1. ESE Conference 2011
Schrittweise Modernisierung von komplexen mainframe-
basierenden Legacy Systemen mittels Java
Datum: 12. April 2011
Erstellt durch: Andreas Buzzi
Produced by: Andreas Buzzi
Date: March 2011 Slide 1

2. Agenda
Introduction
Introduction
1 Business Case for Rule Mgmt, Rule Objectives and Scope
Business Case for Rule Mgmt, Rule Objectives and Scope
Problem Statement and Solution Evaluation
Problem Statement and Solution Evaluation
2 Current Situation, Solution Development Plan, Migration/Coexistence
Current Situation, Solution Development Plan, Migration/Coexistence
Realized Solution
Realized Solution
3 Development and Technical View, Facts and Figures
Development and Technical View, Facts and Figures
Summary and Wrap-Up
Summary and Wrap-Up
4 Status and Outlook
Status and Outlook
Q&A
Q&A
5 Questions and Answers
Questions and Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 2

3. Agenda
Introduction
Introduction
1 Business Case for Rule Mgmt, Rule Objectives and Scope
Business Case for Rule Mgmt, Rule Objectives and Scope
Problem Statement and Solution Evaluation
Problem Statement and Solution Evaluation
2 Current Situation, Solution Development Plan, Migration/Coexistence
Current Situation, Solution Development Plan, Migration/Coexistence
Realized Solution
Realized Solution
3 Development and Technical View, Facts and Figures
Development and Technical View, Facts and Figures
Summary and Wrap-Up
Summary and Wrap-Up
4 Status and Outlook
Status and Outlook
Q&A
Q&A
5 Questions and Answers
Questions and Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 3

4. Business Challenge: Efficient Securities Regulations
Trading: is it allowed to buy?
Securities Transfer Transactions: is it allowed to receive/store at?
Asset Servicing: how to avoid executions of not executable/illegal transactions?
has discretionary
mandate is "US person"
issuer domicile domicile has signed ... waver
nationality segment country country
type
type issuer currency
client
custodian exchange
Financial Instrument
(securities)
Answer:
regulatory rules this transaction is illegal
Request: concerning securities this transaction is illegal but could be
is the transaction with the allowed (e.g. if waver signed)
data xy allowed? transactions and their this transaction is allowed
stock keeping this transaction is generally allowed,
but specific cases are illegal
Produced by: Andreas Buzzi
simple Rule Example Date: March 2011 Slide 4
detailed Rule Example

5. Objectives & Challenges regarding Rule Management
Regulatory Changes
– Business rule changes required by regulatory agencies, or by changes from
legislation and court rulings must be implemented efficient and effectively
Business Market Dynamics
Objectives – Business can quickly adapt their rule policies in response to market demand,
economic conditions or competitive actions.
Improve Rule Transparency
– increase power and responsibility of the business domain with regard to
implementation of business policies and business rule logic
Maintainability and Cost Effectiveness
– Modifying business rules buried in code is time consuming and expensive to
change
Responsibility
Technical – Changes can only be made by software engineers
Rule Knowledge and Visibility
Challenges – Business people know only a fraction of the business rules implemented in the
running systems insufficient transparency
Responding to Change
– Slow rule change activation
Produced by: Andreas Buzzi
Date: March 2011 Slide 5

6. Agenda
Introduction
Introduction
1 Business Case for Rule Mgmt, Rule Objectives and Scope
Business Case for Rule Mgmt, Rule Objectives and Scope
Problem Statement and Solution Evaluation
Problem Statement and Solution Evaluation
2 Current Situation, Solution Development Plan, Migration/Coexistence
Current Situation, Solution Development Plan, Migration/Coexistence
Realized Solution
Realized Solution
3 Development and Technical View, Facts and Figures
Development and Technical View, Facts and Figures
Summary and Wrap-Up
Summary and Wrap-Up
4 Status and Outlook
Status and Outlook
Q&A
Q&A
5 Questions and Answers
Questions and Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 6

