Cloud Computing: Helping Financial Institutions Leverage the Cloud to Improve IT Efficiency


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IBM's cloud computing solutions improve capital utilization, reducing the excessive infrastructure costs associated with underutilized IT resources. They provide elastic scalability and accelerate time to value. They help increase agility and responsiveness to changing business conditions and foster innovation. IBM provides clear economic value and helps financial institutions work through the right mix of delivery models and choices (by workload) to reap the maximum benefit.

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Cloud Computing: Helping Financial Institutions Leverage the Cloud to Improve IT Efficiency

  1. 1. Anthony Lipp – Global Strategy Leader, Banking & Financial Markets August 2010 Cloud Computing © 2010 IBM Corporation
  2. 2. Building a smarter planet There are dramatic forces shaping the financial services industry Economy Trust Weak conditions impact Rebuilding trust and investment decisions and confidence across the reduce need for financial system is critical to future services growth and stability Competition Regulation Intensified competition with Radically increased increased M&A, divestitures oversight ushering in a new and entrance of non-bank era of increased service providers government intervention Clients Capitalization Rapidly evolving Mature markets and expectations for offerings, emerging markets alike service unbiased advice, focus on rebuilding their and convenience capital reserves 2 © 2010 IBM Corporation
  3. 3. Building a smarter planet The global financial system is highly complex with many stakeholders and requires new approaches to create value  The global financial system is massively interconnected and interdependent Financial  An adaptive system which is a complex institutions network – evolving organically  The number of intersection points of the Compliance Surveillance financial services networks across the 18 and monitoring largest countries increased 14x in 20 years1 Soundness Regulators Stability Supervisors  The system moves more than $74T around the world each day Laws and  Digitization of the “real economy” has rules Standards transformed availability of information and how decisions are made Policy makers  Anonymity and susceptibility make the system an attractive target for criminal elements  The system intermediates the needs of billions of people in 190 countries — in thousands of languages. 3 1 – Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of England © 2010 IBM Corporation
  4. 4. Building a smarter planet Winners are enabling themselves by a new business infrastructure that is more instrumented, interconnected and intelligent Instrumented Interconnected Intelligent Advanced capture, tracking and Integrated capabilities Predictive client analytics control of digitized transactions Social networking and online Real-time alerts and information collaboration  Enterprise view of data, automated  Real-time capture and view of  Banks systems connecting to modeling and predictive analytics continuously streaming data of governments and regulators in to provide greater client and business multiple types and from multiple new, smarter ways to identify risk insight. sources enabling quicker insight concentrations and, thereby, improve and, therefore, faster time-to-market insights around systemic risk issues  Real-time alerts of performance and higher margins and global inter-dependencies problems with insights into the  source systems and applications  Tracking and detecting the  Engaging customers as co- as well as analysis of impact on requirements of transaction developers through social networking business processes and service messages in real-time, enabling and online collaboration to tailor levels. automatic routing of payments products and services on demand through least-cost channels 4 © 2010 IBM Corporation
  5. 5. Building a smarter planet As the planet gets smarter the information explosion and rapid change create new challenges 10x 55K PB/Mo Digital data is projected to grow Global Internet traffic volume tenfold from 2007 to 2011 expected by 2013 1 trillion 83% Number of devices will be Percentage of CIOs who expect connected to the Internet by to face substantial change over 2011 the next three years © 2010 IBM Corporation 3
  6. 6. Building a smarter planet Today’s IT infrastructure is under tremendous pressure and is finding it difficult to keep up… It will reach a breaking point 66% 82% 66 percent is spent on Percentage of executives who maintaining current IT report a security breach and infrastructures versus adding aren’t confident they can prevent new capabilities future breaches 78% 85% idle Percentage of CIOs who want In distributed computing to improve the way they use environments, up to 85 percent and manage their data of computing capacity sits idle 6 © 2010 IBM Corporation
