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Success from the Cloud

Andrew Reeves, Jeremy Childes & Enrique O’ReillyTCF 2016 Breakout Stream C1 – 11:30-12:15 p.m.

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Temenos & Microsoft Campaign 2

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1. Cloud Update

2. TSS Update

3. Stigma Extinguished

4. Success in South America

Agenda

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Cloud Update

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Cloud Services Overview

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

You

man

age

On-Premises

Oth

ers

Man

age

PaaSPlatform as a Service

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

You

man

age

IaaSInfrast. as a Service

You

man

age

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Oth

ers

Man

age

SaaSSoftware as a Service

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Oth

ers

Man

age

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Why Adopt the Cloud?

Flexible Infrastructure Capacity

Reduced Time for Provisioning

Reduction in TCO

Reduced Time to Market

Limited In-House Tech and HR

Service Value

Flexible Payment Models

Mobility

More Advanced Applications and Updates

Infrastructure Deployment Automation (API services)

Better Security

Broader Reach/Collaboration

0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: Cloud Security Alliance, March 2015 – “How Cloud is Being Used in the Financial Sector: Survey Report”

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Software as a Service Cost Savings

67% cost savings

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Financial Services Cloud Coverage

Almost 9 out of 10 financial institutions run at least one

application in the cloud. That is up from 57% in 2009.

Source: Temenos 8th Annual Survey – Shifting Sands: Banking in the Digital Era Enisa, December 2015 – “Secure Use of Cloud Computing in the Finance Sector – Good practices and recommendations”

of participating FIs indicate that they have engaged with regulatory bodies in discussions about requirements for the adoption of cloud-based services in the finance sector.

70%8

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Temenos Software Services

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Temenos Software Services

Not Just Core Banking Launch of Financial Crime Screen and Profile as

both standalone and integrated services

Implementing Channels and Analytics for Prival

Not Just MicroBanking Signed first regulated bank on Core Banking R14

Signed Soficam, Sefia and Prival on Core Banking R14 Mexico Model Bank

Not Just SaaS We offer two models of cloud based hosting

Single Tenant (ASP)

Multi-tenant (SaaS)

Although currently the market is driving us towards ASP we need to move to SaaS for operational efficiency.

Deliver cloud based services, utilizing Temenos products and the Microsoft Azure cloud together with operational and support services backed by service level agreements.

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Temenos in the Cloud

Products Delivered in the Cloud

Core BankingR14R14 (Mexico)R12 (MicroBanking)R12 (Islamic)

Financial Crime ManagementScreenProfile

ChannelsInternet Banking (integrated with Core Banking)

Analytics

Managed Cloud Hosting

Client licenses software as for on premise deployment but can then elect to have TSS host and operate the software within their cloud environment.Dedicated Cloud Services

Full subscription model for smaller clients. Selected Temenos products are provided in the cloud as a service.

Service Models

Shared Cloud Services

Multi-tenant model focused on a particular market or network of clients who share a common set of functionality and services.

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TSS Involvement

Implementation

Platform Build – consisting of LIVE, UAT and SIT environments located in primary and secondary data centres provided by Microsoft Azure.

Connectivity – supporting the creation of VPNs between third parties and the cloud service environment

Technical governance – overall governance of the cloud service environment, security principles

Verification – all third party developments (L3) that will be installed within the cloud environment are verified and placed under configuration control

Run

Service Management – working with clients and partners to ensure service is meeting agreed service levels.

Technical Operations – backups, patching, capacity management, DR of the technical environment.

Application management – including updates/ upgrades

Business operations – such as close of business

Support – provided through PACS, covering platform, product and operations.

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Designing the Service

Platform Design

Operational Procedures

Capacity Management

Service Levels

Security Audit

Service Implementation

Create Knowledge Base

Operational Acceptance

Service Launch

Security Controls

Temenos Released Product

TSS Cloud Service

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Service Ecosystem

Client

TSS Operations

TSS Support

Temenos Product

Cloud Platform Provider

Tooling

Client Systems

Client Users

Customers

3rd Party Services

Temenos

Client 3rd

Parties

PartnersTemenos 3rd

Parties

Certification Providers

TSS Cloud Service

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Quality of Services Delivered

Strict change management

Multiple environments UAT/SIT/Training

High availability

Resiliency and redundancy

Operational support

Platform monitoring, backups, close of business, data migrations

Average response across incidents is under1 hour

Average ‘priority response’ is less than10 minutes

Resolve time across incident is under45 minutes

70% of incidents are resolved on thesame day

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Cloud Stigma Extinguished

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Cloud – Barriers for Adoption

1. Perceived regulatory hurdles

2. Perception of lacking data security and confidentiality

Though, less so than in the pervious 12 months.