7. IT Challenge: Management of Regulatory Rules
Technical View as of May 2010
JAP BRMS Composite BR Infra
App-2a Rule Service
Standard Business Rule
Service JAP Business BR Dev.
Rule Service Management System
Rules
App-2b Suite
based on JAP
Data Provider Rule Service
XOM
Mainframe
Cost for managing those
redundancies for a single Redundant
project: CRR
Rule Logic RS
>450 kCHF p.a.
Redundant
App-3a GSM Rule Data
Rule Logic-n Rule Data
App-3b
Rule Data externalized in
database
App-1b Rule Logic-1 Rule Logic externalized
Rule Logic-2
in Modules
App-1a
inline Rule .........
MF "Retro"
GSM = Global Securities Market
CRR = Central Rule Repository Produced by: Andreas Buzzi
Date: March 2011 Slide 7
BRMS = Business Rule Management System

8. Modernization Steps
STAR IT Target Architecture
From Applications to (SOA) Services
Depreciated Current SecOps Phase-1 SecOps Phase-n SecOps
Data
Business
Function
BRMS
Rules
Presentation Business
Services Process
Application
Application
specific code
Presentation Logic Process Logic Project/Domain
proprietary infra Produced by: Andreas Buzzi
Rule Logic Business Function Composite Bus.Func. Date: March 2011 Slide 8

9. Solution Development Plan
Iterative and incremental is Key
Identify basic Solution Approaches
local and remote access to JAP based rule logic
Co-locate consumer and rule service providers on
the same application platform
Tactical solution on mainframe; rule logic in PL/I
Define Solution Options
agree on possible options for each approach type
where required develop prototype
evaluate options (SWOT analysis)
Decide on Solution to be realized
conduct performance measurements
evaluate additional criteria's (rule manageability,
impact applications, investment/maintenance costs)
recommend solution
Produced by: Andreas Buzzi
Date: March 2011 Slide 9

10. Solution Development Plan
Iterative and incremental is Key
Identify basic Solution Approaches
local and remote access to JAP based rule logic
Co-locate consumer and rule service providers on
the same application platform
Tactical solution on mainframe; rule logic in PL/I
Define Solution Options
agree on possible options for each approach type
where required develop prototype
evaluate options (SWOT analysis)
Decide on Solution to be realized
conduct performance measurements
evaluate additional criteria's (rule manageability,
impact applications, investment/maintenance costs)
recommend solution
Produced by: Andreas Buzzi
Date: March 2011 Slide 10

11. Basic Solution Options
Approach-A:
Enable standardized local and remote access to
JAP based rule logic, following SOA principles
Approach-B:
Co-locate consumer and rule service providers on
the same application platform including the proper
management of the distributed rule logic
JAP Applications/Services
Host 3270 Terminal CORBA / MQ Batch
Approach-C: Kundenstamm (CIF)
WS80 – Auftragsapplikationen / WI01 / Kontrollprogramme
Tactical solution (same platform); rule logic in PL/I
Valorenstamm (VDPS)
Valoren- Generierungs- TLC Sperr- WS-
Restriktionen Service modul Instruktionen
Depotstellen-
Regeln
Valorenrestriktionen Formalitäten (KuHat) Rule- SLW-P69 WS-Instruktionen
Konfiguration
JAP BRMS Configuration Service
Produced by: Andreas Buzzi
Date: March 2011 Slide 11

12. Business Rule Access for Mainframe Applications
Approach-A: How should mainframe application access rule services
Mainframe Applications
and Services
Mainframe Batch
Interface and Infrastructure
Mainframe Platform
Approach-A: local and remote
access to JAP based rule logic
Mainframe Clients
JAP Applications
and Services
Service
Interface and Infrastructure BRMS
JAP Clients Java Application Platform
Produced by: Andreas Buzzi
Date: March 2011 Slide 12

