© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Michael Braendle, Principal Cloud Architect Professional Services HKT
2016/06/17
AWS Adoption in FSI Why are Financial Services firms choosing AWS?
AmazonWebServices(AWS)providesflexible,scalable,andcost-effec<veITinfrastructureforbusinessesofallsizesaroundtheworld.
WhyAreFinancialServicesFirmsChoosingAmazonWebServices?
…thesamereliable,securetechnologyplaJormusedtopowerAmazon.com’sglobalwebproper<esandover1millionothercustomers,includingfirmsofallsizesacrossallsegmentsoftheFinancialServicesindustry.
FinancialServicesgridcompu<ngreferencearchitecture
WhatSetsAWSApart
Buildingandmanaginginfrastructuresince2006
70+servicestosupportanyworkload
Historyofrapid,customer-drivenreleases
12regions,33availabilityzones,53edgeloca<ons
47+proac<vepricereduc<onstodate
Thousandsofpartners;1,900+Marketplaceproducts
Experience
Servicebreadth&depth
Paceofinnova<on
Globalfootprint
Pricingphilosophy
Ecosystem
AFocusonSecurity&EnablingCompliance
“Basedonourexperience,IbelievethatwecanbeevenmoresecureintheAWScloudthaninourowndatacenters.”–TomSoderstrom,CTO,NASAJPL
AWSprovidesthesame,familiarapproachestosecuritythatcompanieshavebeenusingfordecadeswithincreasedvisibility,control,andauditability.
Visibility
Viewyouren<reinfrastructurewithone
click
Auditability
Control
DeepinsightwithAWSCloudTrail
Youhavesoleauthorityonwheredataisstored
Sharedresponsibilitymodel
3rdPartyValida<on–Cer<fica<onsforWorkloadsthatMaler
AnExpansiveEcosystem
Thousandsoftheworld’slargesttechnologyandconsul<ngcompanies28Globalpremierconsul<ngpartners
1,900+productsavailablefor1-clickdeploymentacross23dis<nctproductcategoriesCustomersrunover70mhoursofsonwarepermonth
GlobalIndustryObserva<onsRegulatoryComplianceCon<nuestoDriveExpenseGlobally,compliancerelatedspendingcon5nuestoincreaseacrosstheFinancialServicesindustryasnewandemergingregulatoryini<a<vesdominateopera<ngandcapitalexpendituresandexis5ngapplica5onsandinfrastructureareprovinginadequatetomeetthedemandsplacedonthembynewregula<ons.
ADesireForIncreasedWalletShareisDrivingaFocusonInnova<onFinancialServicesfirmsrepeatedlyexpresstoAWSadesirefor“DigitalInnova<on”,andthattheyareac<velyseekingwaystoshortenthe5meframeforinnova5oninternally–specificallyinregardstodevelopingcustomer-facingapplica<ons–inordertoincreasewalletshare.
Elas<cInfrastructureToMeetDemandForIncreasingAmountsofDataThevolumesofdatathatFinancialServicesfirmsneedtostoreandanalyzeareincreasingexponen5ally,whetheritbeforregulatoryorcompe<<vepurposes.HighPerformanceCompu<ngandBigDataAnaly<csarecri<calcomponentstosuccessfullyturningdataintoac<onableinforma<on.Asdemandforcostlyhigh-performancecompu<ngandanaly<csisincreasingfirmsarelookingtoAWStoaddscalabilityinacost-effec<vemanner.
Digi<za<onandDisrup<veTechnologyareAccelera<ngTransforma<onFinancialServicesfirms,fromestablishedglobalenterprisestonewFinTechstartups,aremovingbeyondtradi5onaldevelopment,test,anddeploymentmodelsandembracingCI/CDandDevOps–quickeningthepaceofinnova<onandtransformingthecustomerexperience.
