innovation and system i in banking
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IBM ^ iSeries
© 2005 IBM Corporation
Innovation and System i in Banking
Tim FungConsulting I/T SpecialistIBM China/Hong Kong Limited
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What banks face today.• Growth challenges, both by retaining and growing existing customers, and through selective
acquisitions of new business
• Product commoditization, with the means to provide differentiation based on quality, service level, price, agility and responsiveness in customer relationship management
• Creating transparency and greater market value by focusing on enterprise risk management and compliance
• Realizing greater efficiency and agility by focusing on back-office technology and Business Process Management
• Placing greater priorities on fee-based products and services to combat margin erosion
• Global regulatory and accounting standards with stricter corporate governance standards
In a sea of commoditized products and increasing global regulation, IT professionals and business leaders in the banking industry must invest in the right technologies to support growth, preserve margins and aid in compliance.
IBM ^ iSeries
© 2005 IBM Corporation3
BANK PERSPECTIVE
Objectives Banks’ Strategy Banks’ Tactics How Technology Can Help
Efficiency
Protect/grow margins through
dramatically lower, stable cost structures
Transform business processes
Simplify/renew infrastructure Shift cost structures from
fixed to variable
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Infrastructure Simplification
Growth
Top-line revenue growth via a
differentiated value proposition
Reinvent the front-office Refocus on the customer Develop new
products/services
Data Integration
Resilience
Comply with regulations and protect earnings from risk in any
form
Centralize risk management Reduce capital requirements
via improved op risk controls Transparent financial
reporting
Business Continuity
Banking imperatives become actionable tactics…
IBM ^ iSeries
© 2005 IBM Corporation4
BANK PERSPECTIVE
why i? it’s simple. it’s a business decision.
Sixteen thousand banks rely on IBM eServer iSeries to give them a competitive advantage.
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Competitive Advantage
Business flexibility & cost savings from the iSeries facilitate benchmark efficiency ratios across the industry
Benchmark Efficiency Ratios
iSeries customers benefit from the top banking solutions portfolio in the world -- founded with a global set of core banking ISVs
Top Solutions Portfolio
The iSeries objective becomes aligning our solutions to the banking industry’s imperatives…
IBM ^ iSeries
© 2005 IBM Corporation5
Market Profile
– Installed in over 16,000 banks worldwide, iSeries is one of the most widely deployed banking servers in the world
– Deployed in small banks & credit unions plus many of the world’s largest international banking conglomerates
Technology
– Reputation for mainframe-class reliability, manageability & security
– Integrated i5/OS operating system is optimized for OLTP applications
– Features 1-way to 64-way binary compatible scalability
Solutions
– Exceptional international portfolio of i5/OS core banking solutions
– Options to consolidate any AIX 5L, Linux and Windows application
System i in Banking
IBM ^ iSeries
© 2005 IBM Corporation6
iSeries Is the IBM Integrated Server– Tested and Integrated by IBM– No Assembly Required – IBM service and support, top to bottom– Reliability, Availability, Simplicity
Industry-Leading Efficiency Ratios– Systems Management Autonomics
• Ease of use– Seamless growth
• Power5 Technology – Minimal staff
• Integrated for Simplicity
Highly Available and Secure– 24x7x365: High Availability Clustering Solutions– Security: Simple to implement and manage
System i Value for Banking
IBM ^ iSeries
© 2005 IBM Corporation7
Customizing solutions to meet the varied needs of the industry
iSeries
Banking Solutions
CORE SYSTEM
Branch Transformation
Customer Insight
Payment Systems
Risk & Compliance
…Which combination works for your bank?
With the capability to run multiple operating systems, iSeries offers unparalleled flexibility to consolidate point solutions
IBM ^ iSeries
© 2005 IBM Corporation8
Providing the opportunity to simplify the banking infrastructure
Reduce complexity and costs
– Pool your resources by managing multiple environments on a single server
Handle constant changes
– Automatically respond to changes in processor demand with logical partitioning
Save time and money
– Simplify management of IT resources with storage virtualization
Increase business flexibility
– Expand with broad application portfolio
This educational piece is intended for your use in selling. It is NOT a deliverable for your customers
IBM ^ iSeries
© 2005 IBM Corporation9
Worldwide Sample of iSeries Banking Solutions Partners
IBM ^ iSeries
© 2005 IBM Corporation10
Worldwide Sample of iSeries Banking Customers
IBM ^ iSeries
© 2005 IBM Corporation11
Openness - Industry StandardSupport
• Accomodate ISVs• Portability/Compatibility• Flexibility
Continued LEADERSHIP in database technologies
• Consistency across DB2 family• Shared R & D across IBM Labs
Continued Leveraging of iSeries Strengths• Availability• Scalability• Usability - Total Cost of Ownership• Application Flexibility
DB2 UDB for iSeries Strategic Initiatives
iSeries Customers using SQL
0%
20%
40%
60%
80%
100%
1988 1992 1996 2000 2004
0 10 20 30 40 50 60 70 80 90 100
2003 Core Items
DB2 UDB for iSeries
Microsoft SQL Server 2000
Oracle 10g
The industry trend toward off-the-shelf
software results in a
move to SQL ...
SQL 2003 Core Standard100% Complete with V5R4!!