13. Business Rule Access for Mainframe Applications
Solution Scoping: Approach-B
Adapter
Mainframe Applications
Rule
and Services Rule Execution Set
Mainframe Batch
Interface and Infrastructure
Mainframe Platform
Deployment
Approach B: Co-locate consumer supported by
and rule service providers on the WAS2)
Mainframe Clients same application platform
Environment
Runtime
Rule
Rule Execution Set
JAP Applications
Application Server
and Services
Rules Repository
Service
Interface and Infrastructure BRMS
Development
Environment
JAP Clients Java Application Platform Business Technical
Maintenance Maintenance
Environment Environment
Produced by: Andreas Buzzi
NFR SecReg Date: March 2011 Slide 13

14. Business Rule Access for Mainframe Applications
Wrap and Share (Co-Location on same Platform)
Adapter
Mainframe Applications
and Services Rule
Challenges Rule Execution Set
Mainframe Batch
Would it beInterface and Infrastructure code on IBM
feasible to reuse Java Extension
mainframe computers? Product Extensions:
Mainframe Platform Mainframe
Can Java services be called from large and mission
CS deployment (BRCC) Differences
CS rule activation
critical mainframe-based clients replacing compiled
CS versioning
to JAP1)
procedural inline code? Monitoring & Controlling
Mainframe Clients
Would the performance of Java components used
within high volume and high performance mainframe Rule Execution
Rule
Set
clients be sufficient?JAP Applications
Application Server
What is the risk of running Java in a different JVM than
and Services
the Sun JVM? Rules Repository
Service
Interface and Infrastructure BRMS
Can Java adequately coexist and interoperate with
JAP Clients procedural Java Application Platform
mainframe code? Business Technical
Maintenance Maintenance
Environment Environment
Produced by: Andreas Buzzi
Date: March 2011 Slide 14

15. Base Migration and Coexistence Types (1/3)
Lift and Shift Application(s)
STAR Example
Replacement of application(s) required; usually SecTransfer
providing excellent business benefits, but often
compromising strategic IT targets
Modernization Focus: Lift and Shift (single or related group of Applications)
very common used modernization approach, particular advantageous in case of
few inter-application dependencies (localized business logic)
this type can often be well aligned with short/near-term business goals
disadvantages include, but are not limited, to left-over functionality in legacy code
and difficulties in End-2-End process renewals
Produced by: Andreas Buzzi
Date: March 2011 Slide 15

16. Base Migration and Coexistence Types (2/3)
Data Bridging
Replacement of application(s) required; usually
providing excellent business benefits, but often
compromising strategic IT targets
IT component having many dependencies to other STAR Example
components, profits of a data bridge to the new Stock Record
system; by this approach, immediate business
benefits are often compromised
Modernization Focus: Data Bridging (pervasive business/IT Logic)
widespread application infrastructures (e.g. reference data) or pervasive business
logic (e.g. order, stock record) are not economic in "Lift & Shift" replacement
such components are easier to build in target systems, limiting coexistence
challenges to data level; often promoted by IT – limited mid-term business benefits
Ende-2-End processes are easier to replace, but suffer of a long and expensive
coexistence phase (maintain functionality in source and target system)
Produced by: Andreas Buzzi
Date: March 2011 Slide 16

17. Base Migration and Coexistence Types (3/3)
Wrap and Share
Need to streamline/optimize a specific service;
usually providing good business and IT benefits
Replacement of application(s) required; usually
providing excellent business benefits, but often
compromising strategic IT targets STAR Example
Business Rules
IT component having many dependencies to other
components, profits of a data bridge to the new
system; by this approach, immediate business
benefits are often compromised
Modernization Focus: Wrap and Share (build SOA-style Service)
favorable in case minimizing functional redundancies it key
support service reuse and cultivates advanced SOA usage
can impose performance and technical readiness challenges
can lead to a win-win situation for business and IT
minimizing risks and promotes step-by-step replacement (hollow out)
Produced by: Andreas Buzzi
Date: March 2011 Slide 17

