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>> Hey, we're back with Azure in the Enterprise. Today, I have with me Humberto Tinoco who's part of our team in Latin America that is doing some really good work around our bank customers. Humberto, nice to see you. >> Nice to see you, Lyle. Thank you for having us here, giving the opportunity to share our experiences. >> Awesome. So you're going to walk us through the overview of what the team did at the bank here, and then set up some follow-on episodes, right? >> Yeah, that's correct. So the idea of this, it will be a series of four clips including this one, and the idea is to share real-world hands-on best practices. What we have seen on the field, bags of best practices, easy to understand and easy to apply when the teams are actually executing the project. >> Awesome. So let's go ahead and get right into it. >> Yeah, so a little bit of context. This is some of the challenges where the banks face today. They're moving from developing products and then one product fits all, and that's driven by an organization based on silos, and from the technical side of the house, that means monolithic systems; difficult to optimize and really not cost-efficient. So that's the challenges that banks are going through. Moving to a customer-centric experience where the costumer has hyper-personalized customer experiences. That implies breaking down those operation silos as well as those monolithic systems, and moving into and embrace the API economy. We're going to talk about a little bit more of what the API economy means, but short impact for the banks means they no longer have control of the end-to-end experience. They have to open up through APIs, through third parties to deliver and provide value to the costumer, and that's where the innovation really happen, when you open up to an API economy. We're going to talk about that in a little bit. Now, for the sake of keep it simple and focused, we decided not to talk about banking industry in general, but with one customer in mind, we wanted to share the experience of one specific customer without mentioning any names. So this specific customer wanted to reduce the use of cash while focused on delivering customer-centric experiences. For that, they decided to develop a mobile banking platform that had the following business restrictions or business requirements. Again, this is a specific customer, but I think it could apply to many other customers in the banking industry as well. So one of the business requirements was to speed up the process; agile, from two-years type developing cycle to 16 weeks, three months developing cycle. That's aggressive and that is only imaginable and doable through the current technologies and know-how that we have such as Cloud services. On the other hand, and this is part of the legacy world, banks, in general, have fairly large, complex, monolithic as well managed services contracts. Usually, those are fixed-cost, very large fixed cost. In this specific case, it means $100 million per year contracts on services. They want to reduce this by 70 percent in three years, 2022, but we started last year. That's aggressive, but again, that's the possibilities that are doable within the new Cloud-native world. By doing that, they want to really become an innovation benchmark in their market, innovation leader in their market, so that they can reach out for younger audiences, bring them to their portfolio, do cross-selling, and provide those customer-centric experiences. Now, on the other hand, I know you must be thinking, "Okay by doing that, a lot of things need to change on the technical side." The requirements, for the sake of keeping it simple, were as simple as integrating with core banking systems at the backend. I know this is not an easy task to do. This is very hard, especially in organizations that have been in monolithic development for so many years. So that was, of course, one of the first requirements. Whatever we're going to do, we need to leverage our customers' information, other systems that we have, and so on. So integration to the backend. On the other hand is embrace the open banking model. If core banking integration means going to the backend, open banking model means embracing integration to the front end and beyond their systems. >> To other banks, to other regulatory systems, to other consumer systems. >> Exactly. So this means what I mentioned before, API economy. So you no longer need to think of, "I'm going to develop a product, and I just need to integrate these new thing to my previous thing, and that's it." In this new model, you have to do that, but also you need to think of third-party services providers that could actually drive innovation that you no longer own or control. However, you are ready to connect to those potential new business models. That's the API economy and for the banking means this thing, open banking model, and that's API management 101. So that's the other technical requirement. Now, when you think of that, you are really putting a stress on security and compliance; thus, you still have to comply with the usual suspects, [inaudible] , this specific customer data sovereignty. You still have to comply with that, but you have to make it highly secure because you don't control third-party provider across the value chain. So that's a little bit of the specific project that we will use to guide you guys through the following series of clips. Now, what are we going to to go through? After this clip, we wanted to use a, let's say a baseline, to go over the different clips. So we're going to have three clips. On the following clip, the first hands-on clip, we're going to address the planning of a project. I know planning is, of course, that's the first thing you have to do when you start a project. Everybody knows that, so why are we spending time on talking about planning? One of the reasons why it's important to talk about it and actually do the planning, because when you start a project, you don't start from zero, like, "All right, you come to an agreement with the customer and next Monday, we're going to kick off the project. First thing on Monday, we're going to do planning." That's not how I usually things happen in real life. By the time you actually start a project, you have already gone through several meetings, several potential planning meetings, POCs, pilots, testing, demos, and so on, so by the time you actually start the project, you may feel that you already know what their requirement is. The customer may feel that they have already told you everything about them and their situation. However, it's important to spend time and say, "All right, we've known each other for a while, but we should start from the beginning." However, we don't feel that this is the beginning. We should formalize the kickoff. What I mean by that, and this is something that we will see further detail during the following clip, is tackle some of the most basic things like doing cluster sizing, networking architecture. That's basic stuff, but it needs that moment to do that during the project, define a set of governance practices. Especially when you're talking about API economy, you need to set up those government principles and write them down. The following clip, we're going to go deep into that with the specifics. Again, nothing you will find in a book. It's hands-on practice, real life; very focused on honest best practices. The following clip, once you have planned for the project, you have to plan for scale-up and high availability, so going secure and going big, and that's what the clip number 2 will talk about on farther detail; talking about multiple regions, image registry, high availability scenarios. Again, this is possible only through a Cloud-native architecture. So we're going to talk about how to make it big and how to make it secure. Then for the sake of keeping it simple, again, we just would say on your baseline for an ongoing project, for the sake of the videos, let's think that you will jump into a happy development. We're oversimplifying this, but you're going to go through the actual execution of the project. Then we wanted to focus on some of the things that, again, it may sound obvious, but when you are done developing a face of your project and you feel that the team has achieved a milestone, we all want to go out for a drink. We want to go out, celebrate, and relax. However, before you do that, there's something else that you have to think about, which is, again, a little bit of best practice. We want to keep it simple, but what we don't want to forget about doing this thing. That's where the third and last clip of the technical series will talk about. We're going to talk about risk management and governance. How do we make sure that we keep it ready for the future? When you are working with Kubernetes, AKS, APIs, once you feel you are ready to celebrate, that you just delivered the project, that's when your project will start becoming obsolete. If you think that that project is becoming obsolete, you will feel the need of planning for the future. That's what the left clip is focused on, planning for the future. If we were talking physics terms, that would be the speed of light. In terms of technology, it means the ecosystem's speed of light. Everybody is innovating, and your system may be missing that innovation already. As you know, AKS supports current version plus two. That means if you have a window of support about a little over a year, and that's why you have to plan for the future, how are you going to implement a process that ensures that you keep up-to-date with support and within compliance. That's very important. We're always tempted to use the latest and greatest gadget that's out there, but that may not comply so you have to set the governance and compliance procedures to ensure that whatever we're incorporating to our development complies. That's it. Basically, those are the series of four clips, including this one. I hope you enjoy them, and you get the most value out of them. Thank you. >> Well, yes, Humberto, I think this will be a lot of what I'm looking forward to see in the next clips, and the team coming back and talking about the next customer after that. >> Sure thing. Thank you again, Lyle. >> Have a great day. >> Thank you.