Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

AWS Adoption in FSI


Published on

Today Financial Services Industry organisations are using AWS to both develop new sources of customer value as well as reinventing their core. In this session we will provide insights into the successful adoption patterns and trends that have emerged. We will also discuss how organisations in the FSI space have successfully navigated the people and processes challenges that initially inhibited enterprise wide adoption. Finally, through our experience in helping enterprises navigate this change, AWS has developed the Cloud Adoption Framework (CAF) to assist with planning, creating, managing and supporting the shift. We will spend time taking you through this framework to assess where you are on your Cloud journey and tangible takeaways that will help you accelerate.

Published in: Technology
  • Login to see the comments

AWS Adoption in FSI

  1. 1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Michael Braendle, Principal Cloud Architect Professional Services HKT 2016/06/17 AWS Adoption in FSI Why are Financial Services firms choosing AWS?
  2. 2. Amazon Web Services (AWS) provides flexible, scalable, and cost-effec<ve IT infrastructure for businesses of all sizes around the world. Why Are Financial Services Firms Choosing Amazon Web Services? … the same reliable, secure technology plaJorm used to power’s global web proper<es and over 1 million other customers, including firms of all sizes across all segments of the Financial Services industry. Financial Services grid compu<ng reference architecture
  4. 4. What Sets AWS Apart Building and managing infrastructure since 2006 70+ services to support any workload History of rapid, customer-driven releases 12 regions, 33 availability zones, 53 edge loca<ons 47+ proac<ve price reduc<ons to date Thousands of partners; 1,900+ Marketplace products Experience Service breadth & depth Pace of innova<on Global footprint Pricing philosophy Ecosystem
  5. 5. A Broad Collec<on of Services
  6. 6. Our Global Footprint AWS operates: 12 Regions 33 Availability Zones 53 Edge Loca<ons
  7. 7. A Focus on Security & Enabling Compliance “Based on our experience, I believe that we can be even more secure in the AWS cloud than in our own data centers.” – Tom Soderstrom, CTO, NASA JPL AWS provides the same, familiar approaches to security that companies have been using for decades with increased visibility, control, and auditability. Visibility View your en<re infrastructure with one click Auditability Control Deep insight with AWS CloudTrail You have sole authority on where data is stored Shared responsibility model 3rd Party Valida<on – Cer<fica<ons for Workloads that Maler
  8. 8. An Expansive Ecosystem Thousands of the world’s largest technology and consul<ng companies 28 Global premier consul<ng partners 1,900+ products available for 1-click deployment across 23 dis<nct product categories Customers run over 70m hours of sonware per month
  10. 10. Global Industry Observa<ons Regulatory Compliance Con<nues to Drive Expense Globally, compliance related spending con5nues to increase across the Financial Services industry as new and emerging regulatory ini<a<ves dominate opera<ng and capital expenditures and exis5ng applica5ons and infrastructure are proving inadequate to meet the demands placed on them by new regula<ons. A Desire For Increased Wallet Share is Driving a Focus on Innova<on Financial Services firms repeatedly express to AWS a desire for “Digital Innova<on”, and that they are ac<vely seeking ways to shorten the 5meframe for innova5on internally– specifically in regards to developing customer-facing applica<ons – in order to increase wallet share. Elas<c Infrastructure To Meet Demand For Increasing Amounts of Data The volumes of data that Financial Services firms need to store and analyze are increasing exponen5ally, whether it be for regulatory or compe<<ve purposes. High Performance Compu<ng and Big Data Analy<cs are cri<cal components to successfully turning data into ac<onable informa<on. As demand for costly high-performance compu<ng and analy<cs is increasing firms are looking to AWS to add scalability in a cost-effec<ve manner. Digi<za<on and Disrup<ve Technology are Accelera<ng Transforma<on Financial Services firms, from established global enterprises to new FinTech startups, are moving beyond tradi5onal development, test, and deployment models and embracing CI/CD and DevOps – quickening the pace of innova<on and transforming the customer experience.
