© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Michael Braendle, Principal Cloud Architect Professional Services HKT

2016/06/17

AWS Adoption in FSI Why are Financial Services firms choosing AWS?

AmazonWebServices(AWS)providesflexible,scalable,andcost-effec<veITinfrastructureforbusinessesofallsizesaroundtheworld.

WhyAreFinancialServicesFirmsChoosingAmazonWebServices?

…thesamereliable,securetechnologyplaJormusedtopowerAmazon.com’sglobalwebproper<esandover1millionothercustomers,includingfirmsofallsizesacrossallsegmentsoftheFinancialServicesindustry.

FinancialServicesgridcompu<ngreferencearchitecture

AWS AT-A-GLANCE

WhatSetsAWSApart

Buildingandmanaginginfrastructuresince2006

70+servicestosupportanyworkload

Historyofrapid,customer-drivenreleases

12regions,33availabilityzones,53edgeloca<ons

47+proac<vepricereduc<onstodate

Thousandsofpartners;1,900+Marketplaceproducts

Experience

Servicebreadth&depth

Paceofinnova<on

Globalfootprint

Pricingphilosophy

Ecosystem

ABroadCollec<onofServices

OurGlobalFootprint

AWSoperates:12Regions33AvailabilityZones53EdgeLoca<ons

AFocusonSecurity&EnablingCompliance

“Basedonourexperience,IbelievethatwecanbeevenmoresecureintheAWScloudthaninourowndatacenters.”–TomSoderstrom,CTO,NASAJPL

AWSprovidesthesame,familiarapproachestosecuritythatcompanieshavebeenusingfordecadeswithincreasedvisibility,control,andauditability.

Visibility

Viewyouren<reinfrastructurewithone

click

Auditability

Control

DeepinsightwithAWSCloudTrail

Youhavesoleauthorityonwheredataisstored

Sharedresponsibilitymodel

3rdPartyValida<on–Cer<fica<onsforWorkloadsthatMaler

AnExpansiveEcosystem

Thousandsoftheworld’slargesttechnologyandconsul<ngcompanies28Globalpremierconsul<ngpartners

1,900+productsavailablefor1-clickdeploymentacross23dis<nctproductcategoriesCustomersrunover70mhoursofsonwarepermonth

AWS IN FINANCIAL SERVICES

GlobalIndustryObserva<onsRegulatoryComplianceCon<nuestoDriveExpenseGlobally,compliancerelatedspendingcon5nuestoincreaseacrosstheFinancialServicesindustryasnewandemergingregulatoryini<a<vesdominateopera<ngandcapitalexpendituresandexis5ngapplica5onsandinfrastructureareprovinginadequatetomeetthedemandsplacedonthembynewregula<ons.

ADesireForIncreasedWalletShareisDrivingaFocusonInnova<onFinancialServicesfirmsrepeatedlyexpresstoAWSadesirefor“DigitalInnova<on”,andthattheyareac<velyseekingwaystoshortenthe5meframeforinnova5oninternally–specificallyinregardstodevelopingcustomer-facingapplica<ons–inordertoincreasewalletshare.

Elas<cInfrastructureToMeetDemandForIncreasingAmountsofDataThevolumesofdatathatFinancialServicesfirmsneedtostoreandanalyzeareincreasingexponen5ally,whetheritbeforregulatoryorcompe<<vepurposes.HighPerformanceCompu<ngandBigDataAnaly<csarecri<calcomponentstosuccessfullyturningdataintoac<onableinforma<on.Asdemandforcostlyhigh-performancecompu<ngandanaly<csisincreasingfirmsarelookingtoAWStoaddscalabilityinacost-effec<vemanner.

Digi<za<onandDisrup<veTechnologyareAccelera<ngTransforma<onFinancialServicesfirms,fromestablishedglobalenterprisestonewFinTechstartups,aremovingbeyondtradi5onaldevelopment,test,anddeploymentmodelsandembracingCI/CDandDevOps–quickeningthepaceofinnova<onandtransformingthecustomerexperience.

