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Leveraging Open Source for Service Oriented Architecture: Business and Technology Road Map
Dr. Ravi KalakotaVice President, Global IndustriesGlobal Solutions Management
Page 2
My Background - IT Strategy & Solutions
• Focus – Business/IT Alignment, Enterprise SOA, Open Architecture
• Prior to Unisys… Technology Research, Consulting and Development
1999 2001
2003
1995 1996
2002
1997
2004 2005 2005
Page 3
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 4
Evolution to Service-Orientation
Major Issues for Management: Timing, Cost, Transition
Page 5
Enabling Composite Process: What are Our Customers Asking For?• Cross-Enterprise Business Process Enablement
– Creating the foundation for digitizing business process across the enterprise is the new race
– All the major enterprise application players (such as SAP, Oracle, IBM and MSFT) having been moving in this direction for the last 3 years
Multi-Channel Multi-Portals
Process
Middleware
Applications
Infrastructure
Business Process
Orchestration
Sales OM SCM Mfg Fin Billing AR
Unix Wintel Mainframe Hosted
The Order-to-Cash Process
SuppliersCustomers
PartnersEmployees
Analytics and Collaboration
Page 6
Multi-Channel Enterprise Architecture Solutions: What are Our Customers Asking For?
• CRM Failures – Improving Customer Experience
• More Flexibility in Customer-facing Enterprise Application Architecture using SOA blueprints
– Front-end SOA and Middleware architecture enables greater flexibility to enable faster response to market demand by reusing existing components.
– SOA contributes to greater unification of process integration and development activities within a single approach.
Brokerage.com
Bank.com
Call Centers
Retail–Point of Sale
…
XML Common Services
Enterprise Service Bus
Local Business
Rules
MQRe-architected
Back-end Services
Page 7
Integrating Multiple Enterprise Solutions: What are Our Customers Asking For?
• Enterprise Apps–Process Integration and Data Integration• Lower cost through Back-end Standards-based Integration
– The cost and complexity of back-end integration projects can be significantly reduced through the use of Web Services and SOA
– All the major players (SAP, Oracle, IBM, and MSFT) are moving in this direction
Service-Oriented Architecture
Hardware
Common Middleware Components
Composite Apps
Data
LegacyFINCRMERP
SOA-enabled ArchitectureOld “Silo” Architecture
HardwareHardwareHardwareHardware
MiddlewareMiddlewareMiddlewareMiddleware
DataDataDataData
LegacyFINCRMERP
Major Decision: Vendor-specific or Vendor-neutral Architecture
Page 8
Companies are Facing More Pressure Than Ever on IT Budgets
IT Conundrum/Paradox
Fact–IT Budgets are declining–3-5% per year
Result–More % is diverted to Maintenance, leaving little for
Innovation
At the same time, business requests for new functionality
and features are piling up
Outcome–IT seen as unresponsive to business
needs!
70%Maintenance
IT Budgets
30% New
Business Resultsand New Value
Competition
CostReduction
Keep BusinessUp and
Running
End UserProductivity
CustomerConnection
TechnologyChange
RegulatoryCompliance
Security
Page 9
Customer Trend: Lower Application Infrastructure Costs Using Open Source
Linux–Infrastructure Engineering Middleware and Database Solutions Web Services and Server-side Java
Red HatSUSE
MySQLJBoss Apache
EclipseJ2EE WS-x
Clustering
Scalability
High Availability
Database
Middleware
Portals
Development Frameworks
Java/J2EE/EJB3
Web Services
Trends Reshaping the IT Industry
Customer Cost
More Development Dollars
Phase 1Shift
$$ C
ost
Customer Cost
More DevelopmentDollars
Phase 2Shift
Applications
Middleware/Application Server
Database Server
Operating System
HardwareInfrastructure
Customer Cost Savings
Applications
Middleware/Application Server
Database Server
Clustering
Linux OS
Commodity HW
New Applications
Middleware/Application Server
Database Server
Clustering + Virtual
Linux OS
Multi-core HW
Customer Cost Savings
Page 10
Market Driver for Open Source Infrastructure Solutions: Unclear Software Licensing Trends
Hardware trends pushing against classic software licensing methods = Major shift in software economics