  11. 11. Financial Services Industry Trends World Economic Forum Report – ‘The Future of Financial Services’ •  Innova5on in FSI is deliberate and predictable; incumbent players are most likely to be alacked where the greatest sources of customer fric5on meet the largest profit pools •  Innova<ons are having the greatest impact where they employ business models that are plaCorm based, data intensive, and capital light •  The most imminent effects of disrup<on will be felt in the banking sector; however, the greatest impact of disrup<on is likely to be felt in the insurance sector •  Incumbent ins<tu<ons will employ parallel strategies; aggressively compe5ng with new entrants while also leveraging legacy assets to provide those same new entrants with infrastructure and access to services •  Collabora5on between regulators, incumbents and new entrants will be required to understand how new innova<ons alter the risk profile of the industry – posi<vely and nega<vely •  Disrup5on will not be a one-5me event, rather a con5nuous pressure to innovate that will shape customer behaviors, business models, and the long-term structure of the FSI industry Capgemini – ‘World Retail Banking Report’ •  Banks’ efforts to provide enhanced services are falling short of customers’ desires and expecta5ons leading to stagna<on of the Customer Experience Index (CEI) over the past 2 years •  Increasing disintermedia<on is taking place in the banking arena as customers look towards alterna5ve en55es for their banking needs •  There is an immediate need to transform the middle- and back-offices before the gains in customer experience levels from front-office investments reverse out
  12. 12. Trusted by Financial Services Ins<tu<ons & Enterprises Worldwide
  13. 13. How are Financial Services customers using AWS? Oracle enterprise applica<ons Reduced test environment costs Development & Test Environments Building New Apps in the Cloud New service offerings Financial records delivery Making On-Premises Apps Beler Big data analy<cs Analy<cs processing on opera<onal data Migra<ng Exis<ng Apps to AWS Apps in AWS that Integrate with On-Premises Apps “Cloud First” Moved their en<re retail banking plaJorm Moved US market surveillance plaJorm Use AWS on-demand to scale to meet business requirements and deadlines Applied agility for credit risk simula<ons Data center migra<on
  15. 15. Technology Alone is Not the Answer AWS Cloud Adop5on Framework (CAF) Comprehensive framework that helps bring together people, process and technology to reduce the <me and cost of deployment consistent proven repeatable
  16. 16. AWS Cloud Adop<on Framework Perspec5ves Delivery Explore Prepare Migrate/ Dev. Iterate Discovery Baseline Gap Strategy Ac5vi5es AWS Partner/s Business Objec5ves Comprised of: •  4 step Discovery phase •  7 perspec<ves (business, plaJorm, maturity, people, process, security, and opera<ng) •  4 step Delivery phase
  17. 17. Review Business Strategy and Market Drivers •  Business aligned cloud strategy •  Executive Sponsorship •  Stakeholder engagement & Support •  Adoption approach aligned to business and organizational readiness Understand the business strategy and market drivers to incorporate the requirements in development of your cloud strategy and targeted rate of adop<on (experiment, test & development, produc<on, all-in). Engage key stakeholders from the start in developing a cloud strategy Industry drivers Market drivers & innovation Cloud Adoption Strategy Understand the Business Strategy to Develop the Cloud Strategy Business Strategy Benefits
  18. 18. Rapid Discovery Strategy Baseline Gap Ac<vi<es Initial Discovery - what is the strategy and how do you get there? Accelerate delivery of business initiatives (e.g. How fast to adopt?, Experiment, hybrid, all-in) The rapid discovery incorporates the cloud adop<on strategy, baseline, and gap analysis resul<ng in the CAF ac<vi<es matrix. The resul<ng ac<vi<es matrix will inform and drive the development of a comprehensive and priori<zed cloud adop<on roadmap for your ini<al 6-9 month delivery Assess and baseline current cloud/IT capabilities. Level of automation Define the key cloud adoption capabilities required to achieve business objectives Prioritized list of activities/ initiatives when executed result in delivery of the business strategy •  Launch point for your cloud strategy based on the business objectives •  Baseline of current capabilities •  Prioritized list of activities/ initiatives to inform your adoption roadmap BenefitsDiscovery
  19. 19. CAF Perspective CAF Perspective- identify the key priorities to start your cloud journey? Process Perspec5ve Managing porJolios, programs and projects to deliver expected business outcome on <me and within budget, while keeping risks at acceptable levels. People Perspec5ve Defining and acquiring the skills needed to adopt the AWS cloud plaJorm. Examples guidance include role descrip<ons, training, cer<fica<on and mentoring. Maturity Perspec5ve Defining the target state architecture of the organiza<on and crea<ng the required blueprints and roadmaps. PlaCorm Perspec5ve Represents the technology services of the AWS cloud plaJorm. Provides palerns, guidance, and tools for op<mal use of the technology services and services to implement. Opera5ons Perspec5ve Represents the ongoing management of the func<oning IT environment of AWS. Provides process, guidance and tools for op<mum opera<onal service management of the AWS environment. Security Perspec5ve Defining and implemen<ng the required levels of security, governance, and risk management to achieve compliance. Business Perspec5ve Iden<fying, delivering, and measuring business impact using architectural approaches that align technical delivery to business impera<ves.
