Contino Webinar - Migrating your Trading Workloads to the Cloud
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The webinar discusses Contino's approach to migrating trading workloads to the cloud, leveraging a DevOps framework to address the challenges faced by investment banks, such as declining margins, compliance issues, and technical debt. Key features of the framework include accelerated environment provisioning, cost reduction, and enhanced data management for trading platforms, helping organizations to innovate and deliver IT changes more effectively. The session includes a demonstration of the 'Tribeca' trading application and outlines a phased approach for organizations to adopt this DevOps framework.
Contino Webinar - Migrating your Trading Workloads to the Cloud
- 1. Welcome to Contino’s Webinar Migrating your Trading Workloads to the Cloud Harnessing The Power Of DevOps To Shift Applications, Data and Infrastructure At Velocity
- 2. Today's Speakers Benjamin Wootton - Contino CTO Having founded Contino three years ago, Ben has a deep rooted background in Investment Banking where he has worked for the likes of UBS, Goldman Sachs and Deutsche Bank. He founded Contino based on the software delivery models he experienced in these organisations. Ben Saunders - Contino Client Principal Ben is a Client Principal at Contino. Having started out his career on the Retail side of Banking, he has spent the last two years working across large vendor trading platforms in Investment Banking, exploring how DevOps and Cloud can add agility to delivery.
- 3. Todays Agenda The Wicked Problem - Disruption within Investment Banking The Vicious Cycle of Market Volatility on Capital Markets Investment Banking (CMIB) IT Functions Our DevOps & Cloud Framework for Trading Platforms What is the value of our DevOps Framework for CMIB’s? Demonstration - Build Tribeca in the Cloud How can your organisation apply our DevOps framework? Recap, What Next & Questions?
- 4. The “Wicked Problem” - Disruption within Investment Banking Drop in Margins: Capital Markets are experiencing a decline in margins, higher costs per trade and significant market volatility. Compliance and Regulation: There is a greater focus on risk management, standardization of asset portfolios and a shift towards “vanilla” trading books which is being driven by industry regulation (MiFFID II, Basel III, FRTB). Cost Efficiencies: This hit on margins has resulted in the need for Investment Banking CIO’s to respond to market needs rapidly, in a more cost effective and efficient manner. Streamlined Platforms: Application consolidation strategies to a single “out of the box” trading solution are not uncommon, in order to deploy a full front to back trading platform. Technical Debt: However, delivering change to these platforms is technically challenging, as monolithic modes of delivery and antiquated technology stacks introduce obstacles for optimisation. 72% Percentage of profits accounted for remediation costs and misconduct fines across the UK’s five biggest Banks. $82 BN Estimated global IT spend for Investment Banks by the year 2019. 2016 Global investment banking revenues, down 5% on 2015. $228 BN *References available upon request.
- 5. The Vicious Cycle of Market Volatility on CMIB IT Functions The wicked problems of regulation, compliance and budget constraints are hampering many of our Investment Banking customers to deliver innovative IT change at speed, without increasing risk to the business. We are using Cloud & DevOps to help organisations quash the Vicious Cycle of change and shift to a Virtuous Cycle that enables innovation and accelerated delivery of change across their trading platforms. VICIOUS CYCLE OF INVESTMENT BANKING COLLAPSE - AND ITS IMPACT ON IT BUDGETS CONTINO’S RESPONSE - “WHAT IF WE COULD USE DEVOPS & CLOUD TO HELP?” Move to a “standardised” trading book Vanilla portfolios, as opposed to exotic Exposure to fewer asset classes Consolidate to fewer or single platforms and upgrade where possible Business Impact on IT
- 6. Our DevOps & Cloud Framework for Trading Platforms Trading platforms are complex, interconnected systems which have many downstream dependencies, data feeds, end of day batch processes across multiple environments. To simplify the delivery pipeline, we have brought together both open source and enterprise class tools, whilst harnessing the power of cloud to accelerate environment provisioning and reduce cost across the software delivery lifecycle, using Continuum. AS-IS STATE WITHOUT OUR DEVOPS FRAMEWORK TO-BE STATE WITH OUR DEVOPS FRAMEWORK Antiquated IT Stacks & Process Complex Release Cycles Test Data Provisioning Burdens End to End Traceability Contention Significant Environment Build Costs Single Source of Truth - Data Integrity Challenge Optimised & Secure Architecture Simplified Release Cycles Self Service Test Data Portals Full Visibility of Change Reduced Environment Build Costs Compliant Data Sources Cloud Computing Simplified Low Latency Architecture Automated Incremental Changes Virtualized & Obfuscated Test Data Automated Configuration Management Data Lakes CONTINO’S RESPONSE
