The Impact of PaaS on Business Transformation September 2014 Chris McCarthy Sr. Vice President Information Technology 1
Legacy Technology Silos Opportunities Business units Infrastructure Provisioning time Utilization levels Cost Business s Development time Maintenance cost Stacks Security - User Reuse levels Provisioning time User interface Middleware Data base Infrastructure Multiple: Architectures Vendors Comparable products Datacenter Security - Data Single sign on Central entitlement control Infrastructure Encryption 2
Integrated View Multiple dimensions of architecture comprise an integrated view for the technology environment Technology Architecture Components Business Architecture Description of Business Process suitable for automation Data Architecture Data representation of the enterprise Methods and tools for defining, managing and sharing data s Architecture blueprints, interaction model, and relation to business processes Framework for constructing those applications Hardware & Systems Software / Infrastructure Architecture Physical makeup and interaction of Hardware and systems software, and associated instrumentation to manage it 3
Design imperatives continue to guide our strategic end-state vision as we move forward with transforming technology Architecture Design Imperatives Accelerate development via reuse Secure, control, and monitor the environment Support the mobile workforce and their devices Introduce new products and services that leverage new capabilities Enhance disaster recoverability Reduce total cost of application ownership through: Automation Commodity hardware Open source Improved asset utilization Reduce the number of production incidents Deliver Very Large Data with business intelligence and analytical capabilities in real time Increase the percentage of IT spend devoted to development activities 4
Cloud innovations can drive significant benefits, including reduced cycle times, lower cost structures and flexibility Private Cloud Potential Benefits Programs Standards for application development Common framework for reuse Project monitoring with standard tollgates, automated code profiling Research and development activities coordinated across technology towers Architecture team with focused expertise in standard methods Capacity on demand platforms for processing and data management Benefits More capacity Commodity hardware Higher utilization Standard middleware stack Elastic Shorter time to market Reusable framework for applications Automated provisioning of infrastructure Improved security Self-service process for request and approvals, reduced entitlement scope Network and server access reduction 5
Technology Principles Design Principles Simplification Standards, consolidation, self-service Automation Deployment, metrics, elasticity, metering Leverage Commodity hardware and software stack Focus reuse on platform services, data Principles are embedded across design, development and deployment processes 6
State Street Private Cloud Key Components Data Warehouse Transaction Golden Copy Data Hub 4 POD provides variable capacity in real-time to meet demand Virtual desktop s to the desktop Custom Business Logic 3 5 Target application portfolio 2 Common Services Registry Re-usable Services Registry & Security Framework Stack provides standard software build with core infrastructure services Standardization, re-use, and automation enhance security and reduce costs while accelerating time to market 1 Processing On-Demand (POD) 2 Enterprise Services Registry & Security Framework 3 Integrated Framework Toolkit, Rules Engine, Auto-Audit, SLO Manager Foreground UI Services, Background Jobs 4 Data Management Data Hub and Data Warehouse 5 Virtual Desktop Option 1 7
Custody Cash Record keeping Reference Derivative Accounting Performance Analytics Risk Compliance Trading Reconciliation Reference Architecture Services Business Processing Information Platform Services Transaction Hub Service Registry Semantic Layer Message Bus Data Warehouse Security Reuse Automation Abstraction Infrastructure Framework Active / Active Data Center Cloud Storage Processing Network Capacity On Demand 8
Common Services The provision of corporate services which provide vital support to the delivery of effective and efficient services that had previously been found in more than one part of the organization or group. Unlocking the value of Open Source Model and achieving 50% reuse in application developments Common Services covers well-defined business functionalities that are built as software components that can be reused for different purposes, and manages the consumption of services via well-defined policies, processes and supporting systems When services are implemented by other groups, Common Services specifies governance framework and service contract to establish trust between services providers and services consumers
