Welcome!

Virtualization Authors: Carmen Gonzalez, Bob Gourley, Mike Kavis, Anne Buff, Andrew Phillips

Related Topics: Virtualization, SOA & WOA

Virtualization: Case Study

Data Virtualization at Northern Trust: A Case Study

New integration approach accelerates revenue

Data Virtualization: Going Beyond Traditional Data Integration to Achieve Business Agility is the first book published on the topic of data virtualization. Along with an overview of data virtualization and its advantages, it presents ten case studies of organizations that have adopted data virtualization to significantly improve business decision making, decrease time-to-solution and reduce costs. This article describes data virtualization adoption at one of the enterprises profiled, Northern Trust.

Organization Background
Northern Trust is a leading provider of innovative fiduciary, investment management, private banking, wealth management and worldwide trust and custody services. Clients include corporations, institutions, families and individuals in more than 40 countries.

Based in Chicago, Illinois, the company has over 13,000 employees. At the end of 2010, the company had assets under custody of $4.1 trillion, assets under management of $643.6 billion and banking assets of $83.8 billion. Annual revenues in 2010 were almost $3.7 billion.

For this case study, we interviewed Leonard J. Hardy, Senior Vice President, Operations and Technology. Hardy is a member of Northern Trust's Rapid Solutions group, which provides a solution architecture and consulting facility to other Northern Trust application development groups.

Hardy also manages the company's Integration Competency Center (ICC), which helps other application areas figure out the best way to integrate data. The ICC supports several tools for this, including data virtualization, ETL and data integration best practices. Hardy participated in this case study project in his ICC role.

The Business Problem
An important line of business for Northern Trust is providing outsourced investment management operations for corporate customers, typically investment management firms and banks.

These institutional customers continue to provide front-office investment management functions for their end clients, but outsource all or some of the middle-office and back-office functions to Northern Trust. By contracting these functions out to Northern Trust, the institution does not have to invest in the resources, assets and skills necessary to provide the functions internally. In return, Northern Trust provides guaranteed levels of quality, service, resilience and value-to-cost criteria and management.

The Northern Trust line of business responsible for investment management outsourcing is called Investment Operations Outsourcing (IOO).

The business problem for IOO was the fact that it had a large number of new institutional customers in the outsourcing pipeline and simply could not implement them fast enough.

As Hardy stated, "If we could get customers on board more quickly, we would realize several key benefits. First, revenue would increase. Second, we could go down the pipeline faster. We had customers already signed up for outsourcing who were waiting to be converted and we had to find a way to do that faster. That, in turn, would allow us to open up the pipeline and take advantage of huge new business opportunities in the marketplace."

The Technical Problem
Existing IOO client reporting capabilities had evolved within a traditional systems infrastructure and were both inefficient and inflexible, thereby extending the time it took to set up the end client reporting function for each customer.

For example, value-added client data was stored in multiple separate databases, including legacy, mainframe systems. In addition, some of the business logic to interpret the data structures and create reports was embedded in stored procedure code. The only way to access the data and interpret it correctly was to go through the stored procedures. There was no data warehouse or data mart that consolidated all this data and business logic for reporting purposes.

As a result, according to Hardy, "the old way of reporting required technology intervention for every single customer implementation. As you can imagine, each institution has its own formats, labels, graphics and fonts. A technology expert proficient in our development tools had to get involved and make changes to our reporting process for every customer. The time-to-market on that was very long. We needed the ability to bring on new customers without having to make technology changes for each one."

Two Options Evaluated
IOO considered two solution architectures to meet their business and technical challenges.

Physical Consolidation: One solution for IOO was to physically integrate the data using ETL and data warehousing technology. But that would require pulling all of the business logic out of the stored procedures and figuring out how to get all of the data into one database and have the structure make sense, a massive project that could take up to a year and a half.

Data Virtualization: Instead, IOO took a more innovative approach and decided to virtually integrate the data using the Composite Data Virtualization Platform as a virtual data warehouse. Placing Composite in the middle between the client reporting tool and the back-end data sources would enable IOO to quickly abstract the data into the data virtualization layer, reuse the existing business logic to access the data and generate all of the data needed for end client reporting. This approach required just seven months.

The Data Virtualization Solution - Architecture
Northern Trust's IOO data virtualization solution is a virtual data warehouse implemented with the Composite Data Virtualization Platform combined with a new client reporting front end. The major architecture components include:

Data sources - There are several physical data stores in the IOO environment.

  • Transaction data includes all of the detailed transactions for each end-client account: buys, sells, interest income, dividends, etc.
  • Valuation data includes, for each end-client account, how much it is worth today, how much it was worth yesterday, etc., based on the transaction data.
  • Enterprise asset data is a reference file that contains data about each asset in the client accounts, such as ticker symbol and investment category (equity, bond, money market, etc.). This data comes from a number of different third-party providers.
  • Performance data includes very complicated investment performance calculations that permit performance comparisons between accounts, such as one account against accounts of similar value or with similar investment strategies.
  • Transaction, valuation and enterprise asset data is stored in IBM DB2 and accessed via COBOL stored procedures.
  • Performance data is in Oracle and accessed via web services that call C code.

Data virtualization layer: The virtual data warehouse built using the Composite Data Virtualization Platform abstracts the data in the IOO data stores and creates a unified, virtual view that makes them appear as a single physical data store.

When the reporting platform issues a query to retrieve data from one or more data stores, Composite queries the data by calling the appropriate stored procedures and/or web services, combines the data (for example, associates all of the transactions that make up a valuation and the important performance data that applies to that valuation) and delivers it to the reporting platform.

