TmaxSoft OpenFrame Case Study

1. TmaxSoft OpenFrame Case Study Nomura Securities Bond Contract Processing System Migration Project Project Overview Nomura Securities Co., Ltd. is one of the largest securities firms in Japan it has contributed a great deal to advancing the Japanese securities industry and society since its inception in 1925. Nomura Securities is now pursuing a variety of approaches to make the leap into becoming a truly global financial service provider. As one modernization approach, Nomura Securities began to consider migrating its IT enterprise system from the mainframe an open system platform in order to increase flexibility and reduce the total cost of ownership (TCO) of the system. After much consideration, Nomura Securities decided to only migrate their Bond Contract Processing System and to maintain their other business systems on their current platforms. Nomura Securities set about looking for a reliable solution to facilitate the migration of their Bond Contract Processing System. They wanted to find a solution that had a short implementation time and low human resource requirements. At this time, Nissei Information Technology, a system integration service provider (SI), introduced Nomura Securities to TmaxSoft’s mainframe rehosting solution, OpenFrame. Nomura Securities tested this solution in a variety of cases and persuaded by the results of these tests and encouraged by OpenFrame’s history of success stories with large-scale system migrations, they decided upon using OpenFrame to migrate their Bond Contract Processing System. The migration project using OpenFrame was more efficient than expected and OpenFrame provided an open system platform that supplied a level of performance as high as the original mainframe. In fact, this rehosting project was the only one of Nomura Securities’ 400 projects to meet both the deadline and budget. Nomura Securities Co., Ltd. • As one of the top 3 securities companies in Japan, Nomura Securities has played a leading role in the Japanese securities sector since it diverged from Nomura Bank in 1925. With 10 billion yen in capital and 30 trillion yen in assets, Nomura Securities holds 21.5% of Japan’s securities investment market (140 trillion yen). • Employees: 10,089 persons • Branches: 139 throughout Japan; 28 in international locations Previous Mainframe System • Fujitsu Mainframe • MVS, IMS/DB, VSAM • 163 MIPS, JCL 3375 copies, PL/1 1261copies • - Roles: Foreign exchange system, securities system, public bonds system, foreign bonds system, etc. Project Period Making the decision to migrate the Bond Contract Processing System program to an open system platform Nomura Securities handles a variety of public and private sector bonds issued by entities both within and outside of Japan. The company’s computing system for managing bond trading is known as their Bond Contract Processing System. This system handles many features such as recording the content of all transactions undertaken by investors and generating the periodic reports that are sent to investors. This system was housed within a mainframe computer. However, as the maintenance period for the system’s peripheral devices approached, Nomura Securities realized the need to re-investigate the basic platform of the system. Two options were discussed at the time. The first option was to replace the system’s peripheral devices while maintaining the core mainframe platform. The second option was to move the system to a more cost efficient open system platform, adapting the system’s applications for the open system, or replacing them. • 2006.06 ~ 2007.04 TmaxSoft Solutions • OpenFrame, OpenStudio (Rehosting Solution) - Tmax (TP-Monitor)- Tibero (RDBMS) • SysMaster (APM Solution)

2. TmaxSoft OpenFrame Case Study Nomura Securities Bond Contract Processing System Migration Project Mr. Ken-ichi Noda, Systems Platform Chief within Nomura Securities’ IT Platform Strategy Team, describes the situation: “From the perspective of reducing the system’s Total Cost of Ownership (TCO), I thought it was preferable to move the system to a more economic platform with both lower maintenance costs and access to cheaper peripheral devices. However, the difficulty in this solution was deciding how to handle the actual applications that make up the Bond Contract Processing System. The applications within the mainframe were perfect and did not need to be modified or improved. Redeveloping these applications on a new platform would have required us to procure developers and set aside a long period for redevelopment. Also, we would have to exhaustively test the redeveloped applications as these applications are responsible for handling bond trading and any error would be unacceptable. Additionally, our developer resources are limited and it is preferable that they participate in more creative development projects, rather than redeveloping our existing system on another platform. Therefore, we decided to look for a way to migrate our existing system that did not require the redevelopment or modification of the existing applications.” Nomura Securities set about looking for a reliable solution to facilitate the migration of their Bond Contract Processing System. They wanted to find a solution that had a short implementation time and low human resource requirements. Finding such a solution proved difficult. The only one of Nomura Securities’ 400 projects to meet both the deadline and budget. Selecting TmaxSoft’s OpenFrame As Nomura Securities was looking for a solution, Nissei Information Technology, a system integration service provider (SI) renowned within Japan’s finance industry, introduced them to TmaxSoft’s mainframe rehosting solution, OpenFrame. OpenFrame is a core software product developed for use with large enterprise systems. Essentially, OpenFrame enables applications developed for use within mainframe machines to operate within UNIX platforms (open system platforms) without the need for redevelopment or modification of the original business logic. OpenFrame enables both online applications and batch applications from mainframe systems to be used as-is within open system platforms. Even existing JCL can be used without modification. OpenFrame operates on top of TmaxSoft’s market verified TP-Monitor, Tmax, providing mainframe-level reliability, performance, and security, as well as easy web server and web application server integration. OpenFrame is an optimal rehosting solution as it enables mainframe applications to be rehosted onto an open system platform without modification of the original business logic. Additionally, OpenFrame provides both the tools for facilitating the initial migration, as well as the engine that enables the mainframe applications to run reliably and efficiently within the open system. Indeed, OpenFrame was used in the largest rehosting project ever undertaken, successfully migrating a mainframe system 7,500 MIPS in size from to a flexible and cost efficient open system platform.