FinancialServicesIndustryTrendsWorldEconomicForumReport–‘TheFutureofFinancialServices’•  Innova5oninFSIisdeliberateandpredictable;incumbentplayersaremostlikelytobealackedwherethegreatestsourcesofcustomerfric5onmeetthelargestprofitpools

•  Innova<onsarehavingthegreatestimpactwheretheyemploybusinessmodelsthatareplaCormbased,dataintensive,andcapitallight

•  Themostimminenteffectsofdisrup<onwillbefeltinthebankingsector;however,thegreatestimpactofdisrup<onislikelytobefeltintheinsurancesector

•  Incumbentins<tu<onswillemployparallelstrategies;aggressivelycompe5ngwithnewentrantswhilealsoleveraginglegacyassetstoprovidethosesamenewentrantswithinfrastructureandaccesstoservices

•  Collabora5onbetweenregulators,incumbentsandnewentrantswillberequiredtounderstandhownewinnova<onsaltertheriskprofileoftheindustry–posi<velyandnega<vely

•  Disrup5onwillnotbeaone-5meevent,ratheracon5nuouspressuretoinnovatethatwillshapecustomerbehaviors,businessmodels,andthelong-termstructureoftheFSIindustry

Capgemini–‘WorldRetailBankingReport’•  Banks’effortstoprovideenhancedservicesarefallingshortofcustomers’desiresandexpecta5onsleadingtostagna<onoftheCustomerExperienceIndex(CEI)overthepast2years

•  Increasingdisintermedia<onistakingplaceinthebankingarenaascustomerslooktowardsalterna5veen55esfortheirbankingneeds

•  Thereisanimmediateneedtotransformthemiddle-andback-officesbeforethegainsincustomerexperiencelevelsfromfront-officeinvestmentsreverseout

TrustedbyFinancialServicesIns<tu<ons&EnterprisesWorldwide

HowareFinancialServicescustomersusingAWS?Oracleenterpriseapplica<ons

ReducedtestenvironmentcostsDevelopment&TestEnvironments

BuildingNewAppsintheCloudNewserviceofferings

Financialrecordsdelivery

MakingOn-PremisesAppsBeler Bigdataanaly<csAnaly<csprocessingonopera<onaldata

Migra<ngExis<ngAppstoAWS

AppsinAWSthatIntegratewithOn-PremisesApps

“CloudFirst” Movedtheiren<reretailbankingplaJormMovedUSmarketsurveillanceplaJorm

UseAWSon-demandtoscaletomeetbusinessrequirementsanddeadlines

Appliedagilityforcreditrisksimula<ons

Datacentermigra<on

HOW TO START MY CLOUD JOURNEY?

TechnologyAloneisNottheAnswer

AWSCloudAdop5onFramework(CAF)

Comprehensiveframeworkthathelpsbringtogetherpeople,processandtechnologytoreducethe<meandcostofdeployment

consistentprovenrepeatable

AWSCloudAdop<onFramework

Perspec5ves

Delivery

Explore

Prepare

Migrate/Dev.

Iterate

Discovery

Baseline

Gap

Strategy

Ac5vi5es

AWS

Partner/s

Busine

ssObjec5v

es

Comprisedof:•  4stepDiscoveryphase•  7perspec<ves(business,plaJorm,maturity,people,process,security,andopera<ng)•  4stepDeliveryphase

Review Business Strategy and Market Drivers

•  Business aligned cloud strategy •  Executive Sponsorship •  Stakeholder engagement &

Support •  Adoption approach aligned to

business and organizational readiness

Understandthebusinessstrategyandmarketdriverstoincorporatetherequirementsindevelopmentofyourcloudstrategyandtargetedrateofadop<on(experiment,test&development,produc<on,all-in).Engagekeystakeholdersfromthestartindevelopingacloudstrategy

Industry drivers

Market drivers & innovation

Cloud Adoption Strategy

Understand the Business Strategy to Develop the Cloud Strategy

Business Strategy

Benefits

Rapid Discovery

Strategy

Baseline

Gap

Ac<vi<es

Initial Discovery - what is the strategy and how do you get there?

