Gartner EA Conference / December 7 th , 2006

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

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

3. “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…” “.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.” • “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.” / The analysts have this to say about Microsoft / 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 Data • SWIFT - Gold Certified • Central Bank of Spain - High Value Payments • CheckFree – 1000 tps and 24% less TCO • Nasdaq – Market Data Service handles 5,000 tps at market open • 70 percent of all new ATMs shipped are Windows-based • Banco Azteca - 64-bit Platform for Bank’s Core Transactions • Equifax - move to Windows Datacenter and .NET saved millions • Citigroup – CitiVision Integrates 270 Different Sources of Information for 12,000+ Global Investment Bankers • SAP Core Banking Benchmark 8,279,000 postings to bank accounts per hour • Nationwide (UK) - Basel II Compliance Solution with SQL 2005 consolidating 80 different systems data and storing for 7 years • Commonwealth Bank of Australia – CommSee Branch of the Future Solution • SberBank – largest bank in Russia – all applications on SQL 60,000 docs per hour • Bank of Montreal: 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 day • Bank of America automates customer call center – 15,000 agents using Microsoft Customer Care Framework (CCF) • Cheshire UK – core banking with Fincentric • Interpay (Netherlands) 25 TB Payment System • JPMorganChase – equities trading platform • Allstate – Producer Connectivity network leverages .NET while helping enable Policy Management solution in record time. • BarclaysTrade and Positioning System processing 200 trades/sec up to 1000 trades/sec • First American Title Company - Title and Escrow System consolidated 50 systems to one, 12,000 concurrent users, 64-bit capabilities • Citigroup TreasuryVision - Managing 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. Insurance Value Chain Channel Renewal Risk Management And Compliance Payments Advisor Platforms Branch Seller Branch Teller Loan ATM Internet IVR Call Center Customer Knowledge Mobile Audit and Controls Doc and Records Management Corp Governance Reporting and Analytics Privacy and Security KYC/CIP Risk Management and Comp Certification Documentation 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 POS and Multi channel delivery Underwriting Prod Dev and Configuration Core Policy and Admin Claims Processing Re-insurance Advisor platform / Portal Company and Industry Provided Services Advisory Management / Microsoft is focused on the financial services industry /

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. Architecture Journalhttp://www.architecturejournal.net Financial Services Architecture Guidancehttp://msdn.microsoft.com/FinServArch Microsoft Patterns & Practiceshttp://msdn.microsoft.com/practices/ MSDN Solution Architecture Centerhttp://msdn.microsoft.com/architecture

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

13. Integrated Tools & Modeling Messaging / Services User Interaction Identity and Access Data Workflow / Process Windows Workflow Foundation (WF) BizTalk Server Office System Business Applications Card Space Active Directory MIIS Host Integration Server Authorization Mgr SQL Server 2005 Analysis Services Reporting Services Integration Services Business Applications Web Services (WCF/Indigo) BizTalk Server & Adapters Host Integration MSMQ WPF (Avalon) Office System ASP.NET Windows Forms Smart Clients Compact Framework Live Meeting SharePoint Groove Integrated Management & Governance Systems Management Server Microsoft Operations Manager Windows System Update Service Microsoft Operations Framework A Common Architecture for Connectivity and Collaboration

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

15. / Unified Programming Model / Unified Programming Model .NET Remoting ASMX Interop with other platforms Extensibility Location transparency Attribute- Based Programming Message- Oriented Programming WS-* Protocol Support Enterprise Services System.Messaging WSE

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

17. Enterprise Connectivity • BizTalk Server 2004 Adapters/AcceleratorsMQ 2.0 MSMQ/MSMQTWSEHTTPSMTPBase EDISQLFileFTPSOAPSAPSWIFTHL7RosettaNetHIPAA • BizTalk Adapters for Host Systems • Host Applications • IBM mainframe zSeries (CICS and IMS) • Midrange iSeries (AS/400) • IBM DB2 • Mainframe DB2 for z/OS • Midrange DB2/400 • 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 support • Drummond Interoperability Certification • BizTalk RFID • Device Abstraction and Mgmt Tools • Event Processing for Filters, Alerts and Transforms • Design, Runtime, Mgmt APIs • Back-office Integration • BizTalk Adapter Pack • Universal access to LOB apps through WCF More BizTalk Server 2006 Adapters PeopleSoftJD Edwards OneWorld XEJD Edwards Enterprise1Oracle ODBC SiebelTIBCO RendezvousTIBCO EMSPOP3Windows SharePoint ServicesSQLHost Integration Server BizTalk Server – “In the Box”

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

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. / Microsoft is the clear leader in WS-* adoption / WS-Policy MEX Metadata WS-SecureConv SOAP / WSDL WS-Security WS-Trust WS-Fed MTOM Messaging WS-RM Security WS-AT Assurances WS-Management WS-XFer / Enum Mgmt

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