High Availability

High Availability Mia Malaise Systeem Analist Mainframe Mia.Malaise@kbc.be Paul Hauwaerts Diensthoofd Mainframe Infrastructuur

Agenda Introduction KBC Group ICT High Availability Mia Malaise Vision on HR Paul Hauwaerts Questions & Answers Guided Tour Kurt Mees

Agenda Introduction KBC Group ICT High Availability Vision on HR Questions & Answers Guided Tour

KBC Bank & Insurance Group • Ranking • One of the top 2 banks in Belgium • One of the top 3 insurers in Belgium • One of the top 20 banks in Europe • Leading financial group in Central Europe • Market share in Belgium • Banking : 20-25% • Insurance : 9% (non-life) 22% (life) • Head office in Brussels • 50.000 employees • 13.000.000 clients

Organizational structure KBC Group Secretariat of the Board of directors & the executive Committee Group Secretary A. Bergen Group HR COOKBCGroup CFROKBCGroup EuropeanPrivate Banking Merchant Banking Belgium Central Europe Group Strategy F. Florquin J. Vanhevel E. Verwilghen G. Segers C. Defrancq H.Agneessens Group Communication GroupAudit GroupCompliance a multinational group structure CentralInvestment DistributionLeadershipCentre

Market capital Ranking in Euroland 31-01-06 Jan 2006 Dec 2004 Dec 2002 DJ EuroStoxx Banks constituent

Unique Multi-Channel Distribution Platform in Belgium KBC Group Traditional Retail/SMEBanking Leasing/Factoring MerchantBanking CapitalMarkets / Trading Asset Mgt. / PrivateBanking Insurance/ Re-insurance Stock Brokerage Products 892 retailbranches 29 corporatebranches 25 privatebankingbranches 584tied insuranceagents 723 Centea bank agents Distribution Internet / electronicchannels 2.700.000 retail clients 13500 corporate clients 800 multinationals 19000 private banking clients Clients dd.31-12-2005

Geographical presence in Europe Top-3-player in BelgiumRetail bancassurancePrivate bankingCorporate banking Top-3 bank/insurance player in CEE-5Czech RepublicHungarySlovakiaPolandSlovenia European private banking network :>100 locations across 9 other countriesFrance and MonacoGermanyItaly (sold to BANIF)LuxembourgNetherlandsSwitzerlandUK Selective corporate banking network :selective presence in 6 countries outside Belgium and CEEFranceGermanyIrelandNetherlandsUK + looking for more investments in Central and Eastern Europe

KBC Group's current presence in Central Europe Poland Czech Rep. Slovakia Hungary Slovenia Poland (banking) Ranking : 9th Market share : 4% Clients : 0.9 m. Branches : 333 Poland (non-life/life insur.) Ranking : 2nd / 8thMarket share : 11% / 2% Clients (est.) : 1.8 m. Czech Republic (banking) Ranking : 2nd Market share : 21 % Clients : 3.0 m. Branches : 218(+ 3400 points of sale-PO) Czech Republic (non-life/life insur.) Ranking : 6th / 4thMarket share : 4% / 9% Clients : 0.7 m. Slovakia(non-life/life insur.) Ranking: 6th / 8thMarket share : 4% / 4% Clients : 0.2 m. Slovakia (banking) Ranking : 4thMarket share : 7% Clients : 0.2 m. Branches : 99 Hungary (non-life/life insur.) Ranking: 6th / 6thMarket share : 4% / 4% Clients : 0.4 m. Hungary (banking) Ranking : 2ndMarket share : 11% Clients : 0.8 m. Branches : 158 Slovenia(non-life/life insur.) Ranking : - / 4thMarket share : - / 8% Clients : 0.1m Slovenia (banking) Ranking : 1stMarket share : 42 % Clients : 2.0 m. Branches : 395 Market share is average of share in customer credits and in customer deposits

KBC outside Europe Tehran NanjingShanghai Taipei Kaohsiung Taichung Hong Kong Shenzhen Labuan Kuala Lumpur Singapore New York Los Angeles Atlanta Mumbai Chennai

KBC Group ICT

ICT in a bank: boring or not?