Accelerate delivery of business initiatives (e.g. How fast to adopt?, Experiment, hybrid, all-in)

Therapiddiscoveryincorporatesthecloudadop<onstrategy,baseline,andgapanalysisresul<ngintheCAFac<vi<esmatrix.Theresul<ngac<vi<esmatrixwillinformanddrivethedevelopmentofacomprehensiveandpriori<zedcloudadop<onroadmapforyourini<al6-9monthdelivery

Assess and baseline current cloud/IT capabilities. Level of automation

Define the key cloud adoption capabilities required to achieve business objectives

Prioritized list of activities/initiatives when executed result in delivery of the business strategy

•  Launch point for your cloud strategy based on the business objectives

•  Baseline of current capabilities •  Prioritized list of activities/

initiatives to inform your adoption roadmap

Benefits Discovery

CAF Perspective

CAF Perspective- identify the key priorities to start your cloud journey?

ProcessPerspec5veManagingporJolios,programsandprojectstodeliverexpectedbusinessoutcomeon<meandwithinbudget,whilekeepingrisksatacceptablelevels.

PeoplePerspec5veDefiningandacquiringtheskillsneededtoadopttheAWScloudplaJorm.Examplesguidanceincluderoledescrip<ons,training,cer<fica<onandmentoring.

MaturityPerspec5veDefiningthetargetstatearchitectureoftheorganiza<onandcrea<ngtherequiredblueprintsandroadmaps.

PlaCormPerspec5veRepresentsthetechnologyservicesoftheAWScloudplaJorm.Providespalerns,guidance,andtoolsforop<maluseofthetechnologyservicesandservicestoimplement.

Opera5onsPerspec5veRepresentstheongoingmanagementofthefunc<oningITenvironmentofAWS.Providesprocess,guidanceandtoolsforop<mumopera<onalservicemanagementoftheAWSenvironment.

SecurityPerspec5veDefiningandimplemen<ngtherequiredlevelsofsecurity,governance,andriskmanagementtoachievecompliance.

BusinessPerspec5veIden<fying,delivering,andmeasuringbusinessimpactusingarchitecturalapproachesthataligntechnicaldeliverytobusinessimpera<ves.

Sample–SecurityPerspec<ve

Every company is concerned with protecting information and assets as they grow the business. They also want to ensure they are operating within the legal boundaries and standards set by and on the behalf of governmental agencies and industry associations. Security Perspective components provide guidance that enables a comprehensive and rigorous method of describing a structure and behavior for an organization’s security and compliance processes, systems and personnel.

The Security Perspective

Delivery Phases

Delivery – what to deliver and why, how to deliver and improve, iterate…

Explore

Prepare

Migrate/Dev.

Iterate

Fourdis<nctphasesoftheclouddeliveryprocess.ThephaseshighlighttheDevOpsapproachofautomate,measure,andimproveeachitera<onofthecloudadop<on

•  Iterative process of improvement •  Proven tools and assets/artifacts

that support every phase of the delivery process

•  Applies to any cloud adoption (experiment, test/development, production, all-in)

Explore-whydoit,whatbusinessvalue,gapanalysis

Prepare-projectplanforac<vity,training,establishplaJorm,establishopera<ons,establishsecurity

Migrate/Develop-Moveanexis<ngapplica<ontothecloudordevelopanewcloudna<veapplica<on

Iterate-measureandiden<fyopportuni<estoimprove

Business Value

Deliver Automate

Iterate Benefits

WhatIsYourCloudJourney?

