© copyright 2010 hewlett-packard development company, l.p. 1 1 banking in the cloud – is there a...

© Copyright 2010 Hewlett-Packard Development Company, L.P. 1 © Copyright 2010 Hewlett-Packard Development Company, L.P. 1

Banking in the Cloud – Is there a future? Daniel Amor

© Copyright 2010 Hewlett-Packard Development Company, L.P. 2

KEY CHARACTERISTICS OF A HIGH-PROFITABILITY BANK

Industrialization• Adoption of standards

(applications and systems)• Planning and use of Components• Standard processes• Product Factory

(Internal/External)• Exploitation of economies of

scale• Flexibility and operational

efficiency

Differentiation• Selection of a commercial

strategy and incentives system• Integrated multi-channel

approach• “Single customer view”• Pricing policies• Agility and Time to Market• Creation of new products;

enrichment of portfolio offering

Decoupling of product creation and the distribution network.

Strategies for the selection of products and networks.

Hence an optimal application portfolio is required.


WHY AREN’T WE THERE?

Typical Customer Situation: Lots of systems with lots of interfaces andnew requirements all over the place


IT turns business & government “on,” instantly

THE FUTURE: THE INSTANT-ON ENTERPRISE• Everything & everyone’s

connected

• Everyone expects immediate gratification & instant results

• Business & IT one and the same

• Respond to continuous opportunity & competition

• Anywhere, Any time, Any way


KEY ISSUES

Which technologies will

overcome important

barriers and limitations

during the next three

years?

Which technologies will

move from narrow niches

to more widespread

adoption by 2012?

How should companies

change their plans and

approaches based on

these new opportunities?

TOP 10

TECHNOLOGY TRENDS IN 2012

1. Media Tablets and Bring Your Own Technology

2. Mobile-centric Applications and Interfaces

3. Social and Contextual User Experience

4. Application Stores and Marketplace

5. The Internet of Everything

6. Next-generation Analytics

7. Big Data

8. In-Memory Computing

9. Extreme low-energy servers

10. Cloud Computing (2011: Nr. 1)Source: GartnerBold marks technologies related

to cloud computing


IS CLOUD COMPUTING OVER?

– No, it’s just becoming mainstream and is beyond the hype curve

– It has become a pervasive technology which allows us to build a new generation of services on top of it (see points 1-8 on the Gartner list).

– But security remains a major concern


Many workloads are migrating to public or private cloud “camps”

WORKLOADS ARE SHIFTING TO CLOUD

TRADITIONAL IT

• Server Capacity On Demand• IT Management• Business Apps (CRM, ERP)

• Email• Personal Productivity Apps• Website Creation &

Management• Storage Capacity on Demand

• App Dev. & Test• Tech. Computing Apps• Data Analysis and Mining

• Custom Applications• Applications with sensitive

data

PRIVATE CLOUD1 PUBLIC CLOUD1

• IT Helpdesk• Collaborative Applications• Data backup/Archive

Services

Each defense agency has unique needs that must be assessed to determine the right destination for each workload – but in all cases, IT must manage across the hybrid environment Notes: (1) Based on the percent of customers indicated they would adopt cloud for a given workload in their organization, rated 4 or 5 on 1-5

scale, IDC May 2010Source: IDC, EB Strategy Analysis


BUSINESS NEEDS TECHNOLOGY NEEDS

Speed: Want/Need something ASAP – “Cloud is quick”

Cost: Must be low cost with minimal/no upfront

investment

Fits Business Model: Must be able to fit the way we do business

Ease of use: Must be easy to use and adopt

Must be stable: reliable application and delivery

infrastructure

Must be secure: Must be able to protect my data!

Must be able to integrate with other

business applications

Organizations Wrestle With Utilizing the Cloud to Solve Issues

PRESSURES TO MOVE TO THE CLOUD

IT Departme

nt


CLOUD SERVICE LAYERS

Cloud Infrastructure Services (IaaS)

Cloud Platform Services (PaaS)

Cloud End-User Services (SaaS)

Physical Infrastructure

Service Users

Clo

ud P

rovid

ers

Serv

ice

Pro

vid

ers


CLOUD COMPUTING: MODELS

Enterprise

DataStorageService

OfficeApps

On DemandCPUsPrinting

Service

Cloud Provider #1

Cloud Provider #2

Internal Cloud

CRMService

…

Service 3

BackupService

ILMServiceService

Service

Service

BusinessApps/Service

Employee

User

……

… The Internet


WHY CLOUD IN FINANCIAL SERVICES?

