Open Systems becoming a virtual world

1
Open Systems becoming a virtual world

• Andreas Verschueren - Systems AnalystGuy
  Rottiers Senior System engineerWalter Adriaens
  Senior System engineer

2
Agenda

• Introduction KBC Group ICT

Open Systems becoming a virtual world
Questions Answers
3
Agenda

• Introduction KBC Group ICT

Open Systems becoming a virtual world
Questions Answers
4
KBC Group

• Ranking
• One of the top 2 banks in Belgium
• One of the top 3 insurers in Belgium
• One of the top 20 banks in Europe
• Top 3 financial group in Central Europe
• Market share in Belgium
• Banking 20-25
• Insurance 9 (non-life) 22 (life)
• Head office in Brussels
• 51.000 employees
• Belgium 20.000
• CEE 25.000
• Rest of the world 6.000
• 11.000.000 clients
• Belgium ca. 3 300 000
• CEE ca. 6 900 000
• Rest of the world ca. 800 000
• Net Profit 2006 3 430 m euros (ROE 24)

5
Market capital Ranking in Euroland
03-01-07
Jan 2006
Jan 2007
Dec 2004
1 BSCH (57 bn) 1 BSCH (74 bn) 1 BSCH (91 bn)
2 BNP Paribas (48 bn) 2 BNP Paribas (63 bn) 2 BNP Paribas (79 bn)
3 BBVA (42 bn) 3 Unicredito (62 bn) 3 Intesa Sanpaolo (75 bn)
4 Deutsche Bank (35 bn) 4 BBVA (57 bn) 4 Unicredito (71 bn)
5 Crédit Agricole (35 bn) 5 Deutsche Bank (50 bn) 5 BBVA (67 bn)
6 Société Gén. (34 bn) 6 Société Générale (48 bn) 6 Société Générale (61 bn)
7 ABN AMRO (32 bn) 7 Crédit Agricole (44 bn) 7 Deutsche Bank (54 bn)
8 Unicredit (27 bn) 8 ABN AMRO (44 bn) 8 Crédit Agricole (49 bn)
9 Fortis (26 bn) 9 Fortis (38 bn) 9 ABN AMRO (47 bn)
10 Intesa BCI (21 bn) 10 Intesa BCI (33 bn) 10 Fortis (43 bn)
11 Dexia (18 bn) 11 KBC (31 bn) 11 KBC (35 bn)
12 KBC (18 bn) 12 San Paolo IMI (26 bn) 12 NATIXIS (27 bn)
13 San Paolo IMI (15 bn) 13 Dexia (23 bn) 13 Dexia (25 bn)
14 Allied Irish Banks (12 bn) 14 HVB (19 bn) 14 Allied Irish Banks (20 bn)
15 HVB (12 bn) 15 Commerzbank (19 bn) 15 Commerzbank (20 bn)
16 Bank of Ireland (11 bn) 16 Allied Irish Banks (16 bn) 16 Capitalia (19 bn)
17 Bco Popular (10 bn) 17 Erste Bank (14 bn) 17 Erste Bank (19 bn)
18 Commerzbank (9 bn) 18 Capitalia (14 bn) 18 Nat. Bank of Greece (17 bn)
19 BA-CA (9 bn) 19 Bank of Ireland (13 bn) 19 Bco Popular (17 bn)
20 Mediobanca (9 bn) 20 Nat. Bank of Greece (13 bn) 20 Bank of Ireland (17 bn)
DJ Euro Stoxx Banksconstituents
6
Unique Multi-Channel Distribution Platform in
Belgium
KBC Group
Leasing/Factoring
Traditional Retail/SMEBanking
MerchantBanking
CapitalMarkets / Trading
Asset Mgt. / PrivateBanking
Insurance/ Re-insurance
Stock Brokerage
Products
892 retailbranches
29 corporatebranches
25 privatebankingbranches
584 tied insuranceagents
723 Centea bank agents
Distribution
Internet / electronicchannels
2.700.000 retail clients 13500 corporate
clients 800 multinationals 19000 private banking
clients
Clients
dd.31-12-2005
7
KBC in Central Eastern Europe
Poland Kredyt Bank (80) Warta (100)
Presence in Bosnia, Macedonia through NLB
Recent acquisitions Rumenia Romstal Leasing
(99,34), Bulgary DZI Insurance (70), Serbia A
Banka (100) Senzal (100 ) Hipobroker
(100) Bastion (60 ) Russia Absolut Bank
(95 ) Latvia-Estonia-Lithuania-Ukraine BIC
(51 )
Czech Republic CSOB (98,58) CSOB Insurance
(97)
Slowak Republic CSOB (97) CSOB Poistovna
(98)
Hungary KH Bank (100) KH Insurance (100)
Slovenia NLB (34) NLB Vita (67)
Nog niet afgerond
(07-2007)
8
KBC Group's current presence in Central Europe
Poland (banking) Ranking 9th Market share
4 Clients 0.9 m. Branches 333
Poland (non-life/life insur.) Ranking 2nd /
8th Market share 11 / 2 Clients (est.)
1.8 m.
Czech Republic (banking) Ranking 2nd
Market share 21 Clients 3.0 m. Branches
218 ( 3400 points of sale-PO)
Czech Republic (non-life/life insur.) Ranking
6th / 4th Market share 4 / 9 Clients
0.7 m.
Slovakia(non-life/life insur.) Ranking 6th /
8th Market share 4 / 4 Clients 0.2 m.
Slovakia (banking) Ranking 4th Market share
7 Clients 0.2 m. Branches 99
Hungary (non-life/life insur.) Ranking 6th /
6th Market share 4 / 4 Clients 0.4 m.
Hungary (banking) Ranking 2nd Market share
11 Clients 0.8 m. Branches 158
Slovenia(non-life/life insur.) Ranking - /
4th Market share - / 8 Clients 0.1m
Slovenia (banking) Ranking 1st Market share
42 Clients 2.0 m. Branches 395
Market share is average of share in customer
credits and in customer deposits
9
KBC in ..
Turkey
USA
Japan China Taiwan Hong Kong Maleisia Singapore
Dubai
India
Australia
New-Zeeland
10
KBC a lot of brands
11
KBC Group ICT
12
ICT in a bank boring or not?
13
Group ICT