- 7. What tools are a part of our framework? Our trading platform DevOps framework leverages Continuum, a Contino developed solution. Continuum is a Continuous Delivery pipeline tool chain which integrates both open source and enterprise grade tools to enable the creation of a secure application delivery pipeline in AWS. In order to assist with the provisioning of production like test data, we leverage Delphix, a data virtualization and data masking solution which introduces significant business value in the CMIB domain. We also maximise Ansible and Terraform to accelerate environment provisioning. Data Masking The most advanced data security solution available. Continuum, is a platform we deploy within weeks • Full infrastructure as code • Multi region, multi availability zone deployments • Microservice / containerised deployments targeting Kubernetes • Continuous integration & continuous delivery toolchain Cloud Migration Achieve value from cloud projects faster. DevOps Complete the DevOps stack with self-service data.
- 8. What is the value of our DevOps framework for CMIB’s? Our framework has already been deployed against three leading trading platforms in Gartner's Magic Quadrant, and is adding significant business value to several of our customers, by accelerating their release cycles and reducing total cost of ownership (TCO) across the board. Cost Reduction: Our framework has helped customers reduce the TCO for their trading platform by up to 70% Faster Environments: By utilizing AWS hosted development & test environments, customers can build environments in ten minutes, as opposed to ten days. Faster Test Data: The framework can capture production trade data, obfuscate it and deploy it into an environment in under four minutes, as opposed to 8 hour dump and loads. Snapshots: The framework uses snapshots, that allow developers and testers to rollback to previous versions, seamlessly. Instead of requesting full environment rebuilds. Environment Visibility: Our delivery pipeline is fully configuration managed so we can see who did what, when to satisfy regulatory controls and compliance needs. Business Value Indicators 90% Faster 70% Cheaper 90% Faster Reduced Risk Full Traceability
- 9. Demonstration - Building Tribeca in the Cloud We have created a short demonstration, which will illustrate how we use a cloud hosted Continuous Delivery pipeline to provision a fully operational trading application. The trading application we will use for this demonstration is Tribeca, an open source, low latency, Microservice based trading application that can react to market data by placing and canceling orders in under a millisecond.
- 10. Demonstration - Building Tribeca in the Cloud
- 11. How can your organisation apply our DevOps framework? In order to apply our DevOps framework to your organization's trading platform, we would suggest you adopt the following phased approach, in order to de-risk the change, whilst maximising your return on investment. This approach has been used at three of our customers to date. Phase 1 Analyse Existing Application & Prove Tech - 4 Weeks On Premise Activity Client Application Servers Database 1. Align InfoSec and Business to secure data sign-off and identify what is sensitive and what isn’t. 2. Understand E2E Architecture and dependencies for your trading application. Then map the new landscape, design and document network connections/ACL’s 2. Discover how you provision environments at present and what configuration parameters constitute a fully compliant environment. Design, build and road test CI pipeline. (Continuum can help) 3. Perform remediation and hygiene standard of where you store configuration files, source code and test cases. Consolidate these to a standard repository. 4. Build automation playbooks/recipes and build architecture/security/configuration parameters into your environment provisioning process. Test & validate new delivery mode on premise. 4. Road test virtual database technologies and integrate with scripts to ensure you can copy and obfuscate production trade data. (Technologies like Delphix help with this) Key Steps in Phase 1