DiscoveryWorkshop

CloudBusinessCase

DefineSecurityRequirements

DefineNetwork

Environment

DefineGovernanceStructure

Opera<onalIntegra<on

SecurityOpera<onsPlaybook

CloudEnvironmentOp<miza<on

Applica<onPorJolioAnalysis

CostandBillingAnalysis

TrainingandCer<fica<on

DefineCloudEnvironments

DefineEAPoliciesandPrac<ces

Manypathstothecloud

Discover, Assess (Enterprise Architecture and

Applications)

Lift and Shift (Minimal Change)

Migration and UAT Testing Operate

Refactor for AWS

Application Lift and shift

Move the App Infrastructure

Plan Migration and Sequencing

Determine Migration Path

Decommission

Do Not Move

Create Cloud Strategy

Design, Build AWS Environment

Move the Application

Determine Migration Process

Manually Move App and Data

Third-Party Tools

AWS VM Import Refactor for AWS

Rebuild Application Architecture

Vendor S/PaaS

(if available)

Third-Party Migration Tool

Manually Move App and Data

Determine Migration Process

Replatform (typically legacy applications)

Recode App Components

Rearchitect Application

Recode Application

Architect AWS Environment and Deploy App, Migrate Data

Signoff

Tuning Cutover

Org/Ops Impact

Analysis

Identify Ops Changes

Change Management

Plan

CUSTOMER STORIES & ADOPTION ENABLER

CAPITAL MARKETS Customer Stories & Case Studies

HighlightedCustomerStories–CapitalMarkets

–GlobalInvestorCommunica<onsandTechnologySolu<ons

Broadridge,inpartnershipwithPitneyBowes,inJune2014launchedatechnologyplaJormdeliveredthroughAWSnamedInlettomakeiteasierforcompaniestoprovidemillionsofconsumersaccesstotheirmostimportantdocumentsfromhundredsofprovidersinjustafewclicks.BroadridgewilluseInlettodeliverinvestmentindustrycontentthroughitsrela5onshipswiththousandsoffinancialservicescompanies,includingbanks,broker-dealers,mutualfunds,aswellascorporateissuers.Contentwillincludemonthlystatements,tradeconfirma<ons,taxdocumentsandregulatorydisclosures.

–GlobalExchangeGroupTheNASDAQOMXGroup,Inc.,theinventoroftheelectronicexchange,usesAmazonWebServicesasthebasisforFinQloud,acloudcompu<ngsolu<onspecifictothefinancialservicesindustry.FinQloudenablesclientstostore,manageandprocesslargeamountsofdatacost-effec<velywhilealsohelpingthemmeetregulatoryrequirements.

–GlobalTradingSolu<ons

TradingTechnologies,aleadingglobalproviderofaderiva<vestradingplaJormtothefinancialservicesindustry,hasbuilttheirnext-genera5ontradingplaCormusingahybridarchitecture,withitsbackbonebuiltonAWSspanningallninepubliclyavailableAWSregionswhicharethenconnectedtoco-locatedinfrastructureateachoftheglobalexchangestowhichTradingTechnologiesprovidestradingaccesstoitscustomers.

Adop<onEnabler:HybridIT

Elasticity & Cost Respond to changing business needs and reduce cost using AWS managed

services

Manageability Use Virtual Private Cloud to isolate your data from other entities or public

