Rehan Qureshi

Canada Practice Manager, AWS Professional Services

“Innovating with AWS: How Microservices on AWS Can Transform Your Business”

1995

Amazon.com, since 1995…

disrupted

Innovation is behind the increasing number

of business models being

At Amazon, Innovation is not a goal,

It’s an on-going process

Keys to Digital Transformation

Lean Enterprise

DevOps

Agile - Scrum

Microservice architecture

Customer centric

Minimum Viable Products

Metrics-driven culture

Failure-embracing culture

Low-cost experimentation

Blue-Green and A-B groups

Machine Learning

Internet of Things (IoT)

Mobile

Big Analytics

Enabled

By

CLOUD

Can’t Digital Transformation occur on Premise?

Global economies of scale

Immediate access to latest technology

Improved security and risk visibility

Open – access to industry leading solutions

Elasticity – capacity alignment

Improved resiliency – design for failure

Lower cost of experimentation and innovation

Quicker global expansion

Easier to standardize and automate

Easier to link the supply chain - ecosystems

CLOUD

Easier to digitize in start-ups and companies like Amazon.

Too much legacy in large enterprises that are an anchor.

Monolith development lifecycle

developers

releasetestbuild

delivery pipeline

The

monolith

app

Problems With Monolith Software

System operation is a nightmare(module X is failing, who’s the owner?)

Lack of agility(very long time to add new

features)

Lack of innovation(team always busy fixing inefficiencies)

Long Build/Test/Release Cycles(who broke the build?)

Software architecture is hard to maintain and evolveScalability is compromised

(vertical scalability)

Slow development pace(developers busy fixing issues)

Customers frustrated(new releases take months)

‘Loosely Coupled’ Systems:

The looser they are coupled, the bigger they scale.

The more fault tolerant they get, the less dependencies, the faster you innovate.

Digital Architecture: decoupling

into smaller building blocks

Architecture

Service-Oriented Architecture

(SOA)

Single-purpose primitives

Connect only through APIs

“Microservices”

Each page on Amazon.com is

an aggregation of 200 to 300

Business Services

Team Structure

• Two-pizza teams

• Full ownership

• Full accountability

• Aligned incentives

• “DevOps”

The Anatomy of a Micro-service

Micro-service = Service-oriented architecture + “small” public API*

Micro-service

Software Modules(application, libraries, etc)

Data Store(eg, DynamoDB, RDS,

Cache, S3)

Public API

addProductDetails(ProductId id, ProductDetails details)

removeProductDetails(ProductId id)

getProductDetails(ProductId id) : ProductDetails

*Application Programming Interface

A Micro-service is not a Library, it’s… well, a Service

Product Details

software library

Product Details

micro-service

getProductDetails()

• A new version of a micro-service is immediately noticed by its dependent micro-services

• Micro-services relying on libraries will have to be rebuilt and re-deployed upon a new version of the library

Microservice development lifecycle

developers delivery pipelinesservices

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

Deploying More Frequently Lowers Risk

Smaller Effort

“Minimized Risk”

Frequent Release Events:

“Agile Methodology”

Time

Change

Rare Release Events:

“Waterfall Methodology”

Larger Effort

“Increased Risk”

Time

Change

Deploying More Frequently Increases Learning

Rapid Learning

Frequent Release Events:

“Agile Methodology”

Time

Change

Rare Release Events:

“Waterfall Methodology”

Infrequent Learning

Time

Change

= 50 million deployments a year

Thousands of teams

× Microservice architecture

× Continuous delivery

× Multiple environments

#MicroServices

Increased agility enables innovation!

Digital Transformation

Means innovation across the entire IT value chain

Changing customer

relationship or

experience

Improve internal processes

Create an entirely new

value proposition

Transformational Drivers

Changing customer behavior will continue to fundamentally transform FSI’s

industry and require investments into the overall Customer Experience

New competitors e.g. Fintech’s and disintermediation will put an increased

pressure on the FSI’s and requires investment into innovative solutions

Tighter regulation will put more scrutiny on the FSI’s and business process,

compliance workflow automation will become a key differentiating factor

New technologies e.g. Blockchain will disrupt incumbent business models,

players and require banks to be able to integrate with the larger FSI ecosystem

Cost and operational risk reduction requires FSI’s investment into

simplification programs and drive the adoption of and elastic infrastructures

The Innovation Solution:

An API* approach for FSI

Unbundling FSI Value Chains

Monolithic Platforms Decouple by Layering Modularization

Monolithic Core Banking Platforms

Etc.

Monolithic Architecture:

• Tightly-integrated core banking platforms

• Inefficient, hard-to-change core banking

solutions

• Long, expensive change cycles

• Limited options for effective out-/in-source

business capabilities

• Tight-coupling increases single point of failure

and operational risk

Reference DataOperations &

Execution

Risk &

ComplianceEtc.

Customer Experience

Tightly-coupled, hard-to-change legacy core banking platforms result in…

…poor customer experience, slow innovation cycles and expensive IT platforms.

Client Advisor

Capabilities Client-facing

Capabilities

Core Banking

Decoupling by Layering

Enterprise Service Bus

Client Advisor

Capabilities

Client / eBanking

Capabilities Etc.

Enterprise Service Bus Architecture:

• Many companies use an Enterprise Service Bus

(ESB) to decouple front end capabilities from

legacy core banking solutions

• ESBs become critical dependencies

• Unclear business and IT cost ownership for the

ESB - layer

• Performance bottleneck, single point of failure

• Minimal increased efficiency in time to market

• Increased complexity, introducing another layer

Reference DataOperations &

Execution

Risk &

ComplianceEtc.

