IBM zEnterprise: Banking

© 2010 IBM Corporation

IBM zEnterprise System business value for the banking industry Smarter systems for a smarter planet™

George Mattathil -

5/3/2011

Posting reference 727

© 2010 IBM Corporation 2

CLIENTS

Rapidly evolving

expectations for offerings,

service, and convenience

REGULATION

Radically increased

oversight ushering in a

new era of increased

government intervention

TRUST

Rebuilding trust and

confidence across the

system is critical to future

growth and stability

CAPITALIZATION

Mature markets and

emerging markets alike

focus on rebuilding their

capital reserves

COMPETITION

Intensified competition with

increased mergers and

acquisitions, divestitures and

entrance of non-bank

service providers

ECONOMY

Weak conditions impact

investment decisions and

reduce need for financial

services

There are dramatic forces of change across the global financial system.


Commercial

banking

Retail

banking

Corporate

finance

Asset

management

Custody

and agency

services

Sales and

trading

Payments

processing

Anti-money

laundering

Compliance

reporting

Trading

systems

General

ledger

Account

opening

Customers

Partners

Regulators

Service providers

Inflexible, complex operations and siloed data prohibits banks from focusing on their clients.

“Agile businesses that

actively converge

business and

technology have 7

percent higher EPS

growth and 45

percent higher return

on investment than

their industry peers.”

Source: 2009 Convergence Index, BTM

Institute

70 percent-plus of bank IT costs are spent in maintenance of legacy environments and less than 30 percent is spent on true differentiation, innovation and new product offering support.


Banking industry leaders are focused on three key imperatives.

DEVELOP NEW

INTELLIGENCE

Develop enterprisewide

capabilities to enable

informed judgment,

client-centricity and

profitable growth

INTEGRATE RISK

MANAGEMENT

Achieve compliance

objectives while mitigating

operational risk, fighting

crime and optimizing

financial returns

REINVENT THE

BUSINESS MODEL

Drive a simplified and

streamlined agile

enterprise that balances

growth, efficiency and

business resiliency


It’s vital to select the right resources for the right job.

“… in the long run the marketplace rewards those that make the optimum use

of the right computing resources in the right way as evidenced by business

performance”

— Dr. Howard Rubin, Chief Executive Officer and Founder, Rubin Worldwide

Independent analysis shows that an increase in mainframe technology usage delivers better business results than a primarily distributed environment. 31 percent

lower IT spend per

consumer loan

44 percent lower IT cost-per-credit-

card transaction


IBM helps banks address priority business needs.

The IBM banking industry value proposition:

Helps significantly accelerate modernization while reducing risk

associated with execution.

While banks truly modernize their back offices every 8-10 years, IBM

does it every day helping worldwide banks grow revenue, improve

efficiency and better manage regulatory-driven change

Decades of deep industry experience and integration capabilities make

IBM uniquely positioned to help today’s bank differentiate themselves

and drive profitable growth.

IBM’s industry value proposition

isenhancedwith the introduction of the new

IBMzEnterprise™ System.


1 2 3

Reinvent business model

Develop new intelligence

Integrate risk management

Optimized sales processes Faster time to market Achieve compliance objectives

Financial institution business issues can be addressed by the new IBM zEnterprise System advantages.

Large-scale consolidation to help reduce cost of energy, facilities and software licenses by up to 90 percent

Deliver 35 to 65 percent performance improvement over IBM System z10™

Turn information into insightwith up to 10-times improvement in performance for complex queries

Create a business aligned infrastructure capable of processingbillions of instructions per second

Integrate and centralize management to reduce

laboroverhead by up to40 percent Up to 100 percent resource increase available to deliver

new innovation

IBM zEnterprise™ System can offer high value to help meet banking industry business issues:


The system of systems: built on best-in-class systems and software technologies Unifies IT for predictable service delivery that banks demand

Three new innovations of IBM zEnterprise™ System

IBM zEnterprise 196 (z196)

Unifies management of resources, extending IBM System z qualities of service end-to-end across workloads

Provides platform, hardware and workload management

Optimized to host large-scale database, transaction, and mission-critical applications

The most efficient platform for large-scale Linux consolidation

Capable of massive scale-up

New easy-to-use z/OS V1.12

zEnterprise Unified Resource Manager

IBM zEnterprise 196 (z196)

Selected IBM POWER7 blades and IBM System x Blades* for tens of thousands of AIX and Linux applications

High-performance optimizers and appliances to accelerate time to insight and reduce cost

Dedicated high-performance private network

zEnterprise Unified Resource Manager

* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

zEnterprise BladeCenter Extension (zBX)

zEnterprise BladeCenter Extension (zBX)

8


IBM zEnterprise System helps you address today’s top application development and delivery challenges.