18. Wrap and Share: Business Rules
Focus Service Focus Application Focus Data
Wrap and Share Lift and Shift Data Bridging
Source Target Source Target Source Target
Portal
Portal
Consumer
Realtime
Realtime
Realtime
Realtime
Realtime
Realtime
Batch
Batch
Batch
Batch
Build new
Applications*)
and infrastructures
on target legacy
replace system,
Build new target
Interface
leveraging existing
applications IT Systems;
IT assets legacy bridging
primarily via data
(services)
SOA Srv / Infra
SOA Srv / Infra
SOA Srv / Infra
Service
Corba Service
Corba Service
PL1 Module
PL1 Module
SOA Service SOA Service
Rule Engine Rule Engine
Process Eng. Replication and Process Eng.
other Synchronisation other
Data
*) new term "IT Components" Produced by: Andreas Buzzi
Date: March 2011 Slide 18

19. Wrap and Share: Business Rules
Focus Service Focus Application Focus Data
Wrap and Share Lift and Shift Data Bridging
Source Target Source Target Source Target
Portal
Portal
Consumer
Realtime
Realtime
Realtime
Realtime
Realtime
Realtime
Batch
Batch
Batch
Batch
Build new
Applications*)
and infrastructures
on target legacy
replace system,
Build new target
Interface
leveraging existing
applications IT Systems;
IT assets legacy bridging
primarily via data
(services)
SOA Srv / Infra
SOA Srv / Infra
SOA Srv / Infra
Service
Corba Service
Corba Service
PL1 Module
PL1 Module
SOA Service SOA Service
Rule Engine Rule Engine
Process Eng. Replication and Process Eng.
BRMS
other Synchronisation other
Data
*) new term "IT Components" Produced by: Andreas Buzzi
Date: March 2011 Slide 19

20. Wrap and Share: Business Rules
Focus Service Focus Application Focus Data
Wrap and Share Lift and Shift Data Bridging
Source Target Source Target Source Target
Portal
Portal
Consumer
Realtime
Realtime
Realtime
Realtime
Realtime
Realtime
Batch
Batch
Batch
Batch
Build new
Applications*)
and infrastructures
on target legacy
replace system,
Build new target
Interface
leveraging existing
applications IT Systems;
IT assets legacy bridging
primarily via data
(services)
SOA Srv / Infra
SOA Srv / Infra
SOA Srv / Infra
Service
Corba Service
Corba Service
PL1 Module
PL1 Module
SOA Service SOA Service
Rule Engine Rule Engine
Process Eng. Replication and Process Eng.
BRMS
other Synchronisation other
Data
*) new term "IT Components" Produced by: Andreas Buzzi
Date: March 2011 Slide 20

21. Wrap and Share: Business Rules
Focus Service Focus Application Focus Data
Wrap and Share Lift and Shift Data Bridging
Source Target Source Target Source Target
Portal
Portal
Consumer
Realtime
Realtime
Realtime
Realtime
Realtime
Realtime
Batch
Batch
Batch
Batch
Build new
Applications*)
and infrastructures
on target legacy
replace system,
Build new target
Interface
leveraging existing
applications IT Systems;
IT assets legacy bridging
primarily via data
(services)
SOA Srv / Infra
SOA Srv / Infra
SOA Srv / Infra
Service
Corba Service
Corba Service
PL1 Module
PL1 Module
SOA Service SOA Service
Rule Engine Rule Engine
Process Eng. Replication and Process Eng.
BRMS
other Synchronization other
Data
Approach B Approach A
*) new term "IT Components" Produced by: Andreas Buzzi
Date: March 2011 Slide 21