Result of
1. Multi-core processors–How do you count cores? Do I need a software license for each core or for each processor?
2. Virtualization–Are separate licenses required for every virtual machine?
3. Computing on demand and hosted computing–How to calculate time and resource use in hosted environment?
Customers want software licensing to reflect the amount of work done and not the characteristics of the processor
Response
Page 11
Market Driver for Open Source Infrastructure Solutions: Escalating Cost of Web Infrastructure
The explosive growth of Internet portal traffic, Web services and application proliferation has forced customers into large scale,
over-provisioning of server infrastructures
Result
– “One App, One Server” proliferation– Under-utilization of costly server resources– Over-fragmentation of data center
Customers want to rationalize their data center investments and maximize leverage of existing assets
Response
Page 12
Integrating the Macro Trends–Three Types of “Virtualization” Trends Today
Enterprise Services
Virtualization
• Composite Processes• Multi-channel Flexibility• Multi-Portal • Web Services across applications• Secure, Identity driven
InfrastructureVirtualization
ResourceVirtualization
• Dynamic Provisioning • Data-center• Hardware• Storage
• Onsite• Onshore• Nearshore • Offshore
Next GenIT
Page 13
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 14
The Emerging Problem–An Executive’s View of Open Source
ApacheEclipse
Spring
Struts
Ant Maven
SugarCRMSakai
Linux
JBoss JEMS
Ajax MySQL
Service-Oriented Architecture
JasperReports Alfresco
OpenLDAP
RedHat SuSe
Hibernate EJB 3.0
PostgreSQL
Xen Hypervisor
PERL PHP
uPortal GPL LGPL
Lots of Innovation–No OrganizationHow to make “business” sense of the Open Source chaos?
Page 15
Organizing the Chaos: The Emergence of the Open Stack
Dev
elop
men
t Fra
mew
ork–
Java
, J2E
E,
EJB
3. 0
, Ecl
ipse
, Str
uts,
Spr
ing,
Axi
s
Web Apache HTTP Server, Tomcat, Portals
MiddlewareJBoss, Hibernate, Enterprise Service Bus, Web Services, Messaging, Portals
Database PostgreSQL, MySQL, Oracle
NetworkDirectory Services, Identity Management, Network Security–Nagios, Snort
High AvailabilityGrid Architecture
Clustering, Replication, Load Balancing, Systems Management
Operating SystemVirtualization (Xen, VMWare)Linux–Red Hat and Novell SUSE
Commodity HardwarePhysical (32-bit and 64-bit Intel)Multi-Core
Desktop; Handheld Linux, Mobile Linux, Open Office, Firefox
Page 16
From Capabilities to Solutions: Customer Evolution
Desktop
Web
Middleware
Database
Network
High Availability
Operating System
Commodity HW
Advanced Infrastructure
Solutions
Solutions/BlueprintsContent
Management Solutions
Custom SOA
Applications
Web Portal
Solutions
Business Intelligence
Page 17
Integrating Capabilities with Solutions: Unisys Open Portfolio
Unisys Open Source
Capabilities and Support
High-Performance Enterprise Linux
Systems
3D-VEStrategy
andAdvisory Services
Professional Support Services
Engineering Optimization
Services
Consulting Services
Open Source Implementation
Services
Open Source Strategic
Consulting Services
Solution Consulting and Implementation Services
Infrastructure and Platform Solutions for Open Source
Integrated OASIS Stacks
MiddlewareJava Application Server (JBoss), Hibernate,
Enterprise Service Bus, Web Services, Transaction Management, Messaging
Database PostgreSQL, MySQL, Oracle
NetworkDirectory Services, Identity
Management, Network Security
High Availability
Clustering, Replication, Load Balancing
Operating System
Linux (Red Hat and Novell SUSE),Microsoft Windows
Application Support
Security (Unisys Application Defender),Business Process Management,Enterprise Content Management
PlatformPhysical (32-bit and 64-bit Intel),
Virtual (Xen, VMWare)
Page 18
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 19
Executing Transformation Today – SOP + SOA + RTI
SOI (Service-Oriented Infrastructure)Real-Time Infrastructure (RTI)
Open SOA (Service-Oriented Architecture)
VirtualizationAutomation
Consolidation
Sensors
InternetSelf-Service Apps
Enterprise Software as a ServiceApplication Outsourcing
Service-Oriented Presentation Layer
Page 20
Services Oriented Presentation
SOP
Page 21
Customer Experience is “Portalized”; Multi-channel Portals are a Design Requirement
• Portals: the critical interaction point for the enterprise
– Access to all enterprise applications– Access to all databases – From all operating systems (Linux, Windows)– To all channels–Brick, Web, Mobile