  20. 20. Sample – Security Perspec<ve Every company is concerned with protecting information and assets as they grow the business. They also want to ensure they are operating within the legal boundaries and standards set by and on the behalf of governmental agencies and industry associations. Security Perspective components provide guidance that enables a comprehensive and rigorous method of describing a structure and behavior for an organization’s security and compliance processes, systems and personnel. The Security Perspective
  21. 21. Delivery Phases Delivery – what to deliver and why, how to deliver and improve, iterate… Explore Prepare Migrate/Dev. Iterate Four dis<nct phases of the cloud delivery process. The phases highlight the DevOps approach of automate, measure, and improve each itera<on of the cloud adop<on •  Iterative process of improvement •  Proven tools and assets/artifacts that support every phase of the delivery process •  Applies to any cloud adoption (experiment, test/development, production, all-in) Explore - why do it, what business value, gap analysis Prepare - project plan for ac<vity, training, establish plaJorm, establish opera<ons, establish security Migrate/Develop - Move an exis<ng applica<on to the cloud or develop a new cloud na<ve applica<on Iterate - measure and iden<fy opportuni<es to improve Business Value Deliver Automate Iterate Benefits
  22. 22. What Is Your Cloud Journey? Discovery Workshop Cloud Business Case Define Security Requirements Define Network Environment Define Governance Structure Opera<onal Integra<on Security Opera<ons Playbook Cloud Environment Op<miza<on Applica<on PorJolio Analysis Cost and Billing Analysis Training and Cer<fica<on Define Cloud Environments Define EA Policies and Prac<ces
  23. 23. Many paths to the cloud Discover, Assess (Enterprise Architecture and Applications) Lift and Shift (Minimal Change) Migration and UAT Testing Operate Refactor for AWS Application Lift and shift Move the App Infrastructure Plan Migration and Sequencing Determine Migration Path Decommission Do Not Move Create Cloud Strategy Design, Build AWS Environment Move the Application Determine Migration Process Manually Move App and Data Third-Party Tools AWS VM Import Refactor for AWS Rebuild Application Architecture Vendor S/PaaS (if available) Third-Party Migration Tool Manually Move App and Data Determine Migration Process Replatform (typically legacy applications) Recode App Components Rearchitect Application Recode Application Architect AWS Environment and Deploy App, Migrate Data Signoff Tuning Cutover Org/Ops Impact Analysis Identify Ops Changes Change Management Plan
  25. 25. CAPITAL MARKETS Customer Stories & Case Studies
  26. 26. Highlighted Customer Stories – Capital Markets – Global Investor Communica<ons and Technology Solu<ons Broadridge, in partnership with Pitney Bowes, in June 2014 launched a technology plaJorm delivered through AWS named Inlet to make it easier for companies to provide millions of consumers access to their most important documents from hundreds of providers in just a few clicks. Broadridge will use Inlet to deliver investment industry content through its rela5onships with thousands of financial services companies, including banks, broker-dealers, mutual funds, as well as corporate issuers. Content will include monthly statements, trade confirma<ons, tax documents and regulatory disclosures. – Global Exchange Group The NASDAQ OMX Group, Inc., the inventor of the electronic exchange, uses Amazon Web Services as the basis for FinQloud, a cloud compu<ng solu<on specific to the financial services industry. FinQloud enables clients to store, manage and process large amounts of data cost-effec<vely while also helping them meet regulatory requirements. – Global Trading Solu<ons Trading Technologies, a leading global provider of a deriva<ves trading plaJorm to the financial services industry, has built their next-genera5on trading plaCorm using a hybrid architecture, with its backbone built on AWS spanning all nine publicly available AWS regions which are then connected to co-located infrastructure at each of the global exchanges to which Trading Technologies provides trading access to its customers.
