A discussion of the benefits and risks of cloud based computing for banking and financial institutions

1. Rubik Financial Limited – Learning to Fly
August 2009
CONFIDENTIAL

2. Challenges - what problem are we solving?
– Data silos and maintaining a secure perimeter with legacy
design
– Energy consumption and low system usage
– Increased labour costs and pool of professionals
spreading and declining
– User demands - used to many web based free, high
quality, reliable services with great User Interfaces (UI)
– Data volume growth
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3. Examples of ‘Cloud’ Services
• Software as a Service (SaaS)
– GoTo meeting / Webex
– Sales Force
– Gmail & Google Docs
– Zoho
• Platform as a Service (PaaS)
– Force.com
– AppEngine - Google
– Apple App store
– Rubik Bank-in-a-Box
• Infrastructure as a Service (IaaS)
– Amazon S3
– MS Azure Note: all logos owned by
respective businesses –
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4. Definition of cloud
• Characteristics
– On demand
– Any device
– Self service
– Pooled resource
– Elastic provisioning
– Service measurement
• Deployment
– Private Cloud
– Public Cloud
– Hybrids/shared Image from VMWare - www.vmware.com/products/cloud-os/
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5. Technical Benefits
• Provisioning speed
• Storage capacity
• Agility / flexibility
– Elasticity
– Load balancing – burst
• „green‟ computing – power and resource saving
• Attracts innovators and rapid prototyping
• Specialized services – lesson learned can be shared
across multiple tenants
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6. Business
• Ease of adaption
– Configuration over customisation
– Speed to market
– Device independence
• Availability
– Resilience
– Redundancy
– Response
• Cost structure
– Units - Pay as you grow
– Low Capex
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7. Security benefits
– Cloud has to be more secure simply because it is the greatest
impediment to adopting cloud solutions!
– Some advantages
• Data held centrally
• Data access, and backup all controlled and logged
• System Snapshots for EOM, forensics, training, …
• Virtual systems allow easy recovery
• Security tests can be more extensive and frequent
– A serious cloud provider will be in conformance with all required
security and compliance requirements by design.
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8. Hidden benefits
• Legacy free
• “Web” Standards - XML, Services
• Common defined interfaces
• Focus shift
– Processes
– Outcomes
– Offers
• Third party contracted management of some key
business risks
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9. ‘Normal’ risks
• Service interruption
• Tested BCP/DR
– Backup
– Response
– Recovery
• Privacy
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10. Outsourcing risks
• Intellectual Property (IP)
• Data
– ownership
– security
– co-mingling
– location
• Sustainability
• Compliance
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11. Cloud specific risks
• Contract / SLA terms
• Liability
• Reputation
• Metrics
Mediocrity Rules in Cloud SLAs
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12. Mitigants
• Strong Service Level Agreements (SLAs)
• Transparency
– Reporting & Monitoring
– Incident response
• Governance
– Certification
• Security – ISO 27001
• BCP/DR – ISO 9001 & ISO 31000
• Staffing – „fit and proper‟
• Quality – ISO 9001
– Audit / assurance to verify
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13. Rubik delivers with strong partners
• Architecture Cloud
based core
– Multi tenancy
banking
Rubik Channels
– Performance system
– Operations
• Infrastructure platform
Temenos
ensures: Microsoft
T24
– Design and Set-to-work not
required
– Virtual servers and SAN Macquarie
scale with demand Telecom
– Pre-integration with third
party connections eg. ATM,
EFTPOS, Bulk Payments
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14. T24 is ‘cloud ready’
• Temenos T24 is uniquely architected to be the core
solution in the cloud:
– Database independence – means we can point to logical or
physically different data stores depending on customer
preference
– 24/7 Non Stop – so our customers do not have to juggle
processing windows and allows simple mirroring of services
– Massively Scalable – we are currently set up for 2m accounts
with ability to scale with demand to 10m +
– Multi entity allows configurable products, relationships, workflows
– SOA and web services – provide easy interfaces and
consumable services
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15. Secure Hosted Environment
•High physical security, including Biometric
Entry, anti-ram, 4 ISPs, 2 power providers and
warm diesel backup etc.
•Highly Protected T4 rating from ASIO and DSD
•Sites over 500km apart
•ISO 27001 & PCI
•High Availability configuration (99.95% )
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16. Benefits Rubik provides
• Resources & Skills
– 20+ staff trained in T24
– 90 staff in channels and local systems
– Local / Global partners on call
• Lower project risk
– Proven and stress tested infrastructure
– Prebuilt basic design elements
– Certified interfaces
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17. Reasons to use the cloud?
• Launch of a proof of concept product without having to
integrate legacy systems
• Need to support third party channels or distribution
points without opening core infrastructure
• Access specialist system (eg. Collections, treasury) for
low user numbers cost effectively
• Isolate tactical business needs from core renewal
program
• Desire to „mobilise‟ salesforce across variety of devices
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18. Rubik Financial Ltd
ABN 51 071 707 232
•8/45 Market St, Sydney, NSW
•Level 1, 1 Eden Park Drive, Macquarie Park, NSW
•4/68 St Georges Terrace, Perth , Western Australia
•24/22 Clifford Centre, Singapore 308900
PO Box 4808
Sydney NSW 2001
Phone: +61 2 9488 4000
Fax: +61 2 9449 1116
www.rubik.com.au