Gartner EA Conference / December 6th, 2006Authored by Mike Walker Financial Services Architecture Strategist mikewalk@microsoft.com • http://msdn.microsoft.com/FinServArch

/ Agenda /

• Microsoft’s vision for Financial Services

• Business Challenges

• Technical Challenges

• Enterprise Integration

• Financial Services Solution Architectures

• Conclusion

/ The analysts have this to say about Microsoft /

“.NET leads J2EE in ease, speed, and (lower) cost of

development. The level of abstraction built into .NET

means that programmers work with much larger "blocks"

when developing new solutions. IT professionals need to

worry less about the low-level details of system

programming than they would under a

J2EE paradigm.”

“As more firms look at efforts

to remove data silos, migrate

dated functionality, or to

create agile infrastructures,

Microsoft’s .NET platform will

be a natural choice for many.

To date, the biggest growth

impediment has been more a

combination of large financial

services firms, hesitant to run

enterprise applications on

Wintel platforms, and the

historical perception of SQL

Server as a second-tier

database server. This has

changed…”

“Overall, Celent sees the growth of Windows in the

insurance industry as a result of several trends:

• The increasing viability and acceptance of Windows

as an enterprise platform

• The growth of Services-Oriented Architectures,

which reduce the value of technical monocultures

• The increasing maturity of .NET as a development

environment

• The growth of .NET-based vendor solutions.”

1. Tower Group - April 2006 – “.NET vs. J2EE: Does the Future of Service-Oriented Architecture Hang on Myth and Misconception?”

2. AITE Group – February 2006 – “Financial Services Caught in the .NET - Practical Lessons from the Trenches”

3. Celent – February 2006 – “Insurance CIO/CTO Pressures, Priorities, Projects, and Plans 2003-2005 Survey Results”

/ Mission Critical Applications in Financial Services /

• London Stock Exchange – 97,000 terminals

receiving real-time Market Data

• SWIFT - Gold Certified

• Central Bank of Spain - High Value Payments

• CheckFree – 1000 tps and 24% less TCO

• Nasdaq – Market Data Service handles 5,000

tps at market open

• 70 percent of all new ATMs shipped are

Windows-based

• Banco Azteca - 64-bit Platform for Bank’s Core

Transactions

• Equifax - move to Windows Datacenter and

.NET saved millions

• Citigroup – CitiVision Integrates 270 Different

Sources of Information for 12,000+ Global

Investment Bankers

• SAP Core Banking Benchmark 8,279,000

postings to bank accounts per hour

• Nationwide (UK) - Basel II Compliance

Solution with SQL 2005 consolidating 80

different systems data and storing for 7 years

• Commonwealth Bank of Australia –

CommSee Branch of the Future Solution

• SberBank – largest bank in Russia – all

applications on SQL 60,000 docs per hour

• Bank of Montreal: 18,000 users on .NET Smart

Client for Branch (.NET Framework)

• Merrill Lynch: 1-800-Merrill is one .NET IVR

platform that serves 75m transaction a day

• Bank of America automates customer call center

– 15,000 agents using Microsoft Customer Care

Framework (CCF)

• Cheshire UK – core banking with Fincentric

• Interpay (Netherlands) 25 TB Payment System

• JPMorganChase – equities trading platform

• Allstate – Producer Connectivity network

leverages .NET while helping enable Policy

Management solution in record time.

• Barclays Trade and Positioning System

processing 200 trades/sec up to 1000 trades/sec

• First American Title Company - Title and

Escrow System consolidated 50 systems to one,

12,000 concurrent users, 64-bit capabilities

• Citigroup TreasuryVision - Managing Corporate

Cash Around the World

/ Current Industry Challenges /

• Customer satisfaction and retention

• Growth and quality of business

• Human-intensive, paper-bound

workflows

• Poor distribution channel integration

• Regulatory compliance pressures

• High Operational Costs

/ Current Technology Issues /

• Technology Sprawl

• High-cost of maintenance/development

• Business demands now exceed capacity

to deliver regularly

• Workflow desires meet temporal

roadblocks … A dictatorial platform

• Innovation and differentiation

are prevented

/ Snapshot of Microsoft in Financial Services /

• Qualitative shift in our business – into more and

more “mission critical” transactional roles

• Focus on Industry Solutions to solve real Business

Problems (Industry Priority Solution Scenarios

(IPSS))