3. TmaxSoft OpenFrame Case Study Nomura Securities Bond Contract Processing System Migration Project Mr. Noda was intrigued by the prospect of using OpenFrame to migrate the Bond Contract Processing System to an open system platform. He selected a few of the system’s more complex applications and had them converted for use within the open system using OpenFrame’s automatic conversion tools. These test applications were then run on-top of OpenFrame within a trial open system platform. The results were beyond his expectations. Additionally, a team from Nomura Securities visited TmaxSoft’s headquarters in South Korea to investigate the solution development process, and witness first-hand TmaxSoft’s system maintenance process and the company’s commitment to stable business partnerships. Nissei Information Technology’s thorough and exhaustive support also played a big role in Nomura Securities selecting OpenFrame as the rehosting solution for the migration project. Mr. Noda describes the company’s decision: “There were three main reasons behind the decision to migrate the system using OpenFrame. Most importantly, the trial migration had a good result and the integrity of the migrated applications was maintained. Secondly, was the fact that (using OpenFrame to move to an open system platform) could result in an overall reduction in TCO. Finally, the fact that Nomura Securities and Nissei Information Technology have become partners through this project was another reason.” “OpenFrame was very precise in its automatic conversion of applications. Those few applications that were not immediately compatible with the open system were easily modified and there were so few exceptions that they were trivial. Of course it is the very purpose of rehosting solutions to facilitate migration without the need for additional coding, but we were amazed. “ -Project Manager from Nissei Information Technology- Project Features Nomura Securities decided to use OpenFrame as the base solution in their Bond Contract Processing System Migration Project. In order for the project to be successful, the new open system platform had to provide a rate of performance within 99.9999% of that provided by the mainframe. Additionally, the new platform was to have a duplex configuration and to provide secure reliability through RAID disks. Before the actual migration was undertaken, the previous system was examined in its entirety and the applications to be migrated were selected. OpenFrame’s tools were then used to automatically convert and migrate the target applications. The target applications used PL/I, C, and Java for VS COBOL II languages. The components of the original platform such as JES, DB Management, and the mainframe’s System Management were replaced by OpenFrame Batch, OpenFrame HiDB, Tibero, OpenFrame TSAM, SysMaster, and OpenStudio. Three months after the start of the project, individual tests were possible and integrated tests soon followed. Finally, Nomura Securities’ Bond Contract Management System began successfully operation on the new open system platform as scheduled, well ahead of the maintenance period for the peripheral devices of the previous mainframe platform.

4. TmaxSoft OpenFrame Case Study Nomura Securities Bond Contract Processing System Migration Project Tomoyuki Kojima, from Nissei Information Technology’s Next Generation System Promotion Division and the Project Manager for the project, describes the project: “OpenFrame was very precise in its automatic conversion of applications. Those few applications that were not immediately compatible with the open system were easily modified and there were so few exceptions that they were trivial. Of course it is the very purpose of rehosting solutions to facilitate migration without the need for additional coding, but we were amazed. It was also reassuring that we could finish the actual migration quickly and have enough time to test and optimize the system on the new platform.” Mr. Noda of Nemura Securitiesdescribed the operation of the system on the new platform as “Smooth beyond expectation, from startup to now.We were confident about the success of the project, but of course we also prepared ourselves for possible problems (laughs). However, seven months of close cooperation between Nomura Securities’ main system integration partner NRI, Nissei Information Technology, and TmaxSoft Japan have resulted in non-stop operation of the system on the new platform since it originally went online.” Benefits Mr. Noda explained benefits after completing the project: “Due to the lower hardware and maintenance costs, we estimate that we will begin seeing returns on our investment in about three and a half to four years. The project has certainly resulted in a reduction in TCO.” Through this project Nomura Securities implemented a more flexible and responsive platform for their Bond Contract Processing System. They now expect dramatic reductions in operating costs and TCO, leading to a substantial return on investment. Additionally, Nomura Securities’ existing human resources, trained in mainframe development and operation can work with the new open system platform without any retraining. By migrating their Bond Contract Processing System to an open system platform using OpenFrame, Nomura Securities was able to complete the project in a short period and implement a new system platform with high levels of performance and reliability. In fact, the rehosting project was the only one of Nomura Securities’ 400 projects to meet both the deadline and budget. • Key factors behind the success of the project: • In-depth pre-analysis of the target system. • Clearly defined roles and responsibilities for NRI, NIT, and TmaxSoft. • Performed PoC to verify feasibility and subsequently tailored the implementation process. • Thorough verification testing of the solution’s automated processes. • Solution provided a verified-platform that supplied a stable operating environment. TmaxSoft Address Contact No. Customer support About Tmaxsoft TmaxSoft was founded in 1997 and over the past 11 years has grown into a global company with offices in South Korea, the U.S., China and Japan.  TmaxSoft software products cover the entire enterprise IT system concept, from the user interface, through to application frameworks and integration solutions. TmaxSoft's enterprise system products provide IT integrity, reliability, cost reduction, and future potential for over 1,400 clients throughout the world, including many industry leaders in the US, Korea, Japan and China.