Pat Healey, Deutsche Bank, at Red Hat Summit 2017: Technology transformation

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The officer half-yearly thank you the quick word about our hosts I thought was a brave selection putting the banking tech guy up first after lunch when the carbohydrate is really settling in but I hope I'll be able to reinvigorate the audience with what I think is a particularly exciting story about what Deutsche Bank are up to so I've got long so let's get into it okay bit of context I've been in software an awfully long time I've been in finance almost as long I left finance for about seven years to do my own thing and I didn't quite make that early retirement that I aspired to however I did walk away with a decent degree of commercial acumen I'm still a bit of a geek my son's employ me using chocolate as bait to build in 3d games i frighten my mother of my latest virtual reality game I give my wife's vacuum cleaner automation it probably never needed but as a hell of a ride and when I got a bit of spare time like to indulge in Iron Man and that's that ridiculously long masochistic triathlon as opposed for the Marvel comic superhero although I have thought about building the suit that looks kind of cool I joined George bank in July of 2015 to be the CTO for what was then called infrastructure and shared technology services the role appealed to me because I could take some of the commercial acumen I'd learned from my past some of my geekiness and all of the software engineering background that I have and apply it to an infrastructure organization and see what would happen now subsequently to joining I realized I had three roles in the first one got a little bit confusing infrastructure and shared technology services as is the theme these days got renamed to chief technology office and that made me the CTO for CTO however my boss then got the title of group CTO which made me the CTO for the CTO of CTO or for the Star Wars fans out there c-3po and my boss clearly slightly shorter than me see to t2 I also preside with a group of my CTO colleagues over enterprise architecture so nine lead I preside over the CTOs architecture and strategy and direction but also the bank wide enterprise strategy and direction that gives me unique insight into what the customer really wants and what the problems are that we have and the direction we need to move in and finally I have a day job as well which is running engineering services which is all about software development lifecycle processes and tools application and web hosting database hosting and some messaging and other middleware for good measure Deutsche Bank itself very large global player in many countries around the world moving an awful lot of money around on a daily basis as a healthy revenue line of 30 billion euros a year there's a macro trends have emerged in recent years that have challenged that revenue line but also presented a certain degree of opportunity yeah right macro trends increasing regulatory requirements there won't be a single person for financial services that doesn't have a regulation fatigue it doesn't seem to ever abate and it is continuing strong and has massive implications on not only our business but also technology that underpins it I think we all agree that the economic outlook is somewhat volatile at present with big changes not only going on in Europe across the world increasing competition those startups those little ankle-biters are starting to gain some real traction okay they had the clean sheet of paper they didn't have the legacy debt and they've moved forward particularly quickly increasingly we start to hear of CEOs of financial institutions starting to call their companies technology companies not banks per se now technology companies with a banking license or need to think like technology entrepreneurs finally technology is seen to have actually an ability to increase that growth actually it's not just a cost center anymore consumer expectations was in a massive change and impact of what the iPhone and devices like that I've had and particularly within banking mobile banking alone in print my previous incarnations in other institutions we couldn't shut barn branches fast enough due to footfall drops that were beyond expectations and finally evolving technology landscape it doesn't it seems like there's not a single day where I don't you know go and read a blog or go online and see there's a new emerging technology or version X +1 or something else I need to look at or something else that may have a big impact that's coming from the consumer space and coming into the financial services space I may need to make a big bet on which ones you make that bet on five-year ten-year bets big investments quick word about the alien head as you can tell I was buried in Webb diggings and wingdings character fonts for this deck and I lost the will to live trying to find something that would signify evolving technology landscape but I did stumble across this alien head and I believe it's a world first in a banking deck that there is an alien head presented so I thought they're fun when we go so my initial observations the organization wanted to move pretty quick you need a strategy out of me in a short period of time so I went out there and lifted up the carpet it was enormous ly complex extremely heterogeneous there's no lower common denominator of architecture across any app we were 80% out sourced at this point we were getting function back but we weren't adhering to any architectural principles or guidelines which meant that we ended up with technology solutions that were completely different from each other that required a lot of people to manage we have n thousand applications out there and I'd say applications in quotes because we argue perennial e about what the hell an application actually is what we do know is we have minion of them well at least those application IDs all of that runs on about 45 major operating systems I'm not called and I'm talking about service packs here or smaller versions we'd have an aspiration to reduce that to four two versions of each of the major operating systems one of which clearly is Linux for us finally we have n hundred thousand cause of compute and the kicker is there a single-digit utilization so this really piqued my interest because immediately when I arrived I thought this is going to be a time to market thing we've got to solve for that but when I saw this I knew there was a surprise on the table that was definitely worth looking at why is this why do we have this kind of utilization whoa it's quite simple we create a process it's so brutally hard to get through for you to get infrastructure that you actually look at swimming the Atlantic using your ears as propulsion as an easier option by the time that hardware arrives you forgot what the hell you wanted it for anyway so we needed to look at that and look at that very closely thankfully the bank was already on a bit of a journey of technology transformation information security you know cyber threat data we copy it everywhere every day billions of rows sorting out the governance and data architecture wants improve your organization core platform simplification understanding the business process understanding the application landscape to supports that process finding that duplicate functional capability that exists in more than one app and in identifying where that function sits within a process where it sits within a data flow and those non-functional requirements that drive you to a singularity of function that you hope to encapsulate take away and project up as a micro service and then you can let the rest of that in the applications beneath that fall away digital workplace also is their intervention production with