• Employees
• Belgium 1.820 KBC 600 external consultants
• Central Europe 1.300 KBC
• India 250 Valuesource (100 daughter of KBC)
• Services
• Delivering end-to-end ICT solutions (software,
  hardware, service)
• Maintenance of ICT solutions
• Hosting services
• Network infrastructure management
• Clients
• KBC Group Belgium
• KBC Group international
• Other corporate clients in the Benelux (Orbay,
  IFB, )
• Turnover 650 mn

14
KBC Group ICT
Poland - WARTA ICT FTE 180 Total ICT budget 25
m.
Belgium - KBC ICT FTE 1850 Total ICT
budget 400 m.
Poland - KB ICT FTE 275 Total ICT budget 34 m.

Czech Republic CSOB ICT FTE 360 Total ICT
budget 70 m.
Slovakia CSOB / CSOB Poj ICT FTE 68 Total ICT
budget 13 m.
Czech Republic CSOB Poj ICT FTE 87 Total ICT
budget 9 m.
Hungary KH ICT FTE 324 Total ICT budget 79
m.
15
Our ICT organisation

• Client focused
• Strong governance business-ICT alignment
• Best-in-class ICT services
• Organisation
• Process driven
• Matrix organisation project approach
• Fast growing international project portfolio
• Technology architecture
• Fast follower in new technologies
• High availability
• Architecture driven
• Integrator of components
• Multi-sourcing
• Core business by our own people
• Fixed price outsourcing package solutions for
  non-core (e.g. SAP)
• External consultants for temporary needs
• India for technical implementations conversions

