Linux at State Street

1
Linux at State Street

• Shekhar Pannala
• SVP, New Technology Development
• State Street Corporation

2
Agenda

• About State Street
• Initial Linux Implementation
• Grid Computing and Linux
• Road ahead
• Questions

3
About State Street
With 9.5 trillion in assets under custody and
1.4 trillion under management, State Street is a
world leader in financial services and known for
leading edge technology solutions to global
investment community

• Our Clients are among the most sophisticated
  institutional and individual
• investors in the world including
• Investment Managers
• Pension Plan sponsors
• Collective Investment Fund Managers
• Banks, Corporations and not-for-profit
  organizations
• Industry Leader
• 1 servicer of U.S. mutual funds
• 1 servicer of U.S. pension plans
• 1 investment manager of U.S. pension assets and
  a leading pension manager globally
• 1 provider of foreign exchange services
  worldwide
• Largest offshore fund service provider worldwide
• Eighth-largest investment manager worldwide

4
Initial Linux Implementation

• Legacy Application Issues with Microsoft
  Architecture
• Initial architecture is based on IIS Web server,
  Microsoft SQL Server and COM components that
  provides compliance, Total Returns and Yields for
  our Mutual fund client base. Application evolved
  from Microsoft Access to SQL Server based
  architecture
• Scalability issues with SQL Server and data
  integration challenges
• Support of application was a challenge and
  architecture is database heavy with close to 2000
  stored procedures
• Constant Patches and Security Issues
• Solution
• Move to a more scaleable database platform with
  ease of integration
• Choice of platform was Unix/Linux
• Leave the client interface the same and change
  the underlying database implementation layer

5
Initial Linux Implementation

• Implementation
• After careful review of database options, DB2 was
  chosen for its scalability and ease of data
  integration
• Used automated conversion utilities to convert
  stored procedures from SQL Server to DB2
• Linux was chosen as platform of choice for the
  following reasons
• IBM commitment for Linux as platform of choice on
  DB2
• Our advanced research facility at Technology
  Center in China
• State Streets commitment to technology adoption
• Initial linux implementation was Redhat 2.x and
  then moved to linux 3.0
• Converted COM components to Java components.
  Rich Db2/Java integration
• Successfully implemented the project and
  significant improvements in system stability and
  scalability
• Complete commitment from our software partners
• First enterprise production implementation of
  Linux at State Street
• Gave good experience for our Infrastructure folks

6
Grid Computing and Linux
Project Context
To improve the processing capabilities of our
fixed income analytics platform. The Bond
Analytics Proof of Concept used Blade technology,
Grid, Linux, and Oracle 10G in place of Sun and
Oracle 9i.
Bond Analytics Environment

• Project scope was limited to specific processes
  driven by the J2EE Analytics Engine
• Output Pricing
• Index Pricing

• Other elements were kept out of scope but are
  candidates for subsequent phases
• Data Input (ETL)
• Modeling (using Matlab)

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Grid Computing and Linux
Benefits Summary of the Bond Analytics Pilot
The use of the updated technology components in
the Bond Analytics environment proved highly
successful. Specific achievements were
1)Dramatic run-time reductions in daily pricing
output 2) Evidence that the same improvements
could be achieved for historical models 3)
Improved TCO

• Results of GRID pilot
• Processing time for the Bond Analytics
  application was improved 1903 compared to the
  current environment
• Baseline 17.45 Hours
• Best Run 55 Minutes
• State Street research areas can greatly benefit
  from the improved processing times in the
  creation of models
• Both Fixed Income and SSA areas have expressed
  strong interest in moving towards the next phase
• Successfully demonstrated the benefits of GRID
  computing, Linux, and Blade technologies

8
Road Ahead

• Linux adoption for J2EE based applications
• Converting development platform to Linux using
  WebSphere Portal and Application Server
  technologies
• Converting Microsoft IIS solutions to J2EE Linux
  based solution using Macromedia and WebSphere
• Apache HTTP servers and Linux
• Performance Measurement, Risk and Analytics
  Systems
• Evaluation Linux Grid for rewriting existing
  C/C application currently on Sybase and Solaris
  platforms
• Fixed Income/Bond Analytics
• Portfolio Analytics and Risk modeling
• With every successful Linux project execution,
  adoption of Linux is only going to increase in
  the enterprise

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• Questions ?