Common Services Common User Interface Frameworks Common UI Components and User Experience State Street Business Frameworks Dashboard Framework Workforce Management Metric Framework Monitor Framework Common OLTP Services Alert Framework Complex Event Common OLAP Services Batch Jobs Knowledge Management Cloud Base (SSCAB) BPM Real-time Analytics (BI) Resolution Framework Rules Reporting Framework ETL Analytics Framework (BI) Logging Performance Message Layer Event Framework Message Bus Message Broker Caching Services Common Services Frameworks Web Services esf Service Registry Quartz Job Scheduler Document Archive SLO Compliance Enterprise Data Reference Data OLTP Data Warehouse Data
Processing Capacity on Demand Processing On Demand (POD) Data Center Footprint Highlights A defined, contiguous grouping of seven racks within a data center containing the following: Single Rack 42 U Servers processing nodes (Blade or rack mount) 42 U 42 U 42 U 42 U 42 U 42 U Network access layer connectivity End of Row network switches Storage connectivity via fiber channel or IP Network Standard Hardware (Infrastructure as a Service) A standard inventory of hardware that can be shared across multiple types of workloads. All workloads must support virtualization. Lifecycle The POD infrastructure components (server, storage and network) follow a similar lifecycle schedule. Server and Network hardware will follow a consistent lifecycle schedule. POD 11
Enterprise Security Framework drives authentication and entitlement improvements Enterprise Security Framework (ESF) Evolution Today Transformation Goal Authentication (Who am I?) Multiple sign ons Multiple IDs Multiple tools Single sign on Single ID Multiple factor Consistent experience Entitlement (What can I do?) s Functions Data Multiple systems Multiple IDs Very few roles defined Manual administration Weeks to change Approval limits Central system Single identity Role assignment Self-service Automated policy Hours to approval 12
State Street Cloud Project Overview Benefits Provides Standardized Platform and Architecture for all SS s Rapid Deployment of HW and Infra Resources through Automation Pay for Usage Model for Business Charge-Back Services Based Architecture Encourages (Enforces) Re-Use Standardized Coding Enforced increasing Efficiency and Off-Shore Options Automated Approval Process Provides Efficiency and Better Auditing Standardized Entitlement Service For All s Consistent Enforced Auditing of All Usage 13
An automated workflow is established to deploy applications to the cloud environment Automated Workflow for Deployment to Cloud Cloud deployment workflow: All environments: Development, System Test, Acceptance Test, Production All deployment flows: Main Flow, Moratorium, Emergency, Reject, Back Out 14
Private Cloud Across Active / Active Data Centers Data Center 1 Change Control Control Panel Dashboard Data Center 2 Change Control Image Bundling CMDB User Interface Messages Image Bundling CMDB Provisioning Controller Controller Provisioning App Server N App Server N VM N VM N App Server N+1 Health Check App Server N+1 Health Check VM N+1 Log Scanner VM N+1 Log Scanner Web Server N+2 Monitoring Web Server N+2 Monitoring VM N+2 Hypervisor VM N+2 Hypervisor 15
Data Management Programs Standards for database development Transaction data appliance Data warehouse data appliance Automated database provisioning Active / Active database availability Capacity on demand for data Data lifecycle Workload management More capacity Benefits Appliance with storage Higher utilization Higher performance Policy based load management Shorter time to market Reusable framework for applications Automated provisioning of virtual infrastructure Improved security and recovery Less privileged access Active / Active, Active / Passive 16
Data Management Automation Transition Manual Deployment Multiple vendors Multiple technologies Manual integration Multiple support groups Automated Deployment Fewer vendors, reduced support, and full integration (N) Database OS & Cluster Servers Storage 1300+ database stacks to maintain State Street Platform Workload Workload Database Database OS & Cluster OS & Cluster Processors Switch Fabric Processors Switch Fabric Storage Storage Transaction Warehouse Data Appliances
Data Appliances Efficient OLAP/Warehouse/Mart implementations Workload management Massively parallel processing supports random access/queries Removal of indexes reduces the size of storage Compression of data allows for quicker access Applicable for both operation data stores and data warehouses Ability to grow without out growing architecture Avoidance of splits Capacity on demand Database B Database C Database A Database B Database C Separate hardware for each application Low utilization Database N Database consolidation Workload management to support concurrent access and prioritization Consolidation Provisioning of database is seamless requires the creation of new schema not a new database Separation of ODS and warehouse data 18