1. How to optimize the value embedded in applications built over several decades?

2. How to leverage developer skills across heterogeneous environments (distributed, mid-range, mainframe)?

3. How to manage disparate teams working across lines of business and geographies?

4. How to optimize infrastructure and maximize its utilization and resources, while reducing the total cost of

ownership?

IBM zEnterprise™ System can offer:

New rapid development and testing of IBM z/OS® applicationsto help deploy a more affordable

development and test environment

– Frees up development MIPS for production capacity

New compilers to help speed application performanceby exploiting new IBM zEnterprise System hardware

instructions with C/C++ and PL/I compilers

– Faster performance for new and existing applications

Multi-platform development and team collaborationthrough an integrated service delivery platform to help:

– Improve developer tools, productivity, team efficiency and speed delivery of traditional and modern

workloads across all IBM zEnterprise System operating environments

NEW! IBM Rational® Developer for IBM System z® Unit Test

NEW! IBM z//OS XL C/C++, NEW! Enterprise PL/I for IBM z/OS, NEW!Eclipse

EGL Development Tools project

IBM Rational Team Concert for IBM System z and IBM Power®, IBM Rational

Developer for IBM System z and Power, IBM Rational Asset Analyzer


New deployment assistant for IBM z/OS® helps offer

comprehensive reporting and improved change management

control facilities for IBM CICS®, which can:

– Optimize cost of ownership of the IBM System z® platform

Extending innovative application development to IBM

System z with dynamic scripting including PHP, AJAX, REST

and other Web 2.0 technologies can:

– Increase productivity of CICS application and system

developers

Business activity monitoring helps provide more user-

friendly and customizable dashboards and now includes events

native to the mainframe platform, which can:

– Improve business performance with real-time insights

Cut CICS administration

time up to 80 percent 1

1 As measured by IBM Large System Performance Reference (LSPR) workloads using z/OS® 1.11

NEW! IBM CICS Transaction Server Feature Pack for Dynamic Scripting

NEW! IBM CICS Deployment Assistance for z/OS

ENHANCED! Business Monitor for z/OS

Service-oriented architecture connectivity and integration, IBM ILOG® BRMS, IBM WebSphere® Application Server, IBM DataPower® appliances

IBM zEnterprise System can help increase business agility for bottom-line results.

Cut development times for

CICS applications up to

days versus weeks 1


New capability to report and analyze security events associated with Linux® on IBM System

z®,so enterprises can now consolidate and integrate their audit and compliance reporting to

include new IBM OMEGAMON®, Linux on System z and other security-relevant events

– Allows enterprises to prioritize vulnerabilities and remediate threats by providing a closed-

loop integration within the security management products

– Up to 70 percentin security audit savings 1

New capability to easily enroll and manage federated user access for IBM zEnterprise System

and Linux on IBM System zso external users can exploit self-service capabilities to enroll

federated userids and utilize IBM RACF® identities to more securely access the mainframe

services.

– This helps improve visibility with complaint access and reduce help desk support for

federated users and services deployments

– Up to 35 percent in reduced help desk calls1

– Up to 52 percentlower administrative costs1

IBM zEnterprise System can help you manage risk, security and compliance.

1IBM Internal Study based on Oracle SW with Nehalem 4 core running 25% utilization

NEW! IBM Tivoli® zSecure Manager for RACF z/VM®

NEW!Tivoli Federated Identity Manager for z/OS®

Tivoli Security Management for z/OS, Tivoli zSecure suite

Tivoli Identity and Access Assurance


End-to-end enterprise content management (ECM) integration in Team Places, with

enterprise-grade reliability on IBM zEnterprise™ System (Linux®)

– Work with managed and accessible business content for faster project completion

24 by 7 presence, chat and online meetings supported on zEnterprise (Linux)

– Helps reduce costs and speed decision making with real-time collaboration

Expanded support of customer platforms and mobile devices*

– Helps empower distributed teams and mobile employees with a unified communications

and collaboration platform. Illustrative customer examples include:

Save up to

50 percent in phone and travel

supporting flexible

working environments

NEW! IBM Lotus® Quickr 8.5 for IBM WebSphere® Portal

NEW! Lotus Sametime® 8.5.1*

Lotus Connections, Lotus Notes® and Domino®, WebSphere Portal

IBM zEnterprise System helps empower people, boost productivity and collaborate.

