Title: Payback: How We Profited From Our Web Services and Pervasive Computing Strategy
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2How We Profited From Our Web Services and
Pervasive Computing Strategy
- Rick Carey
- Chief Technology Architect
- Merrill Lynch
- InfoWorld CTO Forum, April 2003
- April 1st, 2003
3Contents
- Background
- Steps to Building Technical, Cultural, and
Financial Success - Thoughts on Pervasive Computing
- A Case Study For Web Services
- Insights from a Successful Implementation
4Background
- Merrill Lynch
- World leading financial management and advisory
company with offices in 36 countries and total
client assets of approximately 1.3 trillion. - Our combined technology and operations group has
over 12,000 employees with a spend of over 4
billion per annum (Approximately 25 of MLs
total expenses) - Me
- Joined Merrill Lynch 1999
- Chief Technology Architect Since May 2001
5Building Technical, Cultural Financial Success
- Technical
- Simplify Rationalize existing investments
- Focus on Efficiency Virtualization and shared
infrastructure - Cultural
- John Cummings ML CISO Structure, Standards
Value - Get people talking TAG, TRB, Steering
Committees, etc - Financial
- Based Metrics ROI, TCO, NPV, Budget-to-Actual
Variances - Accountability
- Manage Spending, Not Bargain Hunting
6A Case Study For Web Services
7What Are Web Services?
Application Centric
Proprietary Interfaces
Islands of Information
Costly Middleware
Status Quo
Service Centric
Our Untapped Assets
Standards Based Connections
Web Service Tools
Business Opportunity
XML SOAP WSDL UDDI WS-Security
Databases Files Enterprise Apps Personal Apps
Intranets Extranets Public Internet
8Why Web Services?
Web Services Example
Visual Basic Application
CICS/COBOL Application
Ubiquitous Request / Response Interactions
Service Consumer
Service Provider
Java
C
Windows
.Net
Other
CICS/MVS
C
Legacy
C
Cobol
J2EE
Unix
Siebel
Linux
Web services enables us to bring together systems
that have traditionally not worked together,
because of location, platform and/or language
differences
9Where Does ML Run Much Of Its Business?
- On CICS Worldwide 30 billion transactions a day
run on CICS. CICS is used by 490 of the Fortune
500. 1 trillion in transactions is processed by
CICS every day. - Merrill Lynch is a typical 21st century company.
We run much of our business on CICS. - We have over 23,000 CICS programs in production
and we run over 60 million transactions per day
(more than 12 billion per year). Our Visa cards,
Voice Response Unit, Merrill Lynch OnLine and
trading systems all run on CICS. - If our legacy systems run the business then the
question is
How can we most effectively leverage our legacy
investments?
10How Can We Leverage Our Investments?
- We run our business on CICS, we need a solution
that is - Reliable
- Efficient
- Scaleable
- Manageable
- Cost-effective
- Most integration solutions require extensive
middleware - We have multiple integration solutions today
- We need a solution that
- Converges the integration portfolio
- Reduces the middle tier servers
- Lowers the cost of ownership
- Improves reliability
- Increases performance
- Modernizes the legacy applications - without
recoding
11 A 3 Part Solution New Life for an Old Platform
- Exposing CICS Transactions as Web Services
- In 2002, Merrill implemented an application
called X4ML, which is a CICS/COBOL-based
application that exposes legacy programs on the
mainframe as a standard Web Services interface.
- Reducing Software Licensing Costs
- Traditional mainframe software is licensed at a
premium. By migrating to Linux on the z-Series we
get the benefits of the z-Series platform while
realizing an order of magnitude reduction in
licensing costs. For example, mainframe file
transfer can now be done using Linux-based FTP,
etc
- Migrating Web Hosting
- Moving many of our intranet sites to Linux on
the z-Series enables a reduction in Intel-based
servers that are typically dedicated to a single
site and are under-utilized. Cost reductions come
from redeployment or retirement of the servers,
elimination of network connectivity, and
redundant monitoring facilities
12Web Services At Merrill Lynch
- XML for Merrill Lynch (X4ML) is an interface to
existing CICS applications. X4ML allows existing
CICS programs to participate in Web Services by
accepting SOAP Requests from the web, converting
the SOAP requests into formats expected by the
legacy programs, calling those programs and then
converting the results of those programs into
SOAP responses. - X4MLs tool set provides
- A Program Analyzer that quickly and easily
provides a Web interface to existing legacy
applications without the need for any additional
coding. - A complete Directory fully documenting each Web
Service enabled through X4ML. - Complete monitoring and error logging.
- Simple testing facilities that allow developers
to quickly unit test their Web Services.
13Web Services X4ML 90 Cents On The Dollar
It has been estimated that approximately 90 cents
of each development dollar is spent on
infrastructure and plumbing with only 10 cents
going to business function and logic. It is this
90 cents that Web Services X4ML greatly reduce
in a variety of ways
- Simple Architecture X4ML runs completely within
CICS, requiring no middle tier hardware. - Third party development tools such as Microsofts
.Net and IBMs WSAD have completely embraced Web
Services, empowering the front-end developer with
powerful tools for quickly integrating web
services into front-end applications. - X4MLs Analyzer can quickly and easily provide
these web services from back-end programs. - Greatly improved performance compared to our
traditional architecture (in many cases X4ML has
produced response times up to 10-20 times faster
with ten times the throughput compared to the
architecture it replaced).
14Web Services X4ML Payback
Weve invested millions in our CICS
infrastructure. Web Services X4ML can rapidly
leverage this investment, allowing us to quickly
modernize our business infrastructure while
maintaining the stability of the production
environment. By modernizing the interfaces to our
applications while leaving those applications
intact we can realize significant cost savings by
reusing existing resources - all while
eliminating the risks associated with
redeveloping applications. Payback Integration
projects scoped at multiple person years are
completed in person months. On some projects, 90
cents on the dollar has approached 65 cents on
the dollar.
15Insights From A Successful Implementation
- Adopt Cautious Enthusiasm regarding Web
Services - A2A of Web Services today is like the Intranet of
the Web six years ago - Top two features are development language
independence transport independence - Make the J2EE or .NET decision
- At Merrill, we choose both
- Build key centralized services like UDDI first
16Why Focus On UDDI?
- To drive web service adoption and increase
developer productivity by allowing developers to
find and reuse web service implementations in the
various business lines. - To provide developers with information on how to
integrate with the business processes. - To allow business partners to quickly and easily
find and integrate with service offerings. - To create a central repository of all products
and services available inside the firm. - To make applications more reliable by allowing
service consumers to discover changes dynamically.
17Web Services Scorecard
- Short Comings
- Poor support for messaging beyond HTTP
- Poor support for security, especially integration
with Active Directory - Poor support for integration with Enterprise
Management facilities
- Positives
- Ubiquitous nature of TCP/IP
- Web Services as a means of interoperable
messaging. For example, integrating the Wealth
Management Workstation Platform with CICS via the
X4ML Gateway.
- Key Short-Term Focus Areas
- Web Services Management
- Support for Web Services Policy, Security,
Reliable Messaging, and Addressing - Security
- Open Grid Services Architecture (OGSA)
18Looking Forward Where Does This All Fit In?
Open Grid Services Architecture (OGSA)
- WSDL v.1.2 - WS-Policy - WS-Security -
WS-Monitoring
Pervasive Computing
Web Services
Grid Computing
19Questions?
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