  27. 27. Adop<on Enabler: Hybrid IT Elasticity & Cost Respond to changing business needs and reduce cost using AWS managed services Manageability Use Virtual Private Cloud to isolate your data from other entities or public internet Scale Expand your data center and take benefit of the elastic AWS infrastructure Connectivity Connect your data center either through VPN or a dedicated network connectivity AWS Direct Connect VM Import/Export VPC Network IAM Policies Virtual Images On-Premise Apps Private Network VPC Corporate Directory Your Cloud Apps Your Data Our Storage
  28. 28. Adop<on Enabler: Backup And Archiving Elasticity & Cost Highly scalable and durable storage service Manageability Managed storage services for archiving and backup services Scale Scale to virtually unlimited storage capacity Integration Use standard backup and archive solution and integrate with Glacier or S3Application Server Virtual Server File Server Database Server Backup System Amazon S3 archive vault Amazon Glacier
  29. 29. BANKING & PAYMENTS Customer Stories & Case Studies
  30. 30. Highlighted Customer Stories – Banking/Payments Suncorp is a diversified Australian financial services company which runs a complex and expensive IT environment to support 14 brands and 4 lines of business in 5 countries. Recognizing that the company’s talent was its compe<<ve advantage, Suncorp adopted a culture of innova<on to re-imagine the IT landscape. By choosing AWS to support Agile principles and prac<ces, Suncorp was able to launch a working virtual private cloud and virtual data center in under three months and plans to move 2,000 applica5ons to AWS. – Finance, Insurance and Banking (Australia) Simple is an online bank that uses AWS to run its virtual banking plaCorm and meet payment card industry (PCI) data security standard (DSS) compliance for its development and produc<on environments. By using AWS, Simple can automate processes that once took months to complete and instead focus on its customer service rather than managing IT infrastructure. – Online Banking Coinbase is the largest consumer bitcoin wallet in the world and the first regulated bitcoin exchange in the United States. The company, which supports 3 million global users, facilitates bitcoin transac<ons in 190 countries and exchanges between bitcoin and flat currencies in 26 countries.
  31. 31. Adop<on Enabler: Mobile Services Amazon Cognito Amazon Mobile Analy5cs Amazon SNS AWS Device Farm AWS Mobile Hub Innovation & Agility Allow simple and quick iterations using AWS mobile services High Availability Designed and build for scale and availability across multiple facilities Cost Effectiveness Efficient testing of your mobile application on various devices using AWS Device Farm Maintainability Version management and cross-device synchronization
  32. 32. INSURANCE Customer Stories & Case Studies
  33. 33. Highlighted Customer Stories – Insurance – Global Risk Management, Insurance and Reinsurance Aon Benfield Analy<cs offers industry-leading catastrophe management, actuarial, ra<ng agency advisory and risk and capital strategy exper<se. By using AWS GPU instances, Aon Benfield is able to perform actuarial calcula5ons with greater compu5ng power, in shorter 5me frames, and for less cost than on-premise deployments and CPU cores. – Mul<na<onal Mortgage Insurance, Reinsurance and Other Financial Services This mul5na5onal customer’s loan informa5on plaCorm runs en5rely on AWS and leverages a large porJolio of AWS services to help automate the end-to-end process. Applica<ons interact with the loan plaJorm to ingest large amounts of data directly into Amazon S3, taking advantage of the storage service’s scalability and security. A workflow process is kicked off to classify and extract informa<on from the documents and populate data stores to support transac<onal and analy<cal func<ons. The plaJorm leverages the built-in security features offered by AWS along with third-party solu<ons for above the hypervisor controls to meet the stringent security needs of the customer’s business partners.