22. Agenda
Introduction
Introduction
1 Business Case for Rule Mgmt, Objectives and Scope
Business Case for Rule Mgmt, Objectives and Scope
Problem Statement and Evaluation
Problem Statement and Evaluation
2 Current Situation, Solution Development Plan, Migration/Coexistence
Current Situation, Solution Development Plan, Migration/Coexistence
Realized Solution
Realized Solution
3 Development and Technical View, Facts and Figures
Development and Technical View, Facts and Figures
Summary and Wrap-Up
Summary and Wrap-Up
4 Status and Outlook
Status and Outlook
Q&A
Q&A
5 Questions and Answers
Questions and Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 22

23. Solution Development Plan
Iterative and incremental is Key
Identify basic Solution Approaches
Decision-1 Approach-A: local and remote access to JAP based rule
evaluate approach A logic
and B only Approach-B: Co-locate consumer and rule service providers
on the same application platform
Approach-C: tactical solution on mainframe; rule logic in PLI
Define Solution Options
agree on possible options for each approach type
Decision-2
where required develop prototype
Prio-1: cross platform rule access (MQ based)
evaluate options (SWOT analysis)
Prio-2: rule engine co-location on mainframe
Decide on Solution to be realized
conduct performance measurements
Decision-3
evaluate additional criteria's (rule manageability,
SWOT analysis of functional & NFR, rule manageability,
impact applications, investment/maintenance costs)
legacy migration cost, investment & maintenance costs
recommend solution
Produced by: Andreas Buzzi
Date: March 2011 Slide 23

24. Performance Measurements
STAR processing time extension factor
Number of rule invocation / sec.
NFR STAR 2.0 CA
Baseline Standard 1 Gb Net 1 Gb Net USS PL1 PL/1
T2000 T5220 T5220 M5000 1 zIIP GSM current
with BRMS without BRMS
on JAP on JAP special on Mainframe
Approach-1a Approach-1b Appr-B Approach-C
NFR STAR
Measured in L&P test
Business Rule on Mainframe
Not measured in L&P test
(6&7) figures from STAR, (3) extrapolation
Produced by: Andreas Buzzi
Date: March 2011 Slide 24

25. Business Rule Access for Mainframe Applications
Wrap and Share (Co-Location on same Platform)
Adapter
Mainframe Applications
Rule
and Services Rule Execution Set
Mainframe Batch Application Server
Interface and Infrastructure
Mainframe Platform
Application Server on Deployment
supported by
Mainframe can not be used WAS2)
Mainframe Clients
Rule
Rule Execution Set
JAP Applications
Application Server
and Services
Rules Repository
Service
Interface and Infrastructure BRMS
JAP Clients Java Application Platform Business Technical
Maintenance Maintenance
Environment Environment
2) WAS support for deployment, version, etc
JRules Product
CS Extension
Produced by: Andreas Buzzi
Date: March 2011 Slide 25

26. Business Rule Access for Mainframe Applications
Wrap and Share (Co-Location on same Platform)
Adapter
Mainframe Applications
and Services Rule
Rule Execution Set
Mainframe Batch BRMS Mgmt Capabilities Extension
Interface and Infrastructure
Product/Infra Extensions:
CS deployment (BRCC)
Mainframe Platform Mainframe
CS rule activation Differences
CS versioning to JAP1)
Monitoring & Controlling
Mainframe Clients
Rule
Rule Execution Set
JAP Applications
Application Server
and Services
Rules Repository
Service
Interface and Infrastructure BRMS
JAP Clients Java Application Platform Business Technical
Maintenance Maintenance
1) Multi-Threading Support, but no BRMS Environment Environment
Console Support (i.e. no rule query,
Rule Scenario Manager and built-in KPI)
JRules Product
CS Extension Produced by: Andreas Buzzi
Date: March 2011 Slide 26

27. Business Rule Access for Mainframe Applications
Technical View (PL/I clients calling Java Services on USS-JVM)
Mainframe (z/OS)
JES USS
PL/I Legacy Daemon
Application-1
MQPut MQGet
PL/I Rule Java Rule
MQGetWait MQPut
Stub Service (JAR)
IMS
Online Trc
Batch
PL/I Legacy JRules Execution Rule
Application-2 Engine (JAR) Set
Dynamic
synchronous call Rule Update
MQ (non-persistent msg, no sync point)
USS = Unix System Services (z/OS Subsystem)
Produced by: Andreas Buzzi
Date: March 2011 Slide 27