  7. 7. Building a smarter planet There is a greater need for IT to help address business challenges Doing more with less Higher quality services Reducing risk Breakthrough agility 7 © 2010 IBM Corporation
  8. 8. Building a smarter planet There are three ways to acquire IT capabilities Software, Pre-integrated Provided hardware systems and as services and services appliances Cloud computing is a new delivery and consumption model or methodology spanning all 3 ways. 8 © 2010 IBM Corporation
  9. 9. Building a smarter planet What is different about cloud computing? Without cloud With cloud computing computing  Virtualized resources  Location independent  Automated service  Rapid scalability management  Self-service  Standardized services • Software • Software • Hardware • Hardware • Storage • Storage • Software • Storage • Networking • Networking • Hardware • Networking Service Management Service Management Service Management 9 © 2010 IBM Corporation
  10. 10. Building a smarter planet There is a spectrum of deployment options for cloud computing Private Public IT capabilities are provided “as a IT activities / functions service,” over an intranet, within the are provided “as a service,” enterprise and behind the firewall over the Internet Enterprise Enterprise Users Enterprise Enterprise data center data center A B A B Managed Hosted private Shared cloud Public cloud Private cloud private cloud cloud services services Third-party Third-party hosted operated and operated Hybrid Internal and external service delivery methods are integrated 10 © 2010 IBM Corporation
  11. 11. Building a smarter planet Public and Private Clouds are preferred for different workloads Database and application-oriented Infrastructure workloads emerge as workloads emerge as most appropriate most appropriate 11 Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090 © 2010 IBM Corporation
  12. 12. Building a smarter planet Cloud computing framework Application infrastructure Business services Integrated for delivering cloud delivered via the cloud capabilities for services visibility, control, IT services that are Cloud-based business automation and integrated with cloud solutions for industry- security of cloud services specific processes services Existing services and Business planning / lifecycle Industry-specific services management and security third-party services, management services Integrated service partner ecosystems Process Collaboration Analytics services services services … Shared middleware services Infrastructure services Capabilities to define an Virtualized and enterprise architecture for optimized systems business planning/alignment storage and networking and tools for managing the lifecycle of cloud services 12 © 2010 IBM Corporation
  13. 13. Building a smarter planet Ready-to-consume cloud services from IBM IBM Smart Business on the IBM Cloud Business processes  BPM BlueWorks  Smart business expense reporting on the IBM Cloud Collaboration  IBM LotusLive Desktop and devices  IBM Smart Business Desktop on the IBM Cloud  IBM Smart Business End User Support Development and test  IBM Smart Business Cloud for development and test Infrastructure Compute  IBM Smart Business Cloud  IBM Managed Security Services for production workloads  IBM Tivoli Live Infrastructure storage  IBM Information Protection Services Software as a Service  IBM WebSphere  IBM DB2 Application Server  IBM Informix Dynamic Server  IBM WebSphere sMash  Lotus Domino  IBM WebSphere Portal  Lotus Web Content Mgmt 13 © 2010 IBM Corporation
  14. 14. Building a smarter planet Businesses that implement cloud computing services from IBM are seeing significant results Large Financial Large Financial Large Global Large Financial Services Services Provider Payments Services Provider Provider in Asia in South Africa Provider in the United States Risk & Capitalizing on Time to Value Smart Business Compliance new efficiencies Creates an Test Cloud 30,000 + employee Reduced labor and ecosystem for 3rd Created a self- bank deploying a infrastructure need to Party developers. service, flexible and private cloud from develop and deploy secure environment IBM to centralize new services. Reduces to develop, port, test management of developer effort to and validate their desktops via an Decreased new deploy a work software on standard enterprise class data application deployment environment with systems and center rather than at time from 10 weeks to seamless. middleware. the user stations. less than 1 week. Improved time to Gets greater remote Accelerated business market, higher flexibility without transformation. quality and reduced sacrificing control. costs. 14 © 2010 IBM Corporation
  15. 15. Building a smarter planet Making cloud computing real New Business Demanding New Need economics flexibility greater technology solutions experiences with new results from speed, that work with faster trade-offs IT flexibility control, time to and are security and market supported transparency consistently. Clear Secure and Designing Integrated Globally economic ready for for and open relevant value business simplicity 15 © 2010 IBM Corporation