internet

Scale Expand your data center and take

benefit of the elastic AWS infrastructure

Connectivity Connect your data center either

through VPN or a dedicated network connectivity AWS Direct Connect

VM Import/Export

VPC Network

IAM Policies

Virtual Images

On-Premise Apps

Private Network

VPC

Corporate Directory

Your Cloud Apps

Your Data Our Storage

Adop<onEnabler:BackupAndArchiving

Elasticity & Cost Highly scalable and durable storage

service

Manageability Managed storage services for archiving and backup services

Scale Scale to virtually unlimited storage

capacity

Integration Use standard backup and archive

solution and integrate with Glacier or S3 Application

ServerVirtual Server

File Server

Database Server

Backup System

Amazon S3

archive

vault

Amazon Glacier

BANKING & PAYMENTS Customer Stories & Case Studies

HighlightedCustomerStories–Banking/Payments

SuncorpisadiversifiedAustralianfinancialservicescompanywhichrunsacomplexandexpensiveITenvironmenttosupport14brandsand4linesofbusinessin5countries.Recognizingthatthecompany’stalentwasitscompe<<veadvantage,Suncorpadoptedacultureofinnova<ontore-imaginetheITlandscape.BychoosingAWStosupportAgileprinciplesandprac<ces,Suncorpwasabletolaunchaworkingvirtualprivatecloudandvirtualdatacenterinunderthreemonthsandplanstomove2,000applica5onstoAWS.

–Finance,InsuranceandBanking(Australia)

SimpleisanonlinebankthatusesAWStorunitsvirtualbankingplaCormandmeetpaymentcardindustry(PCI)datasecuritystandard(DSS)complianceforitsdevelopmentandproduc<onenvironments.ByusingAWS,SimplecanautomateprocessesthatoncetookmonthstocompleteandinsteadfocusonitscustomerserviceratherthanmanagingITinfrastructure.

–OnlineBanking

CoinbaseisthelargestconsumerbitcoinwalletintheworldandthefirstregulatedbitcoinexchangeintheUnitedStates.Thecompany,whichsupports3millionglobalusers,facilitatesbitcointransac<onsin190countriesandexchangesbetweenbitcoinandflatcurrenciesin26countries.

Adop<onEnabler:MobileServices

AmazonCognito

AmazonMobileAnaly5cs

AmazonSNS

AWSDeviceFarm

AWSMobileHub

Innovation & Agility Allow simple and quick iterations

using AWS mobile services

High Availability Designed and build for scale and

availability across multiple facilities

Cost Effectiveness Efficient testing of your mobile

application on various devices using AWS Device Farm

Maintainability Version management and cross-device

synchronization

INSURANCE Customer Stories & Case Studies

HighlightedCustomerStories–Insurance–GlobalRiskManagement,InsuranceandReinsurance

AonBenfieldAnaly<csoffersindustry-leadingcatastrophemanagement,actuarial,ra<ngagencyadvisoryandriskandcapitalstrategyexper<se.ByusingAWSGPUinstances,AonBenfieldisabletoperformactuarialcalcula5onswithgreatercompu5ngpower,inshorter5meframes,andforlesscostthanon-premisedeploymentsandCPUcores.

–Mul<na<onalMortgageInsurance,ReinsuranceandOtherFinancialServicesThismul5na5onalcustomer’sloaninforma5onplaCormrunsen5relyonAWSandleveragesalargeporJolioofAWSservicestohelpautomatetheend-to-endprocess.Applica<onsinteractwiththeloanplaJormtoingestlargeamountsofdatadirectlyintoAmazonS3,takingadvantageofthestorageservice’sscalabilityandsecurity.Aworkflowprocessiskickedofftoclassifyandextractinforma<onfromthedocumentsandpopulatedatastorestosupporttransac<onalandanaly<calfunc<ons.TheplaJormleveragesthebuilt-insecurityfeaturesofferedbyAWSalongwiththird-partysolu<onsforabovethehypervisorcontrolstomeetthestringentsecurityneedsofthecustomer’sbusinesspartners.

Adop<onEnabler:HighPerformanceCompu<ng

Corporate Network

Elasticity & Cost Dynamic scalability when compute jobs are required with utility or spot

pricing

Manageability Managed services to facilitate

aggregation and storage

Scale Scale to virtually unlimited amount of

cores

Separation of concerns Decouple storage and compute – utility

model with on-demand compute

StorageGrid

Reporting

Streams

REGULATORY AGENCIES Customer Stories & Case Studies

FINRA,theprimaryregulatoryagencyforbroker-dealersintheUS,usesAWSextensivelyintheirITopera<onsandhasmigratedkeypor<onsofitstechnologystacktoAWSincludingMarketSurveillanceandMemberRegula<on.Formarketsurveillance,eachnightFINRAloadsapproximately35billionrowsofdataintoAmazonS3andAmazonEMRtomonitortradingac<vityonexchangesandmarketcentersintheUS.

