Cloud Modernization and Transformation - Santander Spain Turns to IBM for
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An IDC Customer Spotlight, sponsored by IBM
Santander Spain Turns to IBM for
Cloud Modernization and
Transformation
RESEARCH BY:
Marc DeCastro Steven D’Alfonso
Research Director, Research Director, Compliance, Fraud,
Consumer Banking, IDC and Risk Analytics Strategies, IDC
Jerry Silva
Program Vice President, IDC
January 2021 | IDC Doc. #US47017820
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Navigating this Customer Spotlight
Click on titles or page numbers to navigate to each section.
Cloud Provides Transformational Benefits Leveraging Existing Relationships Is the
and Value for Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Most Important Criteria Used to Select IBM . . . . . . . . . . . . . . 8
Santander Spain Accelerates Cloud Strategy. . . . . . . . . . . . .4 Milestones for a Successful Cloud Conversion. . . . . . . . . . . 9
Despite Hurdles, Improving Overall Customer About the Analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Experience Must Drive Transformation . . . . . . . . . . . . . . . . . . . 5
Message from the Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The Case for Migrating to Public Cloud. . . . . . . . . . . . . . . . . . . 6
Santander Spain’s Most Important Criteria
for Choosing IBM with Red Hat to Lead
Cloud Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
2
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Cloud Provides Transformational Benefits
and Value for Financial Services
Agility and Productivity Customer Experience Security
Improved business agility was The most-cited benefit from Improvements in IT security
reported by 32% of financial cloud has been improving the were realized by 31% of financial
services executives. customer experience: services executives.
38% of financial services executives
Simplification and standardization
said that they had seen an
of IT infrastructure and application
immediate positive impact on the
platforms was realized by 31% of
overall customer experience.
financial services executives.
Getting faster access to the
newest functionality was realized
by 31% of financial services
executives.
Source: WW Industry CloudPath 2020 Survey, IDC, May 2020
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 3
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Santander Spain Accelerates Cloud Strategy
Santander Spain is a leading retail and commercial bank headquartered in Spain with a presence
in core markets in Europe, the U.K., and the Americas. Banco Santander has more than a trillion euros
in total assets, 146 million customers, 11,800 branches, and 194,000 employees.
Project Snapshot
Operational Challenge
Santander Spain, with its own IT organization in charge of developing
applications tailored to Spain, needed to accelerate its journey to
cloud services. “We must be able to leverage customer data
in real time to create valuable customer
Project Duration experiences, for both customers and the bank,
The project has been deployed with a phased approach. Phase 1 while ensuring trust remains the foundation
of our relationship with our customers.”
took three months and ended in July 2020. Phase 2 is anticipated
to be completed in mid-2021. —Ignacio Alvarez, CIO, Santander Spain
Benefits
The project accelerates the journey to hybrid cloud with a special
focus on public cloud migration and operation, capitalizing on
agility, efficiency, reliability, and innovation.
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 4
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Despite Hurdles, Improving Overall Customer
Experience Must Drive Transformation
External Forces for Customer Experience Matters:
Transformation BANK
Only 47% of consumers recently
surveyed felt it was easier to
• Clients demand real-time transactions and instant deal with their bank digitally rather
satisfaction. than in person.
Source: IDC Financial Insights Consumer Banking Channel Preference Survey,
• Data management requires a focus on real-time
August 2020
data streaming.
• Banks are challenged by low-rate environments
and pressures on their balance sheets.
“As a bank we need to move where our
Barriers to Success clients live, i.e., to a real-time world of instant
satisfaction. To ensure customer satisfaction,
• Legacy branch networks require proper strategies we must be able to harness their data in real
of physical and digital. time and transform their customer experience.”
• Regulators and self-imposed policies limit the —Ignacio Alvarez, CIO, Santander Spain
adoption of new technologies like cloud,
especially public cloud.
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 5
Santander Spain Turns to IBM for Cloud Modernization and Transformation
The Case for Migrating to Public Cloud
Banks must master real-time processing and decisioning to provide satisfactory customer experiences.
To meet customer expectations, banks need the right technology that will play a central role in
delivering experiences and maintaining customers’ trust.
Santander’s Approach
Project Go-Cloud, funded entirely by the IT group, was executed
in a two-phase plan:
PHASE 1 PHASE 2
Establish the foundational elements Execute the migration plan to “Everything that we’re developing
of the project, including: transform and migrate the complete needs to be able to work for both
• Automating services on Red Hat OpenShift Santander Spain application our internal cloud and our external
portfolio to the right mix of private cloud in a more transparent
• Automating the software life-cycle tool chain
and public cloud. manner. IBM brought more to
• Designing the internal learning academy the table.”
• Transforming and migrating a select few —Ignacio Alvarez, CIO, Santander Spain
applications to the public cloud to establish
a learning experience and collect data
to help define the company’s migration plan
for all applications
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 6
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Santander Spain’s Most Important Criteria
for Choosing IBM with Red Hat to Lead
Cloud Strategy
Top Three Criteria
Most effective Implementation schedule Vendor exhibits the expertise
1 “out-of-the-box” fit for 2 must align to bank’s 3 to address Santander’s
the challenge strategic milestones specific challenges
Other Important Criteria
“IBM, in tandem with Red Hat, immediately had the expertise we
• Knowledge and understanding of the
needed to address our cloud challenge, and [they] have always
banking industry
been able to implement within our delivery requirements.”
