An Enterprise Perspective
on Cloud Innovation
Andy Brown
UBS Group CTO
Client Facing Technologies CIO
UBS: One of the leading financial firms
• UBS draws on its 150-year heritage to serve private,
institutional and corporate clients worldwide, as well as retail
clients in Switzerland
• We combine our wealth management, investment banking
and asset management businesses with our Swiss operations
to deliver superior financial solutions
• Present in all major financial centers worldwide, UBS has
offices in over 50 countries employing about 66,000
people
• UBS shares are listed on
the SIX Swiss Exchange
and the New York Stock
Exchange
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1Q12 results: Successfully executing our strategy
CHF 2.2 billion adjusted pre-tax profit, ~13.0% adjusted RoE
Visible progress across business divisions
We are ahead of our plan to reduce risk-weighted assets
Our capital, liquidity and funding positions remain strong
3
"Anyone who has never made a
mistake has never tried anything new."
"The significant problems we face cannot be
solved at the same level of thinking we were at
when we created them."
"Insanity: doing the same thing over
and over again and expecting different
results."
Albert Einstein
4
Core themes of the UBS business strategy
• Client at the center of everything we do
• Industrialization
• Effectively manage capital and risk
5
Key UBS technology investment areas
Big Data
“ Whoever can process and analyze data
better is the winner ”
Sustainability
“ The problem with Green IT is that it runs
opposed to how vendors build things ”
Consumerization
“ Android will change how people interface
with applications ”
Security & Risk
“ A global identity model will likely be derived
from Social Networks ”
Social
“ There is no one-size fits all approach…get
tactical and look at specific use cases ”
Cloud
“ Cloud empowers the entire IT organization ”
Our analysis and evaluation of the industry as a whole has led us to
focus on and invest in six key strategies
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How our vision aligns with ODCA
• Cloud has been at the centre of the ODCA's
activities from the start
• Sustainability is expressed through the Carbon
Footprint Usage Model
• Security and Risk management have been a key
area of activity with seven Usage Models now
developed within the Secure Federation family
• Big Data is a new area of focus at the ODCA with
the recent formation of the Data Services
Workgroup to facilitate development of new Usage
Models in this area
7
What ODCA is all about – Driving data center
standardization
• Partnerships with standards developing organizations (SDOs)
helps to ensure that industry standards meet the needs of the
enterprise
8
UBS and ODCA alignment
• UBS is in the process of designing our cloud compute
capabilities
• Cloud’s ability to support technology industrialization is a
fundamental building block of our business & IT strategy
• Our participation in ODCA and Open Compute are deliberate
and part of the “how” for our strategy
• ODCA adoption provides a framework for all of us to benefit
from Open Compute:
Increased
power
efficiency
(~38%)*
*Estimated
Reduced cost
(~24%)*
Transparency
of processes
Facebook benefits from new data center built on open compute standards
9
Enterprise procurement is a small but
important part of the cloud supply chain
SaaS
Fusion
PaaS
IaaS
• Public
• Hybrid
Private on Premise
• Private Off-Premise
10
Cloud Computing at UBS: Why cloud
automation?
From “IT artisan” to IT revolution
• Like the industrial revolution,
we have the potential to
revolutionize IT through
commodity automation
• UBS’ Cloud Broker can provide
standardized, self-service,
demand-driven deployment and
support
• This allows “IT artisans” to focus
on competitive differentiation
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Using Cloud is core to UBS' Technology
Industrialization strategy
Application Code
Application
InterOp
Stack
App/Web
Server
Stack
(MQ, EMS, sftp)
• ODCA brings the ability to
industrialize the way compute
is delivered by cloud providers
RDBMS
Stack
(Oracle)
(Tomcat)
simple f ile
t ransf er
messaging
client
P/S
subscriber
Securit y
Int egrat ion
f or Int erOp Capabilit ies
logging &
monit oring
operat ions
deployment
OS St ack
User
Aut hent icat ion
Servlet Engine
Load Balancing
…
f or Applicat ion-Web-Server Capabilit ies
logging &
monit oring
HTTP Server
operat ions
deployment
OS St ack
f or Dat abase Capabilit ies
RDBM S
logging &
monit oring
operat ions
deployment
OS St ack
OS Stack
Securit y FP
(LOA3+)
Availabilit y
Feat ure
Pack(s)
Vendor
Hardw are
Tools*
Virt ual
ext ensions*
Regionalisation
Feat ure Pack
Base Conf ig
(RedHat Enterprise Linux)
St orage/FS
Net w ork
Connect ivit y Connect ivit y
Def ault Base
P/S
publisher
Hardw are
Drivers
syst em
logging
Perf ormance
M onit oring
process
scheduling
t ask
execut ion
File Syst em
Shell
Int egration
t o Invent ory
(discovery)
St andard
Tools/Ut ils
Syst em
M onit oring
Remot e
M gmt
Deployment
Backup
LOA2
Securit y FP
Def ault Base
messaging
server
Def ault Base
managed
f ile t ransf er
Def ault Base
Nat ive Product
Virtualization or Cloud IaaS
⁻ Standard Data
LOA4
Securit y
Logging
LOA4
Pat ch
M gmt
Policy
LOA4
Access
Cont rol
Policy
Enf ocmnt
LOA4
Service &
Prot ocol
Enf ocmnt
zero-out age
f ailover
LOA4
Packet
Filt er
Cont rolled
Privilege
Elevat ion
Tw o-Fact or
Aut h.
