Tactical Requirements, Strategic Gain

Proven Solutions for Enterprise Agility


SOA Meets M&ATactical Requirements, Strategic Gain

Nov 7, 2006

Neal RuskinChief Enterprise Architect, Applications

TD AMERITRADE

TD AMERITRADE, Inc., member NASD/SIPC, a subsidiary of TD AMERITRADE Holding Corporation. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. © 2006 TD AMERITRADE IP Company, Inc. All rights reserved. Used with permission. TD AMERITRADE and InfoWorld are separate, unaffiliated companies and are not responsible for one another’s services or policies.



Introduction

• TD AMERITRADE began the SOA journey 3+ years ago

• in the middle of a major M&A integration

• continued through several smaller acquisitions

• and, now, the largest retail brokerage M&A integration ever

• As we deliver against immense tactical pressure, we’re also realizing our technology strategy and deriving benefit from SOA…



Agenda

• Who We Are

• SOA Today At TD AMERITRADE

• Stages Of Adoption• Groundwork• Proof of Concept• Build Out

• A View to the Future

• Potential Inhibitors

• Conclusions



Who We Are

• TD AMERITRADE - A Leading Provider of Retail Securities Brokerage Services

• Serving Independent Minded Investors, Traders and Advisors

• 6.19 Million Accounts* – Primarily Via Web Channel

• http://www.TDAMERITRADE.com

• Neal Ruskin, Chief Enterprise Architect, Applications

• Joined Sep 2003

• Initiate & Mature Enterprise Architecture Function

• 12+ Years Tech Management & Architecture in Online Investment Services

*As of September 29, 2006. Total Accounts include all open client accounts (funded and unfunded), except clearing accounts.



SOA Today at TD AMERITRADE

• Initial Services in Production• Key Projects via SOA• Seeing Reuse & Accelerated Integration

• Organizational Buy-In• “Altruistic” Tactical Funding / Sustained Strategic Funding

• Early Governance• Enterprise Architecture Oversight

• Maturing Structure, Process & Tooling • Solutions vs Services Teams• Service Ownership• Registry, Assembly, Testing, Governance

• Planning Composite Applications



Our Stages of SOA Adoption

• Groundwork• Enterprise Architecture Function• Understand, Educate and Sell

• Proof-of-Concept• Demonstrate Viability• Iron Out Initial Kinks

• Build Out• Leverage Tactical Projects• Work Targeted Strategic Investment



Groundwork: Business Context

• Closely Related Lines of Business• Active Trader• Long-Term Investor• Independent Advisor

• Rapid Product Cycles • 12-15 Week Projects• Client Experience Focus

• Strategic Emphasis on M&A

• Industry Commoditization

• Low Cost Structure

• Leverage Commonality

• Counter Tactical Tendency • Support & Accelerate Delivery

• Accelerate Integration

• Focus on Differentiation

• Leverage Incremental Investment



• Centralized IT Function

• In-House Development• Build Bias

• Relatively Small Core App Portfolio• Complex Stovepipes• Point-to-Point Integration• Redundant Data & Logic

• Mixed Technology Set

• Expensive Infrastructure

• In-House Operations• Availability Spotlight

Groundwork: Technology Context

• Leverage Centralized Control

• Strengthen Buy Capability

• Drive Rationalization• Decompose Applications• Remove Redundancy

• Support Heterogeneity & Standards

• Reduce Non-Differentiating Spend

• Facilitate Run Functions



• Team Formation• Senior Technology Thought Leaders

• Knowledge of Existing Portfolio, People, Process

• Reporting to CIO/CTO

Sp

end

Val

ue

Sp

end

Val

ue

Network & Communications

Hardware

Infrastructural SW

(OS, DB, App Serv, etc.)

Business Logic

Presentation Logic

Network & Communications

Hardware

Infrastructural SW

(OS, DB, App Serv, etc.)

