OSGi Community Event 2010 - Its Not About Technology Anymore (including a Case for Moduarity

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OSGi Community Event 2010 - Its Not About Technology Anymore (including a Case for Moduarity (Eric Newcomer - Credit Suisse)

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OSGi Community Event 2010 - Its Not About Technology Anymore (including a Case for Moduarity

  1. 1. It’s not About Technology Anymore (Including the Case for Modularity) Eric Newcomer Chief Architect, Investment Banking Division, Credit Suisse
  2. 2. Credit Suisse Group today – key facts • Global bank headquartered in Zurich, serving clients in private banking, investment banking and asset management. • Registered shares of Credit Suisse Group AG (CSGN) are listed in Switzerland (SIX) and as American Depositary Shares (CS) in New York (NYSE). • Total number of employees: 49,200. • The Group’s long-term ratings are: Moody’s Aa2, Standard & Poor’s A, Fitch Ratings AA-.
  3. 3. 0 Credit Suisse vs. peers: March 31, 2010 Market Capitalization, USD bn Balance Sheet Assets, CHF bn Assets under Management, CHF bn Employees - Number of FTEs, t Morgan Stanley 41 Deutsche Bank 48 Credit Suisse 61 UBS 62 Goldman Sachs 93 Citigrou p 116 JPMorgan Chase 178 Bank of America 179 709 788 882 n/ a Morgan Stanley Bank of America Goldman Sachs Credit Suisse 1,271 JPMorgan Chase 1,280 Deutsche Bank1) 1,467 UBS1) 2,267 Citigroup 2) 925 861 Morgan Stanley Goldman Sachs Credit Suisse 1,074 UBS1) 1,356 Citigrou p 2,102 JPMorgan Chase 2,243 Deutsche Bank1) 2,438 Bank of America 2,635 33 48 62 64 81 227 263 284 Goldman Sachs Credit Suisse Morgan Stanley UBS Deutsche Bank JPMorgan Chase Citigrou p Bank of America 1) IFRS accounting standards 2) Citigroup does no longer disclose any information on AuM
  4. 4. Dynamic Business requires IT agility • Many current business trends have direct impact on the corporate IT – Fragmentation of the value chain (In/Outsourcing, Aggregation) – Mergers and aquisitions – Frequent strategy changes – Offshoring – Cost reduction • High pressure on IT to increase effectiveness and efficiency – fast reaction to new requirements in business – fast adaptation to varying transaction volumes – acceptable fixed cost • IT needs to be prepared for change – Create structures that allow for fast adaptation and/or extension – Ensure long-term cost-effectiveness  Establish a flexible enterprise architecture based on SOA
  5. 5. IT Complexity at Credit Suisse Today‘s IT systems have the following characteristics:  Very-large-scale: in CREDIT SUISSE more than 3000 applications with more than 100,000,000 Source Lines of Code  High complexity: large number of tightly coupled, networked components  Aging: parts of the system are becoming obsolete and must be replaced (obsolete technology, end-of-life applications)  High rate of change: continuous flow of new business requirements which must be implemented (Several 1000 application changes per week)  Demanding operational quality: systems must have high reliability, good availability, sufficient security etc.
  6. 6. Costs of Complexity • Complexity increases unless something specifically is done to reduce it • Projection is from 2010 to 2017 to produce more code total than currently exists * • Solution to complexity is modularity (Kirk Knoernschild et al) ** • Solution to modularity is OSGi – Benefits of modular programming well understood for 40 years – Until OSGi the benefits were the responsibility of developers & architects – OSGi metadata and framework enforces modularity • Modularity is a key goal of Credit Suisse’s SOA efforts p:/ / users.jyu.fi/ %7Ekoskinen/ smcosts.htm ttp:/ / techdistrict.kirkk.com/ 2010/ 02/ 17/ osgi-devcon-preview/
  7. 7. Our most important strategic objective for IT is to enable business growth by reducing complexity Reducing overall complexity by eliminating fragmentation and increasing standardization Simplification initiatives B Continuous improvement A
  8. 8. IT efficiency ~20 % of CtB Business functionality ~80 % of CtB Balancing IT efficiency and business functionality is the challenge for the CIO M anaged evolution OneBank DPM CoE DIMA Synonym IB RAP New Build EUROM HR trans- formation CASPER Client centricity Basel II IT Systems Strategy: Managed Evolution Continued investment in our infrastructure is a key cost management requirement. This process of "managed evolution" is needed to balance the two levers of investing in business functionality and IT efficiency
  9. 9. Credit Suisse IT Architecture Areas IT Architecture Governance and Processes Well-defined processes assure transparent decision-making, adequate communication and consistent enforcement of architecture with respect to the current situation IntegrationArchitecture Standardizedinterfacesand infrastructuresforthe integrationofapplications SecurityArchitecture Adequateprotectionofprocessesand dependabletraceabilityofbusiness SystemsManagementArchitecture costefficientanddependable operationoftheITsystems Application Architecture The application landscape is straight structured and established according to common principles Infrastructure Architecture Standardized application platforms based on standardized technical components Business Architecture The business model based on the utilization of optimal processes and organizational structures DataArchitecture StandardizedDataandInformationlif representationandintegration ITArchitectureRemit