• Portals have created a user interaction model for SOA
– Standardized security– Standardized user interface– End user reporting
• Portals are windows into services on the network and back-office applications
– Many new devices need to be supported– Workflow Inboxes are needed for user to
business interaction– Real Time Business Monitoring replaces
many reports
Banking Self Service Kiosk
The Service-Oriented Presentation Tier
Page 22
Multi-Channel Portals are Transforming the Banking Industry
Service Integration Platform
RetailServices
Brokerage Services
Credit Card Services
401K Services
Third- Party Content Services
Saving ServicesBrokerage
Services
Personalized Services
Self Service Kiosks
Checking Services
• New Account Enrollment Process
• Order Processing
• Trade Exception Management
• Loan Processing
• Audit and Exception Management
Com
posi
te
Proc
esse
s
401 K Retirement
Services
Page 23
The Service-Oriented Architecture Tier
SOA
Page 24
Cross-Enterprise Process Enablement by the Service-Oriented Architecture Tier
• Creating the foundation for digitizing business process across banking and insurance with loosely coupled architecture is the new race
Multi-channel Portals - SOP
BPM; Composite Processes
Enterprise
Middleware
Applications
Infrastructure
Business Process
Orchestration
Sales ERP Internet Payments Fin CRM Audit
Unix Wintel Mainframe Hosted
The End-to-End Process
Customers PartnersSuppliers
Risk Analytics and Compliance
Page 25
The Shape of the Next-GenerationRetail Banking Platform
Common Services
(mass data transfer, event handling, microflow/composition)
Bank Support
Common Services
Business Services Layer
Multi-channel EnablementBrick, Click, Flick
Outside World -Payments
Bank Support
Bank Management Sales
Banking Process and Middleware Backbone
Banking Support Backbone
Product Management
Bank Services
Bank Services
Service
J2EE Application
Legacy Application
.Net Application
Composite Service
Composite Service
Composite Applications
Composite Service
Service Service Service Service Service Service Service
Page 26
Services-Oriented Process Architecture in COTS Integration
Process Integration
Customer IntegrationInformation Integration
OPERATIONAL AND
TRANSACTIONALCRM
MULTI-CHANNELINTERACTION
CRM
BUSINESS INTELLIGENCE
ANALYTICAL CRM
Call Center
CRM SERVICES LAYERAccount Management Services
Credit Card Service
Pricing Service
Customer Visibility
CreditWorthiness
ERP SERVICES LAYERInterest Calculation Service
Posting Service
ProfitabilityAnalysis
Front Office–CRM
Back Office–ERP
Web Portal
Kiosk
Customer Channels
Process Management and Middleware Backbone
Page 27
The Service-Oriented Architecture Tier
• SOA Services need to be managed and secure
• SOA Services need to be orchestrated
• SOA Services need to be developed/maintained
• SOA Services may need to be re-architected
• SOA Services can be purchased
• SOA Services may need to be enabled from legacy– By SOA wrapping legacy components– By SOA wrapping re-hosted components
• Business Rules Engine for easy user maintenance of decision information
• Security needed to protect the environment
Page 28
SAP SOA Architecture
Vendor Specific SOA:SAP or Oracle SOA Architecture
ProcessComponents
SAP NetWeaverBusiness Process Platform
HomeGrown
ISVSAP Bus
PartnerSubsidiary
EnterpriseServices
Repository
xApps(Composites Powered by SAP NetWeaver)
Oracle SOA Architecture Unified Portal
BusinessIntelligence
Activity Monitoring
Fusion Service RegistryApplication Integration Services
Process Integration ServicesData and Metadata Services
Grid ComputingClustering SecurityProvisioning ConfigurationData Management DirectoriesIdentity Management Web Cache
Custom AppsOracle Apps ISV Apps
Fusion Service BusMulti-protocol routing
Message transformationServices and Event Mediation
Business Process OrchestrationProcess models BPEL engine
Page 29
Vendor Neutral SOA:Leveraging Apache and JBoss Middleware
• Selectively Leveraging a collection of Market-leading Open Source projects
– JBoss App Server, Tomcat Web Tier, Hibernate Object-Relational Mapping, JBoss Cache, JBoss jBPM
• Loosely-coupled architecture allows plug-and-play
Proprietary
DecisionOpen
Service-Oriented ArchitectureBusiness Process Integration
Man
agem
ent
OtherMiddleware
ServicesTool
s
Multivendor Java VM and Communications
JBoss Microcontainer (Microkernel + Grid Remoting + AO)
JBossApp
Server
Apache
