IBM can provide a new dimension in computing for financial institutions. (1) Management integration, (2) Multi-platform integration, (3) Stack integration.

1. George Mattathil -
5/3/2011
IBM zEnterprise System
business value for the banking industry
Smarter systems for a smarter planet™
Posting reference 727
© 2010 IBM Corporation

2. There are dramatic forces of change across the global
financial system.
ECONOMY TRUST
Weak conditions impact Rebuilding trust and
investment decisions and confidence across the
reduce need for financial system is critical to future
services growth and stability
COMPETITION REGULATION
Intensified competition with Radically increased
increased mergers and oversight ushering in a
acquisitions, divestitures and new era of increased
entrance of non-bank government intervention
service providers
CLIENTS CAPITALIZATION
Rapidly evolving Mature markets and
expectations for offerings, emerging markets alike
service, and convenience focus on rebuilding their
capital reserves
2 © 2010 IBM Corporation

3. Inflexible, complex operations and siloed data prohibits banks from
focusing on their clients.
Commercial Retail Corporate Sales and Asset Custody
banking banking finance trading management and agency “Agile businesses that
services
actively converge
business and
Payments Anti-money Compliance Account Trading General technology have 7
processing laundering reporting opening systems ledger
percent higher EPS
growth and 45
percent higher return
on investment than
their industry peers.”
Partners
Source: 2009 Convergence Index, BTM
Institute
Customers
Service
providers
Regulators
70 percent-plus of bank IT costs are spent in maintenance of legacy
environments and less than 30 percent is spent on true differentiation,
innovation and new product offering support.
3 © 2010 IBM Corporation

4. Banking industry leaders are focused on three key imperatives.
REINVENT THE DEVELOP NEW
BUSINESS MODEL INTELLIGENCE
Drive a simplified and Develop enterprisewide
streamlined agile capabilities to enable
enterprise that balances informed judgment,
growth, efficiency and client-centricity and
business resiliency profitable growth
INTEGRATE RISK
MANAGEMENT
Achieve compliance
objectives while mitigating
operational risk, fighting
crime and optimizing
financial returns
4 © 2010 IBM Corporation

5. It’s vital to select the right resources for the right job.
Independent analysis 44 percent
shows that an increase lower IT cost-per-credit-
in mainframe technology card transaction
usage delivers better
business results than a
primarily distributed
environment. 31 percent
lower IT spend per
consumer loan
“… in the long run the marketplace rewards those that make the optimum use
of the right computing resources in the right way as evidenced by business
performance”
— Dr. Howard Rubin, Chief Executive Officer and Founder, Rubin Worldwide
5 © 2010 IBM Corporation

6. IBM helps banks address priority business needs.
The IBM banking industry value proposition:
 Helps significantly accelerate modernization while reducing risk
associated with execution.
 While banks truly modernize their back offices every 8-10 years, IBM
does it every day helping worldwide banks grow revenue, improve
efficiency and better manage regulatory-driven change
 Decades of deep industry experience and integration capabilities make
IBM uniquely positioned to help today’s bank differentiate themselves
and drive profitable growth.
IBM’s industry value proposition
isenhancedwith the introduction of the new
IBMzEnterprise™ System.
6 © 2010 IBM Corporation

7. Financial institution business issues can be addressed by the new
IBM zEnterprise System advantages.
Reinvent Develop new Integrate risk
business model intelligence management
1 Optimized sales processes
2 Faster time to market
3 Achieve compliance objectives
IBM zEnterprise™ System can offer high value to help meet banking industry
business issues:  Large-scale consolidation to help reduce cost of energy,
facilities and software licenses by up to 90 percent
 Deliver 35 to 65 percent performance improvement over
IBM System z10™
 Turn information into insightwith up to 10-times
improvement in performance for complex queries
 Create a business aligned infrastructure capable of
processingbillions of instructions per second
 Integrate and centralize management to reduce
laboroverhead by up to40 percent
 Up to 100 percent resource increase available to deliver
new innovation
7 © 2010 IBM Corporation

8. The system of systems: built on best-in-class systems and
software technologies
Unifies IT for predictable service delivery that banks demand
Three new innovations of IBM zEnterprise™ System
IBM zEnterprise 196 (z196) zEnterprise Unified zEnterprise BladeCenter
Resource Manager Extension (zBX)
 Optimized to host large-scale  Unifies management of  Selected IBM POWER7 blades
database, transaction, and resources, extending IBM and IBM System x Blades* for
mission-critical applications System z qualities of service tens of thousands of AIX and
 The most efficient platform end-to-end across workloads Linux applications
for large-scale Linux  Provides platform, hardware  High-performance optimizers
consolidation and workload management and appliances to accelerate
 Capable of massive scale-up time to insight and reduce cost
 New easy-to-use z/OS V1.12  Dedicated high-performance
* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice,
private network
8 and represents goals and objectives only. © 2010 IBM Corporation

