KT's Charles Huh explains how his company make a conscious decision to build a web-scale cloud to compete more aggressively in their home geography. Lower TCO, faster deployment, greater business agility. Most importantly, the ability to capture new market opportunity they'd previously have ceded to competitors.

1. KT Cloud Business Strategy and Infrastructure
How KT can compete with Amazon and other Cloud service providers.
Charles Huh, VP
ICT Convergence Dept. KT
Charles.huh@kt.com

2. Cloud Business Environment
Telco’s Competitiveness in Public Cloud Business
KT Cloud Infrastructure Competitiveness
KT’s Approach to Cloud Business

3. Global Mobile Data Traffic by 2015
CAGR 92%
  
From CISCO VNI 2010-2050

4. Mobile Data Traffic Increase in Korea (mid 2009 ~ mid 2010)
From CISCO VNI 2010-2050

5. Mobile Data Subscriber’s usage
From CISCO VNI 2010-2050

6. Traffic Spikes (ANIMOTO case)

7. Change Cycle
Service
Organization
Traditional IT Cloud-based IT

8. Enterprise customers of AWS

9. Reasons for Cloud Transition
Lower Cost 21%
Agility 19%
Efficiency 16%
Convenience 14%
Reliability 12%
Performance 7%
Sustainability 6%
Security 5%
From Mimecast, Cloud Adoption Survey 2010

10. Global Cloud Market Size Cloud Market Size in Korea
(unit: 100million USD) (unit: 1 million USD, 1 USD=1,100 KRW)
Infra as a Service Infra as a Service
Platform as a Service Platform as a Service
Software as a Service 3,778 Software as a Service
2,317
1,188
727
CAGR 33% 311 CAGR 28%
191
1,676 1,185
1,203 874
1,399
2,279
2010 2011 2014 2010 2011 2014
From KISTI , “Visions on The Clouds 2010”

11. Cloud Service Provider Major IT Vendor Telco
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12. KSF of Public IaaS Business
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14. KT Cloud Infrastructure Competitiveness
Top Cloud Service Partner
“Develop Cloud System” “Build high efficiency CDC”
Infra Area
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“Migrate KT internal system” “Commercialize Public Cloud”
Biz Area
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Cut down 12milion USD CAPEX during 
8months

15. KT Cloud Infrastructure Competitiveness
“Low Cost” through separating HW and SW
 Avoid vendor dependency by separating HW and SW
 Build low cost Infra. by using open source SW
“High Performance” through HW Clustering & SW Control
 Achieve scalability & high performance with commodity HW clustering
 All computing resources are clustered in CDC
Highly “Automated System”
 Design highly automated architecture with Cloud Mgt.

16. KT’s Approach to Cloud Business
Now Here!
Apr.~ Sep. 2010 ~ Dec. 2010 ~ Dec. 2011
Launch Storage Cloud Service Commercialize Cloud IaaS Expand Public & Private
& build Cloud Infra. & migrate KT legacy system Cloud Service
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17. KT’s Approach to Cloud Business
ucloud1) Portfolio
IaaS PaaS
ucloud BS ucloud SS ucloud DS
ucloud CS VDI CDN IDE 2)
(in May) (in June) (in July)
CS- BS- SS-
RDBaaS
Public Dedicated Public SaaS
CS- BS- SS-
Dedicated Private Dedicated ucloud
CS- SS- Home
Private Private
ucloud
Pro

18. “Disrupt! or Disrupted!”
The End of Document

19. Open Source Mgt. SW Benefits
Cloudstack
(VM Mgt.)
Enstratus
(Auto Scaling)
Nexenta
(Storage Control)
Splunk
(Log Monitoring)
CAMS
(VM Monitoring)
Nagios
(System Monitoring)
Chef
(System Mgt Auto SW)

20. CPU Performance Disk I/O Performance Memory I/O Performance
BlueLock 1st BlueLock 5th BlueLock 1st
Racksapce 4th Racksapce 4th Racksapce 5th
Terremark 3rd Terremark 3rd Terremark 4th
Amazon 6th Amazon 6th Amazon
GoGrid 5th GoGrid 1st GoGrid 3rd
KT 2nd KT 2nd KT 2nd
Program Language Encoding/Encryption Performance
BlueLock 1st BlueLock 3rd
Racksapce 5th Racksapce 4th
Terremark 3rd Terremark 2nd
Amazon Amazon 6th
GoGrid 4th GoGrid 5th
KT 2nd KT 1st
http://blog.cloudharmony.com/2010/10/cloudscaling-kt-private-cloud.html

21. CPU Performance Disk I/O Performance Memory I/O Performance
1st 1st
6th 4th 5th
5th 3rd 6th
4th 5th 3rd
3rd 2nd 4th
2nd 1st 2nd
Program Language Encoding/Encryption Performance
3rd 3rd
6th 5th
5th 6th
4th 4th
2nd 1st
1st 2nd
http://blog.cloudharmony.com/2010/10/cloudscaling-kt-private-cloud.html

22. KT ucloud CS Public Basic Pricing AWS EC2 pricing
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
It s 70% of AWS Price

23. IPS