IBM ^ iSeries
© 2005 IBM Corporation12
iSeries Navigator Enhancements
DB2 OnDemand
Performance Center
Health Center
Import/Export
Table actions
– CLRPFM command
– CPYF command
– INZPFM command
EDTRBDAP support
Show current SQL
– Statement name
– Program or package name
– Open information
Delimiter option on Creates
IBM ^ iSeries
© 2005 IBM Corporation13
Enhanced Index Advice
System-Wide Index Advisor - Always ActiveAdvice can be viewed at database, schema or table level
Index Advice, also enhanced (SQE Only) SQE Optimizer will also examine Join, Grouping, Ordering criteria Available on V5R3 with latest DB Group PTF
IBM ^ iSeries
© 2005 IBM Corporation14
System i5 – Data Warehouse Benchmark Leadership
SAP BW Benchmark Certifications*
12 months of leadership benchmarks
Several configurations tested
Superior scaling per processor
*See detailed certified benchmark results at http://www.sap.com/solutions/benchmark/BW2_results.htm
** ITG Study of SAP Installations 11/14/2005 . Comparisons are based on 6 composite profiles ofmanufacturing companies with revenues of between $500 million and $12 billion. Input from 20 companies wasemployed to construct profiles.
0
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150000
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250000
300000
SAP BW 3.5 BenchmarksEnd User Query Performance
DB2 i5/OS 4w iSeries
SQL Srv 16w Unisys
DB2 i5/OS 8w iSeries
Oracle 10g Fujitsu 8w
DB2 i5/OS 8w iSeries
DB2 i5/OS regains leadership on January 23, 2006
IBM ^ iSeries
© 2005 IBM Corporation15
WarehouseWarehouse(Hub)(Hub)
WarehouseWarehouse(Hub)(Hub)
Query, Query, Report Report WriterWriter
Excel & Excel & Lotus 123Lotus 123
Data WarehouseData Warehouse
Warehouse
Builder
Warehouse
Builder
WarehousWarehouse e
ManagerManager
WarehousWarehouse e
ManagerManager
OperationalOperationalSystemsSystems
EndEndUsersUsers
Essbase/Essbase/400400
DB2/400DB2/400
Essbase/Essbase/400400
DB2/400DB2/400
Analyzer & Analyzer & WEB WEB
AnalyzerAnalyzer
Secu
rity
& a
ccess
Secu
rity
& a
ccess
Secu
rity
& a
ccess
Secu
rity
& a
ccess
Sales Sales AnalysiAnalysi
ss
Sales Sales AnalysiAnalysi
ss
Budgeting Budgeting & &
ForecastinForecastingg
Budgeting Budgeting & &
ForecastinForecastingg
MarketiMarketingng
MarketiMarketingng
CustomeCustomer r
ProfilingProfiling
CustomeCustomer r
ProfilingProfiling
FinancialFinancialss
FinancialFinancialss
DataDataMartMartDataDataMartMart
SCMSCM
ERPERPERPERP
CRMCRMCRMCRM
DataDataMartMartDataDataMartMart
DataDataMartMartDataDataMartMart
DataDataMartMartDataDataMartMart
DataDataMartMartDataDataMartMart
Extr
act
& c
lean
se
Extr
act
& c
lean
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Extr
act
& c
lean
se
Extr
act
& c
lean
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ShowCaseShowCase ShowCaseShowCase SuiteSuite
IBM ^ iSeries
© 2005 IBM Corporation16
ASP Alpha
ASP Beta
Node Nord1
Node Nord2
Node Sud1
BackupCopy
Site"Main" Site "Backup"
CRGprimary
Backup 1
Backup 2
Production Copy
HA solution for DB replication
Latest HA Solution in Banking Environment
IBM ^ iSeries
© 2005 IBM Corporation17
EMV Support on System i - #4806 Cryptographic Co-processor
Follow-on to #4805 PCI Cryptographic Accelerator and #4801 PCI Cryptographic Coprocessor
– Up to 4-5x performance of PCI Coprocessor– Designed to meet FIPS 140 certification – Supports EMV 2000 (Europay/MasterCard/Visa)
standard– Requires Cryptographic Device Manager (5733-CY1)
V5R3 and POWER5 server required
Some country specific usage – availability may vary
IBM ^ iSeries
© 2005 IBM Corporation18
Running Java on System i
Native Java program on System i
– 32 bit JVM introduced in OS/400 V5R4
Using WebSphere Application Server (WAS)
– Front end user interfaces
– Message Queue type handling
– Web Services Support
IBM ^ iSeries
© 2005 IBM Corporation19
Banco do Brasil, Brazil
i5/OS Logical Partitioning helps improve server utilization rates across multiple workloads with automatic processor balancing
Improved Asset Utilization Rates
By centralizing our IT operations on a single platform in a single location, we knew that we could not only reduce the cost of running and maintaining systems, but also accelerate the delivery of new services to our branch network.
– João BatistaEuropean IT Director
Banco do Brasil
IBM ^ iSeries
© 2005 IBM Corporation20
End Of Presentation
IBM ^ iSeries
© 2005 IBM Corporation21
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NOTES:
Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actualthroughput that any user w ill experience w ill vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration,the storage configuration, and the w orkload processed. Therefore, no assurance can be given that an individual user w ill achieve throughput improvements equivalent to theperformance ratios stated here.
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