Integrated Private Cloud Platform Design Philosophy Automation Reuse Self- Service Scale Elasticity Continuity Compute Private cloud platform deployed in multiple data centers Secure Access Any device Any where Any time Mobility Security Flex-ability Workstation Data Search Insights New products Controller: - Configuration - Provisioning - Elasticity Monitor: Cloud Statistics - Virtual host - - User 19
Strategic Vision Adoption of Development and Deployment Standards Will Reduce Cost and Service Delivery Time 20
Transformation and The Digital Enterprise integrate Process, Location, and Technology enhancements Core business processes being enhanced Accounting Fund Administration Cash Transaction Processing Client Operations Corporate Actions Derivatives Performance & Analytics Internal Recon. External Recon. Reference Data Securities Valuation Securities Settlement Trade Infrastructure Process Transformation Drive toward the new Global Operating Model Consolidation Automation Workforce Optimization Outcomes of the New Global Operating Model Globally standardized processes More automated processes Balanced global footprint Additional Global Centers of Excellence Enhanced data integrity
Blue Stripe Blue Stripe Monitoring Monitoring Blue Stripe Monitoring The Digital Enterprise delivers new foundational architecture and end-to-end business services Future State Guiding Principles TDE Target State Infrastructure Architecture Category Dependable Systems Principle Security Availability Redundancy Fully Monitored Recoverability Continuous Operations Software Reliability CMDB Svc Sv Server / VM Server / VM Server / VM Hypervisor Physical Machine DB Proxy DB Client DBMS 1 MS GG MQ CMDB Svc Sv Datacenter 1 Monitoring Datacenter 3 Provisioning / Controller Monitoring Network Load Balancer Datacenter 2 Server / VM Server / VM Server / VM Hypervisor Physical Machine DB Proxy DB Client DBMS 1 Transaction Hub MS GG Provisioning / Controller MQ Network Load Balancer Network Load Balancer Provisioning / Controller MQ Monitoring Network Load Balancer MS GG CMDB Svc Sv Server / VM Server / VM Server / VM Hypervisor Physical Machine DB Proxy DB Client DBMS 1 Multiple data center architecture delivering high availability Data redundancy and replication Seamless application failover for uninterrupted services Autonomous Operation Flexible Design Efficient Implementation Real Time Capability Fully Automated Minimum Set of Manual Controls Single Sign-on Flexibility Scalability Agility Complexity Leverage Existing Technology where possible TDE Target State Services Architecture Automation of rules-driven processing and controls End-to-end asset class services Flexible multi-basis, multi-asset class ledgers Process and control transparency
The Digital Enterprise leverages an Agile approach, where the LAB teams and Development center work collaboratively to drive business solutions LAB Agile Development Center Think Tank Sessions with Business Units Analysis Teams Metrics, Lean and Restructuring teams Business Teams Subject Matter Experts Development & Test Teams Developed Capabilities Business & Restructuring Teams Analysis Teams Design, Develop and Test Teams Submit & Evaluate Ideas Identify & Prepare Experiment Idea & Experiments Conduct Experiment & Measure Analyze Results & Prioritize Requirements Decision Point System Improvement Ideas Restructuring Events with Business Units Vetted Digitization Driven Ideas Weekly Prioritization Process
Going forward, enhancements to the new operating model will digitize work processes to create client value State Street Enhancements Technology Platforms New s Client Benefits Data Quality and Delivery Straight Through Processing Resiliency and Business Continuity Client Service Risk Reduction Work Processes
The Vision for Achieving a Digital Enterprise at State Street Digital Operating Model Digital Workflow Digital Connection with Customer New Approach to Building, Testing and Deploying Software Agile Development Process Global Lab Restructuring/Deployment group Digital Operating Principles Exception Based Processing / STP Rules Based and Event Driven Workflow Consistent User Experience Digital Link for Data Input Reduce faxes, email Encourage use of digital inputs for instructions, rates, etc. Evolving Organizational Structures Evolve organizational models to reflect new digital reality Deeper Employee Engagement More strategic input & collaboration Development Pathways Digitize Process Workflows Digital Transactions Digital NAV Digital Dissemination New Client Experience Fewer spreadsheets & emails More capability on MyStateStreet New audit oversight, evidence of review New Products and Services More in-depth reporting, data access Global Exchange insight offerings based on new data availability 25
Thank You! Questions? 26