HighlightedCustomerStories–RegulatoryAgencies–U.S.Regulator

InresponsetotheMay6,2010FlashCrashinU.S.markets,theSECusedTradeworxandAWStocreateitsMarketInforma<onDataAnaly<csSystem(MIDAS),whichenablestheagencytocollectandanalyzebillionsofrowsofdataandtoreconstructanymarketeventdowntotheindividualrecord,analyzingmorethan3billiondatapointsinsecondsratherthanweeksormonths.

–U.S.Regulator

Forourmarketsurveillancesystems,wearelookingatabout40%[savingswithAWS],buttherealbenefitsarethebusinessbenefits:Wecandothingsthatwephysicallyweren’tabletodobefore,andthatispriceless.”–SteveRandich,CIO

Adop<onEnabler:BigDataAnaly<cs,DataLakes

Ecosystem Leverage existing open-source and commercial frameworks at utility

pricing

Manageability Managed Big Data and machine

learning services

Elasticity & Cost Dynamic scalability when compute jobs

are required with utility or spot pricing

Separation of concerns Decouple ingest, storage, compute and

consume

AWS Import/ Export

Amazon S3

Amazon Kinesis

Amazon EMR

Amazon Redshift

AmazonQuickSight

AmazonSQS

FINTECH Customer Stories & Case Studies

“Banksaren’tbeingdisruptedbyFinTechtechnology,they’rebeingdisruptedbycustomerexpecta-ons.”

-McKinsey&Company

FinTech–ReshapingtheIndustry

PersonalInves<ng BankingBitcoin/Blockchain

Adop<onEnabler:CI/CD

Corporate Network

Elasticity & Cost Automate performance or functional

testing on AWS

Manageability Build, maintain infrastructure as

code through templates

Scale Fully automate your application

deployment

Agility Minimize production downtime using

CI/SD techniques or use e.g. A/B testing for flexible product rollouts

AWS CloudFormation

AWSCodeDeploy

AWSOpsWorks

AWS ElasticBeanstalk

AWSCodeCommit

AWSCodePipeline

Providesfreeaccesstofinancialservicesdatasetsfordevelopment/tes<ngtoFinTechstartups

AWSinFinTech

13datapartnersandgrowing,including:

AWSprovidesAWScredits,support,andmentorshipviaAWSAc<vate

WHY ARE FINANCIAL SERVICES FIRMS CHOOSING AWS?

WhyAreFinancialServicesCompaniesChoosingAWS?

RegulatoryComplianceCon<nuestoDriveExpense

ADesireForIncreasedWalletShareisDrivingaFocusonInnova<on

Elas<cInfrastructureToMeetIncreasingAmountsofData,FiniteResourcesforAnaly<cs

Digi<za<onandDisrup<veTechnologyareAccelera<ngTransforma<on

Security,Compliance,andReducedCost

AbilitytoBringNewIdeastoMarketFaster

HighlyScalableInfrastructureforAnaly5csthatMalertotheIndustry

AbilitytoTransformtheEnterprise&theIndustry

WhataretheKeystoSuccessforAdop<on,forFSIs?

Execu<ve-levelSponsorship

DedicatedResources

RealProjectsthatMalertotheOrganiza<on

AVisionforWhatSuccessLooksLike

SeniorLeadersWhoUnderstandtheImportanceof,andSupportCloudAdop<on

InternalFTEs,BudgetedFunds,ExternalPartnersWhenWarranted

No“ScienceProjects”

LegacyITTransforma<on,Innova<ngtoImproveCustomerExperience,orBoth?

Remembertocompleteyourevalua5ons!

Thank You!