Tomcat
JBossPortal Hibernate JBoss
jBPM
OtherJBoss
Projects…
RulesCache
Transactions
Multi-vendor Hardware and Operating Systems
Page 30
SOA–Execution Roadmap We are seeing in CompaniesStep 1: Discovery/Baselining
Business Improvement Model
Basic Standardized Advanced Dynamic
Step 2: Opportunity Identification
Potential Projects PrioritiesResource AllocationStrategy
Step 3: Business CaseClear message and opportunityIllustrating the power Open Source in achieving goalsElucidate Unisys ValueJoint Value Roadmap setting in a workshop
Step 4: Project Definition and Execution
OpportunityBusiness Value and ROI Driven Impact onOperations–Cost, Quality, Productivity
Phased Approach PoC WinsExpansion and Scaling
Page 31
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 32
The Service-Oriented Infrastructure Tier
SOI
Page 33
Service Infrastructure - Enterprise Data Center Issues
Exponential data growth
Lower budgets
Global demand,Global Deployments
Rapid businessModel experimentation
and change
Legal/Accounting changes
Applications/server “sprawl”
CHALLENGES• Dispersed IT
demand/resources
• Data-sharing among functions, locations on different applications, equipment
• Inflexible functionality, capacity
• Skilled technical staff shortage
• Mounting space, cooling, power, equipment, application and administrative costs
Companies need effective responses to these changes and issues
Page 34
The Service Infrastructure: New Architecture in the Data Center
Virtualization Automation
Modularity
• Creates pools of resources–CPUs, storage, networks–Independent of their physical location
• Allocates and optimizes resources on demand based on business priorities
Smaller units of low-cost compute, storage and network resourcesEasily allocate exact resource needed as requirements change
Interoperable based on standards
SOFTWAREManages Complexity
HARDWAREDelivers Flexibility
and Value
• Automatic monitoring of health, correction of faults,
without operator intervention
• Allocates and optimizes constantly and
transparentlyto the user
Page 35
Low-Cost Service Infrastructure – Clients, Infrastructure, Data Center
Source: Gartner
Client Devices
InfrastructureServer
• Directory• Security• Load balancing• File/Print• Web• Mail• NAS• Soft switch
EdgeDevices
• Proxy/caching• VPN • RAS • Firewall • Wireless edge • All-in-one • VoIP gateway• GPRS gateway
Access
BusinessApplication
Server
• ERP• SCM• CRM• SFA• HR• IVR
CorporateNetwork
Data/ContentServer
• Databases• Multimedia• Documents• High
Performance Clusters
EnterpriseData Store
Linux Penetration–From Edge to Core
Page 36
Service Infrastructure Solutions: What are Unisys Customers Asking For?
• Commodity Scaleout (GRID) Architecture – Lower cost through Commodity Standardization
– Requirement: Grid Engineering or Migrating Legacy Unix/RISC migration to low-cost Intel-based Systems
– Unisys SPF Solution–Migrate a Oracle/Sun platform to Oracle/Intel, make no sacrifice in enterprise-class functionality
• Data Center Re-architecture – Reduce complexity through Infrastructure Optimization
– Requirement: Deliver efficiencies to distributed, complex data center environments
– IM Solution–Inventory all data center assets, provide a dashboard for single point of management, increase asset utilization by 30% or more
Both Solutions are attacking the business problem–70% of companies’ IT budgets go into maintaining old gear rather than adding new capabilities
Page 37
Service Infrastructure Solutions: What are Unisys Customers Asking For?
• High Availability and Performance – Lower cost Business Continuity and Protection
– Compliance Requirement: Provide affordable business protection against catastrophic failure
– SafeGuard 30m Solution–Automatically failover to any place in the world in 30 minutes or less, at a fraction of the cost of competitive offers
• Real-Time Data Integration –Lower cost Enterprise Information Management
– Requirement: Make intelligent business sense out of vast amounts of data
– BI and Data-warehouse Solutions – Provide fully-integrated BI solution for quick deployment to simplify enterprise data access at a fraction of the cost
Both Solutions are attacking the data problem–Lower cost data backup, recovery and analysis
Page 38
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 39
The Business Problem in Telecom Industry - Renewed Focus on Cost Reduction - Telephony Business in (R)evolution
• Voice telephony is a premium service.
