REASERCH ON:

LINUX USAGE IN THE BANKING INDUSTRY:

CONTENTS; ABSTRACT
1. INTRODUCTION TO LINUX. LINUX HISTORY. WHAT IS LINUX? LINUX STANDARDS. IBM AND LINUX. REQUIREMENTS FOR LINUX USE IN BANKING SYSTEM. LINUX PROGRAMMING OBJECTIVES. 2. CASE STUDIES BANK BRANCH SYSTEM. LINUX USAGE IN AUTOMATED TELLER MACHINE. LINUX INVOLVEMENT IN ATM SOFTWARE. LINUX INVOLVEMENT IN ATMS IN BRAZIL BANKS. THE BANK OF TOKYO-MISTUBISHI(BTUM)OF JAPAN BANK OF NEW ZEALAND MIGRATION TO LINUX. -CHALLEGES BEFORE MIGRATION TO LINUX -SOLUTION TO THE CHALLEGES. -BENEFITS OF THE MIGRATION. HALK BANK TURKEY-SUSE CASE STUDY. SPARDA-DATENVERARBEITUNG. EG(SPARDA BANKING GROUP) BANKIA MIGRATES TO IMB INFOSPHERE SOFTWARE ON LINUX. 3. ANALYSIS CHALLENGES BEFORE MIGRATION TO LINUX. SOLUTION TO THESE CHALLENGES. THE BENEFITS OF MIGRATION TO LINUX.

 ADVANTAGES OF USING LINUX IN THE BANKING SYSTEM. DISADVANTAGES OF USING LINUX IN THE BANKING SYSTEM 4. FUTURE TRENDS IN LINUX. 5. CONCLUSION 6. REFERENCES.

ABSTRACT: A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A Banks also pays for cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also offers other forms of payments such as the case for automated teller machine (ATM). Banks also do accept deposits on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks also offer loans to customers who then pay at a later date. Banks use computer softwares to manage their daily transactions, safeguard customers data, evaluate developments etc. In the modern world many individuals and companies have turned to banks for safeguarding, saving and even coming together to create services that enable customers to pay for products through banks. This has led to the number of accounts and transactions increasing rapidly over the years. Due to this increase it has been deemed mandatory for the banks to try and adjust with the changing technology so as to cater for the growing customers needs and also being able to do so without incurring a lot of expenses. This has been made possible by Linux introduction to the computer and software world as it has helped many financial institutions to adapt to changing numbers of transactions and data and enabled them to help them solve all their problems without incurring major costs.

LINUX USAGE IN THE BANKING INDUSTRY: LINUX HISTORY. WHAT IS LINUX? -Linux is one of popular version of UNIX operating system. Linux was designed considering UNIX compatibility. Its function list is quite similar to that of UNIX. It is assembled under the model of free and open source software development and distribution. The defining component of Linux is the Linux kernel. -Linux was originally developed as a free operating system for Intel*86- based personal computer. It has evolved over the years to be used by more computer hardware platforms than any other operating system. It currently leads usage on servers and other big systems such as super and mainframe computers.

-Linux also runs on embedded systems (Built in operating system in devices) such as mobile phones, tablets computers, network router, building automation controls, televisions and video games consoles. The android system is also built on Linux kernel. -Linux development is one of the best examples of free and open source software collaboration. The source code maybe used, modified and distributed- commercially and noncommercially by anyone under licenses such as the GNU (General Public License). -Linux supports all the major windows managers and all the internal utilities, such as FTP TELLNET SLIP

- It provides true 32-bit and 64-bit multitasking, virtual memory, shared libraries, and TCP/IP networking. It also has a full set of program development utilities including c++ compilers and debugs. -Linux consists of four major components: The kernel The shell The file structure The utilities.

-Linux is used mostly on Intel-based processors although it has been used across a variety of hardware platforms. -Linux makes use of protected-mode, features of Intel 80*86 processor. Hence it uses the protected-mode, disruptor based memory management paradigm. - The kernel is the lowest-level core factor of the operating system, it is the code that controls the interface between user programs and hardware devices, scheduling of processors to achieve multitasking. - -Linux also exploits the multitasking capability of 80386 protected mode programming. The Linux kernel supports demand-paged loaded executable so that only those segments of a program that are actually used are into memory from disk. -Linux kernel includes many improvements specifically designed for enterprise. It has inbuilt support for eight-way symmetric multiprocessing, and the TCP/ID stack has been rewritten to increase stack performance and provide better scalability in multiprocessing systems. Linux history: - Linux is a freely distributed version of UNIX.