- 12. How can your organisation apply our DevOps framework? In order to apply our DevOps framework to your organization's trading platform, we would suggest you adopt the following phased approach, in order to de-risk the change, whilst maximising your return on investment. This approach has been used at three of our customers to date. Phase 1 Phase 2 Build Cloud Layer - 2 Months On Premise Activity Cloud Activity Client Application Servers Database Repo’s and Config Iac Playbooks Obfuscated VDB’s 1. Build AWS Architecture using playbooks and scripts, get sign off from InfoSec. 2. Validate SSL connectivity back to your business hubs, secure data sign-off from business and build out data engineer layer. (Delphix) 3. Use automation scripts built in phase one to provision new environments, road test, validate and get sign-off. Performance test and pen test. 4. Execute pilot adoption of AWS instances to ensure projects can deliver change in a secure and controlled manner. 5. Prepare readiness for migration phase, Dev ---- ST ----- SIT ------ UAT----- Prod Key Steps in Phase 2 Analyse Existing Application & Prove Tech - 4 Weeks
- 13. Analyse Existing Application & Prove Tech - 4 Weeks How can your organisation apply our DevOps framework? In order to apply our DevOps framework to your organization's trading platform, we would suggest you adopt the following phased approach, in order to de-risk the change, whilst maximising your return on investment. This approach has been used at three of our customers to date. Phase 1 Phase 2 Phase 3 Build Cloud Layer - 2 Months Migrate to Cloud Layer - 2 Months On Premise Activity Cloud Activity Cloud Activity Client Application Servers Database Repo’s and Config Iac Playbooks Obfuscated VDB’s Orchestration Configured EC2 Instances Dedicated VDB Key Steps in Phase 3 1.Migrate workloads in a phase approach, firstly ensuring Development environments are stable. 2. From here, you can then systematically phase in the ensuing environments across the route to production using the CI-CD pipeline. 3. You should be executing continuous quality and security checks against the environments. Using compliance and security frameworks like InSpec (Chef) can help automate this. 4. Validate your full route to live is viable and ensure your production instance work’s better than your current state. 5. Migrate production workloads to AWS, run fully automated regression and ensure benchmarking is acceptable.
- 14. How can your organisation apply our DevOps framework? In order to apply our DevOps framework to your organization's trading platform, we would suggest you adopt the following phased approach, in order to de-risk the change, whilst maximising your return on investment. This approach has been used at three of our customers to date. Phase 1 Phase 2 Phase 4Phase 3 Build Cloud Layer - 2 Months Close Down Legacy Architecture - 1 Month (+ Cooling Period) Migrate to Cloud Layer - 2 Months On Premise Activity Cloud Activity Cloud Activity On Premise Activity Client Application Servers Database Repo’s and Config Iac Playbooks Obfuscated VDB’s Orchestration Configured EC2 Instances Dedicated VDB Client Application Servers Database Analyse Existing Application & Prove Tech - 4 Weeks
- 15. What have you heard today? Regulatory Challenges: Today we have provided you with an overview of the challenges CMIB’s face as a result of regulatory change, in their IT landscapes. Change Bottlenecks: We have focussed on the specific challenges CMIB’s face, when delivering change to enterprise grade trading platforms. The Value of our Framework: We have provided a brief glimpse into the potential business value which can be introduced by utilising our DevOps framework to deliver change against Magic Quadrant Leading trading platforms. Our Framework in Action: You have seen the possibility of how change can be delivered to a low latency trading system using a DevOps toolchain. Getting Started & Phased Approach: Whilst we have also provided insight in how your organisation could embrace this type of solution, through building a solid business case for investment. We will be publishing a White Paper on our methodology to migrate trading workloads to the Cloud. We will ensure you receive a copy.
- 16. What next? We are going to announcing more webinars in the coming weeks, where we will show how Delphix can be used to introduce test data agility in the provisioning process for your trading applications. We have already released a number of blogs which could be of interest? Please feel free to read them: How much does your hardware cost you? Using the AWS TCO Calculator Investment Banking in the Cloud: Overcoming the Limits of Grid Computing Using DevOps To Deliver Your Trading Platform More Efficiently If you have questions and want to learn more about our frameworks and what a typical engagement could look like at your organisation, then please feel free to email Ben Saunders or Ben Wotton. Alternatively, connect with us on LinkedIn or follow us on Twitter. We will now close with a brief set of questions, apologies if we can’t answer them all in full.
- 17. Questions ?