The document outlines UBS's cloud innovation strategy, emphasizing the importance of cloud computing in enabling technology industrialization, efficiency, and lower costs. It discusses UBS's alignment with the Open Data Center Alliance (ODCA) and highlights key strategies aimed at optimizing risk management, security, and automation in IT operations. Additionally, it addresses the challenges faced by global finance companies, such as regulation and market pressure, while detailing the capabilities UBS aims to establish through automation and effective governance.

1. An Enterprise Perspective
on Cloud Innovation
Andy Brown
UBS Group CTO
Client Facing Technologies CIO

2. UBS: One of the leading financial firms
• UBS draws on its 150-year heritage to serve private,
institutional and corporate clients worldwide, as well as retail
clients in Switzerland
• We combine our wealth management, investment banking
and asset management businesses with our Swiss operations
to deliver superior financial solutions
• Present in all major financial centers worldwide, UBS has
offices in over 50 countries employing about 66,000
people
• UBS shares are listed on
the SIX Swiss Exchange
and the New York Stock
Exchange
2

3. 1Q12 results: Successfully executing our strategy
CHF 2.2 billion adjusted pre-tax profit, ~13.0% adjusted RoE
Visible progress across business divisions
We are ahead of our plan to reduce risk-weighted assets
Our capital, liquidity and funding positions remain strong
3

4. "Anyone who has never made a
mistake has never tried anything new."
"The significant problems we face cannot be
solved at the same level of thinking we were at
when we created them."
"Insanity: doing the same thing over
and over again and expecting different
results."
Albert Einstein
4

5. Core themes of the UBS business strategy
• Client at the center of everything we do
• Industrialization
• Effectively manage capital and risk
5

6. Key UBS technology investment areas
“ Whoever can process and analyze data
Big Data
better is the winner ”
“ The problem with Green IT is that it runs
Sustainability opposed to how vendors build things ”
“ Android will change how people interface
Consumerization with applications ”
“ A global identity model will likely be derived
Security & Risk
from Social Networks ”
“ There is no one-size fits all approach…get
Social tactical and look at specific use cases ”
Cloud “ Cloud empowers the entire IT organization ”
Our analysis and evaluation of the industry as a whole has led us to
focus on and invest in six key strategies
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7. How our vision aligns with ODCA
• Cloud has been at the centre of the ODCA's
activities from the start
• Sustainability is expressed through the Carbon
Footprint Usage Model
• Security and Risk management have been a key
area of activity with seven Usage Models now
developed within the Secure Federation family
• Big Data is a new area of focus at the ODCA with
the recent formation of the Data Services
Workgroup to facilitate development of new Usage
Models in this area
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8. What ODCA is all about – Driving data center
standardization
• Partnerships with standards developing organizations (SDOs)
helps to ensure that industry standards meet the needs of the
enterprise
8