- Linux was developed by Linus Torvalds in 1991 who by then was a University Student at the University Of Helsinki in Finland. - the development was done on minix using the GNU C compiler which even today is still the main choice for compiling Linux but one can also use the Intel C Compiler. Naming of Linux: - Linus Torvalds had wanted to call his intention freax. In order to facilitate development, the files were uploaded to the FTP Server of FUNET in September 1991, Torvalds core-worker, Ari Lemmeke, did not think freax was a good name so he changed the name of the project to Linux without even consulting Torvalds, but he also later consented to the name. - Two years later after its invention and development it had gained more than 12000 users worldwide. It has grown rapidly since then. - All features of UNIX were added over the years which made it grow into a mature operating system. - Linux is a full UNIX clone which can be used on work stations as well as middle rage and high end servers.

LINUX STANDARDS: -Linux is a Posix-compliant operating system, and its constituents subsystems support all relevant: ANSI STANDARD. ISO STANDARD. IEFT STANDARD. W3C STANDARD.

- It was developed according to the posix standard which defines how a UNIX-like system needs to operate, specifying details such as calls and interfaces. -Linux also provides a complete implementation of TCP/IP networking. -The Linux TCP/IP system provides a standard socket programming interface so that any program that uses TCP/P can be ported to Linux. -Linux also supports the standard iso-9660 file system for CD-ROMS. It also consist UNIX standard IP and Apr. software for its printing software. Any parallel printer Linux supports the full range of serial modems, both internal and external. -The range of interfaces and capabilities that have become standard across virtually all operating environments are also available for Linux and implementation open source code and

based on industry standard. This combination provides a stable predictable environment for developing, porting, or running business-critical applications. IBM AND LINUX: -IBM is involved in all stages of the Linux phenomenon. I. II. III. IV. V. Contributing code and skills to Linux development itself. Delivery Linux ready hardware platforms in conjunction with established Linux distributors. Porting IBMs industry leading middle to Linux. Providing open-access Linux developer resources. Helping support through IBM multi-vendor software support contractor.

REQUIREMENTS FOR LINUX USE IN BANKING.

-The solution architecture must be:

Open. Scalable. Easy to implement.

-These principles are related to the architecture objectives and are the basis for: Platform selections requirements of the solution. Programming model specifications requirements of the solution. Overall functional requirements of the solution.

-These objectives are well illustrated as follows below: 1. OPEN. Supports industry standards: architecture is open when it uses open Industry and ebusiness standards, such as TCP/IP, HTML, HTTP, Java, JDBC, and Java Server Pages (JSPs) wherever possible. These Standards serve the following function: Provide a solid foundation and make it easier to use available proven components instead of building custom ones and to change Vendors and implementations to satisfy changing business requirements. - Industry standards tend to be strategic and have longer life spans because of the high levels of investment and commitment involved with creating them.
Extendable and customizable: architecture must be built to be extendable and customizable at many different layers or channels. Meaning the architecture can be used in a wide range of situations and can accommodate specialized requirements that are specific to an individual channel, customer, country, or region. Provide insulation: The solution architecture must isolate and abstract interactions with other systems to insulate architecture-based applications from the specifics of other systems. In a global solution, this is essential to provide the flexibility to adapt too many diverse environments, particularly different host systems and databases. Preserve investment: The principles listed above ensure the preservation of customer investments. The solution architecture safely preserves the investments in current hardware, software, operating systems, network, communication infrastructure and protocols, and backend subsystems of the customer environment.

2. SCALABLE. - Logical tiers: a good example of a logical tier is Network Computing Architecture. The benefits of logical tiers are:

a. Logical tiers are logical this means that they can specify the presentation layer from the business logic. It also provides scalability by making sure each of the layers of the system change independently of the others. That is, the platform selections and design of each layer can change without impacting the rest of the system. b. The architecture should ensure that the presentation is thin so as to achieve the goals of the network computing. This is an advantage because a workstation with no virtual memory and has only a small physical memory will be able to download it. c. Solution architecture should be able to support the model of a multi-tier network computing application. This also allows engament teams to be able to implement solutions based with other application models a good example being the two-tier fat client application. Replaceable components: a component is a package of any given system function which has established interfaces and a very determined execution environment. The components can interact with any other system components using the public interface which is replaceable with minimal effort. This makes it possible to reuse the system without causing large ripple effects. It also allows the implementation and execution of components to vary so as they can meet the required performance or scalability 3. Enterprise topology independence: this means that the tiers are not only independent of their physical location but also the systems components are also independent of their physical location. This is an added advantage as it makes the solution flexible hence they

