1. Gartner EA Conference / December 7 th, 2006 Authored by Mike Walker Financial Services Architecture Strategist mikewalk@microsoft.commikewalk@microsoft.com http://msdn.microsoft.com/FinServArchhttp://msdn.microsoft.com/FinServArch

2. / Agenda / Microsoft’s Vision for Financial Services Business Challenges Technical Challenges Enterprise Integration Financial Services Solution Architectures Conclusion

3. / The analysts have this to say about Microsoft / “.NET leads J2EE in ease, speed, and (lower) cost of development. The level of abstraction built into.NET means that programmers work with much larger "blocks" when developing new solutions. IT professionals need to worry less about the low-level details of system programming than they would under a J2EE paradigm.” “As more firms look at efforts to remove data silos, migrate dated functionality, or to create agile infrastructures, Microsoft’s.NET platform will be a natural choice for many. To date, the biggest growth impediment has been more a combination of large financial services firms, hesitant to run enterprise applications on Wintel platforms, and the historical perception of SQL Server as a second-tier database server. This has changed…” “Overall, Celent sees the growth of Windows in the insurance industry as a result of several trends: The increasing viability and acceptance of Windows as an enterprise platform The growth of Services-Oriented Architectures, which reduce the value of technical monocultures The increasing maturity of.NET as a development environment The growth of.NET-based vendor solutions.” 1. Tower Group - April 2006 – “.NET vs. J2EE: Does the Future of Service-Oriented Architecture Hang on Myth and Misconception?” 2. AITE Group – February 2006 – “Financial Services Caught in the.NET - Practical Lessons from the Trenches” 3. Celent – February 2006 – “Insurance CIO/CTO Pressures, Priorities, Projects, and Plans 2003-2005 Survey Results”

4. / Mission Critical Applications in Financial Services / London Stock Exchange – 97,000 terminals receiving real-time Market Data97,000 terminals receiving real-time Market Data SWIFT - Gold CertifiedGold Certified Central Bank of Spain - High Value PaymentsHigh Value Payments CheckFree – 1000 tps and 24% less TCO1000 tps and 24% less TCO Nasdaq – Market Data Service handles 5,000 tps at market openMarket Data Service 70 percent of all new ATMs shipped are Windows-based70 percent of all new ATMs Banco Azteca - 64-bit Platform for Bank’s Core Transactions64-bit Platform for Bank’s Core Transactions Equifax - move to Windows Datacenter and.NET saved millionsmove to Windows Datacenter and.NET saved millions Citigroup – CitiVision Integrates 270 Different Sources of Information for 12,000+ Global Investment BankersCitiVision Integrates 270 Different Sources of Information for 12,000+ Global Investment Bankers SAP Core Banking Benchmark 8,279,000 postings to bank accounts per hourCore Banking Benchmark Nationwide (UK) - Basel II Compliance Solution with SQL 2005 consolidating 80 different systems data and storing for 7 yearsBasel II Compliance Solution Commonwealth Bank of Australia – CommSee Branch of the Future Solution CommSee SberBank – largest bank in Russia – all applications on SQL 60,000 docs per hourall applications on SQL 60,000 docs per hour Bank of Montreal: 18,000 users on.NET Smart Client for Branch (.NET Framework)18,000 users on.NET Smart Client for Branch (.NET Framework) Merrill Lynch: 1-800-Merrill is one.NET IVR platform that serves 75m transaction a day1-800-Merrill Bank of America automates customer call center – 15,000 agents using Microsoft Customer Care Framework (CCF)Customer Care Framework (CCF) Cheshire UK – core banking with Fincentriccore banking with Fincentric Interpay (Netherlands) 25 TB Payment System25 TB Payment System JPMorganChase – equities trading platformequities trading platform Allstate – Producer Connectivity network leverages.NET while helping enable Policy Management solution in record time.Producer Connectivity networkPolicy Management Barclays Trade and Positioning System processing 200 trades/sec up to 1000 trades/secTrade and Positioning System First American Title Company - Title and Escrow System consolidated 50 systems to one, 12,000 concurrent users, 64-bit capabilitiesTitle and Escrow System Citigroup TreasuryVision - Managing Corporate Cash Around the WorldManaging Corporate Cash Around the World

