Banking in the Cloud – Is there a future?
Daniel Amor
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
KEY CHARACTERISTICS OF A HIGHPROFITABILITY BANK
Differentiation
Industrialization
•
Selection of a commercial strategy
and incentives system
•
Adoption of standards (applications
and systems)
•
Integrated multi-channel approach
•
Planning and use of Components
•
“Single customer view”
•
Standard processes
•
Pricing policies
•
Product Factory (Internal/External)
•
Agility and Time to Market
•
Exploitation of economies of scale
•
Creation of new products; enrichment
of portfolio offering
•
Flexibility and operational efficiency
Decoupling of product creation and the distribution network.
Strategies for the selection of products and networks.
Hence an optimal application portfolio is required.
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WHY AREN’T WE THERE?
Typical Customer Situation: Lots of systems with lots of interfaces and
new requirements all over the place
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
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
IT turns business & government “on,” instantly
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
TECHNOLOGY TRENDS IN 2012
KEY ISSUES
TOP 10
Which technologies will
overcome important
barriers and limitations
during the next three
years?
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
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?
10. Cloud Computing (2011: Nr. 1)
Bold marks technologies related
to cloud computing
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
Source: Gartner
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
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WORKLOADS ARE SHIFTING TO CLOUD
Many workloads are migrating to public or private cloud “camps”
PRIVATE CLOUD1
• Server Capacity On Demand
• IT Management
• Business Apps (CRM, ERP)
PUBLIC CLOUD1
• IT Helpdesk
• Collaborative Applications
• Data backup/Archive
Services
•
•
•
•
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
TRADITIONAL IT
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 2010
Source: IDC, EB Strategy Analysis
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
PRESSURES TO MOVE TO THE CLOUD
Organizations Wrestle With Utilizing the Cloud to Solve Issues
Speed: Want/Need
something ASAP –
“Cloud is quick”
Must be stable: reliable
application and delivery
infrastructure
Cost: Must be low cost
with minimal/no upfront
investment
Must be secure: Must be
able to protect my data!
Fits Business Model: Must
be able to fit the way we do
business
Must be able to integrate
with other business
applications
Ease of use: Must be
easy to use and adopt
BUSINESS NEEDS
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
IT
Departmen
t
TECHNOLOGY NEEDS
CLOUD SERVICE LAYERS
Service
Providers
Service Users
Cloud End-User Services
(SaaS)
Cloud Providers
Cloud Platform Services (PaaS)
Cloud Infrastructure Services (IaaS)
Physical
Infrastructure
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
CLOUD COMPUTING: MODELS
Printing
Service
Office
Apps
User
Cloud
Provider #1
On Demand
CPUs
CRM
Service
Data
Storage
Service
…
Cloud
Provider #2
Enterprise
Backup
Service
ILM
Service
Service
Employee
Service
Service 3
Service
Business
Apps/Service
Internal Cloud
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…
…
© Copyright 2010 Hewlett-Packard Development Company, L.P.
…
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, opensource 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.
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
RISK OF CLOUD COMPUTING
Risk 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.
•
•
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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.
© Copyright 2010 Hewlett-Packard Development Company, L.P.
THE APPLICATION CHALLENGES
What applications
should I move to
the cloud?
How do I develop
and test applications
in the cloud?
How do I manage
applications in the
cloud?
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© Copyright 2010 Hewlett-Packard Development Company, L.P.
How do I make
applications ready
for the cloud?
How do I integrate
applications in the cloud
with my other
applications?
How do I connect my
end-users with cloud
applications?
How do I secure
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
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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
•
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Create new roles and focus on managing the cloud platforms instead of managing
infrastructure and applications (except where not possible).
© Copyright 2010 Hewlett-Packard Development Company, L.P.
IDEAL STATE FOR CLOUD COMPUTING
 Streamlined, cooperating,
shared services
Corporate Data Center
 Standard APIs and Data
Models
 Scale up - Scale down
Capacity
 Movable workloads – affinity
with market access, services
and data location
 Wide choice of:



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Data sources
Third-party applications
Community services such
as Data storage and
analytics
© Copyright 2010 Hewlett-Packard Development Company, L.P.
Banking Community
Platform - Europe
Banking Community
Platform - Americas
Banking
Community
Platform - Asia
THE NEW CIO IS NO SERVER HUGGER
Old World
New World
– From Server to Service
– Faster Time-to-Market
– Same or better Performance
– With manageable risk and at a lower price
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Q&A
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© Copyright 2010 Hewlett-Packard Development Company, L.P.