FinancialServicesIndustryTrendsWorldEconomicForumReport–‘TheFutureofFinancialServices’• Innova5oninFSIisdeliberateandpredictable;incumbentplayersaremostlikelytobealackedwherethegreatestsourcesofcustomerfric5onmeetthelargestprofitpools
• Innova<onsarehavingthegreatestimpactwheretheyemploybusinessmodelsthatareplaCormbased,dataintensive,andcapitallight
• Themostimminenteffectsofdisrup<onwillbefeltinthebankingsector;however,thegreatestimpactofdisrup<onislikelytobefeltintheinsurancesector
• Incumbentins<tu<onswillemployparallelstrategies;aggressivelycompe5ngwithnewentrantswhilealsoleveraginglegacyassetstoprovidethosesamenewentrantswithinfrastructureandaccesstoservices
• Collabora5onbetweenregulators,incumbentsandnewentrantswillberequiredtounderstandhownewinnova<onsaltertheriskprofileoftheindustry–posi<velyandnega<vely
• Disrup5onwillnotbeaone-5meevent,ratheracon5nuouspressuretoinnovatethatwillshapecustomerbehaviors,businessmodels,andthelong-termstructureoftheFSIindustry
Capgemini–‘WorldRetailBankingReport’• Banks’effortstoprovideenhancedservicesarefallingshortofcustomers’desiresandexpecta5onsleadingtostagna<onoftheCustomerExperienceIndex(CEI)overthepast2years
• Increasingdisintermedia<onistakingplaceinthebankingarenaascustomerslooktowardsalterna5veen55esfortheirbankingneeds
• Thereisanimmediateneedtotransformthemiddle-andback-officesbeforethegainsincustomerexperiencelevelsfromfront-officeinvestmentsreverseout
HowareFinancialServicescustomersusingAWS?Oracleenterpriseapplica<ons
ReducedtestenvironmentcostsDevelopment&TestEnvironments
BuildingNewAppsintheCloudNewserviceofferings
Financialrecordsdelivery
MakingOn-PremisesAppsBeler Bigdataanaly<csAnaly<csprocessingonopera<onaldata
Migra<ngExis<ngAppstoAWS
AppsinAWSthatIntegratewithOn-PremisesApps
“CloudFirst” Movedtheiren<reretailbankingplaJormMovedUSmarketsurveillanceplaJorm
UseAWSon-demandtoscaletomeetbusinessrequirementsanddeadlines
Appliedagilityforcreditrisksimula<ons
Datacentermigra<on
TechnologyAloneisNottheAnswer
AWSCloudAdop5onFramework(CAF)
Comprehensiveframeworkthathelpsbringtogetherpeople,processandtechnologytoreducethe<meandcostofdeployment
consistentprovenrepeatable
AWSCloudAdop<onFramework
Perspec5ves
Delivery
Explore
Prepare
Migrate/Dev.
Iterate
Discovery
Baseline
Gap
Strategy
Ac5vi5es
AWS
Partner/s
Busine
ssObjec5v
es
Comprisedof:• 4stepDiscoveryphase• 7perspec<ves(business,plaJorm,maturity,people,process,security,andopera<ng)• 4stepDeliveryphase
Review Business Strategy and Market Drivers
• Business aligned cloud strategy • Executive Sponsorship • Stakeholder engagement &
Support • Adoption approach aligned to
business and organizational readiness
Understandthebusinessstrategyandmarketdriverstoincorporatetherequirementsindevelopmentofyourcloudstrategyandtargetedrateofadop<on(experiment,test&development,produc<on,all-in).Engagekeystakeholdersfromthestartindevelopingacloudstrategy
Industry drivers
Market drivers & innovation
Cloud Adoption Strategy
Understand the Business Strategy to Develop the Cloud Strategy
Business Strategy
Benefits
Rapid Discovery
Strategy
Baseline
Gap
Ac<vi<es
Initial Discovery - what is the strategy and how do you get there?
Accelerate delivery of business initiatives (e.g. How fast to adopt?, Experiment, hybrid, all-in)
Therapiddiscoveryincorporatesthecloudadop<onstrategy,baseline,andgapanalysisresul<ngintheCAFac<vi<esmatrix.Theresul<ngac<vi<esmatrixwillinformanddrivethedevelopmentofacomprehensiveandpriori<zedcloudadop<onroadmapforyourini<al6-9monthdelivery
Assess and baseline current cloud/IT capabilities. Level of automation
Define the key cloud adoption capabilities required to achieve business objectives
Prioritized list of activities/initiatives when executed result in delivery of the business strategy
• Launch point for your cloud strategy based on the business objectives
• Baseline of current capabilities • Prioritized list of activities/
initiatives to inform your adoption roadmap
Benefits Discovery
CAF Perspective
CAF Perspective- identify the key priorities to start your cloud journey?
ProcessPerspec5veManagingporJolios,programsandprojectstodeliverexpectedbusinessoutcomeon<meandwithinbudget,whilekeepingrisksatacceptablelevels.
PeoplePerspec5veDefiningandacquiringtheskillsneededtoadopttheAWScloudplaJorm.Examplesguidanceincluderoledescrip<ons,training,cer<fica<onandmentoring.
