Cloud Computing: Helping Financial Institutions Leverage the Cloud to Improve IT Efficiency

8/8/2019 Cloud Computing: Helping Financial Institutions Leverage the Cloud to Improve IT Efficiency

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2010 IBM Corporation

Anthony Lipp Global Strategy Leader, Banking & Financial Markets

August 2010

Cloud Computing


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Building a smarter planet

2

There are dramatic forces shaping the financial

services industry

ClientsRapidly evolvingexpectations for offerings,

service unbiased advice,and convenience

RegulationRadically increased

oversight ushering in a newera of increased

government intervention

TrustRebuilding trust and

confidence across thesystem is critical to futuregrowth and stability

CapitalizationMature markets and

emerging markets alike

focus on rebuilding theircapital reserves

CompetitionIntensified competition withincreased M&A, divestituresand entrance of non-bankservice providers

EconomyWeak conditions impact

investment decisions andreduce need for financialservices


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The global financial system is highly complex with

many stakeholders and requires new approachesto create value

1Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of England3

The global financial system is massively

interconnected and interdependent

An adaptive system which is a complexnetwork evolving organically

The number of intersection points of thefinancial services networks across the 18

largest countries increased 14x in 20 years1

The system moves more than $74Taround the world each day

Digitization of the real economy hastransformed availability of information

and how decisions are made

Anonymity and susceptibility make thesystem an attractive target for criminalelements

The system intermediates the needs ofbillions of people in 190 countries inthousands of languages.

Policy makers

Regulators

Financialinstitutions

Compliance

Laws andrules

Surveillanceand monitoring

Standards

SoundnessStability

Supervisors
http://www.bankofengland.co.uk/publications/speeches/2009/speech386.pdfhttp://www.bankofengland.co.uk/publications/speeches/2009/speech386.pdf


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IntelligentInterconnectedInstrumented

Winners are enabling themselves by a new

business infrastructure that is more instrumented,interconnected and intelligent

Real-time capture and view ofcontinuously streaming data ofmultiple types and from multiplesources enabling quicker insight

and, therefore, faster time-to-marketand higher margins

Tracking and detecting therequirements of transactionmessages in real-time, enabling

automatic routing of paymentsthrough least-cost channels

Advanced capture, tracking and

control of digitized transactionsand information

Integrated capabilities

Social networking and onlinecollaboration

Banks systems connecting togovernments and regulators innew, smarter ways to identify risk

concentrations and, thereby, improveinsights around systemic risk issuesand global inter-dependencies

Engaging customers as co-developers through social networkingand online collaboration to tailor

products and services on demand

Predictive client analytics

Real-time alerts

Enterprise view of data, automatedmodeling and predictive analyticsto provide greater client and businessinsight.

Real-time alerts of performanceproblems with insights into thesource systems and applicationsas well as analysis of impact onbusiness processes and servicelevels.

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Digital data is projected to growtenfold from 2007 to 2011

As the planet gets smarter the information

explosion and rapid change create new challenges

Global Internet traffic volumeexpected by 2013

Number of devices will be

connected to the Internet by2011

Percentage of CIOs who expect

to face substantial change overthe next three years

3

55K PB/Mo10x

1 trillion 83%


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It will reach a breaking point

In distributed computingenvironments, up to 85 percentof computing capacity sits idle

Percentage of executives whoreport a security breach and

arent confident they can preventfuture breaches

66 percent is spent onmaintaining current IT

infrastructures versus addingnew capabilities

Percentage of CIOs who wantto improve the way they useand manage their data

66%

85% idle78%

82%

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Todays IT infrastructure is under tremendous

pressure and is finding it difficult to keep up


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There is a greater need for IT to help address

business challenges

Reducing risk Breakthrough agility

Higher quality servicesDoing more with less

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There are three ways to acquire IT capabilities

Cloud computing is a new delivery and consumption model

or methodology spanning all 3 ways.8

Pre-integratedsystems and

appliances

Providedas services

Software,hardware

and services


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What is different about cloud computing?

