The effect of standards on the enterprise Bill Stangel

Fidelity Investments

April 26, 2004

Agenda

Why standards are important

Standards within the enterprise

What’s missing

Largest mutual fund company

in US

#1 provider of workplace retirement

savings plans

Employs over 29,000 people

Assets exceed $1 trillion

Who is Fidelity Investments?

Fidelity Investments is one of the world’s largest providers of financial services, with custodied assets of $1.9 trillion, including managed assets of $1.0 trillion as of March 31, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fundsupermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

Average daily phone calls:

255,000

Average daily trades: 129,000

Envelopes mailed daily:

650,000

“Routine” Business Transactions

Online daily commissionable

trades: 94%

Weekly Web visits:

4.5 Million

Average daily phone calls and Average daily trades, Fidelity Facts, December 31,2003; Weekly Web visits, FeB Web Stats, as of March 28, 2004; Online daily commissionable trades, FeB Web Stats, as of March 31, 2004; and Envelopes mailed daily, Fidelity Wide Processing (D. Marx), December 2003.

Key Goals for Fidelity

The leading manager for trillions of dollars in new, The leading manager for trillions of dollars in new, post-retirement assetspost-retirement assets

The leading manager for trillions of dollars in new, The leading manager for trillions of dollars in new, post-retirement assetspost-retirement assets

The team member of choice for correspondents, The team member of choice for correspondents, registered reps, and investment advisorsregistered reps, and investment advisors

The team member of choice for correspondents, The team member of choice for correspondents, registered reps, and investment advisorsregistered reps, and investment advisors

The pre-eminent provider of benefits services The pre-eminent provider of benefits services The pre-eminent provider of benefits services The pre-eminent provider of benefits services

The most trusted provider of lifetime investment The most trusted provider of lifetime investment solutions solutions

The most trusted provider of lifetime investment The most trusted provider of lifetime investment solutions solutions

Organizations we belong too

WS-I

Oasis

HRXML

Liberty

FIX, SWIFT

ANX

Etc.

Before we had Messaging Standards

8 protocol hops to get to core data

5 development groups involved in a transaction

Costs in

– Problem resolution

– New features deployment

– Maintenance

– Operational complexity

Adoption of Web Services

Consumer Producer XMLHTTP

Leveling Technologies

Databases

TCP/IP

HTTP

XML

Java, .Net, Cobol

Application Servers

Web Servers

XMLSchema

SOAP

WSDL

UDDI

Web Services

Storage

MVS, Unix, Microsoft

Resource Virtualization

Time

Qua

lity,

eco

nom

ies

of s

cale

Single Use

Community Use

Ubiquitous Use

TCP/IP

Storage AreaNetworks

Goals on standards

Simplify

– We stopped inventing them internally

Integrate

– Adoption of more products

Allows us to lead with our customers

– Implement features faster

7 Themes

Identity centric applications

Applications tolerant to change

Service Oriented Architectures (SOA)

Enterprise information

Intelligent networks

Virtual computing platform

Security simplification

7 Standards

Liberty, WS-Federation, SAML

Java, .Net, Cobol,

XML-Schema, SOAP, WSDL

FIX, SWIFT, HRXML

UDDI, Messaging, SOAP, IPV6

OGSA, WS-Resource Framework

ISO 17799, WS-Security, 802.1x

What’s needed

Higher level services

– Collaboration

– Content Management

– Portals (JSR 168, WSRP)

– Document management

Simpler data standards

– Industry specific (FIX, SWIFT, etc.)

– Other extreme they are too general

– Digital rights management

Fewer competing standards

Conclusion

Keep it simple

Standards are for your customers

Don’t take away the creativity of the developer

Come to consensuses quickly

Bake them into products & open source

Keep it simple

372470 Fidelity Distributors Corporation, 82 Devonshire Street, Boston, MA 02109