9. UBS and ODCA alignment
• UBS is in the process of designing our cloud compute
capabilities
• Cloud’s ability to support technology industrialization is a
fundamental building block of our business & IT strategy
• Our participation in ODCA and Open Compute are deliberate
and part of the “how” for our strategy
• ODCA adoption provides a framework for all of us to benefit
from Open Compute:
Increased Reduced cost Transparency
power (~24%)* of processes
efficiency
(~38%)*
*Estimated Facebook benefits from new data center built on open compute standards
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10. Enterprise procurement is a small but
important part of the cloud supply chain
SaaS
Fusion
PaaS
IaaS
• Public
• Hybrid
Private on Premise
• Private Off-Premise
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11. Cloud Computing at UBS: Why cloud
automation?
From “IT artisan” to IT revolution
• Like the industrial revolution,
we have the potential to
revolutionize IT through
commodity automation
• UBS’ Cloud Broker can provide
standardized, self-service,
demand-driven deployment and
support
• This allows “IT artisans” to focus
on competitive differentiation
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12. Using Cloud is core to UBS' Technology
Industrialization strategy
Application
Application Code
• A core concept for UBS is
Application Libraries industrialization
InterOp App/Web RDBMS • ODCA brings the ability to
Operational Ecosystem
Stack Server Stack
(MQ, EMS, sftp) Stack (Oracle) industrialize the way compute
managed
f ile t ransf er
messaging
server
P/S
publisher f or Int erOp Capabilit ies
Securit y
Int egrat ion
(Tomcat)
User
Aut hent icat ion
Load Balancing f or Applicat ion-Web-Server Capabilit ies
… f or Dat abase Capabilit ies
is delivered by cloud providers
Def ault Base
Def ault Base
Def ault Base
simple f ile messaging P/S logging & logging & logging &
operat ions deployment Servlet Engine HTTP Server operat ions deployment RDBM S operat ions deployment
t ransf er client subscriber monit oring monit oring monit oring
• UBS is committed to
OS St ack OS St ack OS St ack
developing automated delivery
OS Stack
Availabilit y Regional-
Securit y FP isation
Feat ure
(LOA3+)
Pack(s) Feat ure Pack
Vendor
Virt ual
Hardw are
ext ensions*
Tools*
Def ault Base
syst em Perf ormance process t ask
Base Conf ig File Syst em Shell
logging M onit oring scheduling execut ion
(RedHat Enterprise Linux) St orage/FS Net w ork
Connect ivit y Connect ivit y
Hardw are
Drivers
Int egration
t o Invent ory
(discovery)
St andard
Tools/Ut ils
Syst em
M onit oring
Remot e
M gmt
Deployment Backup
LOA2
Securit y FP
of services built on:
Nat ive Product
Virtualization or Cloud IaaS
⁻ Standard Stacks
Compute Resources ⁻ Standard Data
Cross-
L1 access
Hard
Jurisdict ion Tw o-Fact or
Aut h.
Hard
Token
(HSM /TPM )
LOA4
M onit oring
Rules
LOA4
Securit y
Logging
LOA4
Pat ch
M gmt
Policy
LOA4
Access
Cont rol
Policy
Enf ocmnt
LOA4
Service &
Prot ocol
Enf ocmnt
LOA4
Packet
Filt er
Break-Glass CID/PII
Encrypt ion
synchronous
replication
zero-out age
f ailover 0
1
⁻ Standard Cloud
Privilege Washing / Signing aut omatic
Libraries
Access Obf uscat n f ailover
LOA3
LOA3 LOA3
Cont rolled Secured LOA3 LOA3 Access LOA3
Privilege
Tw o-Fact or
Aut h.
Key M gmt M onit oring Securit y
Pat ch
M gmt
Cont rol
Service &
Prot ocol
Packet
backup recovery 2
Elevat ion (Cent ral) Rules Logging Policy Filt er asynchronous
Policy Enf ocmnt
Enf ocmnt replication
manual
f ailover 3
Basic
Def ault Base
Direct ory /
Basic Key Basic Basic Pat ch Access Service &
Ident it y Passw ord
St ore & Securit y Securit y M gmt Cont rol Prot ocol
Def ault Base
M gmt Policy
M gmt M onit oring Logging Policy Policy Enf ocmnt
Int egrat ion
Enf ocmnt 4
Nat ive Product Nat ive Product s
LOA Framework BCM Framework
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13. Cloud computing at UBS: The constraints we
need to optimize
• UBS and most global finance companies, struggle with
unprecedented regulation, change, complexity, and
market pricing pressure
• IT must adapt to rapidly changing
business needs while lowering
spending… How?
−Be agile to start, stop, scale
projects with less investment
−Implement policy to embed
governance, control, transparency
−Improve standardization
−Reduce risk in operating
environments
− Automate routine tasks
13

14. UBS has identified a cloud broker as a required
enterprise capability
Example:
SDLC
Automation
14

15. …and a required component of the target state

16. Key benefits to UBS
Cloud service providers are using automation to deliver agility;
The ODCA helps us to engage with that community
• ODCA has allowed us to amplify our voice in the marketplace
by articulating our key needs within common Usage Models:
⁻ Security
⁻ Regulation
⁻ Automation
⁻ Transparency
• RFP templates that have come from Usage Models help us to
engage with Service Providers and shorten time to action
• Open source model for collaboration with other members
drives quality and reduces internal workload
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17. Accelerate ROI via ODCA Usage Model
deployment
Usage Models Featuring
• Benefits of solution alignment RFP Verbiage
• Simplifies RFP Issuance Carbon Footprint
• Streamlines Industry Focus on IO Control
the Right Priorities Provider Assurance
• Enables buying with Confidence Security Monitoring
for Open, Industry Standard VM Interoperability
Solutions
• Provides Scale to Accelerate
Market Adoption
Simplifies Procurement & Focuses Prioritized Innovation
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18. ODCA’s role is accelerating cloud solutions
Unified Voice Accelerates
Prioritize
Market Delivery
Solution Testing and
Deliver Deployments based on a
Common Foundation
Today’s Learning forms
Share Foundation for Tomorrow’s
Requirements
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19. The ultimate benefits of working together
Accelerate
$50B
of cloud
services1 Saving
$25B
in TOTAL
annual IT
spend within
5 years2
1: Source: Projections based on IDC Cloud Services Forecast, May 2010.
Assumes a 25% acceleration in cloud services from IDC estimate between 2010 and 2015
2: Source: Estimated 15% reduction in operational costs based on Bain’s $142B annual spending estimates.
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20. "He that will not
apply new remedies
must expect new
evils; for time is the
greatest innovator“
- Francis Bacon
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21. Your Forecast for today
• Expand your network – Meet with executives and
architects from some of the largest IT shops in the world
• Shape your cloud strategy – Engage with ODCA leaders as
they discuss POC & deployment best practices
• Access the latest solutions – Learn about top solutions
provider’s cloud solutions that meet ODCA's requirements
• Streamline purchasing & planning – Utilize ODCA's
Performance Engine Assistant Tool to integrate ODCA
requirements into 2012 cloud RFPs
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22. Enjoy Forecast!
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