can be used in different environments as the customers can configure the system to achieve scalability for the environment desired. 4. EASY TO IMPLEMENT. Should have Visual programming: visual programming is a technique which is very important and good in developing application screens and also assembling the graphical user interfaces. Implementation should have Separate analysis from design: this means that when implementing any program the analysis should be different from its design that is the analysis should have its own work products distinct from its design. The product should have a separate logical representation of the system function which should be independent of technology or even the implementation. This will help in retaining value of earlier developments. Development methodology: this methodology helps in making the development process easier hence making the solution implementation also easier and faster. Transaction-oriented: a well-defined architecture should have this requirement and mostly in a high-volume transaction processing environment this enables it to adapt well to changes in number of transactions and to give perfect results. Most branches require a transaction oriented system which will be able to behave as a transaction posting engine and also manage to run the transactions in the back-end system Development effort: a good way to make sure that transactions have been implemented or even the applications have been implemented is always based on the parameters externalization. Therefore different businesses have different external

parameters depending on their operations and implementation processes. This enables solutions to deliver new functions and capabilities without requiring new coding, simply by adding new external parameters to the system. LINUX PROGRAMMING-RELATED OBJECTIVES. The Java programming language is the main language used today to come up with new business applications or even readjusting existing applications. A good Internet technology should be able to create reusable components within an overall framework for the businesses applications. By doing so the component based applications will be easily used with a lot of confidence to lead to robust production systems, while the framework will be able to give to your components completeness and consistency. A good application development should have a shared central repository which usually supports the components reuse and object definitions The design of application development hides all the technical issues from the designers which will in turn help them to focus on the business functions of the applications rather than the technical details. These features helps in creating advantages in areas such as project completion time cost effectiveness and the preparedness for future changes and improvements hence enhancing evolution of the development. These objectives are as follows: - Reduced risk: its very fast and efficient hence making it very rare to be having risks when working. That is the components. Proven product: this means the components produced are very mature foundation which its main work is to support products developed for software applications which are later used in the financial sector. Systems work together: this means that the systems are compatible to each other. This is made possible due to the use of open computing industry standards. Should be protected against obsolescence: the applications can never become absolute as there are well protected by the flexibility and ability to update component-based applications. Quick reaction to business condition changes: this means that all the application development will allow fast changes to applications accordingly due to changes in business conditions.

Support team work: team work promoted dialog hence leads to sharing of ideas which will result to improved and finer detailed applications. Therefore the application development environment should support teamwork. Should be able to maintain a very stable IT infrastructure: this means that the available systems should be able to provided services through communications systems. The components ensure there is connectivity to legacy systems. Should hold a faster time to market: components should be easy to learn by the project team its development cycle should be short. This approach saves development efforts and also improves consistency which will in turn reduce the time to market delivery for all channels. Should have prebuilt components: the framework should have inbuilt or rather prebuilt components with the interface being well defined. This will allow the project teams to only have the work of learning how to use them and it will be ready to be sent into delivery channels. Easy addition of application definition: this means the model applications usually involves little more than adding new definitions to Development Workbench Repository. Easy learning and usage components: any component based framework will hide the technical details of the framework. In turn this reduces time and effort needed by the project team to learn and use the framework features to give a solution. It also allows the team members to focus only on their specific skills and tasks.

CASE STUDIES: THE BANK BRANCH SYSTEM. - In any given bank workstations. These workstations which its major function is to provide an end-user interface to the branch banking system for users, and servers provide connectivity, data access, or other system management functions to the workstations. - The work stations are all connected through a physical network, where one or multiple protocols are responsible for fast, stable, and reliable communication. - The branch automation systems enable the teller and platform personnel to process customer transactions, access customer account information, and generate reports. - The Central systems store customer information, transaction, and account data, and the branch systems access this information.

- In ATMs branch automation systems enables platform personnel and tellers to have or provide detailed customer account information and sales prompts for cross-selling and upselling. 1. LINUX USAGE IN AUTOMATED TELLER MACHINE. - ATM is the short form of Automated Teller Machine which is an electronic telecommunications device that enables the clients of a financial institution for example a bank to perform financial transactions without the need for a cashier, human clerk or bank teller. - An ATM helps customers access their bank accounts in order to make cash withdrawals, deposit cash into their bank accounts debit card cash advances, and check their account balances as well as purchase pre-paid mobile phone credit and purchase goods in supermarkets and store. - ATMs often provide one of the best possible official exchange rates for foreign travelers, and are also widely used for this purpose. For example If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at an official wholesale exchange rate. - When ATMs were introduced 30 or so years ago, banks viewed these devices as A low-cost alternative to providing routine banking services. Consumers viewed An ATM as a convenient alternative to teller branch banking, because it advantages such as it offered extended access to their accounts, available during extended hours, and also it was faster compared to waiting in long lines to be served. In the beginning these machines were simply automated cash machines, but over the years more advanced functions have been added as these terminals have Been used more widely and banks have recognized the lower costs of processing Routine transactions through these terminals. These machines continue to evolve, incorporating not only additional customer-initiated banking transactions, but also other dispensing capabilities, such as stamps, phone cards, and tickets. A majority of banks and organizations provide their customers access to Their banking accounts through ATMs. These terminals are deployed in nearly all bank branches, as well as many non-bank locations, such as convenience stores, supermarkets, shopping centers, and tourist venues.