According to our 2015 survey, the top 2 objections to cloudremained:

Data security concerns will fade over time as universal standards, such as ISO 27001 and SSAE 16, emerge and adherence increases.

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“If you’re resisting the cloud because of security concerns, you’re running out of excuses.”

“The question is no longer: ‘How do I move to the cloud?’ Instead, it’s ‘Now that I’m in the cloud, how do I make sure I’ve optimized my investment and risk exposure?’”

“By 2020 clouds will stop being referred to as ‘public’ and ‘private’. It will simply be the way business is done and IT is provisioned.”

However… 18

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1.2 billion worldwide users2

300+ million users per month5

48 million members in 57 countries4

57% of Fortune 5004

10,000 new subscribers per week2

3.5 million active users4

Online

5.5+ billion worldwide queries

each month3

450+ million unique users each month6

200+ cloud services,1+ million servers,$15B+ infrastructure investment

1 billion customers,20 million businesses,90 countries worldwide1

The Microsoft Trusted Cloud 19

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Compute DataStorage

NetworkServices

AppServices

Unified platform for modern business

Global Physical Infrastructure

Stores over 4 trillion objects Handles on average 127,000 requests/second Peak of 880,000 requests/second

The Microsoft Azure Trusted Cloud 20

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Azure helps enable customer control over Customer Data by providing transparency into where it is stored, who can access it, and how Microsoft helps secure it, with accessible tools and straightforward language.

Azure Transparency 24

62%Said privacy protection increased as a result of

moving to the cloud1

94%experienced security benefits they didn’t

previously have on-premise1

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Azure Compliance – Largest Compliance Portfolio in the Industry

Azure meets a broad set of international, regional, and industry-specific compliance and regulatory standards.

Microsoft’s security compliance program includes rigorous testing, the implementation of best practices, and many other functions to achieve certificates and attestations.

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TSS Success Stories

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Who is Temenos Software Services For?

Core Banking as a Service Core Banking System Hosting

Established Banks New Start Banks Credit Unions Microfinance InstitutionsInnovative established banks looking for smart ways to increase return on equity and renew their focus on the customer proposition

New entrant banks or existing banks entering new markets that wish to move fast without the burden of complicated IT systems

Credit unions looking for the same standard of technology as banks, but without the complexity, enabling them to focus on their members and service

Microfinance Institutions looking for cost-effective solutions that help them speed up the real economic and social benefit they deliver in emerging markets.

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Success from the Cloud

Unemployment rate of 2.7%

58th Human Development 2012

GDP growth averaging over 10.4%

Panama city’s economy is service-based

Panama Political and Economic Factors

Prival Business Overview Established on January 2008

Full Banking Services since March 2010

110 Employees

Presence in Panama, Costa Rica & El Salvador

Offers services as Private Banking, Investment Banking & Corporate Banking

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Success from the Cloud

Prival Bank, SA has a core banking solution, which has supported the business needs from the beginning of its operations, which in some cases, it does not fulfill their current requirements or the future of banking services.

The rapid growth and dynamism of the Bank, puts into perspective a strategy for the coming years to have the ability to migrate their applications of banking, assets under management and trading to a new system that can integrate all information and automate operations of the whole entity.

Compelling Event

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Success from the Cloud

SaaSInterfacedWith AdditionalFunctionality

Customized

Temenos Channels

Analytics & Reporting

RelevantParameterization

ReportsFlexibility

FCMFinancial

CrimeMitigation

Core Banking

ASPModel

Selection Criteria

Established BanksInnovative established banks looking for smart ways to increase return on equity and renew their focus on the customer proposition

Temenos helped Prival Bank to obtain regulation approval to move their operations into the cloud.

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Success from the Cloud

Microfinance Institutions

Microfinance Institutions looking for cost-effective solutions that help them speed up the real economic and social benefit they deliver in emerging markets.

Businesses Overview

Established on 2009 Microfinance 55 Employees 1600 Aprox. accounts Services:

Short term personal loans

Capital expenses

Established on xxx Microfinance 45 Employees 850 Aprox. accounts Services:

Loans for machinery, parts and equipment

Capital expenses

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Success from the Cloud

Pay as you go

‘Cookie cutter’ solution

Big money saving

Quick implementation

Lowest Risk infrastructure

SaaSModel

Tangible Benefits

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Temenos Cloud Computing

Banks Now Have More Than One Viable Option

COST

TIME

AGILITY

CONTROL

SECURITY

COMPLIANCE

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Temenos Cloud Computing

Cloud Banking

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Delivering more choice and flexibility

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Thank you