MaturityPerspec5veDefiningthetargetstatearchitectureoftheorganiza<onandcrea<ngtherequiredblueprintsandroadmaps.
PlaCormPerspec5veRepresentsthetechnologyservicesoftheAWScloudplaJorm.Providespalerns,guidance,andtoolsforop<maluseofthetechnologyservicesandservicestoimplement.
Opera5onsPerspec5veRepresentstheongoingmanagementofthefunc<oningITenvironmentofAWS.Providesprocess,guidanceandtoolsforop<mumopera<onalservicemanagementoftheAWSenvironment.
SecurityPerspec5veDefiningandimplemen<ngtherequiredlevelsofsecurity,governance,andriskmanagementtoachievecompliance.
BusinessPerspec5veIden<fying,delivering,andmeasuringbusinessimpactusingarchitecturalapproachesthataligntechnicaldeliverytobusinessimpera<ves.
Sample–SecurityPerspec<ve
Every company is concerned with protecting information and assets as they grow the business. They also want to ensure they are operating within the legal boundaries and standards set by and on the behalf of governmental agencies and industry associations. Security Perspective components provide guidance that enables a comprehensive and rigorous method of describing a structure and behavior for an organization’s security and compliance processes, systems and personnel.
The Security Perspective
Delivery Phases
Delivery – what to deliver and why, how to deliver and improve, iterate…
Explore
Prepare
Migrate/Dev.
Iterate
Fourdis<nctphasesoftheclouddeliveryprocess.ThephaseshighlighttheDevOpsapproachofautomate,measure,andimproveeachitera<onofthecloudadop<on
• Iterative process of improvement • Proven tools and assets/artifacts
that support every phase of the delivery process
• Applies to any cloud adoption (experiment, test/development, production, all-in)
Explore-whydoit,whatbusinessvalue,gapanalysis
Prepare-projectplanforac<vity,training,establishplaJorm,establishopera<ons,establishsecurity
Migrate/Develop-Moveanexis<ngapplica<ontothecloudordevelopanewcloudna<veapplica<on
Iterate-measureandiden<fyopportuni<estoimprove
Business Value
Deliver Automate
Iterate Benefits
WhatIsYourCloudJourney?
DiscoveryWorkshop
CloudBusinessCase
DefineSecurityRequirements
DefineNetwork
Environment
DefineGovernanceStructure
Opera<onalIntegra<on
SecurityOpera<onsPlaybook
CloudEnvironmentOp<miza<on
Applica<onPorJolioAnalysis
CostandBillingAnalysis
TrainingandCer<fica<on
DefineCloudEnvironments
DefineEAPoliciesandPrac<ces
Manypathstothecloud
Discover, Assess (Enterprise Architecture and
Applications)
Lift and Shift (Minimal Change)
Migration and UAT Testing Operate
Refactor for AWS
Application Lift and shift
Move the App Infrastructure
Plan Migration and Sequencing
Determine Migration Path
Decommission
Do Not Move
Create Cloud Strategy
Design, Build AWS Environment
Move the Application
Determine Migration Process
Manually Move App and Data
Third-Party Tools
AWS VM Import Refactor for AWS
Rebuild Application Architecture
Vendor S/PaaS
(if available)
Third-Party Migration Tool
Manually Move App and Data
Determine Migration Process
Replatform (typically legacy applications)
Recode App Components
Rearchitect Application
Recode Application
Architect AWS Environment and Deploy App, Migrate Data
Signoff
Tuning Cutover
Org/Ops Impact
Analysis
Identify Ops Changes
Change Management
Plan
HighlightedCustomerStories–CapitalMarkets
–GlobalInvestorCommunica<onsandTechnologySolu<ons
Broadridge,inpartnershipwithPitneyBowes,inJune2014launchedatechnologyplaJormdeliveredthroughAWSnamedInlettomakeiteasierforcompaniestoprovidemillionsofconsumersaccesstotheirmostimportantdocumentsfromhundredsofprovidersinjustafewclicks.BroadridgewilluseInlettodeliverinvestmentindustrycontentthroughitsrela5onshipswiththousandsoffinancialservicescompanies,includingbanks,broker-dealers,mutualfunds,aswellascorporateissuers.Contentwillincludemonthlystatements,tradeconfirma<ons,taxdocumentsandregulatorydisclosures.
–GlobalExchangeGroupTheNASDAQOMXGroup,Inc.,theinventoroftheelectronicexchange,usesAmazonWebServicesasthebasisforFinQloud,acloudcompu<ngsolu<onspecifictothefinancialservicesindustry.FinQloudenablesclientstostore,manageandprocesslargeamountsofdatacost-effec<velywhilealsohelpingthemmeetregulatoryrequirements.
