Technology Vision for Financial Transactions

1. Technology Vision for Financial Transactions Presented by: Steve Kremidas, Bob Familiar VP Product Development .NET Architect

2. Overview... • Introduction • setting the stage for XE • SS&C • Where the World Wide Web has brought us • what XE is built upon • Steve Kremidas (SS&C) • Standard communication, non-standard platforms • XE’s bread and butter • Bob Familiar (Microsoft)

3. The Business Drivers... • Acquisitions, Consolidation, Globalization and the Economic Climate have brought new challenges to the way we do business • Therefore, as business people we need to provide : • more with less • closer integration of our processes • more timely processing of information • better access to data

4. Cross Exchange Now – XE... • XE is a software tool built upon the industry standard, open functionality of XML and Web Services • XE can meet you business challenges head on by providing: • painless integration of applications and data across disparate platforms • visual representations of your business and technology processes for modeling • a platform for rapid application development • SS&C has made a large investment in XE for the purpose of solving business problems

5. Cross Exchange Future – XE... • Data – You can never get enough while at the same time you seem to always have more than can be handled • XE is a software tool built upon the industry standard, open functionality of XML and Web Services • XE can meet your business challenges head on by providing: • painless integration of applications and data across disparate platforms • visual representations of your business and technology processes for modeling • a platform for rapid application development

6. Internet Evolution, Web Services... Presented by: Steve Kremidas VP - Product Development

7. Web Services Imagine a world... • Easily connect disparate systems across multiple platforms and languages using a standards based approach • Eliminate the requirement to rewrite legacy applications • Allow for common access to systems from multiple devices • Focus on service oriented design rather than technology oriented design • Discover and integrate new business partners quickly and easily • Increase agility by extending reach and minimizing time to market

8. Monolithic Classes Objects Evolutionary Convergence Object Oriented Design Configuration shift from fine grain, tightly coupled to large grain, loosely coupled increasing scope and reuse at each level.

9. “In the anticipated symbiotic partnership, men will set the goals, formulate the hypotheses, determine the criteria, and perform the evaluation. Computing machines will do the routinizable work that must be done to prepare the way for insights and decisions in technical and scientific thinking.” Evolutionary Convergence The Internet

10. SMTP HTTP/HTML XML/SOAP/Objects Evolutionary Convergence Communication

11. Standards Standards Bodies • W3C (World Wide Web Consortium) HTML; CSS; DOM; XMLLong Term Goals- Universal Access- Semantic Web- Web of TrustRole- Vision- Design- StandardizationDesign Principals- Interoperability- Evolution- Decentralization

12. Standards Standards Bodies • WSI (Web Services Interoperability)Interoperability- Platforms- Applications- Programming LanguageCustomer Adoption and Deployment- Integrate specifications from Standards Bodies- Implementation guidelines and tools (Sniffer & Analyzer)

13. Standards Standards Bodies • UDDI (Universal Description, Discovery and Integration)- Description- Discovery- Integration

14. Web Service: Business Registry Description of Services Technical reference of Services UDDI WSDL The format and technical specification of the XML data Message Envelope: Outlines the interaction with the Service Technical specifications of Service XML Schema The Internet Transfer Protocols The message data in a tagged format SOAP XML HTTP/FTP Standards Standards Stack

15. VMS SOAP/XML Web Service Internet HTTP SOAP/XML Unix Deployment Rollout/Example • Rollout- Corporate Intranet & Trusted Partners (1 to 2 Years)- Public Internet (3 to 5 Years) • Commercial Application Example

16. Challenges • Security • Performance • Availability • Change Control Management • Service Level Agreements • Tools

17. Summary • Infrastructure • Interoperable Object Technology • Development languages are focused in this area • Many standards exist and continue to grow • Easy methodology to discover and integrate business partners

18. The Business Value of Microsoft .NET Bob Familiar .NET Architect Microsoft New England

19. Technology Is Driving Business • “The newest innovations, which we label information technologies, have begun to alter the manner in which we do business and create value, often in ways not readily foreseeable even five years ago.” • Alan Greenspan • Chairman, Federal Reserve

20. “Expenditures on XML technologies in the Financial Services sector will grow to over $8.5 Billion by 2005” ZapThink Research Report – March 15, 2002

21. Two Questions… • What is XML? • What impact will it have on my business? • XML = eXtensible Markup Language • Industry Standard means for describing rich hierarchical data, human readable, cross platform • All business transactions over time are migrating to leverage this standard in an Internet connected business world

22. XML Web ServicesOpen Standards For Interoperability • XML: Lingua Franca for connected computing • Universal data format → systems can actually talk • Basis for system interaction standards: • SOAP (interaction), WSDL (description), UDDI (directory) • Provides common model for interoperability • Works with any operating system, programming language, network • Spans systems, applications, sites, devices • Transforms each into programmable ‘service’ • Broad industry support and adoption Microsoft, IBM, SAP, HP, Oracle, Sun, etc.