9. IBM zEnterprise System helps you address today’s top application
development and delivery challenges.
1. How to optimize the value embedded in applications built over several decades?
2. How to leverage developer skills across heterogeneous environments (distributed, mid-range, mainframe)?
3. How to manage disparate teams working across lines of business and geographies?
4. How to optimize infrastructure and maximize its utilization and resources, while reducing the total cost of
ownership?
IBM zEnterprise™ System can offer:
 New rapid development and testing of IBM z/OS® applicationsto help deploy a more affordable
development and test environment
– Frees up development MIPS for production capacity
 New compilers to help speed application performanceby exploiting new IBM zEnterprise System hardware
instructions with C/C++ and PL/I compilers
– Faster performance for new and existing applications
 Multi-platform development and team collaborationthrough an integrated service delivery platform to help:
– Improve developer tools, productivity, team efficiency and speed delivery of traditional and modern
workloads across all IBM zEnterprise System operating environments
NEW! IBM Rational® Developer for IBM System z® Unit Test
NEW! IBM z//OS XL C/C++, NEW! Enterprise PL/I for IBM z/OS, NEW!Eclipse
EGL Development Tools project
IBM Rational Team Concert for IBM System z and IBM Power®, IBM Rational
Developer for IBM System z and Power, IBM Rational Asset Analyzer
9 © 2010 IBM Corporation

10. IBM zEnterprise System can help increase business agility for
bottom-line results.
 New deployment assistant for IBM z/OS® helps offer Cut CICS administration
comprehensive reporting and improved change management
time up to 80 percent 1
control facilities for IBM CICS®, which can:
Cut development times for
– Optimize cost of ownership of the IBM System z® platform CICS applications up to
 Extending innovative application development to IBM days versus weeks 1
System z with dynamic scripting including PHP, AJAX, REST
and other Web 2.0 technologies can:
– Increase productivity of CICS application and system
developers
 Business activity monitoring helps provide more user-
friendly and customizable dashboards and now includes events
native to the mainframe platform, which can:
– Improve business performance with real-time insights
1 As measured by IBM Large System Performance Reference (LSPR) workloads using z/OS® 1.11
NEW! IBM CICS Transaction Server Feature Pack for Dynamic Scripting
NEW! IBM CICS Deployment Assistance for z/OS
ENHANCED! Business Monitor for z/OS
Service-oriented architecture connectivity and integration, IBM ILOG® BRMS, IBM WebSphere® Application Server, IBM DataPower® appliances
10 © 2010 IBM Corporation

11. IBM zEnterprise System can help you manage risk, security and
compliance.
 New capability to report and analyze security events associated with Linux® on IBM System
z®,so enterprises can now consolidate and integrate their audit and compliance reporting to
include new IBM OMEGAMON®, Linux on System z and other security-relevant events
– Allows enterprises to prioritize vulnerabilities and remediate threats by providing a closed-
loop integration within the security management products
– Up to 70 percentin security audit savings 1
 New capability to easily enroll and manage federated user access for IBM zEnterprise System
and Linux on IBM System zso external users can exploit self-service capabilities to enroll
federated userids and utilize IBM RACF® identities to more securely access the mainframe
services.
– This helps improve visibility with complaint access and reduce help desk support for
federated users and services deployments
– Up to 35 percent in reduced help desk calls1
– Up to 52 percentlower administrative costs1
1IBM Internal Study based on Oracle SW with Nehalem 4 core running 25% utilization
NEW! IBM Tivoli® zSecure Manager for RACF z/VM®
NEW!Tivoli Federated Identity Manager for z/OS®
Tivoli Security Management for z/OS, Tivoli zSecure suite
Tivoli Identity and Access Assurance
11 © 2010 IBM Corporation

12. IBM zEnterprise System helps empower people, boost productivity
and collaborate.
 End-to-end enterprise content management (ECM) integration in Team Places, with
enterprise-grade reliability on IBM zEnterprise™ System (Linux®)
– Work with managed and accessible business content for faster project completion
 24 by 7 presence, chat and online meetings supported on zEnterprise (Linux)
– Helps reduce costs and speed decision making with real-time collaboration
 Expanded support of customer platforms and mobile devices*
– Helps empower distributed teams and mobile employees with a unified communications
and collaboration platform. Illustrative customer examples include:
Save up to
Deliver return on Connect and
50 percent investment in scale150K-
in phone and travel
supporting flexible
12 months plusemployees,
working environments with faster customers, and
customer service partners worldwide 24
by 7
NEW! IBM Lotus® Quickr 8.5 for IBM WebSphere® Portal
NEW! Lotus Sametime® 8.5.1*
Lotus Connections, Lotus Notes® and Domino®, WebSphere Portal
* Planned capability. IBM plans are subject to change
12 © 2010 IBM Corporation

