Gorter 05 20 Final

Euronext Migrated to .NET: 

Euronext Migrated to .NET

Euronext migrated to .NETDecision elements leading up to this choice –and how they worked out: 

Euronext migrated to .NET Decision elements leading up to this choice – and how they worked out Willem Gorter Programme Manager Cost Reduction Amsterdam AtosEuronext Willem.Gorter@AtosEuronext.NET

Euronext’s migration to .NET Summary (1): 

Euronext’s migration to .NET Summary (1) Who is AtosEuronext ? Our shareholders Our customers Euronext’s Cost Reduction Programme Overview & objectives Consolidating applications Cost reduction program in Amsterdam Migrating the BASIS application in Amsterdam Decision elements leading to the migration Functional overview Technical overview Technology options & financial overview And…

Euronext’s migration to .NET Summary (2): 

The Project Team constraints Technology maturity The final result Hindsight – Did we make the right choices? What were the objectives? What do we get in .NET? Application maintenance and support Hindsight – What can we learn from this? The project team The technology The price we pay Euronext’s migration to .NET Summary (2)

Who is AtosEuronext ?An IT-provider, with a specialization in exchange solutions: 

Who is AtosEuronext ? An IT-provider, with a specialization in exchange solutions Exchanges in Amsterdam, Brussels, Paris, London & Lisbon IT activities concentrated in Europe

Who is AtosEuronext ?28 international exchanges use our products worldwide: 

Who is AtosEuronext ? 28 international exchanges use our products worldwide NSC - Worldwide marketleader in cash trading Paris, Amsterdam, Brussels, Lisbon, Boston, Montreal, Warsaw, Mexico, Toronto, Sao Paulo, Madrid, Singapore, Kuala Lumpur, Aman, Casablanca, Oman … Liffe Connect - Acclaimed derivatives trading platform LIFFE London, Paris, Amsterdam, Brussels, Lisbon, CBOT Chicago, Tiffe Tokyo C21 - Clearing platform for high-performance clearing London, Paris, Amsterdam, Brussels, Lisbon, Kuala Lumpur HUB - Interconnectivity solution for all exchanges Interconnecting NSC, Liffe Connect & C21 - connecting traders to their markets Surround products Referential data administration, fees calculation & invoicing, index calculation, price diffusion, news aggregation, special products handling, settlement & depositary solutions, …

Euronext’s IT- cost reduction programme – an overview: 

Euronext’s IT- cost reduction programme – an overview Outsource all IT- activities to AtosEuronext Paris: 2000 Brussels & Amsterdam: 2001 London: July 2005 Reduce recurring IT- costs by 40% in 5 years From 155M€ in 2000 to 95M€ in 2005 Consolidate all trading & clearing applications: NSC for cash trading Liffe Connect  for derivatives trading C21 for clearing HUB for exchange connectivity

Euronext’s IT- cost reduction programme – Consolidating applications: 

Euronext’s IT- cost reduction programme – Consolidating applications All « cash » trading on NSC Paris: 1997 Brussels: 1999 Amsterdam: 2001 All « Derivatives » trading on Liffe Connect London: 1998 Brussels & Paris: 2002 Amsterdam: 2004 All « Clearing » for Euronext products now on C21 Paris: 2000 Brussels: 2001 ( Derivatives 2003 ) Amsterdam: 2001 ( Derivatives 2002 )

Euronext’s IT- cost reduction programme – Cost Reduction in Amsterdam: 

Euronext’s IT- cost reduction programme – Cost Reduction in Amsterdam Main trading and clearing applications consolidated Cash trading in 2001, cash clearing in 2001, derivatives clearing in 2002, derivatives trading « Floor to Screen » in 2002, derivatives information distribution consolidation in 2004, derivatives trading consolidation in 2004 Exchange surround applications migration Exchange specific: index calculation, news desk, admissions & publications, dividends administration, agricultural products clearing & settlement, tools & interfaces for the regulating authority, teletext (TV) feed, training & exam for traders, risk management, historical databases, … Non exchange specific: CRM & marketing, finance, HRM, help desk, site access administration (badge registration) 91 applications to be terminated in 1 year! Datacenter closed 30th of june 2005

BASIS applicationDecision elements leading to the migration: 

BASIS application Decision elements leading to the migration Administration of securities referential data New securities (stock, bonds, warrants, …) Capital increase, listing, delisting of securities Interest & repayment details for bonds (Re-) Calculation of accrued interest « this software has already proven to be 100% right » Calculation of derived rights ISIN-code generator « lottery » for bonds refund Often, only a part of the subscribers are paid back « at first »; BASIS is the trusted party to impartially designate the beneficiaries Functional overview