• Few players
• High Margins
• Voice telephony is a commodity
• More players in the field
• Shrinking Business – fierce competition and pricing models
• Much less profits
• More threats (VoIP, Broadband telephony)
In the past
Today
Page 40
The Business Problem Telecom Industry - NextGen Perspective
Yesterday TodayHistorically Revenue Generators
• Voice mail• Text messaging• “Premium” services based on high quality network
Uncertainty Reigns• No consistent view of
killer app on horizon• Potential killer apps:
- Multimedia- Text services- Voice mail, email,
unified messaging
• Expect lots of services
• Scaled for initial deployment
• Scale up and out with demand
• Mixed service session control (IMS)
NextGen - Revenue from Broad but Targeted Services
Service Adoption• Mobile – early
adopters• Fixed – laggards • IP is a gamechanger• IMS blurs difference
between fixed, mobile, Internet
• Services differentiated at subscriber level
NextGen means unified or converged services, offered as solutions, tailored to user segments
Source: Unisys Primary Research: Trends in Multimedia Messaging and Content Services
Page 41
Subscriber Empowerment Is Creating Massive Change in the Telco Industry
• More choices than ever• Alternatives exist to traditional telcos (e.g., Skype)• Huge demand for new services for minimal price
• Requires broad set of creative new services• Must understand subscriber dynamics to target and keep
loyal subscribers• Competition exists across traditional landline & mobile
providers, cable, ISP, IP phones (e.g., Vonage)
• Shift to IP to provide flexibility and lower scale at a reasonable cost
• Provide services independent of network & access points• Drive convergence to ensure subscribers stay within their
universe• Ensure migration from existing platforms
Subscriber
Core Services
Infrastructure
Page 42
Unisys Response — NextGen Services
Subscriber Experience
New Apps & Services
Low Cost Infrastructure
• Unisys NextGen Interactive Services are focused on the end-user experience
• While focus is on end-user, the requirements have significant impact on the network:– Lot’s of niche apps instead of one monolithic
app.– Open systems, operating systems, and
standards– IP networks– Soft switches and other IP enabled elements– VXML and other web services standards
Page 43
Unisys ServicesUnisys Communications Suites
Backup Services Calendar Call Filter Call Return Caller Announcement Custom Greetings Find Me/Follow Me Internet Call Waiting Mailbox Status Message Delivery (no Voice Mail) Personal Number Photo Messaging Picture Albums Slam Down/Empty Calls SMS Broadcast Unified Messaging Video Streaming Voice Mail Broadcast Wake-Up/Reminders
Chat Conferencing Instant Messaging MMS Messaging Notification Services PIM Push to Talk SMS Messaging Speech to MMS Video Call Answer Voice Mail
Calendar Reader Directory Services E-Mail Reader Personal Address Book Provisioning (Personal Options) Voice Activated Dial Voice Controlled Voice Msg.Voice Portals Voice Web Services
Celebrity Greetings Fun Greetings Graphics Ring Back tones Ring Tones Wall Paper
AdvancedRevenueServices
Call CompletionCall Initiation
SpeechServices
Device/ServicePersonalization
Page 44
Services Oriented Architecture is the foundation for NexGen
• Multi-service architecture• Services realized through cooperating components
– Shared infrastructure– Clean separation and reuse of major subsystems– Component services exposed through standard IP-based protocols,
markup languages, and Java APIs– Foundation for agile multi-vendor services
• Converged services– All types of networks– All types of media
• Subscriber-centric services– Persona concept – services adapt to needs and preferences of each
subscriber– Contextual tailoring of service presentation
Page 45
Services Oriented, IMS Aligned
• SOA enables cost effective bundled services – Improves ease of use of multiple services (increases revenue)– Creates sticky service bundles (customer retention)
End User Device
Session
Application
IM VM VoD
…
Vertical Solutions Services Oriented Architecture
Presentation LogicService m Service n Service x
Session
End User DevicesEnd User Devices
…
Application
BusinessLogic
Persona
(x)HTML Video MMS Voice
…BL3 BL4 BLn
Data
Page 46
Solution Architecture Requirements
• Component-based, open, standards-based, implemented in J2EE framework
• Unlimited up/down scalability, horizontal growth
• 99.9999% service availability (distributed execution)
• Dark room ops; self-maintenance
• Enterprise integration– Exchange, firewall tunnels, enterprise
directories, IP phones
• Flexible real-time billing of transactions, resource usage
– Pre- and post-paid models for all services
• Location- and presence-sensitive services
• Embrace industry-standard technologies
– HTTP, XML, SOAP, UDDI, WSDL, J2EE, J2ME, SIP, VoiceXML, SALT, CPL, JAIN, JTAPI, Parlay, OSA, 3GPP VHE
• Allow external open common subscriber data;
• Allow external unified store for all messages
• Enable SI approach at all interfaces– Management, billing, provisioning,
logging, statistics, subscriber data, message store, service control, network interfaces, notification, security...