Group ICT Your ICT, our business • Employees • Belgium: 1.820 KBC & 500 external consultants • Central Europe: 1.300 KBC • India: 250 Valuesource (100% daughter of KBC) • Services • Delivering end-to-end ICT solutions (software, hardware, service) • Maintenance of ICT solutions • Hosting services • Network & infrastructure management • Clients • KBC Group Belgium • KBC Group international • Other corporate clients in the Benelux (Orbay, IFB, …) • Turnover: € 650 mn

Our ICT organisation • Client focused • Strong governance & business-ICT alignment • Best-in-class ICT services • Organisation • Process driven • Matrix organisation & project approach • Fast growing international project portfolio • Technology & architecture • Fast follower in new technologies • High availability • Architecture driven • Integrator of components • Multi-sourcing • Core business by our own people • Fixed price outsourcing & package solutions for non-core (e.g. SAP) • External consultants for temporary needs • India for technical implementations & conversions

A multi-channel distribution platform requires … KBC-M@tic Branches KBC-Phone Call Center Isabel SMS E-business Head office Clients Distribution Channels Product factories

… a 3-tier architecture → Mainframe Bank → Mainframe Insurance → Mainframe FinForce → Kennisbank Tier 1 Tier 2 Tier 3 Integration+Steering Business Logic + Data Presentation (frontend) (midtier) (backend) Data transport Belgacom Telindus Browser in Branches & online (PC) Server park (Unix) Central Servers (mainframe, Unix)

ICT infrastructure (Belgium only) 3 IBM Mainframes (+/- 15.500 Millionsof Instructions Per Second) 125 Terabyte (125000 Gb) 2 robots: 10.000 tapes of 80 Gb 13.000.000 transactions/day 17.000 PC’s 2.000 portable PC’s 750 softwares 17 Terabyte 600 Unix servers (HP, SUN Solaris) 100 Intel based application servers 100 web servers 50 Terabyte hard disk 140 Terabyte backup 1000 network printers & multifunctionals KBC Datacenter is one of the largest in Belgium

Our ICT organisation Applications Development Datacenter Work preparation Work preparation Projects Projects Service Service Support for ICT processes & tools Support HRM, Finance, Procurement, Security, Communication

Agenda Introduction KBC Group ICT High Availability Vision on HR Questions & Answers Guided Tour

INTRO High Availability (HA) WHAT DOES H.A. MEAN TO YOU ???

INTRO: welcome at KBC online

INTRO: welcome at KBC-online

WHAT does HA meanto KBC ? • Theory …. • What is (high) availability and why do we care ? • What does availability depend on ? • How and why do we measure availability ? • What does it cost <> what profit do we get? • … and reality • High Availability@KBC • DRP@KBC

1. What is availability …. • The degree to which a service (fi KBC-online) is able to perform its function when you want it to • The ratio of the total time a service is capable of being used during a given interval, to the length of the interval. • What does it mean • Operation system running ? • Network available ? • Hardware available ? • There are gray areas too…. • Is the system available if it is severely degraded?

Aspects of Availability Continuous OperationsNon-disruptive backups and system maintenance coupled with continuous availability of applications High AvailabilityFault-tolerant, failure-resistant infrastructure supporting continuous application processing Disaster RecoveryProtection against unplanned outages such as disasters through reliable, predictable recovery Protection of criticalbusiness data Operations continue after a disaster Recovery is predictable and reliable Costs are predictable and manageable

….and why do we care ? • …. Because availability of IT services is at the core of our business • The Availability and reliability of IT can directly influence Customer satisfaction and the reputation of the business • Downtime of IT services can have direct financial impact. • Growing demand for the availability of the business that are time and place independent

WHAT does HA mean to KBC ? • Theory …. • What is (high) availability and why do we care ? • What does availability depend on ? • How and why do we measure availability ? • What does it cost <> what profit do we get? • … and reality • High availability@KBC • DRP@KBC

IT organization: Monitoring and support (Written) procedures Quality of testing Data Confidential Integer Available Infrastructure Hardware software applications … 2. What does availability depend on? Do we guarantee correct data status?

