Posts Tagged ‘banking’

Put your z System at the Center of Blockchain

October 6, 2016

The zSystem has been a leading platform for the world’s top banks for decades and with blockchain the z could capture even more banking and financial services data centers. Two recent IBM Institute for Business Value (IBV) studies show commercial blockchain solutions are rapidly being adopted throughout banking and financial markets dramatically faster than initially expected, according to an IBM announcement late in Sept.  Of course, not every blockchain deployment runs on z but more should be.

blockchainexplained-willian-mougayer

Copyright William Mougayer

According to an IBV study, more than 70 percent of early adopters are prioritizing blockchain efforts in order to break down current barriers to creating new business models and reaching new markets. IBV analyst report the respondents are better positioned to defend themselves against competitors, including those untraditional disruptors like non-bank startups. The majority of respondents are focusing their blockchain efforts on four areas: clearing and settlement, wholesale payments, equity and debt issuance, and reference data.

But blockchain isn’t just a financial services story. Mougayer identifies government services, healthcare, energy, supply chains, and world trade as blockchain candidates. IoT will also be an important area for blockchain, according to a new book on IoT by Maciej Kranz, an IoT pioneer.

As Kranz explains: blockchain has emerged as a technology that allows a secure exchange of value between entities in a distributed fashion. The technology first appeared on most IT radar screens a few years ago in the form of Bitcoin, a virtual currency that relies on blockchain technology to ensure its security and integrity. Although Bitcoin’s future is still uncertain, blockchain is a completely different story.

Blockchain is attracting considerable attention for its ability to ensure the integrity of transactions over the network between any entities. Automobile companies are considering the technology to authenticate connected vehicles in the vehicle-to-vehicle (V2V) environment, notes Kranz. Still others are looking at blockchain to trace the sources of goods, increase food safety, create smart contracts, perform audits, and do much more. Blockchain also provides a natural complement to IoT security in a wide variety of use cases.

The z and especially the newest generation of z Systems is ideal for blockchain work. Zero downtime, industry-leading security, massive I/O, flexibility, high performance at scale, and competitive price/performance along with its current presence in the middle of most transactions, especially financial transactions, makes z a natural for blockchain.

A key driver for blockchain, especially in the banking and financial services segment is the Linux Foundation’s HyperLedger project. This entails a collaborative, open source effort to establish an open blockchain platform that will satisfy a variety of use cases across multiple industries to streamline business processes. Through a cross-industry, open standard for distributed ledgers, virtually any digital exchange of value, such as real estate contracts, energy trades, even marriage licenses can securely and cost-effectively be tracked and traded.

According to Linux Foundation documents, “the Hyperledger Project has ramped up incredibly fast, a testament to how much pent-up interest, potential, and enterprise demand there is for a cross-industry open standard for distributed ledgers.” Linux Foundation members of the Hyperledger Project are moving blockchain technology forward at remarkable speed. IBM has been an early and sizeable contributor of code to the project. It contributed 44,000 lines of code as a founding member.

That it is catching on so quickly in the banking and financial services sector shouldn’t be a surprise either.  What blockchain enables is highly secure and unalterable distributed transaction tracking at every stage of the transaction.  Said Likhit Wagle, Global Industry General Manager, IBM Banking and Financial Markets, when ticking off blockchain advantages: To start, first movers are setting business standards and creating new models that will be used by future adopters of blockchain technology. We’re also finding that these early adopters are better able to anticipate disruption and fight off new competitors along the way.

It is the larger banks leading the charge to embrace blockchain technology with early adopters twice as likely to be large institutions with more than a hundred thousand employees. Additionally, 77 percent of these larger banks are retail banking organizations.

As the IBV surveys found, trailblazers expect the benefits from blockchain technology to impact several business areas, including reference data (83 percent), retail payments (80 percent) and consumer lending (79 percent). When asked which blockchain-based new business models could emerge, 80 percent of banks surveyed identified trade finance, corporate lending, and reference data as having the greatest potential.

IBM is making it easy to tap blockchain by making it available through Docker containers, as a signed and certified distribution of IBM’s code submission to Hyperledger, and through Bluemix services. As noted above, blockchain is a natural fit for the z and LinuxOne. To that end, Bluemix Blockchain Services and a fully integrated DevOps Tool is System z- and IoT-enabled.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghostwriter. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

 

developerWorks Open Reinforces IBM’s Commitment to Open Source Cloud

July 30, 2015

Maybe IBM’s decades-long legacy of proprietary platforms and systems makes people a little hesitant to fully embrace its open source initiatives. Still, IBM has been supporting Linux on the z System for over a decade, the Eclipse initiative for as long or longer, and gives no sign of getting ready to pull the plug on any of its open source initiatives.