Today the ATMs has been added various additional functions and transaction capabilities have been offered at the ATM however, an evaluation of ATM transaction volumes indicates that many consumers still view these devices simply as cash machines. Approximately two-thirds of consumers use the ATM, and for a large majority of these consumers, ATMs represent an essential banking channel that offers convenient access to cash.

LINUX INVOLVEMENT IN ATM: As we have seen above an ATM being an electronic telecommunication device that helps bank clients to easily make bank transactions such as cash withdrawal and depositing etc. we can also define an ATM as simply a data terminal with two input and four output devices. Like any other data terminal, the ATM has to connect to, and communicate through, a host processor. The host processor is analogous to an Internet Service Provider (ISP) Which means it is the gateway through which all the various ATM networks become Available to the cardholder. Most host processors can either support leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a four-wire, pointto-point, and dedicated telephone line. While Dial-up ATMs connect to the host processor through a normal phone line using a modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem. LINUX INVOLVEMENT IN ATM IN BRANZIL. (Banco do Brazil) - Brazilian banking giant Banco do Brazil has decided to make a massive migration of one of the world's biggest ATM fleets to the GNU/Linux operating system. - The news is a big boost to the ATM industry reason being Brazil is the world's third-largest ATM market, the largest being Japan and the United States in the number of placed units. - And while most financial institutions of substantial proportion are moving or have moved their ATM fleets from OS/2 to Windows, Banco do brazil and a handful of other Brazilian banks

are opting for Linux , which is a free and open OS invented by a famous Finland's scientist Linus Thorvalds. - The move a Linux OS, industry experts say, will allow banks in Brazil to have more control, since most will likely develop their own ATM software or lean on multivendor solutions, rather than having to be so proprietary-driven. - Although often overshadowed by Microsoft's Windows, Linux is no feeble competitor. It's supported by giant software players such as IBM. Oracle. Hewlett-Packard.

- Banco do Brazil has about 25 million clients that use its ATMs, which see close to 450 million transactions per month. These huge numbers of transactions made the bank migrate to Linux so as to improve and maintain its services without a rise in expenses. - The bank in 2005 initiated its Linux-migration testing for its ATMs. - The bank's goal was to have around 70 percent of its ATM fleet running Linux by 2010 which it did achieve. -Thus, the entire ATM fleet will eventually be running on Linux. -Others in Brazil also are expected to make a move toward Linux in coming years, likely the result of Banco do Brazils new ownership of several of the country's smaller, governmentcontrolled banks. - The bank in 2003 began migrating its servers to Linux. Today all of its 5,500 servers are running Linux. The government's push for open-source adoption is expected to reduce costs and

dependence on multinational corporations, namely Microsoft, as well as foster a local software industry. In fact, Brazil's governing leaders are so committed to the effort that they have been calling upon other emerging markets to take similar measures. - The Linux ATM pioneer among Brazilian banks was Banrisul. Banrisul, which initiated its Linux switch in December 2000; it completed the migration in mid-2003. Today, Banrisul's more

than 2,500 ATMs all run on Linux. Banrisul executives say the move was a technical decision,

and not part of a complete software change at the bank. The machines were running on DOS and a migration to Windows would have required a very significant investment, hence Linux was a very optable choice as its migration is much cheaper and very much benefit able compared to other operating systems including windows. 2. THE BANK OF TOKYO MISTUBISHI (BTUM) OF JAPAN: - This is japans largest bank in terms of assets with over 40 million personal bank accounts and over 500000 corporate clients. Due to the high number of customers the bank needed a high well defined, efficient and fast banking managing software which could meet all the customers demands for access to financial services anytime, anywhere, and through any device. Solution: For the bank to achieve this using minimal resources, it decided to use the IBM WEBSPHERE MESSAGING BROKER, which is I. II. III. MQ-based Has a high throughput messaging backbone. Has a strong successful track record in the financial sector.

The solution employed the IMBz enterprise 196 as its platform, divided by logical partioning, with SUSE Linux Enterprise Server as the operating system.

