innovation and system i in banking

IBM ^ iSeries

© 2005 IBM Corporation

Innovation and System i in Banking

Tim FungConsulting I/T SpecialistIBM China/Hong Kong Limited

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What banks face today.• Growth challenges, both by retaining and growing existing customers, and through selective

acquisitions of new business

• Product commoditization, with the means to provide differentiation based on quality, service level, price, agility and responsiveness in customer relationship management

• Creating transparency and greater market value by focusing on enterprise risk management and compliance

• Realizing greater efficiency and agility by focusing on back-office technology and Business Process Management

• Placing greater priorities on fee-based products and services to combat margin erosion

• Global regulatory and accounting standards with stricter corporate governance standards

In a sea of commoditized products and increasing global regulation, IT professionals and business leaders in the banking industry must invest in the right technologies to support growth, preserve margins and aid in compliance.

IBM ^ iSeries

© 2005 IBM Corporation3

BANK PERSPECTIVE

Objectives Banks’ Strategy Banks’ Tactics How Technology Can Help

Efficiency

Protect/grow margins through

dramatically lower, stable cost structures

Transform business processes

Simplify/renew infrastructure Shift cost structures from

fixed to variable

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Infrastructure Simplification

Growth

Top-line revenue growth via a

differentiated value proposition

Reinvent the front-office Refocus on the customer Develop new

products/services

Data Integration

Resilience

Comply with regulations and protect earnings from risk in any

form

Centralize risk management Reduce capital requirements

via improved op risk controls Transparent financial

reporting

Business Continuity

Banking imperatives become actionable tactics…

IBM ^ iSeries


BANK PERSPECTIVE

why i? it’s simple. it’s a business decision.

Sixteen thousand banks rely on IBM eServer iSeries to give them a competitive advantage.

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Competitive Advantage

Business flexibility & cost savings from the iSeries facilitate benchmark efficiency ratios across the industry

Benchmark Efficiency Ratios

iSeries customers benefit from the top banking solutions portfolio in the world -- founded with a global set of core banking ISVs

Top Solutions Portfolio

The iSeries objective becomes aligning our solutions to the banking industry’s imperatives…

IBM ^ iSeries


Market Profile

– Installed in over 16,000 banks worldwide, iSeries is one of the most widely deployed banking servers in the world

– Deployed in small banks & credit unions plus many of the world’s largest international banking conglomerates

Technology

– Reputation for mainframe-class reliability, manageability & security

– Integrated i5/OS operating system is optimized for OLTP applications

– Features 1-way to 64-way binary compatible scalability

Solutions

– Exceptional international portfolio of i5/OS core banking solutions

– Options to consolidate any AIX 5L, Linux and Windows application

System i in Banking

IBM ^ iSeries


iSeries Is the IBM Integrated Server– Tested and Integrated by IBM– No Assembly Required – IBM service and support, top to bottom– Reliability, Availability, Simplicity

Industry-Leading Efficiency Ratios– Systems Management Autonomics

• Ease of use– Seamless growth

• Power5 Technology – Minimal staff

• Integrated for Simplicity

Highly Available and Secure– 24x7x365: High Availability Clustering Solutions– Security: Simple to implement and manage

System i Value for Banking

IBM ^ iSeries


Customizing solutions to meet the varied needs of the industry

iSeries

Banking Solutions

CORE SYSTEM

Branch Transformation

Customer Insight

Payment Systems

Risk & Compliance

…Which combination works for your bank?