Rise of Open Source Linux and OpenStackCourtesy of IBM (click to enlarge)

Or take Bluemix, an implementation of IBM’s Open Cloud Architecture based on Cloud Foundry, an open source Platform as a Service (PaaS) initiative. And the company only gets more open source by the day. Just last week IBM continued to pour more open source components into Bluemix. It announced developerWorks Open, a cloud-based environment for developers to not only download open sourced IBM code but also have access to blogs, videos, tools and techniques to accelerate their own efforts on behalf of clients.

The current model of development in the open source community, according to IBM, lacks a strategic focus on business requirements. To address this IBM is launching a set of projects in industries like healthcare, mobile, retail, insurance, and banking that ensure a strategic business focus and address real-world business challenges.

The creation of developerWorks Open, notes IBM, comes at an important time for cloud developers. Organizations are wrestling with getting the most out of their multiple clouds environments. For instance, a developer building cloud applications on Bluemix for an insurance accident claim system likely will require storing videos and repair photos for an insurance accident claim application. The developer may have difficulty making a storage choice and then implementing it. But developerWorks Open helps simplify that choice and provides the reassurance that the choice has industry support.

To that end IBM is offering a broad range of technologies for developerWorks Open that aim to help bridge this perceived development gap and remove the obstacles that inhibit developers from turning open source code into sustainable applications that solve real business issues. IBM will also offer these services on its programming platform for cloud software development, Bluemix. The goal is to remove the obstacles that hinder developers from turning open source code into sustainable enterprise-caliber applications that solve real business issues.

For that reason the company will open source a number of apps from its MobileFirst portfolio (MobileFirst was recently cited by Gartner as a leader in its Magic Quadrant mobile application development segment) that will assist developers in the following markets:

  • IBM Ready App for Healthcare tracks patient progress for at-home physical therapy programs via mobile device.
  • IBM Ready App for Retail personalizes and reshapes the specialty retail store shopping experience through direct line of communication
  • IBM Ready App for Insurance improves the relationship between homeowners and insurers and uses Internet of Things sensors to synch home with utilities.
  • IBM Ready App for Banking helps financial institution’s address the mobile needs business owners and attract prospects.

Additionally, IBM is open sourcing several analytics technologies including:

  • Activity Streams provides developers with a standard model and encoding format for describing how users engage with both the application and with one another.
  • Agentless System Crawler offers a unified cloud monitoring and analytics framework that enables visibility into all types of cloud platforms and runtimes
  • IBM Analytics for Apache Spark puts the full analytics power and capabilities of Spark at the developers fingertips. (Beta now available on Bluemix.)

IBM will also continue to open source cloud data services, including IBM Object Storage on Bluemix Service Broker, which can be used to integrate OpenStack Swift with Cloud Foundry to enable fast access to cloud data without needing to know where the data is stored.

The introduction of developerWorks Open comes at a time when organizations are starting to realize that their software and apps increasingly are their products, especially cloud, mobile, and collaboration apps, and they need a fast and efficient way to build and update them. In other cases, IBM notes, organizations are wrestling with getting the most out of their multiple clouds environments.

IBM is committed to open source; there is no going back. Company executives see it as the foundation of innovative application development in the cloud.  “With developerWorks Open we are open sourcing additional IBM innovations that we feel have the potential to grow the community and ecosystem and eventually become established technologies,” declared IBM Vice President of Cloud Architecture and Technology Dr. Angel Diaz recently.

Currently, IBM participates in and contributes to more than 150 open source projects. These projects include Spark, OpenStack, Cloud Foundry, Open Contain Project, Node.js, CouchDb, Linux, Eclipse and an already established relationship with Apache. As IBM notes, open source projects increase the skills and knowledge base around the company’s software product set. developerWorks Open is the next step in IBM’s strategy to help businesses create, use, and innovate around cloud computing systems. Coming right behind is a similar community initiative for IoT development. Stay tuned.

DancingDinosaur is Alan Radding, a veteran IT analyst and writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.


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