Financialservicessolutions

Copyright © 2006 VMware, Inc. All rights reserved.

VMware Virtual Infrastructure Solutions for Financial Services

2Copyright © 2006 VMware, Inc. All rights reserved.

Agenda

• Virtualized IT Strategy

• IT Challenges for Financial Services

• Solutions

• Customer Proof Points

• Benefits

• Next Steps


IT—Core to an Organization’s Success

IT Scorecard

Responsiveness Availability Security Compliance Provisioning

Flexibility Disaster Recovery Desktop Management Utilization Cost

Virtual infrastructure allows you to dynamically map your IT assets

to your organization’s needs


Datacenter Flexibility—Make IT Assets Work for you

Partitioning

Isolation

Hardware Independence

Centralized Management

Encapsulation Flexibility Disaster Recovery Desktop Management Utilization Cost

IT Scorecard

Responsiveness Availability Security Compliance Provisioning


IT Challenges for Financial Services

Technologies to support new business strategy

Successful execution requires:

• Speed• Flexibility• Efficiency

Standards across the desktop – unmanaged endpoints create risk

• Virus control • Business transition• Outsourcing

Agility with Performance

Risk Management and Compliance

Resource Optimization

Your systems will not go down, BUT…

at what cost?

Increasing demand and capacity

• Systems refresh• Server sprawl• High availability


• Time-to-market: fast delivery of IT services to match business strategy

• Performance for customer service

• 100% uptime with cost control

• Managing multiple data centers across wide geographic area

Agility with Performance Flexibility to rapidly execute to business strategy

• Provision new servers in a fraction of the time to more quickly and cost-effectively match needs of business units

• Provision, migrate and maintain servers across geographic areas, from main datacenter

• Automatically load balance between pools of virtual machines for high performance 24 x 365

• Move virtual machines, while running, to other server for maintenance with no downtime

• Centrally manage, monitor and control entire virtual infrastructure

Challenges Use Cases/Solutions


Empower Staff to Do More with Less

Provision virtual machines as servers or desktops

Secure access

Migrate with zero downtime

Monitor system performance and utilization

Manage resources from central datacenter with remote capabilities

Centralize management of virtual machines for a standardize computing environment and efficient resource utilization

VirtualCenter


Breakthrough Levels of Availability

800 days of continuous uptime and counting


Flexibility and Performance Cuts Costs and Drives Revenue

The ChallengeAn important loan-processing initiative, which would increase performance by a factor of 4, was costly, requiring over a year to realize return, and, therefore, faced business challenges.

The VMware SolutionUsed ESX Server to deploy equivalent of 100 physical servers as virtual machines hosted on 12 physical servers, realizing return in three months. Virtualized applications included Citrix, SAP, Siebel and customer client-server applications.

• Delivered ROI in three months

• Rollout across 3 datacenters

• Supported 1,400 users on virtual machines

• Reduced time spent on server provisioning, backups and recovery by a factor of 10

• Improved responsiveness of applications driving more revenue

“We found the flexibility offered by VMware server software in building servers to be highly valuable. We found the stability of Citrix on VMware software to be excellent.”

Rod Lucero Chief Architect

Conseco Finance


• Secure access for remote or outsource groups

• Continuing operations in event of pandemic

• Virus proliferation from uncontrolled desktop

• Compliance to desktop standards

• Managing change

Risk Management and Compliance Better manage endpoints to reduce IT supported risk

Use Cases/Solutions

• Provide a virtual desktop on a PC (ACE) or via a thin client (VDI) to better secure data, ease management, contain virus attacks and improve compliance to standards

• Virtual desktops (networked via thin client) can be rapidly deployed without physical contact and hardware transfer

• Extend life of proprietary application by virtualizing it and upgrade after risk is mitigated

• Manage remote or branch offices from central location: deploy, migrate, monitor, backup and maintain

• Isolated virtual machines (desktop and server) eliminate virus proliferation

Challenges


Multiple Levels of Endpoint Management

Isolation

• Isolation of independent virtual machines allows for various levels of control

• Protect other systems from attack• Control network access to and from the

virtual machine

Data Encryption

• Each virtual machine is encrypted and password protected

• Requires no action on part of end-user for compliance

• Additional layer for hack protection

Central Management

• User can not install additional applications on virtual machine

• Determine network access, if any• Quickly deploy images on any x86 PC• Maintain compliance with latest software

and security patches

Data Control

• Prohibit printing • Copy protect• Maintain all sensitive information in

datacenter—no information located on hardware (on-line deployment)

• Expire access to virtual machine


Rapid Desktop Deployment at Lower Costs

The ChallengePrudential UK needed to provide 850 employees at its new Mumbai center with the complete Prudential desktop comprised of more than 100 applications needed to service customers

The VMware SolutionESX Server enabled Prudential UK to run its standard desktop remotely without rewriting any of its applications

• Implemented in less than six months

• Substantial cost savings

• All IT management is done at headquarters in Reading

• Allowed company to extend remote access to third parties and home workers

• Server best practices have allowed greater business agility

“Without a means to host our existing standard desktop in the UK, we would not have been able to provide remote access to our Mumbai employees in such a short space of time, and VMware server virtualization proved to be the most flexible and cost effective approach.”