Deliver return on

investment in

12 months with faster

customer service

Connect and

scale150K-

plusemployees,

customers, and

partners worldwide 24

by 7

* Planned capability. IBM plans are subject to change


The framework can give you speed,

flexibility and choice in deploying solutions

while helping reduce cost and risk.

Integrated risk

management

Customer

care and

insight

Integration

Optimization

Analytics

Collaboration

Security

Resiliency

Core banking

transformation

Payments

and

securities

IBM provides a comprehensive banking industry framework that can accelerate solution deployment optimized for IBM System z.

The framework provides a banking-specific software

platform with:

– Banking extensions and pre-built solution accelerators

to help speed deployment

– Best practices and business- specific usage patterns to

reduce risk

– Support for adoption of open and industry standards

– A choice of business applications from IBM Business

Partners

– An approach to align technology with business needs

The framework delivers business value to help:

– Simplify your infrastructure, reduce costs, and enable

growth through innovation

– Enable integration of information and processes across

the bank

– Build an efficient technology roadmap that you can

adjust over time based on business needs

– Implement framework projects to address business

problems across the enterprise

– Drive a greater return on project investment through

asset re-use

– Speed deployment of solutions


Continued solutions and applications growth on the

IBM System z® platform

– Over 150 new Independent Software Vendor partners

and 1,000 new applications

– More than 500 new Linux® applications added

– 174 new/upgraded IBM WebSphere® Application

Server, IBM DB2®, IBM CICS® and IBM IMS™

application and tools on IBM z/OS®

ISV partner loyalty

– Over 1,500 ISVs building applications for System z

– Over 1,800 applications on z/OS 1.8 and above(over

3,500 for all z/OS releases)

– 2,800-plus applications for Linux on System z

– 86 percent of our ISVs maintain OS1 currency

Mainframe skills: IBM’s Academic Initiative is

delivering results

– More than 600 worldwide schools participating

– More than 50,000 students trained

– 30 courses and more to come

– Student MF Contests

– System z skills help desk

– Over 200 System z IBM mainframe ambassadors

IBM zEnterprise System can provide banking independent software vendor (ISV) solutions.

Simplified, Energy efficient,

Virtualized, Security-rich

http://www.sap.com/index.epx

http://www.syncsort.com/

http://www.softwareag.com/

http://www.fisglobal.com/index.htm


IBM System z can provide competitive advantage in banking and financial services.

* Dr. Howard Rubin, CEO and Founder Rubin Worldwide

49 percent more income per

employee for retail banking

48 percent less IT spend per

employee for deposits

31 percent less IT spend per

customer loan

65 percent less IT spend as percent

of revenue for credit card services

18 percent less call center IT costs

as a percentage of expenses

65 percent less cost per teller

transaction

Value to an organization deploying System z® infrastructure over distributed server technology* can include:


Large regional bank: Integration of disparate systems and

data to improve customer service and bringing new products

to market much faster.

“We no longer want to invest the time and resources in two or

three-year initiatives. Business is changing so fast these days

that we can’t afford to roll something in production that

represents the thinking of three-years ago.”

Nordic bank: “Customers entrust us with their hard earned savings so it's paramount that we select one of the industry's most powerful and secure servers. “[System z] allows us to keep up with business climate changes because we can add or eliminate capacity any time based on customer demands. We can even make changes easily without having to stop any services.”

SMART IS: Business continuity,

security and agility

SMART IS

Reducing costs and serving the customer

SMART IS: Improved speed to market

with integration

European bank: Delivering bank transaction costs 30

percent below competition (versus country average)

Banks are relying on IBM System z. How can IBM help you?


Banks can scale their applications with IBM

zEnterprise™ System for real time and near

real-time processing, with 30 to 90 percent

performance improvements.

Banks can reduce integration costs across

multiple platforms with the zEnterprise hybrid

capabilities and the new IBM zEnterprise

Unified Resource Manager.

Banks can improve time to market with IBM

Smart Analytics Optimizer that can deliver up

to 10-times improvement in performance for

complex queries.

Management

integration

Multi-platform

integration

Stack

integration

Summary: IBM can provide a new dimension in computing for financial institutions.

For more details: ibm.com/systems/zenterprise

Posting reference 727

http://www.ibm.com/systems/zenterprise

http://www.ibm.com/systems/zenterprise

IBM zEnterprise: Banking

Business

zenterprise

ibm rational

ibm zenterprise

times improvement

financial

ibm cics

ibm system

howard rubin