With the capability to run multiple operating systems, iSeries offers unparalleled flexibility to consolidate point solutions

IBM ^ iSeries


Providing the opportunity to simplify the banking infrastructure

Reduce complexity and costs

– Pool your resources by managing multiple environments on a single server

Handle constant changes

– Automatically respond to changes in processor demand with logical partitioning

Save time and money

– Simplify management of IT resources with storage virtualization

Increase business flexibility

– Expand with broad application portfolio

This educational piece is intended for your use in selling. It is NOT a deliverable for your customers

IBM ^ iSeries


Worldwide Sample of iSeries Banking Solutions Partners

IBM ^ iSeries


Worldwide Sample of iSeries Banking Customers

IBM ^ iSeries


Openness - Industry StandardSupport

• Accomodate ISVs• Portability/Compatibility• Flexibility

Continued LEADERSHIP in database technologies

• Consistency across DB2 family• Shared R & D across IBM Labs

Continued Leveraging of iSeries Strengths• Availability• Scalability• Usability - Total Cost of Ownership• Application Flexibility

DB2 UDB for iSeries Strategic Initiatives

iSeries Customers using SQL

0%

20%

40%

60%

80%

100%

1988 1992 1996 2000 2004

0 10 20 30 40 50 60 70 80 90 100

2003 Core Items

DB2 UDB for iSeries

Microsoft SQL Server 2000

Oracle 10g

The industry trend toward off-the-shelf

software results in a

move to SQL ...

SQL 2003 Core Standard100% Complete with V5R4!!

IBM ^ iSeries


iSeries Navigator Enhancements

DB2 OnDemand

Performance Center

Health Center

Import/Export

Table actions

– CLRPFM command

– CPYF command

– INZPFM command

EDTRBDAP support

Show current SQL

– Statement name

– Program or package name

– Open information

Delimiter option on Creates

IBM ^ iSeries


Enhanced Index Advice

System-Wide Index Advisor - Always ActiveAdvice can be viewed at database, schema or table level

Index Advice, also enhanced (SQE Only) SQE Optimizer will also examine Join, Grouping, Ordering criteria Available on V5R3 with latest DB Group PTF

IBM ^ iSeries


System i5 – Data Warehouse Benchmark Leadership

SAP BW Benchmark Certifications*

12 months of leadership benchmarks

Several configurations tested

Superior scaling per processor

*See detailed certified benchmark results at http://www.sap.com/solutions/benchmark/BW2_results.htm

** ITG Study of SAP Installations 11/14/2005 . Comparisons are based on 6 composite profiles ofmanufacturing companies with revenues of between $500 million and $12 billion. Input from 20 companies wasemployed to construct profiles.

0

50000

100000

150000

200000

250000

300000

SAP BW 3.5 BenchmarksEnd User Query Performance

DB2 i5/OS 4w iSeries

SQL Srv 16w Unisys


Oracle 10g Fujitsu 8w


DB2 i5/OS regains leadership on January 23, 2006

IBM ^ iSeries


WarehouseWarehouse(Hub)(Hub)

WarehouseWarehouse(Hub)(Hub)

Query, Query, Report Report WriterWriter

Excel & Excel & Lotus 123Lotus 123

Data WarehouseData Warehouse

Warehouse

Builder

Warehouse

Builder

WarehousWarehouse e

ManagerManager

WarehousWarehouse e

ManagerManager

OperationalOperationalSystemsSystems

EndEndUsersUsers

Essbase/Essbase/400400

DB2/400DB2/400

Essbase/Essbase/400400

DB2/400DB2/400

Analyzer & Analyzer & WEB WEB

AnalyzerAnalyzer

Secu

rity

& a

ccess

Secu

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& a

ccess

Secu

rity

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ccess

Secu

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ccess

Sales Sales AnalysiAnalysi

ss

Sales Sales AnalysiAnalysi

ss

Budgeting Budgeting & &

ForecastinForecastingg

Budgeting Budgeting & &

ForecastinForecastingg

MarketiMarketingng

MarketiMarketingng

CustomeCustomer r

ProfilingProfiling

CustomeCustomer r

ProfilingProfiling

FinancialFinancialss

FinancialFinancialss

DataDataMartMartDataDataMartMart

SCMSCM

ERPERPERPERP

CRMCRMCRMCRM





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ShowCaseShowCase ShowCaseShowCase SuiteSuite