BASIS applicationDecision elements leading to the migration: 

BASIS application Decision elements leading to the migration Platform IBM mainframe OS/390 (which was also used for clearing) CICS for online screens for security administration COBOL, JCL A selection cut-out of 15% of the code from the clearing System Operation 20 users entering data from 08:30 am - 3:30 pm 2 batch runs at 12:15 pm (30min.) & 3:30 pm (1h25min.) FTP & SMTP for delivering referential data Users calling the operators requesting to start the batch run 100 tapes needed for the daily backup jobs (recycled) Technical overview

BASIS applicationDecision elements leading to the migration: 

BASIS application Decision elements leading to the migration There is no central platform for referential data In Paris, referential data administration is outsourced to FININFO FININFO has no subsidiary is the Netherlands BASIS fullfills some « referee » needs for LCH.Clearnet All members accept the results from BASIS as THE TRUTH BASIS is unchallenged for impartially designating the members to be repaid on their bonds when there is a partial repayment Neither Euronext nor AtosEuronext has functional knowledge After the Clearing migration, MVS people have found other jobs Due to the merger of LCH & Clearnet, the Clearing specialists no longer work for Euronext Migration constraints & considerations Conclusion: a technical port should be the target migration

BASIS applicationDecision elements leading to the migration: 

BASIS application Decision elements leading to the migration Outsourcing MVS hosting to AtosOrigin Cost reduction from 360 K€ per month to 180 K€ per month One-shot costs 45 K€ Porting to Unix / Linux Not enough technical solutions available for all components Estimate: 100 K€ per month, 600 K€ one-shot costs Preferred solution for Euronext & support personnel (HP-UNIX) Porting to Windows Two solutions considered (Fujitsu – Micro Focus), Fujitsu chosen: Native .NET code generated, no dependency on runtime module Possibility to mix technologies, and continue development in C# Estimate 70 K€ per month recurring, one-shot costs < 500 K€ Technology options – Financial overview ROI=1 month ROI=8 month ROI=5 month

BASIS project: 

The working environment in Amsterdam Overcoming resistance to change Cultural differences Management reporting The right mix Windows vs. mainframe analysts Project management Fujitsu consultancy & support User acceptance Windows vs. mainframe users ? Cosmetic changes BASIS project Team constraints

BASIS project: 

The migration tools COBOL/CICS to Fujitsu NetCOBOL for .NET and NeoKicks Batch COBOL/JCL to Fujitsu NetCOBOL for Windows/ZBATCH Data Migration to VSAM & BTRIEVE Fujitsu support & maybe application maintenance ? The .NET framework and Windows Active Server Pages development & ODBC Windows scripting with WSH and Vbscript System maintenance and support with Terminal Server The hardware Organising high-availability Performance issues Backup & storage BASIS project Technology maturity

BASIS project: 

A webserver No client installations needed anymore, just email the link Easy to find tools & knowledge for security, optimization Easy to share with other applications A number-cruncher Batch time reduced from 1hr 25min to 7min Job status, reports, printouts can be accessed via the Web server An adaptable application Cobol, CICS and JCL seemlessly mixed with C#, VB, VBScript Datafile formats abstracted through ODBC 2 projects are scheduled already – about 50% cheaper than development on the mainframe. BASIS project The final result

BASIS projectHindsight – did we make the right choices?: 

Keeping the source code intact Does BASIS still have its referee function ? Did we encounter functional differences in the results ? Were we able to do the port without functional knowledge ? Cost Reduction Did we achieve our cost-reduction aims ? Did we go over budget in the project ? Is everybody happy ? Is our customer happy ? Are the users happy ? Are the data center / support people happy ? BASIS project Hindsight – did we make the right choices? What were the objectives?

BASIS projectHindsight – did we make the right choices?: 

How do we organise support Who is going to perform the support ? Are we still lacking functional knowledge ? How can we maintain knowledge of the Fujitsu migration tools ? Can we oursource application maintenance to Fujitsu ? New projects Cleaning up after the migration Developing new modules Making changes in the online screens Adding functionality BASIS project Hindsight – did we make the right choices? Application maintenance and support

BASIS projectHindsight – what can we learn from this?: 

The project team Get enough Windows & .NET specialists Get the right team leader & project manager Get enough training & help The technology Enter into the 21st century The cultural differences make it a difficult comparison Nobody is going to believe the performance differences The price we pay Recurring costs: you can do it cheaper! Project costs: get ready for surprises BASIS project Hindsight – what can we learn from this?

Thank you for listening !: 

Thank you for listening ! …and happy migrations

Return to www.netcobol.com : 

Return to www.netcobol.com