Understanding Cloud Computing & Its

Relevance to Financial Software

SolutionsAuthor: Zan Zannettou Disclaimer: The views and opinions expressed in this presentation are those of the author.

What is Cloud Computing?

Larry Ellison, Ex-CEO of Oracle (now Executive Chairman & CTO)

“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.”

Capital Intensive IT Model vs. Consumption of IT Model

TIME

IT C

APAC

ITY

($$$

)

Actual IT Usage

Allocated IT Capacity

“Waste“ of IT Capacity

“Under-supply“ of IT Capacity

“Waste“ of IT Capacity

Load Forecast

Under Supply of IT Capacity – The Outcome!

Usage

Com

pute

Time

Average

Inactivity

Period

“On and Off “

On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome

Com

pute

Time

“Unpredictable Bursting“

Average Usage

Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases

Average UsageCom

pute

Time

“Growing Fast“

Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment

Com

pute

Time

Average Usage

“Predictable Bursting“

Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity

Workload Patterns Optimal For Cloud Computing

“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.”

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

Cloud Computing Options

Overcoming the Confusion on Cloud Computing

Public CloudPrivate 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)

Explained - Cloud Computing Options

Private(on-Premises/3rdParty)

Storage

Server HW

Networking

Servers

Databases

Virtualization

Runtimes

Applications

Security & Integration

Ban

k m

anage

Infrastructure

as a Service

Storage

Server HW

Networking

Servers

Databases

Virtualization

Runtimes

Applications

Security & Integration

Man

ag

ed b

y v

en

dor

Ban

k m

anage

Platformas a Service

Storage

Server HW

Networking

Servers

Databases

Virtualization

Runtimes

Applications

Security & Integration

Man

ag

ed b

y v

en

dor

Ban

k m

anage

Softwareas a Service

Storage

Server HW

Networking

Servers

Databases

Virtualization

Runtimes

Applications

Security & Integration M

an

ag

ed b

y v

en

dor

Applying to Financial Software Solutions

Compliance - Regulators Recognize the Value of the Cloud

Cloud Computing – Uses of Financial Software Solutions

Evaluation of Software

Testing & Development

Performance Testing

Production

What Stops Banks From Using the Cloud

• 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

Case Studies : Deploying Financial Software Solutions on the Cloud

Some Case Studies

- HPC for Credit Risk Simulations

- Rapidly provision Devp. & Test Servers

Cynics of the Cloud Computing Business Have Now Embraced Its Value!

Remember Larry Ellison’s past comments, well here he is a number of years later at Oracle OpenWorld 2014 on Oracle’s Cloud offerings!

End of Presentation