Andy RubyManager of Infrastructure Design

Prudential UK


• Costly infrastructure refresh

• Low server utilization

• Managing mix of application computing platforms

• High cost to 24 x 365 service

• Disaster recovery

Resource OptimizationBring cost control to high IT service levels

Use Cases/Solutions

• Consolidate servers to reduce hardware and operational costs, such as space and power

• Increase server utilization and automatically load balance

• Standardize on virtual infrastructure and utilize O/S and hardware that maximizes performance

• Virtualize legacy and proprietary applications to run on newer machines

• Maintain duplicate IT datacenter for disaster recovery (DR) at a fraction of the cost

• A virtual infrastructure enables consolidated backup and complete DR testing without disruption to service

Challenges


Prime Time

Peak

20%

40%

60%

80%

0%

100%

20% 40% 60% 80%

% of Servers

CPU Utilization

Server Utilization Profile

Source: Capacity Planner customer analysis

Paying for Unused Computing Power

100%

“… organizations with more than

200 servers will waste between

$500,000 and $720,000 annually

supporting underutilized

application/server combinations.”

Gartner Research


65% TCO Reduction with Virtualization

TCO Components Without With

Hardware and Software Costs

Number of Physical Servers Required

Total Hardware Costs

VMware Software, Support & Services

Total Hardware and Software Costs

IT Operations

Affected Datacenter Costs: (Network & other costs)

Total Server Deployment: (hrs) x $75/hr

Server Support

Total Affected IT operations Costs

Total Affected Costs

92

$690,000

$0

$690,000

$169,533

(552 hrs) = $41,400

$221,697

$432,630

$1,122,630

6

$201,999

$56,006

$258,005

$14,721

(368 hrs) = $27,600

87,650

$129,971

$387,976

Virtualization Comparison

Savings of over $700K and 189% ROI in first 6 months


Proven Results with VMware Virtualization

VMware customers have experienced:

ROI in 6-9 months

35%-75% TCO savings

10-15 : 1 consolidation ratios

60%-80% utilization

Provisioning time cut from hours to minutes

Zero downtime

Confidence IT is at it’s best

Financial Services


Conclusion

Reduce TCO of server infrastructure• Cut hardware costs by 50%

• Decrease operational costs by 70+%

• Slash overall deployment costs by 60+%

Deploy and test disaster recovery systems

Ensure ZERO downtime

Secure data at endpoints

Manage computing resources strategically

17

Do More With Less


Next Steps

• Prove value• Capacity Planner

• Pilot

• Proof of Concept

• Jumpstart

• Assess• What do I have?

• How am I using it?

• How much does it cost?

• Make the business case

Getting Started

Copyright © 2006 VMware, Inc. All rights reserved.

VMware Virtual Infrastructure Solutions for Financial Services

Case Studies


Prudential Solution

• Desktop environment and data reside in existing UK datacenter

• Running full Windows XP Pro desktop environments on ESX Server

• Remote access to desktops via RDP over WAN

Reading, UK OfficeMumbai, India Center

ESX Server

Database &File Servers

SAN


Virtual Standard Applied to New Data Center

The ChallengeRetire 2,000 Intel Servers in six months

The VMware SolutionESX Server to consolidate applications regardless of OS or compatibility, saving rack space and resources in newly built Pheonix data center

• Fewer physical machines to manage

• Provisioning new instances of applications and services instantly and remotely

• Delivering capacity on demand by cloning and instantly deploying machines

• ROI within 6 months


Secure Desktop Environments

The ChallengeBuilding solutions to streamline processes at financial institutions, Baker Hill needed a secure way to collect and work with sensitive client data, including private financial databases

The VMware SolutionDeploying VMware ACE for professional services agents, Baker Hill is able to protect client and company data while building its award-winning solutions.

• Professional services agents are able to work with private client information in virtual machines to do their jobs

• Data is encrypted to prevent theft

• Policies protect company and client data from being moved into or out of virtual machines

“We work with private financial information, so we need a way to protect client data. With VMware ACE, Baker Hill can provide employees with the tools they need to create powerful solutions for customers, while protecting valuable client data.”

Eric BeasleySenior Network Administrator

Baker Hill


Test, Development and Production

The ChallengeProviding solutions for financial institutions, Baker Hill needed a large amount of hardware for test, development and production.

The VMware SolutionBaker Hill uses the entire suite of VMware products to increase flexibility and productivity for QA and development, and to provide a stable, reliable production environment.