• Scaling to the enterprise is “now” a reality with the

Microsoft Platform

• People are noticing; Analysts, customers, and

partners

• Increasingly influential in Microsoft’s core

technology, marketing and product direction

• Increasing importance of Financial Services Industry

partners

/ Microsoft is focused on the financial services industry /

Payments

ATM/POS switch

Corp2Bank

Check Processing

SWIFT Connectivity

Treasury / Cash Management

EBPP

Credit Card Processing

Mobile payments

High and Low Value payments

Security Settlem’t

Fraud Mgmt

Advisor platform / Portal

Company and Industry Provided Services

Advisory Management

Advisor

Platforms

POS and Multi channel delivery

Underwriting

Prod Dev and Configuration

Core Policy and Admin

Claims Processing

Re-insurance

Insurance

Value

Chain

Audit and Controls

Doc and Records Management

Corp Governance

Reporting and Analytics

Privacy and Security

KYC/CIP

Risk Management and Comp

Certification

Documentation

Risk

Management

And

Compliance

Branch Seller

Branch Teller

Loan

ATM

Internet

IVR

Call Center

Customer Knowledge

Mobile

Channel

Renewal

/ Financial Services Architecture Guidance /

• Launch was a huge success

• Lot’s of buzz in the blogosphere & press

• Sub-sites being developed to address:• Banking• Insurance• Capital Markets

http://msdn.microsoft.com/FinServArch

Microsoft Patterns & Practiceshttp://msdn.microsoft.com/practices/

Financial Services Architecture Guidancehttp://msdn.microsoft.com/FinServArch

MSDN Solution Architecture Centerhttp://msdn.microsoft.com/architecture

Architecture Journalhttp://www.architecturejournal.net

SOA – It’s About Business!

• Business Information Technology• IT exists to support business

• We are looking for an overarching architecture that

supports the business needs of IT

• Businesses have huge existing investments in

IT• These investments:

Fill different needs,

Are implemented on different platforms, and

Are of different vintages

• No one in their right mind believes these huge

investments will be discarded!

• Businesses are evolving to be IT centric• More and more virtual businesses are emerging

• Information is their key to survival…

EXAMPLE DECOMPOSITION

/ Business Architecture with Microsoft MOTION /

HIGH-LEVEL VIEW

DECOMPOSITION FRAMEWORK

Motion starts with a high-level, objective view of business, and allows

capability decomposition

/ Technology Elements of BSF /

Systems Management Server

Microsoft Operations Manager

Windows System Update Service

Microsoft Operations Framework

Integrated Management & Governance

Integrated Tools & Modeling

.NET Framework 3.0

Windows Presentation Foundation

Vector-based

Resolution independent

Rich media

3D user interfaces

Windows Communication Foundation

Secure Web services

Reliable transacted distributed apps

Interoperability with WS-* protocols

Any transport and any host

Windows Workflow Foundation

Engine built into platform

System and human workflow

Composite apps

Windows CardSpace

Streamlines user registration and one-click login

Mitigates common attack vectors (Phishing)

Seamless integration with WCF

Interopwith otherplatforms

ASMX

Attribute-Based

Programming

Enterprise Services

WS-*ProtocolSupport

WSE

Message-Oriented

Programming

System.Messaging

ExtensibilityLocation

transparency

.NET Remoting

/ Unified Programming Model /

Service-Oriented Architecture

Service Registry

Service Management

Security

Enterprise Service Bus

ESB Core Engine

Transformation

Routing

Exception Management

Orchestration

Ad

ap

tati

on

B2B GatewayProvisioning Framework

Ad

ap

tati

onSupported Service

Consumer

Native

Supported Service Provider

Native

Standard Service Consumer

SOAP

Standard Service Provider

SOAP

/ ESB Guidance /

• Pre-built, reusable

code, patterns,

and guidance

• Accelerates

implementations

• Early adopter

program available to

partners now

Enterprise Connectivity

More BizTalk Server 2006 Adapters

PeopleSoft

JD Edwards

OneWorld XE

JD Edwards

Enterprise1

Oracle ODBC

Siebel

TIBCO Rendezvous

TIBCO EMS

POP3

Windows SharePoint

Services

SQL

Host Integration

Server

BizTalk Server 2004 Adapters/Accelerators

MQ 2.0 MSMQ/MSMQTWSEHTTPSMTPBase EDISQLFileFTPSOAPSAPSWIFTHL7RosettaNetHIPAA

BizTalk Adapters for Host Systems

Host Applications

• IBM mainframe zSeries (CICS and IMS)