Secured
Key M gmt
(Cent ral)
LOA3
M onit oring
Rules
LOA3
Securit y
Logging
LOA3
Pat ch
M gmt
Policy
LOA3
Access
Cont rol
Policy
Enf ocmnt
LOA3
Service &
Prot ocol
Enf ocmnt
Direct ory /
Ident it y
M gmt
Int egrat ion
Passw ord
Policy
Basic Key
St ore &
M gmt
Basic
Securit y
M onit oring
Basic
Securit y
Logging
Pat ch
M gmt
Policy
Basic
Access
Cont rol
Policy
Enf ocmnt
Service &
Prot ocol
Enf ocmnt
⁻ Standard Cloud
0
synchronous
replication
Break-Glass
CID/PII
Privilege
Washing /
Access
Obf uscat n
Encrypt ion
Libraries
1
Signing
LOA3
Packet
Filt er
Nat ive Product
LOA Framework
aut omatic
f ailover
backup
2
recovery
asynchronous
replication
manual
f ailover
3
4
Nat ive Product s
Def ault Base
Hard
CrossHard
LOA4
Jurisdict ion Tw o-Fact or
Token
M onit oring
L1 access
Aut h.
(HSM /TPM )
Rules
• UBS is committed to
developing automated delivery
of services built on:
⁻ Standard Stacks
Compute Resources
Def ault Base
Operational Ecosystem
Application Libraries
• A core concept for UBS is
industrialization
BCM Framework
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Cloud computing at UBS: The constraints we
need to optimize
• UBS and most global finance companies, struggle with
unprecedented regulation, change, complexity, and
market pricing pressure
• IT must adapt to rapidly changing
business needs while lowering
spending… How?
−Be agile to start, stop, scale
projects with less investment
−Implement policy to embed
governance, control, transparency
−Improve standardization
−Reduce risk in operating
environments
− Automate routine tasks
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UBS has identified a cloud broker as a required
enterprise capability
Example:
SDLC
Automation
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…and a required component of the target state
Key benefits to UBS
Cloud service providers are using automation to deliver agility;
The ODCA helps us to engage with that community
• ODCA has allowed us to amplify our voice in the marketplace
by articulating our key needs within common Usage Models:
⁻ Security
⁻ Regulation
⁻ Automation
⁻ Transparency
• RFP templates that have come from Usage Models help us to
engage with Service Providers and shorten time to action
• Open source model for collaboration with other members
drives quality and reduces internal workload
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Accelerate ROI via ODCA Usage Model
deployment
• Benefits of solution alignment
Usage Models Featuring
RFP Verbiage
• Simplifies RFP Issuance
Carbon Footprint
• Streamlines Industry Focus on
IO Control
the Right Priorities
• Enables buying with Confidence
for Open, Industry Standard
Solutions
Provider Assurance
Security Monitoring
VM Interoperability
• Provides Scale to Accelerate
Market Adoption
Simplifies Procurement & Focuses Prioritized Innovation
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ODCA’s role is accelerating cloud solutions
Prioritize
Unified Voice Accelerates
Market Delivery
Deliver
Solution Testing and
Deployments based on a
Common Foundation
Share
Today’s Learning forms
Foundation for Tomorrow’s
Requirements
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The ultimate benefits of working together
Accelerate
$50B
of cloud
services1
Saving
$25B
in TOTAL
annual IT
spend within
5 years2
1: Source: Projections based on IDC Cloud Services Forecast, May 2010.
Assumes a 25% acceleration in cloud services from IDC estimate between 2010 and 2015
2: Source: Estimated 15% reduction in operational costs based on Bain’s $142B annual spending estimates.
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"He that will not
apply new remedies
must expect new
evils; for time is the
greatest innovator“
- Francis Bacon
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Your Forecast for today
• Expand your network – Meet with executives and
architects from some of the largest IT shops in the world
• Shape your cloud strategy – Engage with ODCA leaders as
they discuss POC & deployment best practices
• Access the latest solutions – Learn about top solutions
provider’s cloud solutions that meet ODCA's requirements
• Streamline purchasing & planning – Utilize ODCA's
Performance Engine Assistant Tool to integrate ODCA
requirements into 2012 cloud RFPs
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Enjoy Forecast!
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