Business Logic

Presentation Logic

Groundwork: EA Foundation

• Mission Statement

Shift Investment Up The Stack Accelerate Pace of Change



• Create Simpler & More Agile Applications Environment Via SOA • Break Up Large-Scale Silos• Consolidate & Centralize Related Functionality and Data

• Adopt Open Source Infrastructural SW and Commodity HW

• Simplify and Partition Network per Application, Usage & Security Requirements

Groundwork: EA Strategy

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Groundwork: Vision of SOA

• Arrangement and Inter-Operation of Application Functionality and Data• Modularity• Standardization• Layering• Composition

SERVICE SERVICE SERVICE

FRONT ENDAPP

SERVICE SERVICE

FRONT ENDAPP

FRONT ENDAPP

Intermediaries assemble enterprise service functionality into business processes

Enterprise services represent stand-alone, business-level modules, meant to be shared across multiple applications

Domain Services Layer

Utility Services Layer

Application LayerFront-end applications provide user-interfaces to interact with business logic and processes



• Leapfrogging The “Service Zoo”• Coarse-Grained Services

• Parallel Well-Understood Business Concepts• Encapsulate Closely-Related Functionality & Data• Expose Multiple Operations

• Governed Build Out

• “Dumb” Fabric• Standardized Location & Invocation• Technology Agnostic• High-Performance & Resilience• Multi-Version• Aspects: Security, Logging, Monitoring, Management, Metering

• Event-Driven State Propagation (EDA)

Groundwork: Vision of SOA (Cont’d)

OrdMgmt

OrdMgmt<<implementation>>

<<contract>>

OrdMgmt

+ getOpenOrders(acctIDs): OrdList+ validateOrder(order): boolean+ placeOrder(order): boolean...

<<interface>>



Groundwork: Vision of SOA (Cont’d)

• Drive Rationalization of Underlying Applications• Re-Factor Legacy Applications Along Service Lines• Rationalize Data Resources• From Legacy Silos to Distributed Service Implementations

LegacyClients

Legacy App

Current State Function Extraction(Non-Core)

Function Recreation & Endpoint Deployment

Client Migration & Legacy Drawdown

Legacy App

Target 1 Target 2

Ext Srvc C

ExtSrvc B

LegacyClients

ExtSrvc A

EP

EP

EP

Func A

Func C

Func B

LegacyClients

LegacyApp

EP

SOAClients

OMSrvc C

EDA Integration

LegacyApp

Event Bus

Point-to-PointInterfaces

LegacyClients

OMSrvc BInt

Srvc A

ExtSrvc C

ExtSrvc B

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EP

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Comp B

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Comp A

Distributed App

…

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EPEP

EPEP

SOAClients

EP



Groundwork: Reference Architecture

• SOA Benefits Depend On:• Appropriate Service Partitioning• Generalized Operations

• Picture of Future State Service Portfolio

Push Client

Pull Client

Client Layer

Application LayerE

nte

rpri

se S

ervi

ces

ClearingPartners

Mkt Data Providers

Partner Resources

ExecutionPartners

Ref DataPartners

Push Client

Pull Client

Int Users

Ext Users

<<system>> <<system>>

Push Client

<<system>>

Push Client

<<system>>

Srvc

Banks IRS Other

Authenticated Pull PushPull Authenticated Push

Statement Partners

Pull Client

<<system>>

Push Client

SrvcSrvc

Srvc Srvc

Corp ActionVendors

End Users

Srvc

Analytical Apps

Offer Fulfillment Partners

Depositories

Srvc

Srvc SrvcSrvc Srvc

SrvcSrvc SrvcSrvc

Srvc

Pull Client

<<system>>

M

Push App Push App

Srvc Srvc Srvc Srvc

Srvc Srvc

Srvc Srvc Srvc Srvc Srvc Srvc

Introducing Brokers

Srvc AnalyticalApp

AnalyticalApp

AnalyticalApp

AnalyticalApp{any ent service}

Srvc

Pull ClientPull Client

Pull App Pull AppPull App Pull AppPull App Pull AppPull App Pull App Pull App

Event Bus

Push App

Event Bus

Utility Layer(task/process centric)

Domain Layer(entity centric)

C

VVCM



Groundwork: Sell! Sell! Sell!

