Gartner EA Conference / December 7 th, 2006 Authored by Mike Walker Financial Services Architecture Strategist [email protected]@microsoft.com.

Gartner EA Conference / December 7th, 2006Authored by Mike Walker Financial Services Architecture Strategist [email protected] • 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 /

PaymentsPayments

ATM/POS switchATM/POS switchCorp2BankCorp2BankCheck Check ProcessingProcessingSWIFT SWIFT Connectivity Connectivity Treasury / Cash Treasury / Cash ManagementManagementEBPPEBPPCredit Card Credit Card ProcessingProcessingMobile Mobile paymentspaymentsHigh and Low High and Low Value Value paymentspaymentsSecurity Security Settlem’tSettlem’tFraud MgmtFraud Mgmt

Advisor Advisor platform / platform / PortalPortalCompany Company and Industry and Industry Provided Provided ServicesServicesAdvisory Advisory ManagementManagement

AdvisorAdvisorPlatformsPlatforms

POS and Multi POS and Multi channel channel deliverydeliveryUnderwritingUnderwritingProd Dev and Prod Dev and ConfigurationConfigurationCore Policy Core Policy and Adminand AdminClaims Claims ProcessingProcessingRe-insuranceRe-insurance

InsuranceInsuranceValueValueChainChain

Audit and Audit and ControlsControlsDoc and Records Doc and Records ManagementManagementCorp Corp GovernanceGovernanceReporting and Reporting and AnalyticsAnalyticsPrivacy and Privacy and SecuritySecurityKYC/CIPKYC/CIPRisk Risk Management Management and Compand CompCertificationCertificationDocumentationDocumentation

RiskRiskManagementManagement

AndAndComplianceCompliance

Branch SellerBranch SellerBranch TellerBranch TellerLoanLoanATMATMInternetInternetIVRIVRCall CenterCall CenterCustomer Customer KnowledgeKnowledgeMobileMobile

ChannelChannelRenewalRenewal

/ 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 & PracticesMicrosoft Patterns & Practiceshttp://msdn.microsoft.com/practices/http://msdn.microsoft.com/practices/

Financial Services Architecture Financial Services Architecture GuidanceGuidancehttp://msdn.microsoft.com/FinServArch http://msdn.microsoft.com/FinServArch

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

Architecture JournalArchitecture Journalhttp://www.architecturejournal.net http://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, andAre 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

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 FoundationVector-based

Resolution independent

Rich media

3D user interfaces

Windows Communication FoundationSecure Web services

Reliable transacted distributed apps

Interoperability with WS-* protocols

Any transport and any host

Windows Workflow FoundationEngine built into platform

System and human workflow

Composite apps

Windows CardSpaceStreamlines user registration and one-click login

Mitigates common attack vectors (Phishing)

Seamless integration with WCF

InteropInteropwith otherwith otherplatformsplatforms

ASMX

Attribute- Attribute- BasedBased

ProgrammingProgramming

Enterprise Services

WS-*WS-*ProtocolProtocolSupportSupport

WSE

Message-Message-OrientedOriented

ProgrammingProgramming

System.Messaging

ExtensibilityExtensibilityLocation Location

transparencytransparency

.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

on

Supported 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 More BizTalk Server 2006 Server 2006 AdaptersAdapters

PeopleSoftPeopleSoftJD Edwards JD Edwards OneWorld XEOneWorld XEJD Edwards JD Edwards Enterprise1Enterprise1Oracle ODBC Oracle ODBC SiebelSiebelTIBCO RendezvousTIBCO RendezvousTIBCO EMSTIBCO EMSPOP3POP3Windows SharePoint Windows SharePoint ServicesServicesSQLSQLHost Integration Host Integration ServerServer

BizTalk Server BizTalk Server 2004 Adapters/2004 Adapters/AcceleratorsAccelerators

MQ 2.0 MQ 2.0 MSMQ/MSMQTMSMQ/MSMQTWSEWSEHTTPHTTPSMTPSMTPBase EDIBase EDISQLSQLFileFileFTPFTPSOAPSOAPSAPSAPSWIFTSWIFTHL7HL7RosettaNetRosettaNetHIPAAHIPAA

BizTalk Adapters BizTalk Adapters for Host Systemsfor Host Systems

Host ApplicationsHost Applications • IBM mainframe IBM mainframe

zSeries (CICS and zSeries (CICS and IMS) IMS)

• Midrange iSeries Midrange iSeries (AS/400)(AS/400)

•IBM DB2IBM DB2 • Mainframe DB2 for Mainframe DB2 for

z/OSz/OS• Midrange DB2/400Midrange DB2/400• DB2 Universal DB2 Universal

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

Host Files Host Files - Mainframe zSeries Mainframe zSeries

VSAM datasetsVSAM datasets- Midrange iSeries Midrange iSeries

AS/400 physical filesAS/400 physical files

BizTalk Server BizTalk Server 2006 R22006 R2

WCF AdapterWCF AdapterEDI / AS2EDI / AS2

• X12 and EDIFACT X12 and EDIFACT supportsupport

• Drummond Drummond Interoperability Interoperability Certification Certification

BizTalk RFIDBizTalk RFID• Device Abstraction and Device Abstraction and

Mgmt ToolsMgmt Tools• Event Processing for Event Processing for

Filters, Alerts and Filters, Alerts and TransformsTransforms

• Design, Runtime, Mgmt Design, Runtime, Mgmt APIsAPIs

• Back-office IntegrationBack-office IntegrationBizTalk Adapter PackBizTalk Adapter Pack

• Universal access to LOB Universal access to LOB apps through WCFapps through WCF

BizTalk Server – “In the Box”

/ How do these technologies come together in Banking? /

PORTALPORTALPORTALPORTAL

SharePointSharePointExcel ServicesWCF & WF

SQL Server & SQL Server & Analysis ServicesAnalysis Services

BizTalk BizTalk ServerServer

WSWS

Third PartyThird PartyRelationships:Relationships:Credit, MI, etc.Credit, MI, etc.

Existing Systems Existing Systems & Workflow

Sales, Loan Admins, Sales, Loan Admins, UnderwritersUnderwriters

/ 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

Microsoft

Intel

Sun

Dell

AMD A

CA A

Sonic A

gSOAP

Systinet A

WEBM

NetIQ

WS-P

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

Messaging Security Assurance

s

Mgmt

Metadata

WS-X

Fer /

Enum

WS-F

ed

WS-

Secure

Conv

WS-S

ecurit

y

WS-T

rust

WS-R

M

WS-A

T

MEX

WS-M

anag

emen

t

Released product

Public interop

A Co-Author Only

SOAP / W

SDL

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

MTOM

/ 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