• 15 virtual machines per CPU in QA; 7-8 virtual machines per CPU in production

• Reduced response time for new servers from 2-3 weeks to 2 days or less

• Increased productivity; developers work from their desks instead of walking to and from a lab

• Can emulate complex production environments

“By standardizing on VMware virtualization products across the entire software lifecycle, all the way from development to production, we are able to increase productivity, build higher quality software and decrease our time to market."

Eric Beasley Senior Network Administrator

Baker Hill


Cost Savings with High Performance Continuity

The ChallengeDuring an IT restructuring, Commerzbank realized its traditional physical infrastructure was inadequate in terms of flexibility, as well as continually more expensive to maintain.

The VMware SolutionVMware Server enabled Commerzbank to shrink its machine pool to 24 servers running the workload of 60 servers and 120 clients.

• Achieved a 10:1 server consolidation ratio

• Created a standard platform for the bank

• Immense time savings due to automatic setup of guest operating systems

• Reduced downtime and costs of replacing or retrofitting hardware

“By virtualizing the test and development environments, we were able to achieve considerable hardware savings without users experiencing any loss of performance.”

Dr. Reinhard Leuchs VCP

Commerzbank


Doing More in Less Time

The ChallengeDesert Schools Federal Credit Union needed an IT infrastructure that could accommodate an increasing demand for new applications and increase productivity.

The VMware SolutionVMware ESX Server, Workstation, VirtualCenter, and VMotion not only saved Desert Schools Federal Credit Union $50,000 in hardware costs, but also increased IT responsiveness and application availability.

• Achieved 6:1 server consolidation rate

• Saved $50,000 in hardware costs, plus additional savings for maintenance, heating, cooling, and physical space

• Reduced server deployment time

• Improved application availability with VMotion

“We are able to do much more in less time. Before, we would be waiting two weeks to get a server. With a virtual infrastructure, we can do it now.”

Doug Baer Systems Engineer

Desert Schools Federal Credit Union


Legacy Migration Avoided $40M in Capital Spend

The ChallengeSafely deploy proprietary DOS-based applications across 500+ systems at more than 200 acquired branches

The VMware SolutionUsed VMware Workstation to create stable, uniform platform formanaging OS and application updates

• Completed complex legacy migration project on more than 500 machines in 18 months

• Avoided $40 million capital spend by deploying proprietary application on existing hardware

• Enabled smooth transition of systems in merger and acquisition environment

“There’s no doubt that this is one of the best ways to continue using legacy PC-based software within new Windows operating systems.”

Mark JohnsonSenior Systems Analyst

Fleet Bank


Disaster Recovery, Light-years Ahead

The ChallengeJersey Financial Services Commission had identified shortcomings in its disaster-recovery methods and needed to find a new solution that could provide 24x7x360 availability.

The VMware SolutionVMware ESX Server put the company’s business-continuity solution light-years ahead of the traditional disaster-recovery methods and enabled the complete replication of its production environment on a single machine.

• Achieved 12:1 server consolidation ratio

• Enabled robust, cost-effective disaster recovery that offers real-time data replication

• Increased scalability without increased hardware

• Improved testing before patch and application deployment

“Since we began using VMware technology, we’ve been looking to expand our usage of it. The ability to boost high-specification server use from 1 to more than 25 percent represents a strong business case for virtual infrastructure. Our choice of VMware has been validated time and again.”

Shaun RobertsDeputy Director, Head of ICT

Jersey Financial Services


Assessment Key to Achieving Maximum Results

The ChallengeEvery new application that came in The Mechanics Bank required its own $6000 server. The bank needed a way to streamline its IT environment and create an effective disaster-recovery system while cutting costs.

The VMware SolutionVMware Virtual Infrastructure Methodology, Virtualization Assessment, ESX Server, VirtualCenter, and VMotion enabled The Mechanics Bank to contain costs by repurposing hardware and streamlining testing and development.

• Identified hardware that could be repurposed after migration to virtual infrastructure

• Established clear metrics for project success

• Demonstrated business and technical benefits of virtual infrastructure

• Enabled building of test and development environment without need for 100 new servers

“The virtualization assessment helped us identify how to achieve maximum results. The consultants’ expertise provided a full-blown assessment we couldn’t have done alone. It was like a health check; it showed us where we are, where we want to be, and how to get there.”

Richard LewisVP of IT

The Mechanics Bank


Risk Management in Transition

The ChallengeReplace 27,000 NT and W2K trader Workstations with XP-based systems

The VMware SolutionWindows NT apps running in VMware Workstation

• Saved millions of dollars when reduced costs by 40-50%

• Migration planning, testing and deployment on Windows XP

• Manage risk in transition phase

• Cost savings and reduction in deployment time for 28,000 Workstations

“VMware enables us to solve a variety of challenging IT issues in a quick, cost-effective manner…We’re using VMware Workstation to manage risk in transition – it’s running on each financial adviser’s desktop.”

John McKinleyChief Technology Officer

Merrill Lynch

Financialservicessolutions

Technology

Transcript of Financialservicessolutions