5. / Current Industry Challenges / Customer satisfaction and retention Growth and quality of business Human-intensive, paper-bound workflows Poor distribution channel integration Regulatory compliance pressures High Operational Costs

6. / Current Technology Issues / Technology Sprawl High-cost of maintenance/development Business demands now exceed capacity to deliver regularly Workflow desires meet temporal roadblocks … A dictatorial platform Innovation and differentiation are prevented

7. / Snapshot of Microsoft in Financial Services / Qualitative shift in our business – into more and more “mission critical” transactional roles Focus on Industry Solutions to solve real Business Problems (Industry Priority Solution Scenarios (IPSS)) Scaling to the enterprise is “now” a reality with the Microsoft Platform People are noticing; Analysts, customers, and partners Increasingly influential in Microsoft’s core technology, marketing and product direction Increasing importance of Financial Services Industry partners

8. / Microsoft is focused on the financial services industry / Payments ATM/POS switch Corp2Bank Check Processing SWIFT Connectivity Treasury / Cash Management EBPP Credit Card Processing Mobile payments High and Low Value payments Security Settlem’t Fraud Mgmt Advisor platform / Portal Company and Industry Provided Services Advisory Management AdvisorPlatforms POS and Multi channel delivery Underwriting Prod Dev and Configuration Core Policy and Admin Claims Processing Re-insurance InsuranceValueChain Audit and Controls Doc and Records Management Corp Governance Reporting and Analytics Privacy and Security KYC/CIP Risk Management and Comp CertificationDocumentation RiskManagementAndCompliance Branch Seller Branch Teller LoanATMInternetIVR Call Center Customer Knowledge Mobile ChannelRenewal

9. / Financial Services Architecture Guidance / Launch was a huge success Lot’s of buzz in the blogosphere & press Sub-sites being developed to address: Banking Insurance Capital Markets http://msdn.microsoft.com/FinServArch

10. Microsoft Patterns & Practices http://msdn.microsoft.com/practices/ http://msdn.microsoft.com/practices/ Financial Services Architecture Guidance http://msdn.microsoft.com/FinServArch http://msdn.microsoft.com/FinServArch MSDN Solution Architecture Center http://msdn.microsoft.com/architecture http://msdn.microsoft.com/architecture Architecture Journal http://www.architecturejournal.net http://www.architecturejournal.net

11. SOA – It’s About Business! Business  Information  Technology IT exists to support business We are looking for an overarching architecture that supports the business needs of IT Businesses have huge existing investments in IT These investments: Fill different needs, Are implemented on different platforms, and Are of different vintages No one in their right mind believes these huge investments will be discarded! Businesses are evolving to be IT centric More and more virtual businesses are emerging Information is their key to survival…

12. EXAMPLE DECOMPOSITION / Business Architecture with Microsoft MOTION / HIGH-LEVEL VIEW DECOMPOSITION FRAMEWORK Motion starts with a high-level, objective view of business, and allows capability decomposition

13. Systems Management Server Microsoft Operations Manager Windows System Update Service Microsoft Operations Framework Integrated Management & Governance Integrated Tools & Modeling

14. .NET Framework 3.0 Windows Presentation Foundation Vector-based Resolution independent Rich media 3D user interfaces Windows Communication Foundation Secure Web services Reliable transacted distributed apps Interoperability with WS-* protocols Any transport and any host Windows Workflow Foundation Engine built into platform System and human workflow Composite apps Windows CardSpace Streamlines user registration and one-click login Mitigates common attack vectors (Phishing) Seamless integration with WCF

15. Interop with other platforms ASMX Attribute-BasedProgramming Enterprise Services WS-*ProtocolSupport WSE Message-OrientedProgramming System.Messaging Extensibility Location transparency.NET Remoting Unified Programming Model / Unified Programming Model /

16. Service-Oriented Architecture Service Registry Service Management Security Enterprise Service Bus ESB Core Engine Transformation Routing Exception Management Orchestration Adaptation B2B Gateway Provisioning Framework Adaptation Supported Service Consumer Nativ e Supported Service Provider Nati ve Standard Service Consumer SOA P Standard Service Provider SOAP / ESB Guidance / Pre-built, reusable code, patterns, and guidance Accelerates implementations Early adopter program available to partners now