Benefits of this migration to Linux: The bank has accelerated its ability to build its servers in response to business issues and has a service re-utilization rate increase by more than 18% The platform which was released initially to cover three systems and nine services. In two and a half years the use of the platform has expanded to 23 systems and over 150 services. THE BANK OF NEWZEALAND: Background: For the last 150 years the bank of New Zealand helped individuals, farmers, and businesses with their financial pursuits. But in time this bank has grown and remarkably evolved to meet changing customer needs and expectations while also at the same time going on to deliver innovative new products and services.

The bank of New Zealand is the leading banking and financing industry in New Zealand.

Challenges faced; The bank was close to reaching capacity in its data center due to its growing customer and corporate accounts and operations and it needed to determine how to maximize space while keeping its cost down. The banks corporate values also have a carbon neutral focus, which it has keen to put into practice across all aspects of its business operations. The bank had three major goals which it wanted to achieve. They included: To become carbon neutral by 2010. To explore open source opportunities through adoption of Linux. To create a disaster recovery solution. Its data center one in Auckland, New Zealand and the other in East Melbourne, Australia which are separated by Tasman Sea. Solution to the challenges; It change completely its mission-critical front end IT environment, including its internet banking and bank teller functions through to core backed data. It migrated its system to Red Hat Enterprise Linux 5 running under z/VM on the main frame computer. Many banks did an overhaul on all its system a good example is IBM z10 system used in production, as well as one IBM z9 system for use as a disaster recovery machine. Both mainframes exclusively run Red Hat Enterprise Linux 5, IBM Webspere application and IBM process server, alongside with customized JAVA applications by the B.N.Z The combination of z/VM and Red Hat Enterprise Linux 5 enabled BNZ to virtualize and consolidate a largely distributed SUW environment, which incorporates all its front-end systems to just one box and runs it in a manner that didnt present a significant change for administration stuff.

They choose Linux due its commitment to the ongoing development of the platform and its strong support capabilities, particularly in reference to support Red Hat Enterprise Linux 5 on the main frame.

To date the bank has consolidated 131 SUN SPARC systems to Red Hat Enterprise Linux 5 on IBM system z. This include: V440s. V280RS. E10KS.

On the high end.

Benefits of the migration to Linux; The migration for BNZ to Red Hat Enterprise Linux 5 on IBM system z platform produced impressive returns and exceeded expectations. After three months of the migration, the project was ahead the schudule and open budget it was able to consolidate its servers and reduce its front end systems data center foot print by 30%. It also had significant cost advantage with approximately 20% ROI expected over the life of the platform. Reductions of front-end power consumption by 40% meaning their goal of becoming carbon neutral were also achieved. Since migration BNZ has recorded over 33% reduction in heat output and 39% reduction in carbon dioxide emissions for its front-end systems. It also boosted its speed and simplicity of new deployments, with just one administrator needed per 100 virtual servers, BNZ can save as resources traditionally used to manage the platform. HULK BANK OF TURKEY. BACKGROUND: Halk Bank was founded in 1938; it offers corporate, commercial and retail banking services to more than 7 million customers throughout Turkey.

The bank has a very extensive network comprising more than 700 branches and more than 1270 ATMs and also in other services it provides also in ternet and mobile banking.

In an effort to cut down complexity and costs in its environment Halk Bank has plans to grow on SUSE, this is a Linux Enterprise server for system z on the IBM z Enterprise 196 systems. Once fully implemented the SUSE solution will simplify maintenance, deliver improved reliability for critical banking services.

Challenge faced before migration to Linux; The bank wanted to strengthen its positions as one of the countrys leading ba nks in terms of customers numbers, credit and deposit volumes and profitability. So as to establish itself and set itself apart from market competition, the bank needs to offer customers high-quality products and rapid, secure transactions at an attractive price. Due to this the number of customers and transactions volumes grew each year. It became a challenge for Halk Bank ensures the highest possible service levels, while keeping administration cost and expenses and effort to a minimum. So as the bank grew it needed a simplified and scalable infrastructure rather than managing an expensive and complex infrastructure. As they wanted to reduce cost of producing IT services to its customers and users without sacrificing availability or performance. Solution to the challenges; The bank chooses IBM mainframe z Enterprise 196 z196 servers to support its business applications. Its next step was to select an operating system to support its new application environment on the z196. After checking and evaluating the different Linux distribution available for use on mainframe, the Halk Bank chooses SUSE Linux Enterprise Server for system z as the strategic platform for its application servers. Advantages of SUSE. SUSE offered a good local support.

The strong collaboration between SUSE and IBM and the SUSE Linux Enterprise Server for system z really is optimized to the IBM mainframe any new feature introduced would be used efficiently.

By combining robust IBM z/VM virtualization technology with SUSE Enterprise Server for system z, the bank can maximize its utilization of the mainframe.