Consuming applications: The primary consuming application is the client reporting platform. This is the toolset that IOO's internal business/operations partners now use to build, format and produce the reports for IOO's customers and their clients.

Another benefit of the reporting tool is that it supports a data dictionary and business views of the data that directly map to views within the data virtualization layer. These business views, or building blocks, conform the data into reusable components that the business analysts can use to create custom reports.

A key point here is that the solution has enabled IOO to transfer the time-consuming report customization work that previously had to be done for each new institutional customer by very high-priced and very busy technical resources (applications programmers) to IOO's operations partners (business analysts).

As Hardy summarized it, "We have been successful in our goal of taking the technology out of the outsourcing equation. As long as we supply the right data through Composite, the reporting tool handles all formatting, graphing and other functionality that we used to have to hard code within the application program. One reason we had such a big bottleneck in implementing outsourcing customers was the fact that we didn't have enough programmers in our application development group to handle the customization requirements. Business analysts in our operations group can now easily process the building blocks necessary to customize reports."

By combining the capabilities of data virtualization and the new reporting tool, IOO has been able to navigate through and abstract a very complex set of layers of translation to connect the raw IOO data structures to business metadata and finished customer reports.

The Data Virtualization Solution - Best Practices
Hardy offered some best practices and lessons learn based on his experience working with IOO.

Start with a focused project: Hardy stated that a focused initial effort is a key to success. "Don't start with a project to make all enterprise data available via a service." To date, IOO has completed four institutional customer implementations with over ten more in progress or planned.

Centralize support for data virtualization and development: Giving ICC responsibility for the data virtualization technology provided economies of scale and enabled the company to accelerate up the best practices learning curve in effectively implementing the technology in business solutions.

Understand the data: According to Hardy, data virtualization is no different than any other development or physical data integration tool. "The design and architecture of the solution is where you need to spend time. The old carpenter's adage of ‘measure twice and cut once' applies here. Don't just dive in and start coding views. Make sure you really understand the data. This is the key to success in an effort like this."

Educate and support the business: Hardy said it is also important to allocate time to consult with the business and make sure they understand the data. "In our case, they are the ones designing the reports but they don't necessarily have in-depth knowledge about the data in its raw form. So we need to help them understand the raw data and make sure that when the data gets to the end tool, people understand what they are looking at."

Manage business expectations: Although data virtualization is a capability that can get the job done faster, the organization still has to go through the same steps to implement the solution: analysis, design and architecture. "In our case, we could say it saved us a year and a half, but it did take seven months. So it will take time no matter how you do it."

Summary of Benefits
Hardy described the major benefits Northern Trust has achieved with the new IOO client reporting architecture based on data virtualization.

Faster time-to-market increases customer satisfaction and revenue: Data virtualization has dramatically reduced the time it takes to implement a new outsourcing customer by 50%. Moving customers through the pipeline faster improves overall customer satisfaction and gives IOO the capacity to bring in even more business and revenue.

Single point of access simplifies work and cut costs: The fact that the reporting tool, or any consuming application, has a single data access point regardless of the format, access method (SQL, web service, stored procedure, etc.) or data source  significantly reduces application complexity and development and maintenance time and cost.

Reuse benefits grow with adoption: The ability to create reusable data services that can be shared by all applications also reduces costs.

Long run flexibility is improved: Northern Trust is embarking on a three-year project to replace all of its underlying data stores with modern data warehouses and data marts. By putting data virtualization in the middle, thereby decoupling the back-end data from the consuming applications, IOO will not have to change anything that has been defined in the reporting tool when it swaps out the back-end data stores. It will only need to change the views to consume the new data sources.

•   •   •

Editor's Note: Robert Eve is the co-author, along with Judith R. Davis, of Data Virtualization: Going Beyond Traditional Data Integration to Achieve Business Agility, the first book published on the topic of data virtualization. The complete Northern case study, along with nine others enterprise are available in the book.

More Stories By Robert Eve

Robert Eve is the EVP of Marketing at Composite Software, the data virtualization gold standard and co-author of Data Virtualization: Going Beyond Traditional Data Integration to Achieve Business Agility. Bob's experience includes executive level roles at leading enterprise software companies such as Mercury Interactive, PeopleSoft, and Oracle. Bob holds a Masters of Science from the Massachusetts Institute of Technology and a Bachelor of Science from the University of California at Berkeley.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridsto...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing and Personal Systems Group, will discuss how key attributes of mobile technology – touch input, senso...
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform your business. He will discuss opportunities and challenges ahead for the IoT from a market and tec...
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (on-premise), hybrid or public clouds. TeleStax products include Restcomm, JSLEE, SMSC Gateway, USSD Gateway, SS7 Resource Adaptors, SIP Servlets, Rich Multimedia Services, Presence Services/RCS, Diame...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
As a disruptive technology, Web Real-Time Communication (WebRTC), which is an emerging standard of web communications, is redefining how brands and consumers communicate in real time. The on-going narrative around WebRTC has largely been around incorporating video, audio and chat functions to apps. In his session at Internet of @ThingsExpo, Alex Gouaillard, Founder and CTO of Temasys Communications, will look at a fourth element – data channels – and talk about its potential to move WebRTC beyond browsers and into the Internet of Things.
SYS-CON Events announced today that Gigaom Research has been named "Media Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Ashar Baig, Research Director, Cloud, at Gigaom Research, will also lead a Power Panel on the topic "Choosing the Right Cloud Option." Gigaom Research provides timely, in-depth analysis of emerging technologies for individual and corporate subscribers. Gigaom Research's network of 200+ independent analysts provides new content daily that bridges the gap between break...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.