Madge M' Meyer

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IT Infrastructure Transformation 360A
Competitive Advantage

• Madge M. Meyer
• Executive Vice President
• IT Global Infrastructure Services
• State Street Corporation

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A Snapshot of State Street Corporation

• Fiduciary heritage since 1792
• 26,950 employees in 27 countries
• Core business managing servicing financial
  assets

Asset Management
Asset Servicing
Investment Research and Trading
Global Advisors
Global Markets
Securities Finance
Investor Services

• Approximately 2 trillion in Lendable assets
• More than 425 billion in assets on loan
• Lending across multiple asset classes in 45
  markets
• More than 450 customers and 150 approved
  borrowers worldwide

• 1.6 trillion in assets under management
• Worlds Largest Institutional Money Manager
• Investment solutions across the risk/return
  spectrum

• 12 trillion inassets under custody
• Largest provider of investment manager operations
  outsourcing
• Premiere hedge fund service provider

• Over 14 trillion in volume traded across asset
  classes in 2008
• Completed over 1,000 transitions in 2008,
  representing more than 433 billion in value

As of June 30, 2009 Pension Investments,
May, 2009
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This is State StreetOur Company Today Industry
Leadership
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This is State StreetOur Company Today
Technology Leadership
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An Overview of Global Infrastructure Services
Our mission is to sustain State Street's industry
leadership through world-class, reliable,
flexible, cost-effective, business-focused, and
risk-managed computing services.
Our regional service delivery managers and global
competency functions deliver data center,
hardware and software management, networking
communications, and end-user computing support.
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GIS Service Delivery Model
Plan
Build
IT Initiatives
Deliver
Business Drivers Requirements
Problem Mgmt
Software/Release Mgmt Security Software
Mgt Middleware/Transaction Services
Systems Software
Client Services

• Availability
• Performance
• Capacity
• Security
• Efficiency
• Scalability
• Flexibility
• Manageability
• Speed to Market

Change Mgmt
Asset Mgmt
Network Engineering Network Installation
Mgt Network Security
Service Level Mgt
Network
Availability Mgmt
Operations
Systems/Servers Management Configuration
Management Hardware Engineering
Systems/Servers
Incident Mgmt
Service Delivery Managers
End to End
Service Desk
Storage Area Network Storage Management

• Applications
• Server
• Network
• Desktop
• Email
• Internet

Storage
End User Computing
Technology Planning Blueprint Capacity /
Performance Mgmt Global Data Center Strategy New
Business Integration
Continuity Management
Cross Platform
Business Communications and Metrics
Reporting Process / Quality / Risk Compliance
Mgmt
Business Office
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GIS Service Delivery Model - Global Integration
Network
Systems / Server / Storage
Operations
End User Computing
Systems Software
GIS Exec Mgt
AMER
New Mgt Structure
Sr Regional Managers
Sr Functional Managers
New Role
Service Delivery Mgrs
Regional Tech Mgrs
APAC
Strategic
New Processes
Priorities
Regional Teams
Operational

• Service Delivery Mgr
• Customer Satisfaction
• Business Service Level Mgt
• BAU Operations
• Demand Management
• Financial Mgt Communication
• Project Oversight
• Compliance Oversight

• Regional Technology Mgr
• Technology Strategy Processes
• Infra Service Level Mgt
• Financial Management
• Resource Management
• Project Execution
• Compliance Management