  10. 10.  Cost reduction of more than one third  Modal split between "change" and "run" remained constant at a high level.  Much more functionality (CRM, reporting, products, internet banking, GUIs on almost all applications, automated trading, straight-through processing, ...)  Much more business volume  Substantially improved stability  Many non-architecture related initiatives (offshoring, sourcing, project portfolio management, reorganizations, ...)  from 2007: additional cost to support growth strategy Complexity reduction data center Various technology phaseouts (OS/2, SNA, Smalltalk) Application platforms (Java, DWH) Application clean-ups (accounts, MIS, trading, payments, front systems, ...) Service architecture, interface management Established architecture governance Does IT Architecture Generate Value?
  11. 11. The emphasis shifts from functionality to efficiency • In the early days everyone needed more features and functions to meet business automation requirements • As the IT industry matures – We find we have the features and functions we need (for the most part) – In our products and infrastructures • And we find, after the initial big push to automate, we have more applications than we really need • No one was thinking about enterprise architectures • And now we are stuck with complexity • (You know the type of picture…)
  12. 12. Almost all of the business applications of the enterprise were not written using consistent architecture. Instead they are byproducts of the evolution of IT: -Mainframe transactions -C++ Client/Server Apps -Middleware Islands -Home Grown / Dark Matter -Java / .NET mixture Solution: Expose and modularize existing enterprise systems as software services  Plug-in to business applications and process flows  Encapsulate the unique complexities  Extend into the services foundation of today’s modern software platforms B2B Consumer Private RetailInvestment Across The Enterprise Across Channels Across Business Units Commercial MobileWeb B2B B2B Consumer Asset Mgmt Across The Enterprise Across Channels Across Business Units Commercial Web B2B
  13. 13. Example 1: PB - Credit Suisse Information Bus (CSIB) Started in 1998 More than 1000 services built up to now All PB applications offer and/or consume services today Enable Managed Evolution Component architecture for the Swiss Platform Reuse of core data&functionality (mainly) residing on the mainframe CORBA for synchronous services WebSphere MessageBroker / MQ for messaging Connect:Direct for files About 1000 public services, 70 message publishers 280 million CORBA calls & 120 million messages delivered per month Facts Objectives Technology Footprint
  14. 14. Example 2: PB - Global SOA Started in 2005 About 30 Services built up to now Services implemented in various countries Re-use the same frontend applications with different local backends Initial driver: common global frontend application Basis for a common front applications target architecture (FATA) Web Services (only synchronous communication needed) Small number of interactions today. Large growth coming with important new initiatives (Global Front Components based on FATA) Facts Objectives Technology Footprint
  15. 15. Equity IB Approach: Moving from Silos to SOA Intermediate stage: Identify reusable components Quote Manager Exchange Link Fixed Income Trade Mgmt Goal: Service-oriented architecture Exchange Link Quote Manager Position Mgmt Compli- ance Equity Siloed applications Fixed Income Equity Fixed Income
  16. 16. Existing Systems Need to Evolve • They can’t be replaced all at once • Some systems have been in place for 30-40 years • Architecture decomposes the problem • Modules can be isolated and replaced separately • Additional considerations include: – Standardizing the deployment platform(s) – Inventorying the applications – Adopting industry standards • For example, Credit Suisse’s current picture
  17. 17. Customer&Partner (CUS) 1:Partners&Persons Wealth Management & Advisory (WMA) 2:Finance,Investment& Sales 3:TradingandMarkets 4:CashandAssetOperations Payments (PAY) Settlement and Clearing (SCL) Single Accounts (SAC) AccountingControl (AOC) 7: Enterprise Common Services Business Partner Applications (BPA) Financial Market Information (FIN)Enterprise Content Management (ECM) Credits and Syndication (CRS) FinancialAccounting (FAC) Regulatory,Risk andLiquidity (RRL) 6:Accounting,Controllingand Reporting Communication and Access (CHA) Logistics (LOG) Basic Facilities (BAS) V 0.96 2008/ 12/ 10 5: Communications & Collaboration Street Side Interfaces (SSI) Trading (TRA) Product Control (PRC) Custody (CDY) Corporate Actions (COA) CustomerRelationshipManagement (CRM) Order and Trade Management (OTM) 6335 0 0 3821 1 0 69189 0 1 2822 0 0 2117 0 1 146567 6 4 2613661 6 92 7 5 1 8558 0 1 2291 1 38 80105 2 2 11772 6 49 18 5 0 0 60 7 1 10 14727 0 0 7740 1 1 65152 0 08634 1 219 1 0 1 6865 0 7 PB Apps IB Apps AM Apps CoS Apps More than 3000 Applications… in the Common Domain Model
  18. 18. Domains are high-level components coupled using services CS Information Bus Interfaces Interfaces Interfaces Interfaces Domain App DataData Data App Domain App App Data Domain App App Data Domain App App Data
  19. 19. Supporting Tool: Interface Management System (IFMS) •Component owners need to design the interfaces of their components (planning and design) •Developers need a generator producing source code for using the interfaces •Service users need a catalogue with powerful search functions so they find the right functionality
  20. 20. IFMS Target state: Credit Suisse eXchange Bus (CSXB) for federated SOA Regions Divisions Applications CS X Bus
  21. 21. Summary Software Tools, Governance & Process SOA DesignSOA Design SOA InfrastructureSOA Infrastructure SimplicitySimplicity OrganizationOrganization Service Service

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