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Understanding Cloud Computing & Its Relevance to Financial Software Solutions

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Understanding Cloud Computing & Its Relevance to Financial Software Solutions

  1. 1. Understanding Cloud Computing & Its Relevance to Financial Software Solutions Author: Zan Zannettou Disclaimer: The views and opinions expressed in this presentation are those of the author.
  2. 2. What is Cloud Computing?
  3. 3. Larry Ellison, Ex-CEO of Oracle (now Executive Chairman & CTO)
  4. 4. “Marc Benioff: Cloud computing is a technology model that refers to anything that involves delivering services over the Internet. The idea rests on something we call "multi-tenancy" and it's easy to think of it as an apartment building, where the tenants of the building share common costs such as building security or the laundry facilities, but they still have locks on their doors and the freedom and ability to design their apartments as they wish” Cloud Computing – Various Definitions In The Market Place “Larry Ellison: Is a platform that may run standard based software (such as OS and DB), applications, and may be used as a development and execution environment. It's based on a distributed computing stack which is scalable, must be virtualized, and provides resource elasticity. It may be available on a public basis, or it may be available on a private basis." “Official: Cloud Computing is Internet-based scaled computing, whereby shared resources, software and information are provided to computers and other devices on- demand, like electricity. It enables banks to move from a capital intensive cost model to one which is based on the consumption of technology.”
  5. 5. Capital Intensive IT Model vs. Consumption of IT Model TIME ITCAPACITY($$$) Actual IT Usage Allocated IT Capacity “Waste“ of IT Capacity “Under-supply“ of IT Capacity “Waste“ of IT Capacity Load Forecast
  6. 6. Under Supply of IT Capacity – The Outcome!
  7. 7. Usage Compute Time Average Inactivity Period On & off workloads (e.g. batch job) Over provisioned capacity is wasted Time to market can be cumbersome Compute Time Average Usage Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases Average Usage Compute Time Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment Compute Time Average Usage Services with micro seasonality trends Peaks due to periodic increased demand IT complexity and wasted capacity Workload Patterns Optimal For Cloud Computing
  8. 8. “A recent survey by Aité Group of senior technology executives at financial institutions found that cloud computing holds the potential to redefine the relationship between IT departments and financial institution business units. 50 percent of those surveyed responded that they were likely or highly likely to use private clouds in the next 24 months.” Cloud Computing According to Market Analysts “Gartner predicts that by 2016 more than 60% of banks worldwide will process most of their transactions in the cloud. That growth in cloud adoption will be driven by a poor return on equity.” “A recent joint SAP / Ovum survey polled 400 Financial IT decision-makers, where 80 per cent said they agreed with the idea that cloud services helps organizations act more quickly on new opportunities, while another 79 per cent said they felt cloud services also helps new entrants move into the market more quickly. Over the next year, 42 per cent of IT decision makers at banks said they expect to make more investments in the cloud.”
  9. 9. SAP – TCO Analysis on Cloud vs. OnPremise  Extensive study by SuccessFactors & Ariba, SAP Cloud Businesses  Clients Revenue Break Even start of Year 4 with Cloud Services  Typically Treasury, Risk Management and Banking Software licensing duration is 10+ years
  10. 10. Cloud Computing Options
  11. 11. Overcoming the Confusion on Cloud Computing Public Cloud Private Cloud Hybrid Cloud Infrastructure as a Service (IaaS) Community Cloud Platform as a Service (PaaS) Software as a Service (SaaS) Compute as a Service (CaaS)
  12. 12. Explained - Cloud Computing Options Private (on-Premises/3rdParty) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Bankmanage Infrastructure as a Service Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managedbyvendor Bankmanage Platform as a Service Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managedbyvendor Bankmanage Software as a Service Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managedbyvendor
  13. 13. Applying to Financial Software Solutions
  14. 14. Compliance - Regulators Recognize the Value of the Cloud
  15. 15. Cloud Computing – Uses of Financial Software Solutions Evaluation of Software Testing & Development Performance Testing Production
  16. 16. What Stops Banks From Using the Cloud
  17. 17. • SOC – Formerly SAS 70 Type II Accreditation • The highest available recognition that examines the procedures and controls that manage and protect the exchange and processing of customer data and financial information • Rigorous evaluation services by expert consultancies i.e. EY Cloud Service Accreditations
  18. 18. Case Studies : Deploying Financial Software Solutions on the Cloud
  19. 19. Some Case Studies - HPC for Credit Risk Simulations - Rapidly provision Devp. & Test Servers
  20. 20. Cynics of the Cloud Computing Business Have Now Embraced Its Value!
  21. 21. Remember Larry Ellison’s past comments, well here he is a number of years later at Oracle OpenWorld 2014 on Oracle’s Cloud offerings!
  22. 22. End of Presentation

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