With cloud computingWithout cloudcomputing

Virtualized resources

Automated servicemanagement

Standardized services

Location independent

Rapid scalability

Self-service

Software Hardware

Storage Networking

Software Hardware Storage Networking

Software Hardware Storage Networking

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Service Management Service Management Service Management


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There is a spectrum of deployment options for

cloud computing

Private Public

Hybrid

IT capabilities are provided as aservice, over an intranet, within theenterprise and behind the firewall

Internal and external service delivery methods are integrated

IT activities / functionsare provided as a service,

over the Internet

Third-partyoperated

Third-party hostedand operated

Enterprisedata center

Enterprisedata center

Private cloud Hosted private

cloud

Managed

private cloud

Enterprise

Shared cloud

services

AEnterprise

B

Public cloud

services

A

Users

B

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Public and Private Clouds are preferred for

different workloads

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Database and application-orientedworkloads emerge as most appropriate

Infrastructure workloads emerge asmost appropriate

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Cloud computing framework

Bu

sinessplanning/lifecycle

managementserv

ices

Shared middleware services

Infrastructure services

Industry-specific services

Integratedservi

ce

m

anagementandsecurity

Cloud-based business

solutions for industry-specific processes

Virtualized andoptimized systems

storage and networking

IT services that areintegrated with cloudservices

Application infrastructurefor delivering cloud

services

Business servicesdelivered via the cloud

Integratedcapabilities forvisibility, control,automation and

security of cloudservices

Capabilities to define anenterprise architecture for

business planning/alignment

and tools for managing thelifecycle of cloud services

Processservices

Collaborationservices

Analyticsservices

Existing services andthird-party services,partner ecosystems

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Ready-to-consume cloud services from IBM

IBM Smart Business on the IBM Cloud

Business processes

BPM BlueWorks

Smart business expensereporting on the IBM Cloud

Collaboration IBM LotusLive

Desktop and devices IBM Smart Business Desktop on the IBM Cloud

IBM Smart Business End User Support

Development and test IBM Smart Business Cloud for development and test

Infrastructure Compute IBM Smart Business Cloudfor production workloads

IBM Managed Security Services IBM Tivoli Live

Infrastructure storage IBM Information Protection Services

Software as a Service IBM WebSphereApplication Server

IBM WebSphere sMash IBM WebSphere Portal

IBM DB2 IBM Informix Dynamic ServerLotus DominoLotus Web Content Mgmt

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Businesses that implement cloud computing

services from IBM are seeing significant results

Risk &Compliance30,000 + employee

bank deploying aprivate cloud fromIBM to centralizemanagement ofdesktops via an

enterprise class datacenter rather than atthe user stations.

Gets greater remoteflexibility without

sacrificing control.

Capitalizing onnew efficienciesReduced labor and

infrastructure need todevelop and deploynew services.

Decreased new

application deploymenttime from 10 weeks toless than 1 week.

Accelerated businesstransformation.

Smart BusinessTest CloudCreated a self-

service, flexible andsecure environmentto develop, port, testand validate theirsoftware on standard

systems andmiddleware.

Improved time tomarket, higherquality and reduced

costs.

Time to ValueCreates anecosystem for 3rd

Party developers.

Reducesdeveloper effort todeploy a work

environment withseamless.

Large FinancialServices Provider

in the United States

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Large FinancialServices

Provider in Asia

Large FinancialServices Provider

in South Africa

Large GlobalPaymentsProvider


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Making cloud computing real

Cleareconomic

value

Integratedand open

Secure andready forbusiness

Designingfor

simplicity

Globallyrelevant

Neweconomics

with newtrade-offs

Businessflexibility

results fromIT flexibility

Demandinggreater

speed,control,

security andtransparency

Newtechnology

experienceswith fastertime tomarket

Needsolutions

that workand are

supportedconsistently.

Documents

Cloud Computing: Helping Financial Institutions Leverage the Cloud to Improve IT Efficiency