1 1 1

The Impact of PaaS on Business Transformation

September 2014

Chris McCarthy

Sr. Vice President

Information Technology

Legacy Technology Silos

Infrastructure

Data base

Middleware

User interface

Datacenter

Application

Stacks

Multiple:

Architectures

Vendors

Comparable products

Business units Infrastructure • Provisioning time

• Utilization levels

• Cost

Business

Applications

• Development time

• Maintenance cost

• Reuse levels

Security - User

Security - Data

• Provisioning time

• Single sign on

• Central entitlement

control

• Infrastructure

• Encryption

Opportunities

2

3 3

Multiple dimensions of architecture comprise an integrated view for the

technology environment

Technology Architecture Components

Business Architecture

Data Architecture

Applications Architecture

Hardware & Systems Software /

Infrastructure Architecture

• Description of Business Process suitable for automation

• Data representation of the enterprise

• Methods and tools for defining, managing and sharing data

• Application blueprints, interaction model, and relation to

business processes

• Framework for constructing those applications

• Physical makeup and interaction of Hardware and systems

software, and associated instrumentation to manage it

Inte

gra

ted

Vie

w

4 4

• 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

Design imperatives continue to guide our strategic end-state vision as we

move forward with transforming technology

Architecture Design Imperatives

5 5

Programs Benefits

• 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

• 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

Cloud innovations can drive significant benefits, including reduced cycle

times, lower cost structures and flexibility

Private Cloud Potential Benefits

6 6

Simplification • Standards, consolidation, self-service

Automation • Deployment, metrics, elasticity, metering

Leverage • Commodity hardware and software stack

• Focus reuse on platform services, data

Design Principles

Technology Principles

Principles are embedded across design, development and deployment processes

7

Application Common

Services Registry

Custom

Business Logic

Re-usable

Services Registry

& Security

Framework

Transaction

Golden Copy

POD provides

variable capacity in

real-time to meet

demand

“Stack” provides

standard software

build with core

infrastructure

services

Data Hub

Data

Warehouse Applications to

the desktop

Target

application

portfolio

Virtual

desktop

3

5

2

4

State Street Private Cloud – Key Components

• Processing On-Demand (POD)

• Enterprise Services Registry &

Security Framework

• Integrated Application Framework

– Toolkit, Rules Engine, Auto-Audit, SLO Manager

– Foreground UI Services, Background Jobs

• Data Management

– Data Hub and Data Warehouse

• Virtual Desktop Option

1

2

3

4

Standardization, re-use, and automation enhance

security and reduce costs while accelerating

time to market

1

5

Semantic Layer

Storage Processing Network

Active / Active Data Center Cloud

Application Framework

Infrastructure

Transaction

Hub

Service

Registry Message

Bus

Data

Warehouse

Cu

sto

dy

Rec

on

cil

iati

on

Rec

ord

ke

ep

ing

Cas

h

Ac

co

un

tin

g

Pe

rfo

rma

nce

An

aly

tics

Refe

ren

ce

Deri

va

tive

Ris

k

Co

mp

lia

nce

Tra

din

g

Security

Capacity

On

Demand

Reference Architecture

Platform

Services

Application

Services

Reuse

Automation

Abstraction

Business

Processing

Information

8

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 Services

Batch Jobs

Reporting

Framework

ETL

Knowledge

Management

Analytics

Framework (BI)

Complex Event

Resolution

Framework BPM

Rules

Alert

Framework

Real-time

Analytics (BI)

Common UI Components and User Experience

Dashboard

Framework

Workforce

Management

Metric

Framework

Monitor

Framework

Message Layer Event

Framework Message Bus

Message

Broker

Document

Archive

Enterprise Data

Cloud Base

(SSCAB)

Logging

Performance

Caching

Services

Web

Services

Service

Registry eSF

SLO

Compliance

Quartz Job

Scheduler

Reference Data OLTP Data Warehouse Data

Common OLTP Services Common OLAP Services

Common

Services

Frameworks

Common User

Interface

Frameworks

State Street

Business

Frameworks

Highlights Single Rack

“POD”

42 U

42 U 42 U42 U42 U 42 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

4 U

42 U

Data Center

Footprint

• A defined, contiguous grouping

of seven racks within a data

center containing the following:

‒ Servers processing nodes

(Blade or rack mount)

‒ 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.

Processing Capacity on Demand

Processing On Demand (POD)

11

12 12

• Multiple sign ons

• Multiple IDs

• Multiple tools

• 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

• Single sign on

• Single ID

• Multiple factor

• Consistent experience

Enterprise Security Framework drives authentication and entitlement

improvements

Enterprise Security Framework (ESF) Evolution

Today Transformation Goal

Authentication

(Who am I?)

Entitlement

(What can I do?)

• Applications

• Functions

• Data

13

State Street Cloud Project Overview

• Provides Standardized Platform and Architecture for all SS Applications

• 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 Applications

• Consistent Enforced Auditing of All Application Usage

Benefits

14 14

Cloud deployment workflow:

• All environments: Development, System Test, Acceptance Test, Production

• All deployment flows: Main Flow, Moratorium, Emergency, Reject, Back Out

An automated workflow is established to deploy applications to the cloud

environment

Automated Workflow for Application Deployment to Cloud

Private Cloud Across Active / Active Data Centers

CMDB

Controller Provisioning

Monitoring

Health Check

Log Scanner

Hypervisor

VM N+2

Web Server N+2

VM N+1

App Server N+1

VM N

App Server N

Image Bundling

Change Control

CMDB

Provisioning Controller

Monitoring

Health Check

Log Scanner

Hypervisor

VM N+2

Web Server N+2

VM N+1

App Server N+1

VM N

App Server N

Image Bundling

Change Control

Data Center 2 Data Center 1

User Interface

Dashboard

Application

Control Panel

Messages

15

Data Management

Programs Benefits

• 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

‒ 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 Automated Deployment

Multiple

support

groups

Storage

Servers

OS & Cluster

Database

Application

1300+ database stacks

to maintain

• Multiple vendors

• Multiple technologies

• Manual integration

• Fewer vendors, reduced support,

and full integration

State Street Platform

Application Application

Application (N)