By choosing the SUSE solution providing broad and ever expanding application portfolio, therefore the bank can efficiently run a wide range of applications with maximum performance.

Results; Significant savings on the software licensing and development costs on future hardware investments. Reduction in administrative effort due to the platforms high availability and easy management. With SUSE Linux Enterprise Server for system z the bank will be better equipped to scale its IT environment to support future business growth and manage constant development for new products and still being able to maintain high levels of services to both internal and external users. SPARDA-DATENVERARBEITUNG (SPARDA BANKING GROUP). SDV is the IT developer for the Sparda Banking Group in Germany which serves almost more than 4.2 million customers. The SDV develops secure and innovative IT solutions for retail banking, payment and distribution and financing. SDV also has a central core banking system MBS that manages customer data and is used by all the companys clients. Challenge faced by the bank; SDV was one of the first companies in Germany to install the latest generation mainframe from IBM (IBM z Enterprise 196), hence with its online banking system running on the main frame, the company needed to maximize stability Solution:

It deployed an IBM z196 with a SUSE Linux Enterprise server. This helped it to manage its large data that it had and also run the functions smoothly with no raise in expenses occurring.

BANKIA; Background; It is situated in Spain. it was established in 2011 after the merging of seven banks namely; i. ii. iii. iv. v. vi. vii. Caja Madrid. Bancaja. Caja Insular de Canarias. Caja Avila. Caja larentana. Caja Segovia. Caja rioja.

Currently it has more than 11 million customers and it is the third largest banking group in terms of the total assets.

The banks model of services is based on a multi-brand and multi-channel management that is it covers each and every market segment from private individuals and small companies to large corporations and public institutions.

Challenges: It needed to maintain its reputation after the formation for excellent customer service it was to compete with rivals. It needed to gain the confidence of potential clients and convert them into loyal customers and maximize customers satisfaction. This depended on Bankias ability to manage customers data and guarantee fast response times to customer demands. Due to the merging, the bank had inherited many disparate systems which made it difficult to manage customer data as a single information resource. This made it unable to effectively cope with the demands of the business and ensure high levels

of servi9ces. It surely needed a way to streamline its processes without completely redesigning its information infrastructure. Solution; Its IT team decided to integrate its formation resources to a single, centralized platform based on IBM system z technology. IBM proposed IBM Info sphere Data stage software running on the IBM system z servers, this is a core module of IBM Info sphere Information Server Software, which it uses to collect and integrate customer data from multiple source systems of all the seven banks and to ensure the reliability and consistency of information acro9ss the entire business. Bankia choose to run the IBM Info sphere software on li9nux system z which combines open standard of Linux with the power and resilience of the IBM system z mainframe. Bankia is also leveraging advanced IBM z/VM virtualization capabilities to maximize the scalability and simplicity of its server environment. It is also able to run on many virtual Linux services on a single physical server and this reduces time and effort to provision new server environments. Results: Increased control over a vast range of information processes, meaning data from all systems will now be standard and accessible from a central repository system z. Ability to host multiple virtual Linux servers on systems z has helped in maximizing resource utilization and reduces data center complexity hence reducing its server footprint, generating savings on energy and cooling costs. With the single source of integrated, validated data, the Bank can develop innovative analyses and also can be able to create forecasts on business expectations with the data given being accurate and secure. The migration also made it able to enhance the banks marketing campaigns, by analyzing clients behavior for various factors such as total profitability, likely future spending and exposure to risks.

With single repository for all clients data, it is possible to gain an integrated view; hence the bank can adjust its commercial strategy and meet clients needs more efficiently.

ANALYSIS:
Challenges before migration to Linux. Huge competition in the market: Any bank will want to strengthen its positions as one of the countrys leading banks in terms of customers numbers, credit and deposit volumes and profitability. So as to establish itself and set itself apart from market competition, the bank needs to offer customers high-quality products and rapid, secure transactions at an attractive price. High number of customers and transactions: Due to this high number of customers and transactions volumes which grew each year. It became a challenge for many Banks ensure the highest possible service levels, while keeping administration cost and expenses and effort to a minimum. Need for a simplified and scalable infrastructure: So as the bank grows it needs a simplified and scalable infrastructure rather than managing an expensive and complex infrastructure. As it wants to reduce cost of producing IT services to its customers and users without sacrificing availability or performance. Reaching capacity in data center: Due to rapid economic growth many banks are close to reaching capacity in its data center due to its growing customer and corporate accounts and operations hence there is need to determine how to maximize space while keeping its cost down. Achieving the carbon neutral mark: The banks corporate values also have a carbon neutral focus, which it has keen to put into practice across all aspects of its business operations. Solution to the challenges. IT teams in various banks have decided to integrate its formation resources to a single, centralized platform based on IBM system z technology.