17. Enterprise Connectivity More BizTalk Server 2006 Adapters PeopleSoft JD Edwards OneWorld XE JD Edwards Enterprise1 Oracle ODBC Siebel TIBCO Rendezvous TIBCO EMS POP3 Windows SharePoint Services SQL Host Integration Server BizTalk Server 2004 Adapters/ Accelerators MQ 2.0 MSMQ/MSMQT WSE HTTP SMTP Base EDI SQL File FTP SOAP SAP SWIFT HL7 RosettaNet HIPAA BizTalk Adapters for Host Systems Host Applications IBM mainframe zSeries (CICS and IMS)IBM mainframe zSeries (CICS and IMS) Midrange iSeries (AS/400)Midrange iSeries (AS/400) IBM DB2IBM DB2 Mainframe DB2 for z/OSMainframe DB2 for z/OS Midrange DB2/400Midrange DB2/400 DB2 Universal Database for open platforms (AIX, Linux, Solaris, and Windows)DB2 Universal Database for open platforms (AIX, Linux, Solaris, and Windows) Host Files -Mainframe zSeries VSAM datasets -Midrange iSeries AS/400 physical files BizTalk Server 2006 R2 WCF Adapter EDI / AS2 X12 and EDIFACT supportX12 and EDIFACT support Drummond Interoperability CertificationDrummond Interoperability Certification BizTalk RFID Device Abstraction and Mgmt ToolsDevice Abstraction and Mgmt Tools Event Processing for Filters, Alerts and TransformsEvent Processing for Filters, Alerts and Transforms Design, Runtime, Mgmt APIsDesign, Runtime, Mgmt APIs Back-office IntegrationBack-office Integration BizTalk Adapter Pack Universal access to LOB apps through WCFUniversal access to LOB apps through WCF BizTalk Server – “In the Box”

18. / How do these technologies come together in Banking? / PORTALPORTAL SharePoint Excel Services WCF & WF SQL Server & Analysis Services BizTalk Server WS Third Party Relationships: Credit, MI, etc. Existing Systems & Workflow Sales, Loan Admins, Underwriters

19. / Key Components of Interoperability / Agreed syntax representations E.g. XML Agreed protocols E.g. SOAP + WS-* specs (such as WS- ReliableMessaging) Agreed payload schemas E.g. IFX for banking data Profiled composition E.g. Pre-defined options to ensure functionality Agreed business scenarios E.g. Well defined interaction scenarios / use cases

20. / Industry Standards are Key as Well / SWIFT IFX NACHA MISMO X9 FIX ACORD TWIST

21. Microso ft Intel  Sun  Dell  AMDA CAA SonicA gSOAP SystinetA WEBM  NetIQ  WS-Policy / Microsoft is the clear leader in WS-* adoption / Messaging Security Assurances Mgmt Metadata WS-XFer / Enum WS-Fed WS-SecureConv WS-Security WS-Trust WS-RM WS-AT MEX WS-Management Released product  Public interop ACo-Author Only SOAP / WSDL Microsoft IBM BEA A Cape Clear Systinet Blue Titan Rogue Wave  Sonic  IONA Arjuna Choreology Apache Tibco  Microsoft  IBM  BEA A  A RSA  A Systinet  Apache  Layer7 A DataPower CA AA SUN SAP Tibco IONA WebMethods Nokia Cape Clear gSOAP Ping ID  A Netegrity  AA  Verisign  AAA OpenNetworkAAA  Oracle/Oblix  Microsoft IBM BEA SUN  Google Amazon eBay Apache Whitemesa gSOAP Ricoh  Epson  HP  Xerox  Fuji-Xerox  Intel  Canon  Microsoft IBMA  BEAA SAPA  SunA VerisignA SonicA CAA WebMethodsA gSOAP MTOM

22. / Conclusion / Most tooling is based on Industry Standards Support for Heterogeneous Environments is less of a concern Next Generation SOA concepts are supported with the implementation of WS-* Unified Framework for developing: Workflow Services Communications Services Presentation Services Message Bus Technologies Composite style architecture support A scalable business platform