• Reliability and reputation of solution —Ignacio Alvarez, CIO, Santander Spain
proposed
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 7
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Leveraging Existing Relationships Is the
Most Important Criteria Used to Select IBM
Santander’s goal was to automate the software life-cycle production on a platform-as-a-service
model, which was Red Hat OpenShift. While other vendors were considered, including the
bank’s public cloud provider, IBM was a better fit because it brought more to the table around
transformational projects.
Benefits of the Cloud Journey
The top three greatest benefits seen by banks
in their journey to cloud are: “The reason we will continue to use IBM and
Red Hat’s OpenShift is to leverage their expertise
Improved customer experience in application transformation and migration, as
well as their solution knowledge.”
Improved business agility —Ignacio Alvarez, CIO, Santander Spain
Simplified and standardized IT infrastructure
and application platforms
Source: IDC WW Industry CloudPath 2020 Survey, May 2020
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 8
Santander Spain Turns to IBM for Cloud Modernization and Transformation
Milestones for a Successful Cloud Conversion
For developers and development teams, the internal process for establishing a development environment
can be frustrating. The procurement process to set up an environment can be difficult, and a time drain.
Focus on Tangible Results
“Our employees who participated in the project
Santander wanted to ensure it was getting tangible
were motivated and they saw immediate results.
results. One such element was the implementation of the
We, as a bank, were willing to place our bets
self-provisioning portal. The portal allowed developers
even though the ROI wasn’t so clear.”
the ability to set up their own environments in minutes,
—Ignacio Alvarez, CIO, Santander Spain
without human intervention.
PROJECT KEYS:
Translate scope into Create tools that Educate staff by Staff becomes
a set of “tangible” agile teams can use helping them further motivated
deliverables, such as immediately. understand that by seeing their work
real-time self-service the cloud journey implemented and
with end-to-end is foundational. used immediately.
automation.
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 9
Santander Spain Turns to IBM for Cloud Modernization and Transformation
About the Analysts
Steven D’Alfonso
Marc DeCastro Research Director, Jerry Silva
Research Director,
Compliance, Fraud, and Program Vice President, IDC
Consumer Banking, IDC
Risk Analytics Strategies, IDC
Marc DeCastro is Research Director for IDC Steven D’Alfonso is a Research Director with IDC Jerry Silva is Vice President for IDC Financial
Financial Insights, responsible for the consumer Financial Insights, responsible for compliance, Insights, responsible for the global retail banking
banking engagement strategy practice. Marc’s fraud, and risk analytics strategies. His coverage practice. Jerry’s research focuses on technology
core research coverage includes the complete area includes research on technology solutions trends and customer expectations and behaviors
omni-experience journey for the retail customer, aimed at solving key issues facing financial in retail banking worldwide. Jerry draws on over
including branch transformation, digital product institutions around GRC regulations, financial 35 years of experience in the financial services
strategies, and onboarding. Based on his crime, and risk management. industry to cover a variety of topics, from the
background covering the consumer banking back office to customer channels to governance
space, Marc’s research also includes a particular More about Steven D’Alfonso in the technology shops at financial institutions.
emphasis on how consumer trends and habits His work for both institutions and vendors gives
are forming the next generation of products Jerry a broad perspective in technology strategies.
and services that utilize current and emerging
technology. More about Jerry Silva
More about Marc DeCastro
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 10Santander Spain Turns to IBM for Cloud Modernization and Transformation
Message from the Sponsor
Banks are accelerating their transition to cloud computing to nimbly address the evolving
demands of their customers in a secure and compliant environment.
With offering capabilities that include AI, hybrid cloud and world class security, coupled with our deep
financial services industry expertise and global delivery presence, IBM can help you digitize, modernize
and surpass customer expectations. Together, we can help:
• Accelerate your journey to cloud and embrace a digital transformation in banking by modernizing
core systems, applications, processes and ecosystems
• Deepen customer loyalty through exceptional customer experiences driven by the latest data and AI
technology delivered on the cloud
• Optimize risk management, innovation, security and regulatory compliance: IBM Cloud for Financial
Services is the world’s first financial services-ready public cloud to meet the tough cloud computing
and regulatory requirements of banks and financial markets
Learn more at ibm.com/banking
IDC Customer Spotlight, sponsored by IBM
January 2021 | Doc. #US47017820
Table of Contents 11About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events
for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals,
business executives, and the investment community make fact-based decisions on technology purchases and business
strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our
clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media,
research, and events company.
This publication was produced by IDC Custom Solutions. The opinion, analysis, and research results presented herein
are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific
vendor sponsorship is noted. IDC Custom Solutions makes IDC content available in a wide range of formats for
distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about
the licensee.
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