Quality of IT organisation • avoid failures • According to Gartner 80% of the incidents are caused by • Poor change and test process • human interventions • lack of good procedures …

Quality of IT organisation • Minimize theimpactand duration of failures. TIME to repair downtime (Written) procedures good functional and hierarchical escalation procedures Monitor business services

Quality of DATA • One of the most critical components is the DATA. • CIA (confidentiality, integrity, availability) of data is a key aspect of overall availability • Local storage: not CIA • Central storage: very CIA • Do not allow business critical data on local storage !!! secure available integer

Quality of infrastructure • Reliability : • How frequently infrastructure fails ? • Resilience to failure: • Can the failure be masked ? • Serviceability: • How quick can the infrastructure recover from failures ?

Quality of infrastructure Resilience to failure of the infrastructure component TIME to repair downtime Serviceability of the infrastructure component reliabilityof the infrastructure component Main time to repair Main Time Between failure

Quality of infrastructure:Reliability • Bulletproof (bowling ball, hammer …) • MTBF > 10 000 years • This does not mean a hammer lasts a thousand years • Of several thousand hammers, one a year might fail • Highly reliable (computer hardware, consumer goods) • MTBF = 10 to 1000 years • Mainframe 1000 years! • one failure per 1000 units per year • Unreliable (young child’s birthday gift) • MTBF < 5 minutes • Software reliability generally falls between the last two

Quality of infrastructure:Resilience to failure data data data data parity • The ability of an infrastructure component to mask failures • Most hardware components are designed to be highly resilient to failures • Design the IT infrastructure to eliminate single points of failures (SPOFs) RAID 5: Striped Set with Distributed Parity

Quality of infrastructure: resilience to failure Clustering Technology • Clustering technology: Connecting two or more computers together in such a way that they behave like a single computer. • Examples: • Microsoft’s clustering solution is called MSCS • IBM clustering solution for mainframe is called parallel sysplex

Serviceability Quality of infrastructure: • Highly serviceable (hot standby, redundancy) • MTTR is typically seconds or less • Mathematically guarantees decent availability • Somewhat serviceable (parts in stock) • MTTR may be minutes to hours • Probably ok if the MTBF is high enough • Unserviceable (parts not available) • MTTR is anyone’s guess • Might still be ok if MTBF is very high

3. How and why do we measure availabity? • To avoid individual perception • To MEASURE=To KNOW • if you don’t measure it you can’t improve it. • If you can’t influence it, then don’t measure it. • Two ways to measure: • the impact of the failure • component availability

Excercice: Consider a 24-hour × 7-day service having 1,000 Users and a 2 hour planned downtime slot per week. Impact of failure

Impact of failure The weekly Agreed Service Time for the service would be : AST = (24 x 7) – 2 = 168 – 2 = 166 hours EUPT = AST x number of Users = 166 x 1000 = 166,000 hours or (166,000 x 60) = 9,960,000 minutes. EUDT = (60 x 50) + (25 x 20) + (125 x 1000) + (20 x 1) = 128,520 minutes. Therefore EUA can be calculated as follows : (EUPT – EUDT) (9960000 – 128520) EUA = _____________ x 100 ________________ x 100 = 98.7 % EUPT 9960000

Component Availability: serial configuration • Availability = Host * Network * Server * Workstation • Calculation = 0.98 * 0.98 * 0.975 * 0.96 = 0.8989 • Total Infrastructure Availability = 89.89%.

Parallel configuration with redundancy • Availability = Host × Network × Server × Workstation • Host Availability = 1– ((1–0.98)*(1–0.98)) = 0.9996 • Calculation = 0.9996 * 0.98 * 0.975 * 0.96 = 0.9169 • Total Infrastructure Availability = 91.69%. 99,9%

Myth of the nines • %availability what does it mean in downtime?

4. What does it cost ? • The level of availability influences the overall cost of IT infrastructure (hardware, software and FTE)

Cost of availability • The key is to find a good trade-off between ‘cost’ and ‘what is acceptable to the business’

Cost of unavailabiltiy • Tangible costs • financial impact • Revenue • Fines and penalties • Overtime payments • Productivity impact • User productivity • wasted goods and material • Intangible costs • Customer satisfaction • Loss of customers • loss of business opportunity (to sell, gain new Customers etc) • damage to business reputation • loss of confidence in IT

High availability@KBC

High Availability