23. XML Adoption @ Fidelity • Fidelity • Converting millions of lines of code to XML • Has trimmed 75% of the software and hardware in its middle tier processing sector • “XML reduces complexity and allows us to get our transactions to our customers better, faster and cheaper.” • Bill Stengel, VP of Engineering Architecture, Fidelity, quoted in Waters cover story, February 2002

24. XML Adoption @ Vanguard • “We have adopted XML Web Services as a standard for internal inter-process communication…” • Kate Nelson, spokesperson for Vanguard Group of Valley Forge, PA, quoted in Waters cover story, February 2002

25. XML adoption @ _________ • “Every client I have on Wall Street has an XML Strategy.” • Roy Schulte, Analyst with Gartner Group

26. Company D Company C Company B Company E Mobile Employees Mobile Employees Mobile Employees Mobile Employees Mobile Employees Remote Office/Consumers Remote Office/Consumers Remote Office/Consumers Remote Office/Consumers Remote Office/Consumers Customers Partners Suppliers Customers Partners Suppliers Customers Partners Suppliers Customers Partners Suppliers Customers Partners Suppliers Company A Remote Office/Consumers Mobile Employees Company F Business demand = everything connected

27. The Microsoft Vision Empowerpeople through great software any time, any place, and on any device

28. Putting The Pieces Together

29. A Foundation For XML Web Services

30. Microsoft. NETAn Industry Initiative • A vision for 21st century computing • A platform for building, running, and managing .NET software applications • A set of servicesfor businesses and consumers

31. IBM Hewlett- Packard Analysts on Web services Gartner Magic Quadrant: Major Vendor Web Services Platform Influence “.NET is a brilliant strategy that enables Microsoft to define the next shift in the software business.” - Gartner Group “Everyone should build on the XML/SOAP foundation.” - Meta Group “Gartner believes Microsoft is now providing more vision and influence regarding this shift than any other vendor.” - Gartner Group “.NET is a leading example of what we believe will be the dominant architectural model for the third generation of Internet applications.” - Patricia Seybold Group Microsoft Ability to Execute Sun Microsystems Oracle Completeness of Vision *Source: Gartner Research, 9/13/2001

32. .NET Today l Emirates Airline Group

33. NASDAQ Benefits from .NET Nasdaq.com Consolidates servers by 30 percent, while running key applications 20 to 30 percent faster • Anticipates cutting costs in half with the move from SQL 7.0 to SQL 2000 • On peak market-activity days, the site has supported more than 5,000 concurrent users and 100 ASP requests per second on just nine Web servers and with less than 40-percent CPU utilization “What SQL and the Datacenter Program means for us is a dramatic reduction in the costs of hardware licensing, maintenance, and administration.” Ryan Rohaley, Director of Web Operations, The Nasdaq Stock Market Services: Alliance Engineer for SQL Server

34. Lloyds TSB Benefits from .NETFirstCheck WebService – Customer Credit Rating Web Service • Connected • Using BizTalk Server, FirstCheck WebService accessed multiple internal and third-party credit data sources to provide a responsive credit ratings Web Service offering • Flexible • BizTalk’s integration features allowed Lloyds to retain existing investments in IT Infrastructure • BizTalk took care of the plumbing, allowing Lloyds to focus on the business problem • Productive • Average new customer’s credit scoring processing time reduced from 7 days to 12 hours • Average existing customer’s credit reference time reduced from 48 hours to 2 minutes • Best TCO • Development licensing costs were 90% lower than evaluated competitors’ products • Operating costs reduced “This project has developed a completely new income stream for us… We now have significant market opportunities that we wouldn’t have had access to before” Andrew Snow, E-Business Analyst, Lloyds TSB Commercial Finance

35. TD Waterhouse Investing

36. GMAC Commercial Mortgage • Challenge • Create a new Internet-based commercial mortgage service, MortgageRamp in three months • Solution • Sourcing $6 to $8 billion (est.) in loans annually • Using Microsoft .NET Enterprise Servers and Windows-Powered Pocket PCs • Benefits • MortgageRamp has revolutionized the commercial mortgage lending cycle, accelerating the turn-around time of commercial loan processing from an average of 90 to 120 days, to 10 days or less “We started building the company in January, and we launched the MortgageRamp site at the end of March. Just three of us building an entire company, not just the technology, in three months.” (Niraj Patel, CIO, GMACCM)

37. SS&C • Creating an integrated solution set across vertical markets • SS&C XE is an XML based Messaging Tool • Pass data between applications • Perform conditional workflow • Perform rich data Transformations • Targeted at STP and T+0 • Information flows seamlessly from front office, through the middle to back office • Integration with 3rd Parties • Data Providers such as IDC, Reuters, Bloomberg, etc.

38. Conclusion Integration Empowered, effective employees Front Office/Back Office/Customer integration Across stovepipes, alliances, acquisitions Flexibility “Any device” access, wired or wireless RAD development tools for enhancements Supports diverse work-styles, business units Transparency Information independent of appearance, programming language, OS or DBMS Identity and notification = web services Control Fine grained personalization, robust security Tracking of changes, audit trails, usage metrics Intellectual property protection

39. Call to Action • Conceptualize your business as a suite of XML based services • Develop a flexible, many-to-many integration strategy around XML • First inside the firewall • Extend beyond the firewall • Expose key assets as XML Web services • Schematize internal applications • Encourage application vendors • Connect with value chain • Work with SS&C and Microsoft to facilitate these objectives