13. IBM provides a comprehensive banking industry framework that can
accelerate solution deployment optimized for IBM System z.
 The framework provides a banking-specific software
platform with:
– Banking extensions and pre-built solution accelerators
Core banking
to help speed deployment
transformation
– Best practices and business- specific usage patterns to
reduce risk
– Support for adoption of open and industry standards
Integration – A choice of business applications from IBM Business
Optimization Partners
Customer Analytics Payments
care and Collaboration and – An approach to align technology with business needs
insight Security securities
Resiliency  The framework delivers business value to help:
– Simplify your infrastructure, reduce costs, and enable
growth through innovation
– Enable integration of information and processes across
Integrated risk the bank
management – Build an efficient technology roadmap that you can
adjust over time based on business needs
– Implement framework projects to address business
problems across the enterprise
The framework can give you speed, – Drive a greater return on project investment through
flexibility and choice in deploying solutions asset re-use
while helping reduce cost and risk. – Speed deployment of solutions
13 © 2010 IBM Corporation

14. IBM zEnterprise System can provide banking independent software
vendor (ISV) solutions.
 Continued solutions and applications growth on the
IBM System z® platform
– Over 150 new Independent Software Vendor partners
and 1,000 new applications
– More than 500 new Linux® applications added
– 174 new/upgraded IBM WebSphere® Application
Server, IBM DB2®, IBM CICS® and IBM IMS™
application and tools on IBM z/OS®
 ISV partner loyalty
– Over 1,500 ISVs building applications for System z
– Over 1,800 applications on z/OS 1.8 and above(over
3,500 for all z/OS releases)
– 2,800-plus applications for Linux on System z
– 86 percent of our ISVs maintain OS1 currency
 Mainframe skills: IBM’s Academic Initiative is
delivering results
– More than 600 worldwide schools participating
– More than 50,000 students trained
– 30 courses and more to come
– Student MF Contests Simplified, Energy efficient,
– System z skills help desk Virtualized, Security-rich
– Over 200 System z IBM mainframe ambassadors
14 © 2010 IBM Corporation

15. IBM System z can provide competitive advantage in banking and
financial services.
Value to an organization deploying System z® infrastructure over distributed
server technology* can include:
49 percent more income per
employee for retail banking
48 percent less IT spend per
employee for deposits
31 percent less IT spend per
customer loan
65 percent less IT spend as percent
of revenue for credit card services
18 percent less call center IT costs
as a percentage of expenses
65 percent less cost per teller
transaction
* Dr. Howard Rubin, CEO and Founder Rubin Worldwide
15 © 2010 IBM Corporation

16. Banks are relying on IBM System z. How can IBM help you?
SMART IS
Reducing costs and serving the customer
European bank: Delivering bank transaction costs 30
percent below competition (versus country average)
SMART IS: Business continuity,
security and agility Nordic bank: “Customers entrust us with their hard earned savings so
it's paramount that we select one of the industry's most powerful and
secure servers. “[System z] allows us to keep up with business climate
changes because we can add or eliminate capacity any time based on
customer demands. We can even make changes easily without having to
stop any services.”
SMART IS: Improved speed to market Large regional bank: Integration of disparate systems and
with integration data to improve customer service and bringing new products
to market much faster.
“We no longer want to invest the time and resources in two or
three-year initiatives. Business is changing so fast these days
that we can’t afford to roll something in production that
represents the thinking of three-years ago.”
16 © 2010 IBM Corporation

17. Summary: IBM can provide a new dimension in computing for
financial institutions.
Management Multi-platform
integration integration
 Banks can scale their applications with IBM
zEnterprise™ System for real time and near
real-time processing, with 30 to 90 percent
performance improvements.
 Banks can reduce integration costs across
multiple platforms with the zEnterprise hybrid
capabilities and the new IBM zEnterprise
Unified Resource Manager.
Stack  Banks can improve time to market with IBM
integration Smart Analytics Optimizer that can deliver up
to 10-times improvement in performance for
complex queries.
For more details: ibm.com/systems/zenterprise
Posting reference 727
17 © 2010 IBM Corporation