16
A multi-channel distribution platform requires
Head office
Clients
Distribution Channels
Product factories
17
a 3-tier architecture
? Mainframe Bank ?
Mainframe Insurance ?
Mainframe FinForce ? Kennisbank
Tier 1
Tier 2
Tier 3
IntegrationSteering
Presentation
Business Logic Data
(frontend)
(midtier)
(backend)
Data transport
Belgacom
Telindus
Browser in
Branches online (PC)
Server park (Unix)
Central Servers (mainframe, Unix)
Thin client thin server
18
ICT infrastructure (Belgium only)
10.500 network printers multifunctionals
KBC Datacenter is one of the largest in Belgium
19
Our ICT
organisation
Information

Communication
Technology
Directorate
ICT
Strategic
Processes
Division
Process
Management
Division
ICT Central
Europe
Open
Systems
Division
Mainframe
Division
Product
Factory
3
Division
Product
Factory
1
Division
(
securities
,
back
-
office
dealing
rooms,
(
insurance
,
personnel
,
security
)
commerce,
acc
.,
reporting
)
Distribution
Channels
Markets
SAP
Product
Factory
2
Division
Division
Division
(credit,
corporate
segment,
man.info
,
payments
)
20
Our ICT organisation
Datacenter
Applications Development
Work preparation
Work preparation
Projects
Projects
Service
Service
Support for ICT processes tools
Support HRM, Finance, Procurement, Security,
Communication
21
Functions in ICT Belgium (numbers)
Datacenter
Applications Development
Business analyst (65)
Work preparation
Work preparation
Technology Analyst (15) System Analyst (15)
Program manager (35) Project Leader (100) Analyst
(300) Technical Designer (210) Programmer (250)
Projects
Projects
Project Leader (20) Program Manager (5)
Team Leader (40) Service Delivery Owners
(11) System Engineer (280) Operational System
Engineer (200) Operator (150)
Service
Service
Team Leader (40) Application Engineer
(300) Programmer (250)
Architect (12) Support data process modelling
(50) Support methods (40) Support tools (50)
Support for ICT processes tools
HRM Resource Manager (12) Trainer Knowledge
Manager (15) Financial Analyst (12) Procurement
(10) Information risk Security (10)
Support HRM, Finance, Procurement, Security,
Communication
22
The ICT offices
Antwerpen
Brugge
Gent
Hasselt
Mechelen
Roeselare
Aalst
Leuven
Brussel
Head officesData centersLocal offices
23
Vision on HR

• Knowledge management
• Internal external training
• e-learning
• Knowledge management communities
• Technical personal skills
• Mentors coaching
• Open university (Open Leren)

• Communication
• Intranet
• Newsletter ICT
• Newsletter KBC
• Video news KBC
• ICT Forum
• Technology Forum

Motivated people with the right skills, at the
right moment, at the right place, now and
tomorrow.

• Career development
• Performance appraisals
• Assessments
• Talent management
• Function descriptions
• Career paths
• Career coaching by resource manager

• Staffing
• Internal vacancies published
• Central staffing of all projects by resource
  managers
• Active rotation of people

24
Agenda

• Introduction KBC Group ICT

Open Systems becoming a virtual world
Questions Answers
25
Agenda

• How are we organised
• What do we have?
• Hardware
• Virtualization
• Availablity model
• Virtual servers
• Physical servers
• Software distribution and management
• Roadmap
• History of utility computing
• What is Utility computing
• Assumptions and principles
• Roadmap
• Hardware
• Operating systems
• Virtualization

26
Agenda

• How are we organised
• What do we have?
• Hardware
• Virtualization
• Availablity model
• Virtual servers
• Physical servers
• Software distribution and management
• Roadmap
• History of utility computing
• What is Utility computing
• Assumptions and principles
• Roadmap
• Hardware
• Operating systems
• Virtualization