IBM proposed IBM Info sphere Data stage software running on the IBM system z servers, this is a core module of IBM Info sphere Information Server Software, which it uses to collect and integrate customer data from multiple source systems and to ensure the reliability and consistency of information across the entire businesses and bank systems.

Another good example is Bankia which choose to run the IBM Info sphere software on Linux system z which combines open standard of Linux with the power and resilience of the IBM system z mainframe.

Also Bankia is also leveraging advanced IBM z/VM virtualization capabilities to maximize the scalability and simplicity of its server environment.

Choosing the IBM Z Enterprise Linux 5 which is also able to run on many virtual Linux services on a single physical server and this reduces time and effort to provision new server environments.

Banks also have chosen to use the IBM mainframe z Enterprise 196 z196 servers to support business applications this in return needs a proper operating system which could enable it to run efficiently. After checking and evaluating the different Linux distribution available for use on mainframe, one can choose SUSE Linux Enterprise Server for system z as the strategic platform for its application servers.

Benefits of migration to Linux. Significant savings: The banks, companies and also individuals have experienced significant savings on the software licensing and development costs on future hardware investments. This has been made possible by the minimal requirements of the operating system to the hardware configuration. Reduction in administrative effort; this is due to the platforms high availability and easy management. This reduction is due to the ease in usage of the operating system. Future business growth: With SUSE Linux Enterprise Server for system z the bank will be better equipped to scale its IT environment to support future business

growth and manage constant development for new products and still being able to maintain high levels of services to both internal and external users. The bank has accelerated its ability to build its servers in response to business issues and has a service re-utilization rate increase by more than 18% Easy and cheap to adapt to: migration to Linux is easy and very fast. This helps companies save on time and expenses. A very good example is in the bank of new Zealand which after just three months of the migration, the project was ahead the schedule and on budget it was able to consolidate its servers and reduce its front end systems data center foot print by 30%.It also had significant cost advantage with approximately 20% ROI expected over the life of the platform. Power reduction leading to carbon neutral achievement: This happened in the Bank of New Zealand with the migration to Linux it made it possible for the reductions of front-end power consumption by 40% meaning their goal of becoming carbon neutral was also achieved. Reduction in carbon dioxide emission: a good example in this is the migration of Bank of New Zealand which has seen it record over 33% reduction in heat output and 39% reduction in carbon dioxide emissions for its front-end systems Advantages of using Linux in banking systems. Linux has a good commercial support-in todays world the three main commercial Linux providers that is Red Hat, Novell and Canonical offer the 24*7*365 support which supports mission-critical applications and business services. Linux has a good Net Support- Novell owns and supports the mono project that maintains NET compatibility. The mono provides businesses with the ability to make a choice and resist vendor lock in. the mono also offers visual studio plug ins so that NET developers can easily translate windows based NET application without changing development tools. UNIX uptimes- Linux is a more stable operating system it offers business owners peace of mind that their applications will not be affected due to operating system

instability. Linux can support 99.999% available service requirements meaning it can reboot after every patch, service pack. Linux is more secure: Linux may not be 100% secure just like any other operating system but it is more secure than the rest. Security is maintained by Linux code which carries out regular updates to an almost daily list of security data. It also makes it possible for users to access every available security fix. In Linux one has worldwide community providing security fixes other than windows which its a single company with closed source code. Linux can run on old hardware: Linux can run on out of date systems meaning for one to use to use Linux or upgrade Linux it does not require to do an expensive hardware overhaul upgrade. Linux runs on *86 32 bit and 64 bit architecture making it cheaper to migrate to than any other operating system. Linux is free: Linux is free of charge it is also free of patents and other restrictions that make it unwieldy for creation business owners who may want to change or edit the source code. It is this ability that has helped create companies like Google who have taken ability and converted it into big businesses. Worldwide community: these means Linux has many worldwide developers who contribute to the source code and security fixes and systems enhancements. The community also offers support business through forums and community sites, hence giving Linux users peace of mind as there is no single point of failure. The Linux foundation: this is a corporate collective of platinum support including fujitsu, Hitachi, Hp, IBM, Intel, NEC, Novell and Oracle. Its members through donations sponsor Linus Torvalds and others who work on Linux full time to promote, protect and standardize Linux. It ensures a continued development of Linux. Regular updates: every Linux distribution offers a regular updates of its packages and source code several times per year and security fixes as needed. It also easy to upgrade and update Linux and the best part is there is no reboot required.

Safer from viruses: Linux has less than a hundred known vires compared to windows which have over a hundred viruses. Linux always requests the user for their password before installing any software hence its hard for the user to install malware and running virus programs.