–GlobalTradingSolu<ons
TradingTechnologies,aleadingglobalproviderofaderiva<vestradingplaJormtothefinancialservicesindustry,hasbuilttheirnext-genera5ontradingplaCormusingahybridarchitecture,withitsbackbonebuiltonAWSspanningallninepubliclyavailableAWSregionswhicharethenconnectedtoco-locatedinfrastructureateachoftheglobalexchangestowhichTradingTechnologiesprovidestradingaccesstoitscustomers.
Adop<onEnabler:HybridIT
Elasticity & Cost Respond to changing business needs and reduce cost using AWS managed
services
Manageability Use Virtual Private Cloud to isolate your data from other entities or public
internet
Scale Expand your data center and take
benefit of the elastic AWS infrastructure
Connectivity Connect your data center either
through VPN or a dedicated network connectivity AWS Direct Connect
VM Import/Export
VPC Network
IAM Policies
Virtual Images
On-Premise Apps
Private Network
VPC
Corporate Directory
Your Cloud Apps
Your Data Our Storage
Adop<onEnabler:BackupAndArchiving
Elasticity & Cost Highly scalable and durable storage
service
Manageability Managed storage services for archiving and backup services
Scale Scale to virtually unlimited storage
capacity
Integration Use standard backup and archive
solution and integrate with Glacier or S3 Application
ServerVirtual Server
File Server
Database Server
Backup System
Amazon S3
archive
vault
Amazon Glacier
HighlightedCustomerStories–Banking/Payments
SuncorpisadiversifiedAustralianfinancialservicescompanywhichrunsacomplexandexpensiveITenvironmenttosupport14brandsand4linesofbusinessin5countries.Recognizingthatthecompany’stalentwasitscompe<<veadvantage,Suncorpadoptedacultureofinnova<ontore-imaginetheITlandscape.BychoosingAWStosupportAgileprinciplesandprac<ces,Suncorpwasabletolaunchaworkingvirtualprivatecloudandvirtualdatacenterinunderthreemonthsandplanstomove2,000applica5onstoAWS.
–Finance,InsuranceandBanking(Australia)
SimpleisanonlinebankthatusesAWStorunitsvirtualbankingplaCormandmeetpaymentcardindustry(PCI)datasecuritystandard(DSS)complianceforitsdevelopmentandproduc<onenvironments.ByusingAWS,SimplecanautomateprocessesthatoncetookmonthstocompleteandinsteadfocusonitscustomerserviceratherthanmanagingITinfrastructure.
–OnlineBanking
CoinbaseisthelargestconsumerbitcoinwalletintheworldandthefirstregulatedbitcoinexchangeintheUnitedStates.Thecompany,whichsupports3millionglobalusers,facilitatesbitcointransac<onsin190countriesandexchangesbetweenbitcoinandflatcurrenciesin26countries.
Adop<onEnabler:MobileServices
AmazonCognito
AmazonMobileAnaly5cs
AmazonSNS
AWSDeviceFarm
AWSMobileHub
Innovation & Agility Allow simple and quick iterations
using AWS mobile services
High Availability Designed and build for scale and
availability across multiple facilities
Cost Effectiveness Efficient testing of your mobile
application on various devices using AWS Device Farm
Maintainability Version management and cross-device
synchronization
HighlightedCustomerStories–Insurance–GlobalRiskManagement,InsuranceandReinsurance
AonBenfieldAnaly<csoffersindustry-leadingcatastrophemanagement,actuarial,ra<ngagencyadvisoryandriskandcapitalstrategyexper<se.ByusingAWSGPUinstances,AonBenfieldisabletoperformactuarialcalcula5onswithgreatercompu5ngpower,inshorter5meframes,andforlesscostthanon-premisedeploymentsandCPUcores.
–Mul<na<onalMortgageInsurance,ReinsuranceandOtherFinancialServicesThismul5na5onalcustomer’sloaninforma5onplaCormrunsen5relyonAWSandleveragesalargeporJolioofAWSservicestohelpautomatetheend-to-endprocess.Applica<onsinteractwiththeloanplaJormtoingestlargeamountsofdatadirectlyintoAmazonS3,takingadvantageofthestorageservice’sscalabilityandsecurity.Aworkflowprocessiskickedofftoclassifyandextractinforma<onfromthedocumentsandpopulatedatastorestosupporttransac<onalandanaly<calfunc<ons.TheplaJormleveragesthebuilt-insecurityfeaturesofferedbyAWSalongwiththird-partysolu<onsforabovethehypervisorcontrolstomeetthestringentsecurityneedsofthecustomer’sbusinesspartners.
