa. S

Services migration layers Web-based Applications Tomorrows Business Driver ns o i t lica ath p Ap n. P y o c i a at Leg Migr ice v r Se STATIC Network Layer 28 STATIC Dedicated servers ON DEMAND Virtual servers STATIC Direct/Hosted Applications ON DEMAND STATIC Private circuits ON DEMAND VPN WAN/LAN Grid Platform Applications Virtualised storage Dedicated storage Saa. S Managed Grid Services Grid Compute Utility Compute Virtualised API / SDK Virtualised Application Layer Virtualised Compute Layer Virtualised Storage Layer Virtualised Network

Meeting the challenge Web-based Applications Tomorrows Business Driver COLT is focusing on developing innovative infrastructure and services, such as Managed Grid Services incorporating APIs / SDKs through which customers can seamlessly migrate to tomorrow’s web-based services Saa. S Grid Platform API / SDK Typical service Saa. S offering based on the Colt Managed Grid Service providing the enabling infrastructure for ISVs and application providers to develop and host their application images with all the service controls necessary for multi-tenancy Virtualised Application Virtualised Compute Virtualised Storage Virtualised Network 29

CGP adoption strategy COLT Internal IT Assets Application “Virtual” runtime space COLT Managed IT Resource “Pool” Enterprise A WANS LANS Service Provider Resource Broker/Trader GRID Engine Policy Controls N/W Resource “Pool” COLT Managed > CGP Service initially virtualises a single Enterprise’s assets > Links them logically with COLT’s own IT and Network connectivity assets > Progressively virtualise additional Enterprise’s ICT resources > Link in logically to the resource pool > Provide Application-Level SLA guarantees controlled by Policy Engine 30

PLATFORM THE UTILISATION RATE 1950’s – 1960’s EVOLUTION OF COMPUTING TO GRID 2000’s – 2010’s MANAGED SERVICES DELIVERED ON UTILITY ENVIRONMENT ON A MASSIVE SCALE COMPUTING AS A UTILITY Mainframes (few) Enabled by Service Providers with: 1. Job submission 2. Adaptive High-Bandwidth IP Network connectivity Web-centric business applications delivery capability GRID ENGINE 1960’s – 1970’s Job submission Mini-Computers (Thousands) 1970’s – 1980’s PCs / Servers (Millions) 1990’s – 2000’s PDAs (10 s Millions) Job submission 31 0 USER EFFICIENCY

Next steps COLT and selected vanguard customers drive developments > Suite of services tailored to agreed requirements > Create tailored service migration path capabilities Thank You – Any Questions? 32

Adaptive networks > The Adaptive Network, derived from software-controlled virtualised connectivity, is a key component of the new Network-Centric Saa. S world > COLT will provide Adaptive Networks by offering virtualised connectivity configuration controls at levels 1, 2 and 3 in the OSI stack to dynamically meet application performance requirements > Network controls of the virtualised connectivity will include: Video 4 AF Classes 3 SAP 1 Email 2 DE Classes Overall Bandwidth Web Browsing Voice EF Class > Manipulation of MPLS VPN labels and Class of Service tags > Dynamic control of router tables > Flow control at the Physical and Data Link layers 33 MPLS Classes of service