Page 47
Open Standards-based Integration
Unisys
SMSC
MM7MM4
TCP/IP (OLP)
MAPCAMEL
FTP, ASN1
MMSC
Billing & stats
HLR
Provisioning
OSS
MSC
ASR/TTSEngines
ExternalSystems
SNMP
HTTP, NFS,
SMPPUCP
FTP
MRCP SOAP
WAP / WEBBrowsers
MediaServers
Portals /Gateways
VoiceXMLHTTP, XML, HTTP, HTML
Internet
ISUP,
SMTP, IMAP4POP3
SIP, TCP/IPFTP
SOAP SIGTRAN
Page 48
Unisys Expertise Ensemble OXP – Next Gen Messaging
Other network
components(integration
points)
Content
Provisioning
Postpaidbilling
Prepaidbilling
CustomerCare
OAM
Call Control Layer
Presentation Layer
Application Layer
Data Access Layer
Storage Layer
Directory Server
MessagingServer
Unisys Messaging Application ServerUnified
Messaging
ProvisioningBilling
Cust. Care /Provisioning
Media Server
Notification Server
TTS ASR
SMTP / IMAP4 LDAP
VoiceXML HTML
SOAP
NAS
SMPP
Web Server
JavaBeans
MM7
MRCP
NotificationDistributor
HTTP
Video Messaging
VideoServer
Message Queue
Outdial
Network Access Layer
GSM/GPRS Internet
Fax Gateway
SS7 Gateway
Video Gateway SMSCMMSC WAP
Gateway
SS7 SIP, H.323
SIP/RTP
HTTP
Disk MySQL
RedHat / JBOSS / Spring /
Hibernate
Struts Sitemesh
NIST (SIP)
JGroups
Apache
JMS / JBPM
RDBMS Server
SQL
MX4J
EMC
Voice Genie / DCL BrookTrout
DCLDCL
TietoEnator
Partners
Open SourceRadvision
Scansoft / Telisma
HPOV / NetIQ
Cisco
Nokia
Page 49
Ensemble OXP (Open Source Projects)• JBoss Application Server• MySQL• Spring Framework• Hibernate• Ant• Axis• Junit• JUnitEE• jTDS JDBC Driver• Service Enum• Java Service Wrapper• MX4J• Grinder• Maven• Velocity• Cruise Control• Easy Mock• dom4j• log4j• JBPM• antlr
• aopalliance• appfuse• cglib• clickstream• commons-beanutils• commons-collections• commons-digester• commons-fileupload• commons-lang• commons-logging• commons-validator• displaytag• itext• ehcache• jakarta-oro• jstl• mail• odmg• oscache• sitemesh• standard
• urlrewrite
• jakarta-cactus
• c3p0
• jcs
• jmxri, jmxtools
• wsdl4j
• activation
• bcel
• jgroups
• JavaScript for Java (Rhino)
• crimson
• xalan
• MultiPartFormData
• SIP Stack
• JAIN-SIP Reference Implementation
• struts-menu
• taglibs-request
Page 50
Lessons Learned -- Open Source and Open Standards inevitable in Telecom
#1 reason was AGILITY We were able to build loosely coupled components the way we wanted, when we wanted, how we wanted!
• Cost – Sure, it was cheaper to get started… but
• Availability – Download it NOW! Get started right away.
• Choices – Many, many, components, no vendor lock in.
• Stack - Complete stack and life cycle from development IDE, Testing, Management, Presentation all the way to the Database.
• Support – A much larger support community.
Page 51
Lessons Learned
• J2EE is HEAVY! Forgot EJB’s
• POJO is KING! Go Spring / Hibernate
• Dev Testing a MUST! JUNIT everywhere
• Regression testing Automate it!