  34. 34. Adop<on Enabler: High Performance Compu<ng Corporate Network Elasticity & Cost Dynamic scalability when compute jobs are required with utility or spot pricing Manageability Managed services to facilitate aggregation and storage Scale Scale to virtually unlimited amount of cores Separation of concerns Decouple storage and compute – utility model with on-demand compute Storage Grid Reporting Streams
  35. 35. REGULATORY AGENCIES Customer Stories & Case Studies
  36. 36. FINRA, the primary regulatory agency for broker-dealers in the US, uses AWS extensively in their IT opera<ons and has migrated key por<ons of its technology stack to AWS including Market Surveillance and Member Regula<on. For market surveillance, each night FINRA loads approximately 35 billion rows of data into Amazon S3 and Amazon EMR to monitor trading ac<vity on exchanges and market centers in the US. Highlighted Customer Stories – Regulatory Agencies – U.S. Regulator In response to the May 6, 2010 Flash Crash in U.S. markets, the SEC used Tradeworx and AWS to create its Market Informa<on Data Analy<cs System (MIDAS), which enables the agency to collect and analyze billions of rows of data and to reconstruct any market event down to the individual record, analyzing more than 3 billion data points in seconds rather than weeks or months. – U.S. Regulator For our market surveillance systems, we are looking at about 40% [savings with AWS], but the real benefits are the business benefits: We can do things that we physically weren’t able to do before, and that is priceless.” – Steve Randich, CIO
  37. 37. Adop<on Enabler: Big Data Analy<cs, Data Lakes Ecosystem Leverage existing open-source and commercial frameworks at utility pricing Manageability Managed Big Data and machine learning services Elasticity & Cost Dynamic scalability when compute jobs are required with utility or spot pricing Separation of concerns Decouple ingest, storage, compute and consume AWS Import/ Export Amazon S3 Amazon Kinesis Amazon EMR Amazon Redshift Amazon QuickSight Amazon SQS
  38. 38. FINTECH Customer Stories & Case Studies
  39. 39. “Banks aren’t being disrupted by FinTech technology, they’re being disrupted by customer expecta-ons.” - McKinsey & Company FinTech – Reshaping the Industry Personal Inves<ng Banking Bitcoin/Blockchain
  40. 40. Adop<on Enabler: CI/CD Corporate Network Elasticity & Cost Automate performance or functional testing on AWS Manageability Build, maintain infrastructure as code through templates Scale Fully automate your application deployment Agility Minimize production downtime using CI/SD techniques or use e.g. A/B testing for flexible product rollouts AWS CloudFormation AWS
 CodeDeploy AWS
 OpsWorks AWS Elastic
 Beanstalk AWS
 CodeCommit AWS
  41. 41. Provides free access to financial services data sets for development/tes<ng to FinTech startups AWS in FinTech 13 data partners and growing, including: AWS provides AWS credits, support, and mentorship via AWS Ac<vate
  43. 43. Why Are Financial Services Companies Choosing AWS? Regulatory Compliance Con<nues to Drive Expense A Desire For Increased Wallet Share is Driving a Focus on Innova<on Elas<c Infrastructure To Meet Increasing Amounts of Data, Finite Resources for Analy<cs Digi<za<on and Disrup<ve Technology are Accelera<ng Transforma<on Security, Compliance, and Reduced Cost Ability to Bring New Ideas to Market Faster Highly Scalable Infrastructure for Analy5cs that Maler to the Industry Ability to Transform the Enterprise & the Industry
  44. 44. What are the Keys to Success for Adop<on, for FSIs? Execu<ve-level Sponsorship Dedicated Resources Real Projects that Maler to the Organiza<on A Vision for What Success Looks Like Senior Leaders Who Understand the Importance of, and Support Cloud Adop<on Internal FTEs, Budgeted Funds, External Partners When Warranted No “Science Projects” Legacy IT Transforma<on, Innova<ng to Improve Customer Experience, or Both?
  45. 45. Remember to complete your evalua5ons!
  46. 46. Thank You!