this heterogeneous estate a lot of people have a lot of fingers in the pies and there are a lot of manual activities trying to keep these applications going or released otherwise this is driving towards automation of that digital workplace that elaboration tools but a working environment etc and infrastructure transformation consolidation of data centers infrastructure providers etc and we'd already started on that journey outsourcing our retail datacenters to IBM and more recently to HP who have become DXE for the for the wholesale organization the thing that was missing we called everything as a service it basically driven from provider abstraction we get our infrastructure from HP and IBM today in the future we want to drive towards the public cloud we are thinking about best execution venue we want a capability that will allow us to select our provider in real time if it's all possible if that provider is giving us the right risk and cost profile for that particular workload we want to move towards it so we're going to need to move further than infrastructure as a service and this is where paths comes in has drives utilization up through multi tendencies you take those servers back and then you offer the capability of running a workload at an SLA we don't talk about infrastructure anymore workloads and SLA and the interesting thing is we do have some history here so something I didn't talk about in my initial observations was I discovered we had a bit of a pad it was a homegrown pass it didn't have some of the capabilities that you'd expect out as the elasticity and you know other resiliency factors but it was good enough and it had inspired a group of developers to drive their applications towards it because it gave an environment very quickly so much so that 20% of the bank was already on it so I knew that we were onto something here and if we could provide those reusable building blocks get people to build business capability and deliver it quickly and then drive multi-tenancy we would get those that cost down as well as giving that kind of efficiency angle finally we made it API layer so that we could start to build and expose pis so that new applications could be made out of API composition and reuse the left-hand side of this one slide is all about driving CI CDs no point having a environment if you're letting any old rubbish into it or you've actually created a wall so high that you can't even get in to use it so we looked at all of the controls that we have as a regulated entity and drove automation through every single one and that is the program we're doing now so if you do the right thing by the organization you get straight into production as fast as possible the slide itself was what we've got presented as board it was landed they want it up as first approach so this came from the top down we called it the a0y because that's the size of paper we print it on and then we stick it in every coffee area because email seems to be something that people don't read anymore so our strap line is ideas for production in a day safely progress and there's been a lot so from January 6 to January 16 we managed to get 20% of the organization on for the pass and then we decided we needed additional capability so we actually wanted a decision that the entire organization stood behind so we got all the CTOs and all the CIOs and all of their trusted advisors in a room and said what do you want from your paths in the future and then to take any religion out of it we employed a third party it was a specialist in this space and they took all of our requirements and baked them off and we ended up with one you can guess which one that is otherwise it won't be stood here today we went into POC and it worked we could move workloads between providers and we liked that then we went into beta very quickly we by September while I was busy doing all of the commercial stuff but what we started noticed was that those of teams were turning up with their developers and saying I want to know about this use my guys help accelerate this is very novel for us excellent by December we went live in our HP data centers in London and very quickly after that we're in a position to officially launch however momentum had got to such a point that we already had people live before the launch event so I stood up when we did the launch event where I was going to announce a competition for the first person in production and then had to retrospectively give an award out for someone and didn't even know they were going to receive it because they were already live in the environment we knew we're onto something when we're having that kind of momentum and then two weeks ago we realized that dream of provider agnosticism by going live in our IBM data centers in Germany so the main a lot to providers and data since in two different countries and the interesting thing about what we went live with which was an API is that had huge business value and a lot of a lot of excitement around was the environment that we were building our in Germany wasn't quite ready in time for all the development and testing to be to be done so we developed and tested within our OpenShift environment which we've internally branded as fabric the testing was complete and then we single-click deployed into another data center from another provider because it looked like one big homogeneous cloud and it worked and that got us really exciting because then we can add more and more providers to that and today we have 300 projects in the queue ready to go those 300 projects originally would have required a server each today they're running on 50 cause of compute which is just over 4 VMs so we're realizing that cost and we're also realizing that the benefit of the of that throughput last year we carried on however selling our old has as well because we said we will migrate those customers free of charge on for the new payers you won't have to do anything and from the demos this morning I've got an idea of how I can even shortcut that further so they adopted and they adopted hard and we grew by 50% in a single year to 30% adoption a third of the bank was now on that path and this year we're going to drive that for 40% it's truly exciting progress the future we think based on what we can see that 85% adoption which is our aim because we believe that 85% of the technology within our organization is commodity enough to go onto this platform will ultimately reside on about 20% of the infrastructure that does today we're going to add public clouds plural why just one its infrastructure as a service for us best execution venue moved to the venue of the cheapest costs or the right risk profile for that workload we're reimagining grid this is something new for us we have enormous compute farms out there big monolithic blocks of compute and people saying how can we do this differently the cost is unbelievable and we're starting to see some really interesting results but this is quite nascent in this space we're driving full automation across all of our CI CD pipelines all those controls are met so developers don't have to worry about which regulation they have to cover which seaso rule needs to be done that will be in place this year as well and finally the carrot flavored stick I couldn't find a web ding for carrot I couldn't find a web ding to stick either but I think the smiley face is just right because that signifies really how happy our customers are and if I was going to use a stick it would be to beat away the crowds that are overwhelming to at a moment to use this platform that we've created because as far as they're concerned it's all carrot and once you've won the hearts and minds that is the biggest challenge of all thank you very much .

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