EMEA
Service Level Requirements
Best Practice Solutions
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The Optimization Challenge Grow Globalize
while Reducing Costs
Sustained focus on IT Infrastructure Optimization
is allowing us to cost-effectively meet
increasing demand and address landmark business
regulatory changes
Mainframe -- /MIPS (Base installed) (-9 CAGR)
Mainframe -- /MIPS Value (Capacity on Demand
Cost) (-11 CAGR)
Open Systems -- /Core Open Systems (-13 CAGR)
Storage -- /SAN Storage GB (-38 CAGR)
Network -- /Port (0 CAGR)
Cost Per Call by the Service Desk (-14 CAGR)
Cost per Ticket by the Service Desk (-23 CAGR)
Total Cost of Service per PC (-4 CAGR)
Indexed on base of 100
2003
2004
2005
2006
2007
2008
2009 Full Year Projection
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The Innovation Challenge
Product Innovation
Market Demand Opportunity
Globalization
Requirements Enable State Streets Global
Operating Model Assure Security, Control,
Business Continuity Provide Global Reach with
Local Performance Zero Defect Expectation Rapid
Change Minimal Time to Market Expense Management
Regulatory requirements
Cost pressures
Increasing Sophistication
Technological Innovation
Industry consolidation
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The Transformation Challenge
Management Strategies Practices
People
Business
Technology
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TransformationalBusiness Management Practices

• Customer / Quality Focused Organization
• Global Model with Virtual Teams
• Industry Best Practices (COBIT, ITIL, etc,)
• Tiered Services with Service Level Management
• enabled by
• Financial Management Disciplines
• Governance Best Practices
• e.g., Asset Mgt, Technology Planning, Business
  Office, etc.
• End-to-End TCO Business Case / ROI Current Year
  Impact (self-funding)
• Cost Transparency

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"It is not the strongest that survive, nor the
most intelligent, but the ones most responsive to
change. - Charles Darwin
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TransformationalTechnology Management Practices
Jin Ji

• Global 3-5 Year Strategy
• Technology Blueprint
• e.g., Capacity on Demand, Grid, ILM, Cloud, etc.
• Global Data Center Strategy
• Green Initiatives
• realized through
• Local Business-driven Execution
• Life Cycle Mgt / New Technology Adoption
• Consolidation Virtualization
• End User Experience Focus

There is only one time that is important - NOW!
It is the most important time because it is the
only time we have any power over. Leo Tolstoy
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Transformational People Management Practices
Individual Accountability
Global Commitment
partnered with
Relationship
T W O
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O N E
Ownership
Team Approach
Navigation
World-Class Quality
Escalation
One Global Process
Guanxi
Those who admire you, can make you
confident Those who criticize you, can make you
better Those who hurt you, can make you
stronger Those who rely on you, make you
capable From Sharing by Xi Mu Rong
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A Few Recent Examples
Zero Footprint Office Build-outs
MPLS Network
Regional Global Support Model
Split Operations
Global Data Center Strategy
IBT Integration
Global Process Standards
Market Volatility Response
Capacity on Demand
Chargeback Models
Cost Transparency
Virtualization
Flexible Workplace Initiative
Asset Management
z/Linux
Sustainability / Energy Efficiency Program
Follow-the-Sun Support
Cloud Computing
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Enjoying the Moment (but only for a moment!)
2008 21st Century Achievement Award
2008 American Financial Technology Award
2009 Top Green Achiever Award
Change
??
Gai Biàn
"Change is the law of life. And those who look
only to the past or present are certain to miss
the future. - John F. Kennedy
DR Data Center
Regional Data Center
Enterprise Data Center
Local Data Center
Reciprocal DR
"Every act of creation is first of all an act of
destruction. - Picasso
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Key Principles for Success
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Chéng Gong

• Leadership vision and perseverance
• Challenges drive innovation
• Pave the way with transformation and optimization
• Inspire with global, long-term strategy
• Execute with local focus and short-term results
• Remain fluid and flexible through each moment
• Measure, communicate and celebrate your
  achievements
• Reinvent through Schumpeters creative
  destruction