• BUILD every day! Ant/Maven/Cruise Control
• INTEGRATE often! Complex so do it often
• MANAGEMENT Don’t wait till last week!– Faults – Where do they matter?– Configuration – Dynamic or Static / Central or AOP?– Accounting – What needs to logged?– Performance – What statistics need to be captured?– Security – How will users be managed? What about network security issues?
Page 52
Agenda
• Setting the Stage - Trends Shaping Business – What do Customers want?
• Unisys Definition of Open Architecture
• SOA Blueprint: Portals, Processes and Middleware
• SOA Blueprint: Services-Enabling Infrastructure
• Case Study 1 – Next Gen Messaging SOA Transformation
• Case Study 2 – ING SOA Transformation
Page 53
ING Situational Client-driven evolution: ING Analysis, 2001
To protect its franchise and meet targets for return on capital employed, in 2001 ING embarked on an operational turnaround strategy in its principal mature markets.
• ING was a recognized success in emerging markets, but business in mature markets, representing 2/3rds of capital utilization was a drag on performance.
• A study of ING’s largest insurance operation in the Benelux countries, Nationale Nederlanden, identified that the business issues underlying poor performance could be resolved with a BPM project that extended to IT, including architectural renewal and selective application replacement.
Business Issues Operational Resolution
• Inability to bring new ‘lifestyle’ products to market in a competitive timeframe
• Below average customer satisfaction
• Below average agent satisfaction
• Unsustainable agent compensation
• Create operation capable of bringing new products to market rapidly by:
– Flexible, efficient integration using SOA– Replacement of selected legacy
applications
• Improve speed and predictability of underwriting through introduction of exception-based underwriting
• Lower cost of new business processing by maximizing STP
Page 54
ING Architectural ING Case Study Reform
ING created an architectural framework at both business and technical levels and then determined selective new system deployments. This underlies an iterative change program.
Business Architecture Definition
Technical Architecture Change
• Goal: Allow for rationalization of value chain elements across subsidiaries and borders while retaining accountability
• Activity & Deliverables: Creation of map of business domains for each country
• Goal: Maximize operational and IT flexibility by eliminating point-to-point integration
• Activity & Deliverables: Services design, data model design, enterprise service bus deployment, re-integration through enterprise service bus
System Deployments • Goal: Improve time to market, maximize straight-through processing, standardize financial processes
• Activity & Deliverables: Replaced Agent portal, Product & Policy Management Core Systems, Collections & Disbursements System for Nationale Nederlanden
European Insurance Factory roll-out
• Goal: Achieve insurance product flexibility in all brands and markets, get ‘from size to scale’ across borders through common business processes and single core system instance.
• Activity & Deliverables: ‘Service’ supply from Nationale Nederlanden to Postbank and ING Bank branch systems. Decommissioning of insurance functionality in Postbank and ING Bank. ‘Service’ supply to Belgium web portals and branch systems. Decommissioning of Insurance back-office systems in Belgium.
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ING selected Unisys to help design and build a component-based application and technology architecture to be used across all insurance product lines.
Middle OfficeMiddle Office
Back OfficeBack Office
Front OfficeFront Office
Submission Network
Contract, Underwriting & ClaimsAdministrationContract, Underwriting & ClaimsAdministration
ProcessingProcessing Risk Management & ReportingRisk Management & ReportingClient
Licensing & Appointments Case Tracking
Valuation
ProductManagementProductManagement
Publication /Extraction
Adapter
Legacy 1 Legacy 2 Legacy 3 FutureM&A
Adapter Adapter Adapter AdapterAdapter
Collections &DisbursementsCollections &Disbursements
MoneyOut
MoneyIn
Adapter
Taxation & Reporting
Regulatory Filings
Producer Portal• Illustrations• Quote• Application Submission• Inquiry Management• E-Signatures
Third Party DataAcquisition
ProducerCompensation
General Ledger
Management InformationSystem (MIS)
ActuarialModeling
MarketAnalysis
AdaptersAdaptersAdaptersAdapters AdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdapters
EnterpriseServiceBus
EnterpriseServiceBus
Service Directory Process Orchestration /Message Routing
MessageTransformation
Business ActivityMonitoring
Security /Encryption
ReliableMessage Delivery
New J2EE• Contract
Admin• Claims &
Payment• Issuance
ProcessingProcessing
Fund Processing
Workflow
Document Managmt
AdaptersAdaptersAdapters
Fund Trading
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ING Netherlands - Addressing Performance DriversAt the functional level, a series of performance drivers affecting both demand and profitability drivers were broken down into operational attributes required to meet the immediate and medium-term challenges.