Customer Experience

Enterprise Services Buses are widely used to decouple core banking solutions…

…but resulted in increased complexity, cost and minimal time to market increase.

Core Banking

Adoption of Standard API’s

Etc.

Component-based, Service-oriented

architecture

• Functional and information master components

• Use Application Programming Interface’s (API’s)

to access information objects

• APIs implement functional and data access

control

• Customer-facing applications become decoupled

from the core banking platform

• Improved time market delivering a client and

client advisor functionality

• No bulky ‘Integration’ layer and clear cost

ownership

• Functionality and information accuracy is

constraint by legacy core banking platform

Customer Experience

API’s are an efficient way to decouple client-facing business capabilities however…

…the customer experience is still constrained by legacy core banking systems.

Client Advisor

Capabilities Client-facing

Capabilities

API API API API

Reference DataOperations &

Execution

Risk &

ComplianceEtc.

Core Banking

Again? What is a Micro Service?

Micro-service

Software Modules(application, libraries, etc)

Data Store(eg, DynamoDB, RDS,

Cache, S3)

Public API addProductDetails(ProductId id, ProductDetails details)

removeProductDetails(ProductId id)

getProductDetails(ProductId id) : ProductDetails

Micro service = Service-oriented architecture + “small” API

Adoption of Micro Services – API Banking

Trade

Execution

Micro Service Architecture:

• Innovate faster by using standard APIs for

application development

• Customer experience is based on a aggregation

of micro services

• Loosely-coupled micro services integrate

through standard APIs

• Elastic scaling of individual micro services

• Enable business to source capabilities in the

most cost efficient way:

• Build business differentiating capabilities

• Source non-differentiating capabilities

• Increase agility by enabling teams to develop

independently – Two Pizza Team

Customer Experience

Provide an integrated customer experience by aggregating micro services…

…every banking service is a Application Programming Interface (API)

API API API API

Corporate

Actions

Anti Money

LaunderingEtc,

Payment

API API API API

Client

InformationSuitability

Rules

Trade

Capture

Build Your Applications as a Web Of Micro

Services

Position and Transaction

Customer InformationProduct Information

Client Report / Monthly Statement

Investment Proposals

Benefits of Micro-services

System operation is simple(developers can be on-call )

Agility(new features added quickly)

Innovation as its best(team has time to think big)

Short Build/Test/Release Cycles(fix problems soon)

Software architecture is easier to maintain and evolveScalable Software

(horizontal scalability)

Fast development pace(developers fully focused on writing code) Customers Excited

(new software releases every day!)

AWS has the Optimal Combinations of Interoperable

Services

Amazon Redshift Amazon Elastic

MapReduce

Data Warehouse Semi-structured

Amazon

Glacier

Amazon Simple

Storage Service

Data Storage Archive

Amazon

DynamoDB

Amazon

Machine

Learning

Amazon Kinesis

NoSQL Predictive Models Other AppsStreaming

Use Case: Automated Advisory Platform

Customer

Profile

Position

&Transaction

Research

Information

Benchmark /

Asset Alloc.

Social Media

Investment

Proposal

Investment

Proposal

Investment

Proposal

Portfolio

Assessment

Investment

Proposal

Suitability

Checks

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

1 40 9

5

DataAnswers &

Insights

Automated Investment ProposalCustomer

Bank

Client

Advisor

Portfolio

Assessment

Investment

Opportunities

Investment

Proposal

Customer

Internet

Etc.

Architecture: Automated Advisory Platform

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

Data

1 40 9

5

Amazon S3

Data lake

Amazon

EMR

Amazon

Kinesis

Amazon

RedShift

Answers &

Insights

BI / Reporting

Investment

ProposalInvestment

ProposalInvestment

Proposal

Customer

Bank

Client

Advisor

Internet

Amazon Machine

Learning

Amazon

DynamoDB

Amazon S3

Portfolio

Assessment

Investment

Opportunities

Investment

Proposal Amazon

QuickSight

Use Case: Automated Risk & Compliance

Monitoring and Reporting

Client

Information

Securities

Transactions

Payment

Transactions

Transaction

Monitoring

AML

Monitoring

Suitability

Monitoring

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

1 40 9

5

DataAnswers &

Insights

Risk and Compliance Monitoring

Etc.

Order

Manager

Settlement

System

Etc.

Bank

Transaction

Regulatory

Suspicious

Transactions

Transaction

Report

Suitability

Report

Suspicious

Transactions

Etc.

Architecture: Automated Risk & Compliance

Monitoring and Reporting

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

Data

1 40 9

5

Amazon S3

Data lake

Amazon EMR

Amazon RedShift

Answers &

Insights

BI / Reporting

Order

ManagerTransaction

Report

Suitability

Report

Suspicious

Transactions

Etc.

Amazon S3

Settlement

System

Etc. Amazon

QuickSight

Bank

Micro-services are usually part of a bigger strategy

that AWS can make possible!

Rethink your Processes

• Favor small focused development teams

• Move towards a full DevOps model (short feedback cycles, regular

deployments)

• Adopt an Agile methodology (eg, Scrum, Kanban, XP, etc)

Engage your People

• Embrace the new culture

• Develop new skillsets

• Recruit the right people