Storage

Processors

Switch Fabric

OS & Cluster

Database

Workload

Storage

Processors

Switch Fabric

OS & Cluster

Database

Workload

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 consolidation

– Workload management to support concurrent access and prioritization

– Provisioning of database is seamless – requires the creation of new schema not

a new database

Separation of ODS and warehouse data

Database A

Database B

Database C

Database B

Database C

Database N

Separate

hardware

for each

application

Low utilization

Consolidation

18

Search

Insights

New products

Mobility

Security

Flex-ability

Integrated Private Cloud Platform

Scale

Elasticity

Continuity

Private cloud platform

deployed in multiple

data centers

Monitor:

Cloud Statistics

- Virtual host

- Application

- User

Controller:

- Configuration

- Provisioning

- Elasticity

• Automation

• Reuse

• Self-

Service

Design Philosophy

Compute

Data Work-station Secure Access

• Any device

• Any where

• Any time

19

20 20

Adoption of Development and

Deployment Standards Will

Reduce Cost and Service Delivery

Time

Strategic Vision

Drive toward the

new Global

Operating Model

Outcomes of the New Global

Operating Model

• Globally standardized

processes

• More automated processes

• Balanced global footprint

• Additional Global Centers of

Excellence

• Enhanced data integrity

Process

Transformation 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

Automation

Consolidation

Workforce

Optimization

Transformation and The Digital Enterprise integrate Process, Location,

and Technology enhancements

The Digital Enterprise delivers new foundational architecture and

end-to-end business services

Category Principle

Dependable

Systems

Security

Availability

Redundancy

Fully Monitored

Recoverability

Continuous Operations

Software Reliability

Autonomous

Operation

Real Time Capability

Fully Automated

Minimum Set of Manual

Controls

Single Sign-on

Flexible

Design

Flexibility

Scalability

Agility

Complexity

Efficient

Implementation

Leverage Existing

Technology where possible

Future State Guiding Principles

Network Load

Balancer

CMDB

MQ

DB Client

DB Proxy

DBMS 1

MS

GG

Agent

Monito

ring

CMDB

MQ

CMDB

MQ

DB Client

DB Proxy

DBMS 1

MS

GG

Physical Machine Hypervisor

Agent

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

DB Client

DB Proxy

DBMS 1

MS

GG

Physical Machine Hypervisor

Agent

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Physical Machine Hypervisor

Agent

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application Server / VM

Agent

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Application

Svc. Sv

Svc

Transaction Hub

Datacenter 1 Datacenter 3

Datacenter 2

Blu

e S

trip

e

Agent

Monito

ring

Blu

e S

trip

e

Agent

Monito

ring

Blu

e S

trip

e

Provisioning / Controller

Provisioning / Controller

Provisioning / Controller

Monitoring

Monitoring

Monitoring

Network Load

Balancer

Network Load

Balancer

Network Load

Balancer

TDE Target State Infrastructure Architecture

Multiple data

center architecture

delivering high

availability

Data redundancy

and replication

Seamless

application failover

for uninterrupted

services

TDE Target State Application 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

Metrics, Lean and Restructuring teams

Analysis Teams

Subject Matter Experts

Business Teams Development & Test Teams

LAB

Business & Restructuring Teams

Agile Development Center

Analysis Teams

Design, Develop and Test Teams

Idea & Experiments

Think Tank

Sessions

with

Business

Units

Requirements

Developed

Capabilities

Vetted

Digitization

Driven

Ideas

Restructuring

Events with

Business Units

The Digital Enterprise leverages an Agile approach, where the LAB

teams and Development center work collaboratively to drive business

solutions

Submit &

Evaluate

Ideas

Identify &

Prepare

Experiment

Conduct

Experiment &

Measure

Analyze

Results &

Prioritize

Decision Point

System

Improvement

Ideas

Weekly

Prioritization

Process

Client Benefits

• Data Quality and Delivery

• Straight Through Processing

• Resiliency and Business

Continuity

• Client Service

• Risk Reduction

Technology Platforms

New Applications

Work Processes

Going forward, enhancements to the new operating model will digitize

work processes to create client value

State Street Enhancements

25

The Vision for Achieving a Digital Enterprise at State Street

Digital

Operating Model

Digital

Workflow

Digital Connection

with Customer

Evolving Organizational

Structures

• Evolve organizational models to

reflect new digital reality

New Products and Services

• More in-depth reporting, data

access

• Global Exchange “insight” offerings

based on new data availability

New Client Experience

• Fewer spreadsheets & emails

• More capability on MyStateStreet

• New audit oversight, evidence of

review

Digital Link for Data Input

• Reduce faxes, email

• Encourage use of digital inputs for

instructions, rates, etc.

Digitize Process Workflows

• Digital Transactions

• Digital NAV

• Digital Dissemination

Digital Operating Principles

• Exception Based Processing / STP

• Rules Based and Event Driven

Workflow

• Consistent User Experience

Deeper Employee

Engagement

• More strategic input &

collaboration

• Development Pathways

New Approach to Building,

Testing and Deploying

Software

• Agile Development Process

• Global Lab

• Restructuring/Deployment group

26

Thank You!

Questions?