March 3, 2023 By Luis Carrasco 4 min read

Banking IT strategies continue to evolve.

We see that banks around the world are re-evaluating IT strategies and adopting innovative technologies to remain competitive amidst shifting consumer, economic and industry dynamics. While navigating complex requirements and client expectations around real-time performance, enterprise-grade security and sustainability metrics, we have observed that many banks have chosen to adopt cloud-native infrastructure and container-based architecture leveraging Red Hat OpenShift. As this transition continues to advance, agility in responding to shifts in the market (like recent spotlights on energy costs and effective management of resources) has become a top concern voiced.

Leverage enterprise-grade hybrid cloud infrastructure to modernize

Temenos Group AG, a leader in the 2022 Gartner® Magic Quadrant™ for Global Retail Core Banking [1], supports its clients in their shift to cloud-native architectures by leveraging innovative and disruptive technologies to help banks meet their end-clients’ ever-increasing expectations and demands. Temenos has partnered with IBM for 20+ years and Red Hat for 15 years to bring its core banking solutions to market. In 2022 IBM was selected by Temenos as one of its global strategic partners covering Technology, Sales, and Services. Soon, clients will be able to modernize their Temenos Transact core banking workloads utilizing Red Hat OpenShift on Power10, bringing an enterprise-grade hybrid cloud infrastructure to clients as they modernize to a digital core. This solution is engineered for banks to adopt a subscription-based hybrid cloud infrastructure on an architecture that scales as business grows.

IBM Power servers are engineered for agility. They are designed to enable clients to modernize mission-critical applications on an established cloud-native platform, leveraging flexible capacity on-demand to make better informed decisions, faster. By leveraging an 8x throughput per core advantage on the IBM Power E1080 versus compared x86 platforms, clients can realize potential TCO savings over three years [2]. Additionally, IBM Power E1080 provides comparable performance and uses 63% less energy at maximum input power than the compared x86 server [3]. This is all achieved on a platform that delivers orders of magnitude less downtime compared to white box servers [4]. Red Hat and IBM are closely aligned in supporting our clients as they leverage Power10 to create modern, industry-leading applications.

Rob Spittel, director, Global FSI Ecosystem, Red Hat, said: “Open source, cloud-native infrastructure is critical for modern financial institutions to modernize and transform their core business applications for complex enterprise workloads in order to successfully scale in today’s hybrid multicloud world. Red Hat OpenShift is a leading Kubernetes platform, providing organizations with a more consistent platform with greater reliability to power hybrid cloud innovation and realize business value faster. Red Hat is pleased to collaborate with Temenos and IBM to further support banking institutions to modernize their digital core.”    

An exciting new solution to help banking clients modernize core systems

To accelerate the transition to hybrid cloud and SaaS, Temenos has collaborated with IBM Power and IBM Consulting to offer services designed for banks that are ready to upgrade from older versions of Temenos Transact, but due to their strategy or governmental regulations, are not planning to shift their core banking solution to a public cloud provider. This approach allows clients to transform incrementally based on their organization’s complex requirements, maturity and readiness.

The services offered for Temenos by IBM Consulting include providing support to deploy their core banking as a SaaS-like OPEX experience for clients by updating, migrating and operating Temenos Transact in an on-premises managed infrastructure running on IBM Power. This can help clients modernize their core systems, decouple their cloud and application strategies, reduce capital expenditure, and gain agility, innovation, and speed time to market—all while staying in control of their data.

Watch this webinar to hear directly from Temenos and IBM Consulting about the strengths and the value that the IBM platform brings to our joint clients and how clients can gain value through the services offered by IBM Consulting.

To learn more about Temenos Transact on IBM Power with Red Hat OpenShift and how IBM Consulting can help, contact Luis Carrasco (Luis.Carrasco@ibm.com).  

 

[1] Source: Gartner, Inc., “Magic Quadrant for Global Retail Core Banking,” Vittorio D’Orazio and Don Free, February 09 2022 GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

[2] Performance is based on Quantitative Performance Index (QPI) data as of February 2, 2023 from IDC available at https://www.idc.com/about/qpi for IBM Power E1080 (16x15c Power10) versus Lenovo ThinkSystem SR650 (2×32-core Xeon 8362) and utilizations of 80% for E1080 based on IBM Power Performance Utilization Guarantee and 20% for x86 based on IT Economics assessments of customer environments running a total of 13,800 x86 cores where average measured IBM peak utilization is 16%. Peak utilization of 16% is derived from a weighted average of x86 workloads in four large enterprise client IT environments using a total of the compared 13,861 x86 cores in production and test environments. For additional information on x86 workload analysis contact the IBM IT Economics team, IT.Economics@us.ibm.com. Total Cost of Ownership is defined as hardware, software, and maintenance costs over a period of three years for equivalent performance where hardware pricing is based on IBM Power system pricing at https://www.ibm.com/products/ and extrapolated industry standard x86 and software pricing based on IBM internal industry knowledge. Actual savings will vary based upon individual client configurations and conditions.

[3] Performance is based on Quantitative Performance Index (QPI) data as of February 2, 2023 from IDC available at https://www.idc.com/about/qpi for IBM Power E1080 (16x15c Power10) versus Lenovo ThinkSystem SR650 (2×32-core Xeon 8362) and utilizations of 80% for E1080 based on IBM Power Performance Utilization Guarantee and 20% for x86 based on IT Economics assessments of customer environments running a total of 13,800 x86 cores where average measured IBM peak utilization is 16%. Peak utilization of 16% is derived from a weighted average of x86 workloads in four large enterprise client IT environments using a total of the compared 13,861 x86 cores in production and test environments. For additional information on x86 workload analysis contact the IBM IT Economics team, IT.Economics@us.ibm.com Energy consumption for equivalent performance is based on maximum system input power: IBM Power E1080 with maximum power of 18,000W   https://www.ibm.com/docs/en/power10/9080-HEX?topic=specifications-model-9080-hex-server Lenovo SR650 maximum power of 48,000W (30 x 1,600W) https://lenovopress.lenovo.com/datasheet/ds0032-lenovo-thinksystem-sr650

[4] ITIC 2022 Global Server Hardware Server OS Reliability Report, August 2022, p.3 (https://www.ibm.com/account/reg/signup?formid=urx-51389)

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