IBM ^ iSeries


ASP Alpha

ASP Beta

Node Nord1

Node Nord2

Node Sud1

BackupCopy

Site"Main" Site "Backup"

CRGprimary

Backup 1

Backup 2

Production Copy

HA solution for DB replication

Latest HA Solution in Banking Environment

IBM ^ iSeries


EMV Support on System i - #4806 Cryptographic Co-processor

Follow-on to #4805 PCI Cryptographic Accelerator and #4801 PCI Cryptographic Coprocessor

– Up to 4-5x performance of PCI Coprocessor– Designed to meet FIPS 140 certification – Supports EMV 2000 (Europay/MasterCard/Visa)

standard– Requires Cryptographic Device Manager (5733-CY1)

V5R3 and POWER5 server required

Some country specific usage – availability may vary

IBM ^ iSeries


Running Java on System i

Native Java program on System i

– 32 bit JVM introduced in OS/400 V5R4

Using WebSphere Application Server (WAS)

– Front end user interfaces

– Message Queue type handling

– Web Services Support

IBM ^ iSeries


Banco do Brasil, Brazil

i5/OS Logical Partitioning helps improve server utilization rates across multiple workloads with automatic processor balancing

Improved Asset Utilization Rates

By centralizing our IT operations on a single platform in a single location, we knew that we could not only reduce the cost of running and maintaining systems, but also accelerate the delivery of new services to our branch network.

– João BatistaEuropean IT Director

Banco do Brasil

IBM ^ iSeries


End Of Presentation

IBM ^ iSeries


Trademarks

The follow ing are trademarks of the International Business Machines Corporation in the United States and/or other countries. For a complete list of IBM Trademarks, seewww .ibm.com/legal/copytrade.shtml: AS/400, DBE, e-business logo, ESCO, eServer, FICON, IBM, IBM Logo, iSeries, MVS, OS/390, pSeries, RS/6000, S/30, VM/ESA,VSE/ESA, Websphere, xSeries, z/OS, zSeries, z/VM

The follow ing are trademarks or registered trademarks of other companies

Lotus, Notes, and Domino are trademarks or registered trademarks of Lotus Development CorporationJava and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countriesUNIX is a registered trademark of The Open Group in the United States and other countries.Microsoft, Window s and Window s NT are registered trademarks of Microsoft Corporation.SET and Secure Electronic Transaction are trademarks ow ned by SET Secure Electronic Transaction LLC.Intel is a registered trademark of Intel Corporation* All other products may be trademarks or registered trademarks of their respective companies.

NOTES:

Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actualthroughput that any user w ill experience w ill vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration,the storage configuration, and the w orkload processed. Therefore, no assurance can be given that an individual user w ill achieve throughput improvements equivalent to theperformance ratios stated here.

IBM hardw are products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.

All customer examples cited or described in this presentation are presented as illustrations of the manner in w hich some customers have used IBM products and the resultsthey may have achieved. Actual environmental costs and performance characteristics w ill vary depending on individual customer configurations and conditions.

This publication w as produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the informationmay be subject to change w ithout notice. Consult your local IBM business contact for information on the product or services available in your area.

All statements regarding IBM's future direction and intent are subject to change or w ithdrawal w ithout notice, and represent goals and objectives only.

Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannotconfirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to thesuppliers of those products.

Prices subject to change w ithout notice. Contact your IBM representative or Business Partner for the most current pricing in your geography.

References in this document to IBM products or services do not imply that IBM intends to make them available in every country.

Any proposed use of claims in this presentation outside of the United States must be review ed by local IBM country counsel prior to such use.

The information could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these changes w ill beincorporated in new editions of the publication. IBM may make improvements and/or changes in the product(s) and/or the program(s) described in this publicationat any time w ithout notice.

Any references in this information to non-IBM Web sites are provided for convenience only and do not in any manner serve as an endorsement of those Websites. The materials at those Web sites are not part of the materials for this IBM product and use of those Web sites is at your own risk.

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