27
How are we organised ?
Open systems
Applications
Head office
Transactional
Business
Infrastructure
28
Facts Figures Belgium

• Open systems

department server maintenance number of FTE Number of application environments Number of Operating Systems
Tranactional servers /- 40 20 962
Backend systems(active directory,dfs,) /- 12 5 170
Business application servers /- 140 135 1295
Other (branches) 825
1 FTE for 17 Operating systems
29
Infrastructure organisation based on server
services
Infrastructure - Operations Cap. Mgt
Middleware
Middleware Databanken
Middleware Monitoring
Operating Systems UNIX
Operating Systems Windows
Virtual and physical Hardware
Storage backup
30
Agenda

• How are we organised
• What do we have?
• Hardware
• Virtualization
• Availablity model
• Virtual servers
• Physical servers
• Software distribution and management
• Roadmap
• History of utility computing
• What is Utility computing
• Assumptions and principles
• Roadmap
• Hardware
• Operating systems
• Virtualization

31
Hardware
Virtual and physical Hardware
32
Hardware

• Catalogue based Services to achieve and hold
  standardization
• Hardware
• Sparc (Sun Microsystems/Fujitsu Siemens)
• Pa-Risc / Itanium (Hp)
• Power servers (IBM/Bull)
• X86 (IntelAMD) hardware (Hp Dell IBM
  Fujitsu Siemens ..)
• Restricted hardware platforms
• Drivers
• Monitoring
• Organized life cycle management
• Regarding vendor hardware support and operating
  system
• For depreciation of hardware and software

33
Hardware
Operating Systems UNIX
Operating Systems Windows
34
Hardware Facts figures

• Hardware volume (datacenter)

Operational Operating systems (17/10/2007) UNIX INTEL physical INTEL virtual
2427 1066 (44) 752 (31) 609 (25)
HE partition. HW (5,5) MID gt 4 CPU (4) MED lt 4 CPU (17) SMAL lt 2 CPU (73,5) 137 94 271 564 5 94 653 49 560
35 on HP 31 on Sun 16 on IBM 15 on Dell 3 on
Fuj/Siem
35
Benefits of Virtualization

• Time-To-market
• Business demands are fast growing
• Physical server implementation in datacenter ? 18
  days
• Virtual server implementation ? 0,5 day
• Resource usage
• Cpu resources will be increased up to 70
• Pre-study physical Windows server 10 usage
• Pre-Study physical Unix server 30 usage

Unused server capacity
Peak performance
Servers
36
Benefits of Virtualization

• Reduced TCO
• Hardware usage
• Time to market
• Ease of maintenance
• Hardware independance
• Green datacenter
• Less power consumption
• Server
• Dataroom cooling

37
Virtualization with Hp-Ux Partitioning
nPartitions hard partitions within a node
Single Physical Node single OS image per node
within a cluster
Virtual Partitions within a hard partition
Resource Partitions partitions within a single OS
image
Isolation
Flexibility
38
Virtualization with x86 Hypervisor

• Hypervisor Concept

39
Virtualization _at_ KBC

• VMware on x86/x64
• Windows server 2003
• Windows server 2008
• Solaris 10
• Integrity Virtual Machine on Itanium
• HP/UX 11i
• Lpar on Power6
• AIX 5.3

40
Consolidation and savings with VMware?

• Consolidation started beginning of may 2006
• ESX servers 64
• Virtual servers 550
• 36 TB storage in 2 datacenters.
• Energy consumption (only of server) 150kW less
  (1300MWh/y)
• Networkports 256 instead of 800 so 550
  less?12km UTP.
• Rackspace 5 racks in use instead of approx. 40
  ? 105m² datacenterspace

41
Availability Live migration

• Zero downtime

42
KBC Availability model

• VMware

43
KBC Availability model

• Physical hardware

44
Installations Management

• Software deployment (SD) and bare metal install
  (installation)
• Via SD and bare metal install ? full install of
  infrastructure
• Complete reproduction of infrastructure
  environment
• Packaging applications
• Packaging os image
• Packaging complete management environment
• Server network install for all servers (in
  catalogue)
• Task related approach (people)
• Design of infrastructure architecture
• Install of infrastructure environment
• Maintain of infrastructure environment