28. Current Implementation
Architecture, Implementation and Platform View
Architecture View Implementation View Platform
MF JAP
System System System System System System
Application LPAR LPAR LPAR LPAR LPAR LPAR z/OS Solaris
Service
MPP - Appl. Appl. Appl. Appl. Appl. Appl.
Consumer BMP-z/OS xzy xzy xzy xzy
MQ
BR on MF
Service BR BR BR BR BR BR BR BR
SEQ on on on on on on
Provider MF MF MF MF MF MF
BRInfra
USS
One "Business Rule on Mainframe" instance could fulfilled
STAR NFR's regarding L&P test. Because of Mainframe
operational independence, on each LPAR a "RES
instances" is implemented
Local MQ-Queues performance seems to be better. On the
other hand shared MQ facilities support load balancing and
failover.
Produced by: Andreas Buzzi
Date: March 2011 Slide 28

29. Challenging Start, but excellent outcome in short time
Scalability, Stability, Performance and Capacity
Scalability: 0.6-0.9 RuleCalls/day; >160'000 Stability: despite significant more Rule Calls,
RuleCalls/hour; peak per second 319 (Oct-10) exceptions rate has decreased
Performance: the target rule roundtrip time could Capacity: Rule Calls are using less than 10% of
be outperformed significantly (average 3-9ms) the available capacity – ready for more load
Produced by: Andreas Buzzi
Date: March 2011 Slide 29

30. Agenda
Introduction
Introduction
1 Business Case for Rule Mgmt, Objectives and Scope
Business Case for Rule Mgmt, Objectives and Scope
Problem Statement and Evaluation
Problem Statement and Evaluation
2 Current Situation, Solution Development Plan, Migration/Coexistence
Current Situation, Solution Development Plan, Migration/Coexistence
Realized Solution
Realized Solution
3 Development and Technical View, Facts and Figures
Development and Technical View, Facts and Figures
Summary and Wrap-Up
Summary and Wrap-Up
4 Status and Outlook
Status and Outlook
Q&A
Q&A
5 Questions and Answers
Questions and Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 30

31. Schedule and Milestones
Key Decisions and Evaluation Steps
June – Dec 2009 Feb-May 2010
May 2009 Evaluating solution Solution development as
Generic Solution required; options and performance Custom Engineering "BRonMF
Mandate "Rule Access for measurements
Non-JAP Appl." accepted by
May 2010
STC Arcoba
Going Live with project SecReg
2009 2010
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Phase Phase Phase
Engineering Rollout Rollout
SecReg SPDE
April 09 January 2010
Fundamentals identified STC STAR final decision in 2011
solution approaches and Successful EOY processing
for BRonMF as "Special
options
Engineering STAR" BRonMF running in
maintenance mode
planned deployment of STAR
SecReg 3.x, SPDE R2.x
decommissioning of fall back
solution
SecReg = Securities Regulations
SPDE = Settlement Party Determination Produced by: Andreas Buzzi
Date: March 2011 Slide 31

32. Business Rule on Mainframe delivers significant
benefits for the bank
Function/Rule Function/Rule Process
Business Benefits
efficient and high-quality rule logic management
faster activation of new/changed business rules
Business rule logic available on mainframe systems
scalable solution for future rule requirements
IT Application Benefits
although labeled "special engineering", the solution is
Application
a reusable infrastructure (within & outside of STAR)
high-volume, high-performance and stable solution
IT Technology Benefits
proper engineered Technical Infrastructure Package
Technology reusable, generic rule engine infrastructure on host
Produced by: Andreas Buzzi
Date: March 2011 Slide 32

33. Questions & Answers
Produced by: Andreas Buzzi
Date: March 2011 Slide 33