Adop<onEnabler:HighPerformanceCompu<ng
Corporate Network
Elasticity & Cost Dynamic scalability when compute jobs are required with utility or spot
pricing
Manageability Managed services to facilitate
aggregation and storage
Scale Scale to virtually unlimited amount of
cores
Separation of concerns Decouple storage and compute – utility
model with on-demand compute
StorageGrid
Reporting
Streams
FINRA,theprimaryregulatoryagencyforbroker-dealersintheUS,usesAWSextensivelyintheirITopera<onsandhasmigratedkeypor<onsofitstechnologystacktoAWSincludingMarketSurveillanceandMemberRegula<on.Formarketsurveillance,eachnightFINRAloadsapproximately35billionrowsofdataintoAmazonS3andAmazonEMRtomonitortradingac<vityonexchangesandmarketcentersintheUS.
HighlightedCustomerStories–RegulatoryAgencies–U.S.Regulator
InresponsetotheMay6,2010FlashCrashinU.S.markets,theSECusedTradeworxandAWStocreateitsMarketInforma<onDataAnaly<csSystem(MIDAS),whichenablestheagencytocollectandanalyzebillionsofrowsofdataandtoreconstructanymarketeventdowntotheindividualrecord,analyzingmorethan3billiondatapointsinsecondsratherthanweeksormonths.
–U.S.Regulator
Forourmarketsurveillancesystems,wearelookingatabout40%[savingswithAWS],buttherealbenefitsarethebusinessbenefits:Wecandothingsthatwephysicallyweren’tabletodobefore,andthatispriceless.”–SteveRandich,CIO
Adop<onEnabler:BigDataAnaly<cs,DataLakes
Ecosystem Leverage existing open-source and commercial frameworks at utility
pricing
Manageability Managed Big Data and machine
learning services
Elasticity & Cost Dynamic scalability when compute jobs
are required with utility or spot pricing
Separation of concerns Decouple ingest, storage, compute and
consume
AWS Import/ Export
Amazon S3
Amazon Kinesis
Amazon EMR
Amazon Redshift
AmazonQuickSight
AmazonSQS
“Banksaren’tbeingdisruptedbyFinTechtechnology,they’rebeingdisruptedbycustomerexpecta-ons.”
-McKinsey&Company
FinTech–ReshapingtheIndustry
PersonalInves<ng BankingBitcoin/Blockchain
Adop<onEnabler:CI/CD
Corporate Network
Elasticity & Cost Automate performance or functional
testing on AWS
Manageability Build, maintain infrastructure as
code through templates
Scale Fully automate your application
deployment
Agility Minimize production downtime using
CI/SD techniques or use e.g. A/B testing for flexible product rollouts
AWS CloudFormation
AWSCodeDeploy
AWSOpsWorks
AWS ElasticBeanstalk
AWSCodeCommit
AWSCodePipeline
Providesfreeaccesstofinancialservicesdatasetsfordevelopment/tes<ngtoFinTechstartups
AWSinFinTech
13datapartnersandgrowing,including:
AWSprovidesAWScredits,support,andmentorshipviaAWSAc<vate
WhyAreFinancialServicesCompaniesChoosingAWS?
RegulatoryComplianceCon<nuestoDriveExpense
ADesireForIncreasedWalletShareisDrivingaFocusonInnova<on
Elas<cInfrastructureToMeetIncreasingAmountsofData,FiniteResourcesforAnaly<cs
Digi<za<onandDisrup<veTechnologyareAccelera<ngTransforma<on
Security,Compliance,andReducedCost
AbilitytoBringNewIdeastoMarketFaster
HighlyScalableInfrastructureforAnaly5csthatMalertotheIndustry
AbilitytoTransformtheEnterprise&theIndustry
WhataretheKeystoSuccessforAdop<on,forFSIs?
Execu<ve-levelSponsorship
DedicatedResources
RealProjectsthatMalertotheOrganiza<on
AVisionforWhatSuccessLooksLike
SeniorLeadersWhoUnderstandtheImportanceof,andSupportCloudAdop<on
InternalFTEs,BudgetedFunds,ExternalPartnersWhenWarranted
No“ScienceProjects”
LegacyITTransforma<on,Innova<ngtoImproveCustomerExperience,orBoth?