Ways were found to manifest these attributes in the business through specific deliverables of solution-assisted operational transformation.
Performance Drivers
Operational Attributes
Solution Deliverables
• Quality of Service Speed of Processing
Exception-based underwriting
Greater Straight-Through-Processing
Automation of Rating and Acceptance
Flexible Product Authoring
Automation of Billing and Settlements
• Product Differentiation
Fast ‘turnover’ of products
Support of Lifestyle and Combination Products
• Cost Differentiation Lower Cost of Systems
Lower Servicing Costs
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Iterative Development (RUP)
Requirements for I#N
Iteration #1
Iteration #N+1
Iteration #N+2
Requirements for I#N+1
Design for I#N
Use CasesApproved
Requirements for I#N+2
Design for I#N+1
Build for I#N
Use CasesDesigned
3 to 6 months
Iteration #N+3
Requirements for I#N+3
Design for I#N+2
Build for I#N+1
Business Requirements
Available
Use CasesCoded
Design and Build
Software design, coding and testing followed an iterative process, with frequently releases of additional functionality. The IBM Rational Unified Process and tools were used.
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Leveraging Global Sourcing for Low Cost Development enabled by RUP
Unisys executed the project for ING with a high proportion of offshore resources. The model-driven approach using RUP tools enabled low-risk requirements transfer between the client-site teams, the Unisys design center and off-shore staff.
Client site
Business processes, outline use cases, navigation maps,
user interface
Unisys Off-shore (India)
Construction
Unisys Design Center
System Use Cases, Analysis, Design, Data and Deployment Models
Pre-testDeployment and(acceptance) test
ING &Unisys
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IBM pSeries IBM zSeries
ODBC
Transport
Unisys J2EE components
IBM Rational
Application Server IBM WebSphere AS
Message Bus IBM WebSphere MQ
Database
PlatformO/S
ODBC Database IBM DB2
Processors
Layer 4: InfrastructureLayer 4: Infrastructure
Storage
Foundation
ApplicationsLoosely Coupled Systems
ManagementBusiness
Processes
Reliability Transaction
Messaging Met
adat
a
XML
Security
HTTP TCP/IP UDP SMTP
Service Oriented A
rchitecture
Unisys Product/Process Models
Unisys System Use Cases
ING deployed Unisys J2EE components in a Service Oriented Architecture that retained a significant degree of existing architecture and a range of loosely-coupled systems.
Layer 3: ApplicationsLayer 3: Applications
Layer 2: Business ProcessLayer 2: Business Process Design
Deploym
ent
Product & Process Modeling
OperationsChange Management
& Middleware& Middleware
Deployment Stack
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Results -- Property & Casualty Business Outcomes
For ING, the process change supported by the Unisys P&C solution has ignited a radical improvement in sales growth and profitability, such that ING now sees P&C personal lines as a business to expand world-wide rather than to exit.
Process Change Business Effect Bottom-line Results
All new business for Nationale Nederlanden P&C Personal Lines processed via one system.
Enhanced agent and customer satisfaction, to the extent of a new brand image.
Consistency of pricing across all NN channels.
Straight-through processing for new business, including 80% real-time automated underwriting.
Cost reduction: 1,000 people to be taken out of administration and underwriting.
Growth: Sales rate increased ten-fold
Profitability: No more fines for inconsistent pricing.
Profitability: Material reduction in overhead despite surging sales
Ratings changed monthly as opposed to annually. Competitors cannot respond in a timely
manner to NN’s adaptive pricing.
Product Differentiation
Quality of Service
Cost Differentiation
Compliance
Mr.Tilmant, the Group CEO of ING, has shown this project to the Board as evidence of successful innovation at ING.
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Results -- Customer Service Impacts
Customer satisfaction, already improving due to BPM initiatives in ING, is expected to break above industry average in 2006 after a year of live operation of the new solution .
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Summary – The Open Source “S’ Curve and Tipping Point
Life Cycle of Technology Driven Innovation
Prediction: Open Source adoption is at a tipping point. It is becoming a “must-have” in the battle for lower costs
Growth MaturityBirth
Tipping PointJBossRedHat
MySQL
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Next Steps
Visit our Booth or Contact us if you are interested in discussing Open Source and Open Standards
Ravi Kalakota ([email protected]) 770-368-6303Unisys Corporation (www.unisys.com)
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