Install
Maintain
Design
45
Agenda

• How are we organised
• What do we have?
• Hardware
• Virtualization
• Availablity model
• Virtual servers
• Physical servers
• Software distribution and management
• Roadmap
• History of utility computing
• What is Utility computing
• Assumptions and principles
• Roadmap
• Hardware
• Operating systems
• Virtualization

46
History of Utility computing

• If computers of the kind I have advocated
  become the computers of the future, then
  computing may someday be organized as a public
  utility just as the telephone system is a public
  utility... The computer utility could become the
  basis of a new and important industry.
• John McCarthy, MIT Centennial in 1961

47
What is Utility Computing?

• On demand packaging of computer resources
• Computation resources
• Storage resources
• as a metered service
• Similar as a physical utility like (water, gas,
  electricity)
• Technologies involved
• Virtualization
• Hypervisor techniques (VMware, Hyper-V.)
• Application virtualization (Citrix, Altiris,
  Softgrid )
• Grid computing
• Stealing computer cycles
• High performance computing

48
Assumptions and principles
No vendor lock-in
Virtualization
Max Out-of-the-Box
Hardware independence
Standardisation
Consolidation
Datacenter
Flexibility
49
Roadmap 2007 - 2009
50
Roadmap cores, servers and OS
51
Roadmap Hardware

• Include Itanium in catalogue
• Multi OS on dedicated hardware
• Include in catalogue Hardware AIX power/Bull
  (multi-vendor strategy)
• Different hardware blades in 1 enclosure

52
Roadmap Operating systems

• Upgrade Hp-Ux to Version 11iV2
• AIX in catalogue
• Windows 64-bit in catalogue (W2k3)
• Pre-study Longhorn (Windows 2008)
• Include in catalogue Solaris on X86
• Longhorn in catalogue

53
Roadmap Operating systems
54
Roadmap Virtualization

• Hypervisor
• Include in catalogue hardware cluster models for
  Business appl. Servers
• Pre-study VMware ESX 3.xx
• Implementation VMware ESX features
• Pre-study Solaris 10 on VMware ESX
• Pre-study Hp integrity virtual machine
• Capacity management charg back, etc. VS VMware
  ESX
• Pre-study Ldom - Xensource --gt Sun
• Implementation Solaris 10 on VMware ESX
• Include in catalogue AIX virtualisation
• Virtual machine relocation VMware
• Pre-study Microsoft Virtual server ltgt VMware ESX

55
Roadmap Virtualization

• Application virtualisation
• Include in catalogue resource management for
  Solaris / Hp-Ux / W2k3
• Pre-study Citrix environment
• Develop Citrix environment (upgrades, pillars and
  access) for CE
• Develop Citrix environment (application
  virtualisation)

56
On a flight

• Multicore processors (80-core)
• Hypervisor provisioning
• Linux ltgt Unix Risc
• Softgrid en Altiris in function of business
  application servers
• Desktop virtualization in the datacenter
• Pillar concept --gt can we make our pillars less
  complex, rollback and or cloning systems
• Server cooling! Water or other technology
• Virtual machine relocation Unix
• Grid In combination with virtualization
• OS as an appliance

57
Agenda

• Introduction KBC Group ICT

Open Systems becoming a virtual world
Questions Answers
58
Questions Answer
59
KBC hires 150 new ICT employeesthis year
You can apply by mail with your CV attached to
ictjobs_at_kbc.be or via www.kbcworld.be

• What do we offer ?
• A wide range of training and growth opportunities
  within ICT and business
• Room for expert as for generic functions and
  careers
• A professional ICT environment with a wide range
  of technologies, processes and business processes
• Local and international opportunities
• A competitive salary with extra legal benefits