• Midrange iSeries (AS/400)

•IBM DB2

• Mainframe DB2 for z/OS

• Midrange DB2/400

• DB2 Universal Database for open platforms (AIX, Linux, Solaris, and Windows)

Host Files

- Mainframe zSeries VSAM datasets

- Midrange iSeries AS/400 physical files

BizTalk Server 2006 R2

WCF Adapter

EDI / AS2

• X12 and EDIFACT support

• Drummond Interoperability Certification

BizTalk RFID

• Device Abstraction and Mgmt Tools

• Event Processing for Filters, Alerts and Transforms

• Design, Runtime, Mgmt APIs

• Back-office Integration

BizTalk Adapter Pack

• Universal access to LOB apps through WCF

BizTalk Server – “In the Box”

/ How do these technologies come together in Banking? /

PORTAL

SharePoint

Excel Services

WCF & WF

SQL Server &

Analysis Services

BizTalk Server

WS

Third Party

Relationships:Credit, MI, etc.

Existing Systems

& Workflow

Sales, Loan Admins,

Underwriters

/ Key Components of Interoperability /

• Agreed syntax representations• E.g. XML

• Agreed protocols• E.g. SOAP + WS-* specs (such as WS-

ReliableMessaging)

• Agreed payload schemas • E.g. IFX for banking data

• Profiled composition• E.g. Pre-defined options to ensure functionality

• Agreed business scenarios• E.g. Well defined interaction scenarios / use cases

/ Industry Standards are Key as Well /

• SWIFT

• IFX

• NACHA

• MISMO

• X9

• FIX

• ACORD

• TWIST

Microso

ft

Intel

Sun

Dell

AMD A

CA A

Sonic A

gSOAP

Systinet A

WEBM

NetIQ

/ Microsoft is the clear leader in WS-* adoption /

Messaging Security Assurances

Mgmt

Metadata

Released product

Public interop

A Co-Author Only

Microsoft

IBM

BEA A

Cape Clear

Systinet

Blue Titan

Rogue Wave

Sonic

IONA

Arjuna

Choreology

Apache

Tibco

Microsoft

IBM

BEA A A

RSA A

Systinet

Apache

Layer7 A

DataPower

CA A A

SUN

SAP

Tibco

IONA

WebMethods

Nokia

Cape Clear

gSOAP

Ping ID A

Netegrity A A

Verisign A A A

OpenNetwork A A A

Oracle/Oblix

Microsoft

IBM

BEA

SUN

Google

Amazon

eBay

Apache

Whitemesa

gSOAP

Ricoh

Epson

HP

Xerox

Fuji-Xerox

Intel

Canon

Microsoft

IBM A

BEA A

SAP A

Sun A

Verisign A

Sonic A

CA A

WebMethods A

gSOAP

/ Governance is Critical to the Success of SOA /

• Without a governance model we will end

up with the same result as our current IT

environment.

• Governance will provide:• Repeatable way of making architecture

decisions

• Consistent and repeatable ways of building

solutions in your enterprise

• Will facilitate the reduction of unneeded and

redundant solutions

• Increase developer productivity

/ Powerful IDE Integration with Meta-Data Repository /

/ Empower the people /

• Tight integration with an Architecture

Meta-Data Repository allows for:• Formal Communication Mechanism to reach

out to the development community

• Education and Awareness

• Facilitates Separation of Duties

• Encourages Reuse of existing application

patterns

/ Measure the effectiveness of your SOA /

• With the tight integration with the Microsoft tooling metrics can be captured• IDE Environments• Test Tools• Source Code & Document Repositories

• Operational Metrics• SLA’s, Downtime & Uptime, WS Volume, etc.

• Now Key Performance Indicators (KPI) can be captured

• Adoption trends can be captured

/ Conclusion /

• Most tooling is based on Industry Standards• Support for Heterogeneous Environments is less of a

concern

• Next Generation SOA concepts are supported

with the implementation of WS-*

• Unified Framework for developing:• Workflow Services

• Communications Services

• Presentation Services

• Message Bus Technologies

• Composite style architecture support

• A scalable business platform