The Register: NTT Data, IBM, team on mainframe cloud for banks

Source URL: https://www.theregister.com/2024/09/19/ntt_data_ibm_mainframe/
Source: The Register
Title: NTT Data, IBM, team on mainframe cloud for banks

Feedly Summary: SimpliZCloud is only for India right now, based on big Blue’s LinuxONE
The mainframe has found another role, thanks to Japan’s IT services giant NTT Data which has decided to build a hybrid cloud service based on the IBM LinuxONE platform.…

AI Summary and Description: Yes

Summary: The text discusses NTT Data’s launch of a hybrid cloud service called SimpliZCloud, built on the IBM LinuxONE mainframe platform, specifically targeting the financial services industry in India. This service is positioned to enhance performance for core banking applications and leverage AI/ML capabilities, highlighting a potential resurgence of mainframes in the context of modern cloud computing.

Detailed Description:

– **Hybrid Cloud Service**: NTT Data has developed SimpliZCloud on the IBM LinuxONE platform to serve the financial services sector in India.
– **Targeted Workloads**: The service aims to optimize compute resources for core banking, lending, and risk management, promoting cost-effectiveness and efficiency.
– **Sustainability and Performance**: NTT Data claims that as enterprises consolidate workloads on SimpliZCloud, they will achieve a smaller datacenter footprint, contributing to sustainability goals and potentially outperforming x86 servers, especially regarding software licensing and the execution of AI/ML applications.
– **Mainframe Relevance**: Despite perceptions of mainframes as outdated, there is an argument for their relevance, particularly in organizations managing substantial transaction volumes, with IBM’s mainframes claiming to facilitate around 70% of the world’s transactions by value.
– **Gartner’s Commentary**: Opinions from Gartner suggest ongoing relevance due to mainframes’ capability to handle complex, risk-laden migrations from older platforms.
– **IDC Report Insights**: IDC’s findings underscore an increasing reliance on mainframes for driving innovation and business operations across organizations.
– **AI/ML Integration**: NTT Data’s CEO suggests that the combination of AI/ML with mainframe infrastructure presents a significant performance advantage compared to traditional architectures.

Overall, this development signals a critical intersection of legacy systems and modern cloud solutions, emphasizing the enduring importance of mainframes in specific industries while adapting to new technological paradigms.

Key Takeaways for Security and Compliance Professionals:
– The shift towards hybrid cloud solutions raises considerations regarding security frameworks and compliance, especially in the highly regulated financial services sector.
– As organizations consolidate workloads, the effectiveness of security measures against potential vulnerabilities in hybrid environments will be vital to protect sensitive financial data.
– Ensuring compliance with data governance regulations and sovereignty laws remains paramount as service offerings scale globally.