If we wait for the business to tell us whats
required, were already too late.
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Thank you!
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Reminder
This presentation contains forward-looking
statements as defined by United States securities
laws, including statements about State Streets
goals and expectations regarding its business,
financial condition, results of operations and
strategies, the financial and market outlook,
governmental and regulatory initiatives and
developments and the business environment. These
statements are not guarantees of future
performance, are inherently uncertain, are based
on assumptions that are difficult to predict and
involve a number of risks and uncertainties.
Therefore, actual outcomes and results may differ
materially from what is expressed in those
statements, and those statements should not be
relied upon as representing State Street's
expectations or beliefs as of any date subsequent
to the date of this presentation.  Important
factors that may affect future results and
outcomes include, but are not limited to 
 global financial market disruptions and the
current worldwide economic recession, and
monetary and other governmental actions designed
to address such disruptions and recession in the
U.S. and internationally increases in the
potential volatility of our net interest revenue,
changes in the composition of the assets on our
consolidated balance sheet and the possibility
that we may be required to change the manner in
which we fund those assets, all as a result of
the May 15, 2009 consolidation for financial
reporting purposes of the asset-backed commercial
paper conduits that we administer the financial
strength and continuing viability of the
counterparties with which we or our clients do
business and with which we have investment,
credit or financial exposure the liquidity of
the U.S. and international securities markets,
particularly the markets for fixed income
securities, and the liquidity requirements of our
customers the credit quality and credit agency
ratings of the securities in our investment
securities portfolio, a deterioration or
downgrade of which could lead to
other-than-temporary impairment of the respective
securities and the recognition of an impairment
loss the maintenance of credit agency ratings
for our debt obligations as well as the level of
credibility of credit agency ratings the
possibility of our customers incurring
substantial losses in investment pools where we
act as agent, and the possibility of further
general reductions in the valuation of assets
our ability to attract deposits and other
low-cost, short-term funding potential changes
to the competitive environment, including changes
due to the effects of consolidation, extensive
and changing government regulation and
perceptions of State Street as a suitable service
provider or counterparty the level and
volatility of interest rates and the performance
and volatility of securities, credit, currency
and other markets in the U.S. and
internationally our ability to measure the fair
value of the investment securities on our
consolidated balance sheet the results of
litigation, government investigations and similar
disputes and, in particular, the effect of
current or potential proceedings concerning State
Street Global Advisors, or SSgAs, active
fixed-income strategies and other investment
products, in particular, the potential for
monetary damages and negative consequences for
our business arising from the previously
announced Wells notice we received from the
SECand the enactment of legislation and changes
in regulation and enforcement that impact us and
our customers adverse publicity or other
reputational harm our ability to pursue
acquisitions, strategic alliances and divestures,
finance future business acquisitions and obtain
regulatory approvals and consents for
acquisitions the performance and demand for the
products and services we offer, including the
level and timing of withdrawals from our
collective investment products our ability to
continue to grow revenue, attract highly skilled
people, control expenses and attract the capital
necessary to achieve our business goals and
comply with regulatory requirements our ability
to control operating risks, information
technology systems risks and outsourcing risks,
the possibility of errors in the quantitative
models we use to manage our business and the
possibility that our controls will fail or be
circumvented the potential for new products and
services to impose additional costs on us and
expose us to increased operational risk, and our
ability to protect our intellectual property
rights changes in government regulation or new
legislation, which may increase our costs, expose
us to risk related to compliance or impact our
customers changes in accounting standards and
practices and changes in tax legislation and in
the interpretation of existing tax laws by U.S.
and non-U.S. tax authorities that impact the
amount of taxes due. Other important factors
that could cause actual results to differ
materially from those indicated by any
forward-looking statements are set forth in State
Street's 2008 Annual Report on Form 10-K and its
subsequent SEC filings, including, in particular,
its Current Report on Form 8-K dated May 18,
2009. State Street encourages investors to read
these filings, particularly the sections on Risk
Factors, and its subsequent SEC filings for
additional information with respect to any
forward-looking statements and prior to making
any investment decision. The forward-looking
statements contained in this presentation speak
only as of August 24, 2009, and State Street does
not undertake efforts to revise those
forward-looking statements to reflect events
after that date.