– Realistically, somewhere between 75% and 95% of the software used by most businesses today is a commodity. • That is, it offers no competitive advantage because the competition has access to the exact same capabilities from a plethora of software vendors, SaaS vendors, open-source projects and home-grown systems.

– This means that if your financial services IT department does everything in-house, pretty much 75%-95% of your IT department’s hard work and budgetary expense offers a competitive advantage of exactly zero. • Only the 5%-25% spent on systems that help your business stand out from the competition make a real difference to top line revenue.

– Therefore, the first consideration in any analysis of cloud computing should be to weigh the competitive importance of the various systems under IT management, and to look for opportunities to free up resources by pushing systems that do not offer competitive advantage to the cloud.


RISK OF CLOUD COMPUTINGRisk is easily the biggest barrier to cloud adoption for financial services applications. Financial risk, regulatory risk, security risk, performance risk.

– The risk implications of cloud computing often appear so daunting that some financial services IT professionals would prefer to avoid the cloud entirely—which is a shame. • To be sure, putting customer investment account information on the cloud is a non-starter. And,

even something as simple as company email entails significant compliance risks.

– The one mistake most IT departments make when evaluating the cloud is to equate risk reduction with internal control. • It is often the case that the focused expertise and scale of a cloud computing vendor provides

significantly lower risk than an in-house system.

• This gut reaction can be compared to fear of flying: just because you’d feel safer if you were flying the plane, doesn’t mean you’d actually be safer.

– Evaluate the risks of cloud computing as objectively as possible. • Does the vendor publish an SLA and public performance statistics? Who are its current customers

and what do they say about the vendor? What are the vendor’s security and disaster recovery policies? What kind of support is available? All these questions should be asked of a cloud vendor. And, all of these questions should be asked of the comparable internal IT operation.

• If you’re not a pilot, you might just be better off taking a commercial flight.


THE APPLICATION CHALLENGES

What applications

should I move to the cloud?

How do I make applications ready for the

cloud?

How do I secure applications in

the cloud?

How do I connect my end-users with

cloud applications?

How do I integrate applications in the

cloud with my other applications?

How do I develop and test

applications in the cloud?

How do I manage

applications in the cloud?


HOW TO MOVE FORWARD?

– Clear logical separation of systems• About 80% of systems are not business critical and/or can be standardised

• Only about 20% are business critical and cannot be standardised

– Create categories of systems• Target for non-business critical systems that can be standardised: Public Cloud

• Target for business-critical systems that can be standardised: Private Cloud

• Target for systems that cannot be standardised: Legacy Infrastructure

– Disentangle phyisical systems to enable migration to future platform• Establishment of clear interfaces, SLAs, security and performance requirements

• Move of cloud-target systems towards SOA-enabled applications

– Align organisation to new operating model• Create new roles and focus on managing the cloud platforms instead of managing infrastructure and applications (except where not possible).


IDEAL STATE FOR CLOUD COMPUTING

Streamlined, cooperating, shared services

Standard APIs and Data Models

Scale up - Scale down Capacity

Movable workloads – affinity with market access, services and data location

Wide choice of: Data sources Third-party applications Community services such

as Data storage and analytics

Banking Community

Platform - Europe

Corporate Data Center

Banking Community Platform - Americas

Banking Community

Platform - Asia


THE NEW CIO IS NO SERVER HUGGER

– From Server to Service

– Faster Time-to-Market

– Same or better Performance

– With manageable risk and at a lower price

Old World New World


Q&A

© copyright 2010 hewlett-packard development company, l.p. 1 1 banking in the cloud – is there a...

Documents

cloud computing slide

public cloud

cloud traditional

place slide

way slide

sensitive data private

computing apps data

private cloud camps