• Key Promoters

• CIO & Senior Technology Management

• Senior Business Management• Corporate (CEO, CFO, COO)• Line of Business

• Technology Thought Leaders

• Implementers• Developers• Project Managers• Engineers• QA Analysts• Business Analysts

Cost

Capabilities

Silo Applications

SOA

Reuse & Agility

Redundancy

& Rig

idity

Up-Front Investment Required



The SOA Promise, The SOA Challenge

• Promise • Shorter Product Development Cycles• Faster Integrations• Cost-Reduction• Improved Client Experience (Integrated Capabilities)

• Challenge• Build Capabilities Once for All LOBs – No More Silos!• Overcome Tactical Mindset• Continue to Deliver Business Projects and Tackle Integrations



Proof-of-Concept

• Distributing Core Functionality

• Order Routing

• Back Office Clearing

• CIO Kick-Start

• “4 Services to Production in 3 Months”

• Above & Beyond Business Project Workload• Org-Wide Reward



Proof-of-Concept: Results

• Proven Feasibility & Performance• 4 service endpoints, 1 operation each• Initial Integration Fabric

• Policy Change – “All Java, All The Time”

• Strategic EA Engagement – “Getting In Front”• Understand, Influence, and Accelerate LOB Project Delivery • Provide Consultation & Governance for Project Work • Evangelize Technical Strategy & Influence Project Prioritization

• View of Entire Project Pipeline • Facilitate Transition to Service-Orientation • Guide Service Portfolio Planning



Build Out

• Tactical Investment (“Piggybacking”)• Making SOA Real / Reaping the Benefits• Leveraging Product Development & Supporting Integration Projects• Slow But Steady

• Strategic Investment• Independent Focus on Key Foundational Services• Dedicated Resources, Ownership, Cross-Project Coordination• Leverage External Technology Accelerators

• From Cost-Reduction to Top-Line Potential



Build Out: Key Foundational Services

• Analysis of Current Project Portfolio Prioritizes Investment

• Dependencies Concentrated “At The Bottom”

• Lifecycle Management of Core Business Entities

Service Reuse Opportunities

0

10

20

30

40

50

60

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(All

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SOA Today at TD AMERITRADE (Redux)

• Initial Services in Production• Key Projects via SOA• Seeing Reuse & Accelerated Integration

• Organizational Buy-In• “Altruistic” Tactical Funding / Sustained Strategic Funding

• Early Governance• Enterprise Architecture Oversight

• Maturing Structure, Process & Tooling • Solutions vs Services Teams• Service Ownership• Registry, Assembly, Testing, Governance

• Planning Composite Applications



A View to The Future

• It’s All SOA! No More SOA Projects vs Non-SOA Projects• Separation of Strategic and Tactical Development Concerns

• Solutions Assembly• Service Extension

• Accelerated Legacy Rationalization

• Formalize Governance & Metrics

• Adopt Tooling• QA Automation For Entire Stack• Monitoring & Correlation• Composite Application Assembly

• Address Organizational Aspects• Process, Training, Structure, Mindset



Potential Inhibitors

• M&A Integration Pressures

• Project-Centric View• Retreat to Legacy Extension

• Resource & Funding Contention

• Loss of Focus

• Coordination & Governance

• Technology



Conclusions

• SOA Works• Accelerates M&A Integration & Facilitates Ongoing Development

• Service-Oriented Transformation Takes Time• Process & Structure More Difficult Than Technology• Culture Is Paramount

• Seek Tactical & Strategic Balance For Incremental Delivery• Demonstrate Tangible Progress• Pay As You Go

• Benefits From a Strong Conceptual Foundation• Broader EA Function

• Constant Learning, Constant Tending, Constant Selling