Linux is not prone to crushes: Linux running under Linux may have uptimes exceeding over a year which means a computer can continuously run over a year without a single crash or reboot.

Disadvantages of using Linux. Lack of compatibility: this happens because many hardware and software publishers see the number of those using Linux as very small, thus you may encounter some incompatibility issues when installing programs or devices like printers. However not all devices are incompatible, and for those that are incompatible that is if two or more of your devices are not supported by a particular version of Linux, install another version which are freely found for downloads. Linux has a different working mechanism: If one is used to windows alone, it may take a while to get used to the way Linux works that is from installing software to running programs, things are a little different in Linux-based systems. One has also to be prepared to type a few new commands as well. However, there are programs within some versions of Linux, such as Ubuntu, which help you to download and install programs with just a few clicks. In fact most people may take up to a week or so get used to using Linux. Linux needs more technical ability: a new Linux user must be trained really well really well to enable them handle the systems well. Alternately, one can hire someone who has experience with Linux. A good Linux administrator needs to be on hand as you start to migrate your systems over. This is a disadvantage financially, at least in the beginning as the it will need training to those who will be running it. Future trends in Linux.

Demand for Runtime Power Management: Linux needs to be ready for the stand alone computer devices with the number of notebooks being sold increasing super proportionally these calls for managing their power consumption so that they run for long amounts of time with the existing, limited energy sources.

One different aspect of power management is that it reduces the amount of heat being generated, prolonging the life cycle of devices, allowing for passive (fan-less) cooling and thus causing less noise. Therefore, power management largely improves the technical usability of devices.

Linux taking over UNIX: Linux continue to take market share from UNIX. This will lead to it fully owning the UNIX as after taking over the shares it will totally out shadow UNIX. Linux will also grab market share from Windows with the increased usage by large firms especially the banking sector.

Overtaking windows in the market share: this has come at a point where many Large Enterprise planning to deploy more Linux servers than Windows servers in the next year and even more in the next 5 years. This will make it more spread out hence many users will opt to try it with the continued campaign.

Features, technical superiority, security and quality are the major drivers of adoption and not lower cost or better TCO anymore.

Customer satisfaction is quite high. Cloud infrastructures: Linux has been very dominant for new developments and deployments on Cloud infrastructures and the brand new Greenfield environment, which is the future. This is a major advantage for Linux over the other operating systems.

Conclusion. Linux has been in use now for more than ten years, and in recent years, it has captured the interest and recognition of businesses as a robust and viable operating environment for many applications. Linux introduction and usage in banking systems has led to a very positive tread in the solving of problems which faced the bank. An example is enabling the banks to

migrate to Linux cheaply with no major costs incurred. This has encouraged various other financial institutions to follow suit. Linux has made it possible for customers to heavily trust the banks to its high end safety that it offers hence the users can have peace of mind on the data stored in Linux run machines. Linux has helped many banks save on hardware upgrading as Linux can work on the available hardwares this makes banks maximize on service delivery while minimizing on expenses. REFERENCES: 1. marcomnext.wordpress.com/2010/10/14/the-...is-bright-for-Linux/ 2. Patterns for e-business. A Strategy For Reuse, by Jonathan Adams, Srinivaskoushik, Gura Vasudera, George Gal ambos, IBM press, 2001,USBN 1931182027. 3. NETWORKING COMPUTING FRAMEWORK COMPONENT GUIDE, SG24-2119. 4. LINUX NETWORK BY TERRY DAWSON. 5. COMPUTER WORLD BY PATRICK THIBODEAUS-IBMS newest mainframe is all Linux. 6. LINUX AND BRANCH BANKING BY BART JACOB, DAVID JANSON, OLIVER MARK, FABIO LMAN 7. http:/www.redhat.com/resourcelibrary/casestudies/bank newzealand_reduces_carbon_footprint_with_redhat_on_the_mainframe(accessed 9;38 am 11/04/2013) 8. http:/www.suse.com/solutions/industry.html 9. features.techworld.com/operatingsystems/3232086/ten_reosons_to_use_linux_over_w indows (accessed 6.36pm 11/04/2013) 10. http:/www.novell.com/docrep/2013/05/halkbank_turkey_success_story_ee.pdf 11. Schleicher Sarah(2007-02-05) using ATMabroad_Travel.TravelTips-msnbn.com.msnbc 12. IBM SOFTWARE-GENERAL-http:/www.ibm.com/software/ 13. IBM SOFTWARE-LINUX - http:/www.ibm.com/software/linux 14. IBM LINUX TECHNOLOGY CENTRE.- http:/oss.software.ibm.com/Linux/ 15. LOTUS DOMINO SOFTWARE http:/www.lotus.com/home.nsi/welcome/domino of at

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