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DemoBank's Hybrid Cloud Modernization

Key Points

  • DemoBank launched a modernization initiative to adopt a microservices‑based, cloud‑native architecture, enabling rapid delivery of new digital features such as a virtual assistant that integrates AI, weather, and traffic data.
  • To stay competitive against the fast‑growing rival AnyBank, CIO Amy prioritized a suite of online services—including mobile check deposit and face‑ID login—while maintaining legacy back‑end data on‑premises in a hybrid environment.
  • The bank leveraged IBM Cloud Pak for Multicloud Management to extend its application across multiple public clouds, preserving compliance and centralizing governance across the hybrid landscape.
  • Throughout the migration and future production rollout, stringent security, policy enforcement, and regulatory compliance were emphasized as critical safeguards against data breaches and potential brand damage.

Full Transcript

# DemoBank's Hybrid Cloud Modernization **Source:** [https://www.youtube.com/watch?v=aH4nz3mQIng](https://www.youtube.com/watch?v=aH4nz3mQIng) **Duration:** 00:05:49 ## Summary - DemoBank launched a modernization initiative to adopt a microservices‑based, cloud‑native architecture, enabling rapid delivery of new digital features such as a virtual assistant that integrates AI, weather, and traffic data. - To stay competitive against the fast‑growing rival AnyBank, CIO Amy prioritized a suite of online services—including mobile check deposit and face‑ID login—while maintaining legacy back‑end data on‑premises in a hybrid environment. - The bank leveraged IBM Cloud Pak for Multicloud Management to extend its application across multiple public clouds, preserving compliance and centralizing governance across the hybrid landscape. - Throughout the migration and future production rollout, stringent security, policy enforcement, and regulatory compliance were emphasized as critical safeguards against data breaches and potential brand damage. ## Sections - [00:00:00](https://www.youtube.com/watch?v=aH4nz3mQIng&t=0s) **DemoBank's Modernization and Competitive Push** - DemoBank revamped its mobile app with microservices and a cloud‑based virtual assistant using IBM Cloud Pak for Multicloud Management to regain market share against the agile competitor AnyBank, as CIO Amy drives a new suite of online features. - [00:03:12](https://www.youtube.com/watch?v=aH4nz3mQIng&t=192s) **Multicloud Compliance Gap Uncovered** - DemoBank's SRE team discovers inconsistent Kubernetes network security policies between public and on‑premises clouds, creating a compliance breach and highlighting the need for automated monitoring and remediation. ## Full Transcript
0:00DemoBank is a fictitious banking institution 0:03with a rather ordinary mobile application. 0:06A year ago they decided to embark 0:08on a modernization journey 0:10and get more innovative with a microservices-based architecture. 0:14The purpose of this was to allow their developers 0:16to rapidly deliver new features to the market. 0:19The first such new feature was a virtual assistant, 0:22which uses public cloud services 0:24including artificial intelligence, weather, and traffic 0:27to help their clients with directions to the closest no-fee ATM 0:31or updates to branch hours based on weather events. 0:35The application update was a huge market success 0:38and DemoBank was able to gain market share. 0:41They were able to extend their application architecture to multicloud, 0:44while maintaining their compliance, 0:47thanks to the IBM Cloud Pak for Multicloud Management. 0:50Let's dig a little bit more into how they did that 0:53and how they came to that decision. 0:55DemoBank has been an industry leader for a long time 0:58but has recently seen consistent declines in market share. 1:02While a new competitor, AnyBank, 1:03has attracted a lot of DemoBank's existing, 1:06and future, customers. 1:07A strong package of online services, 1:10including banking anywhere 1:12and mobile banking features, 1:14has driven the competitor's success. 1:16And Amy, DemoBank's CIO, 1:18is under the gun to deliver competing services 1:20that will help gain, and retain, customers. 1:23Amy has outlined a new suite of online features 1:26for the development team to build 1:28in order to compete, including a virtual assistant, 1:31mobile check depositing, 1:32and face ID recognition for login. 1:35DemoBank's CIO knows that developing and deploying these new features 1:38using cloud-native architecture 1:40is the best way to compete and continue to innovate 1:43by boosting cross-application reuse of services. 1:46The first step is for DemoBank to modernize 1:49some of its existing application components 1:51and move them to a public cloud. 1:54And while this migration is taking place, 1:56they must continue to keep backend data, 1:59such as account numbers and other sensitive data, 2:01on-premises in their data center 2:03and ensure that they can manage the whole environment 2:06efficiently and securely. 2:08Innovation is the key to winning 2:10and building cloud-native, 2:11while running workloads in a hybrid environment, 2:13offers the speed to market that 2:15DemoBank needs to stay competitive. 2:17But modernization, of course, comes with risk, 2:21especially in the financial industry. 2:24Policy enforcement is critical 2:26with so much sensitive data 2:28and security breaches are always a threat. 2:30DemoBank must ensure its new IT environment 2:33is completely secure and in full compliance 2:36with both its industry regulations 2:37and its enterprise policies. 2:39If any of this is compromised, 2:41it could mean millions of dollars lost 2:43and a tarnished brand image. 2:45Security, governance, and compliance 2:47will be extremely important 2:48over the course of DemoBank's development project 2:51and will continue to be so 2:52once the applications are deployed to production. 2:55Let's take a look at the perspective of Amy, the CIO, 2:59as the decision was made to go forward with this project. 3:02In the pitch meeting, 3:04DemoBank's chief information security officer says, 3:07"Hold on. Remember when FailedBank 3:09tried to do something in public cloud 3:11and exposed sensitive data? 3:12They almost went out of business 3:14from the fines and loss of customers." 3:16DemoBank CEO's responded, 3:18"This is true, but we can't afford to remain idle. 3:22We need to find a way that we can both 3:24embrace new technology and new routes to market 3:26while staying on top of compliance and risk." 3:29As the CIO, 3:31Amy has to think about what it means to her IT operations team 3:34and her SRE teams. 3:36The operations manager, or SREs, 3:38need security and governments within their private 3:41and public clouds. 3:43The project is underway. 3:44It's up to DemoBank's SRE team to ensure 3:47that the enterprises policies are enforced 3:49and compliance requirements are being met 3:51across all cloud and on-premises resources. 3:55The developers deliver the first release 3:58and it is deployed to production. 4:00At first glance, everything looks green 4:01and everything looks good in the environment. 4:04When they dig a little bit deeper, 4:05they notice a glaring security problem 4:08that could affect the integrity of their compliance. 4:11The Kubernetes network security policy 4:13on the public cloud services 4:14is not set the same as it is on-premises 4:17in their production environment. 4:19At this point, there's no automated function 4:21to predict or to remediate that problem. 4:24DemoBank now has a gap in its compliance status 4:27and customer data may be at risk. 4:29Without a proactive way to monitor their multicloud environment, 4:33DemoBank can't effectively know 4:35the health of the environment, 4:37nor have a way to remediate any incidents that could arise 4:41as they move applications across clouds. 4:44When DemoBank adopted 4:46the IBM Cloud Pak for Multicloud Management, 4:48they leveraged security policies to enforce 4:51the network security settings for their production environments. 4:54Even when a developer changed the setting 4:57to a noncompliant setting, 5:00the policy engine automatically fixed it 5:02and notified central IT. 5:05Once they adopted the Cloud Pak 5:06as a single control plane for their multicloud applications, 5:09the whole C-suite for DemoBank 5:11could now sleep better at night, 5:13development teams could develop more securely, 5:15operations teams could manage more securely, 5:18- all while keeping up with the breakneck pace of innovation. 5:21In this scenario, 5:23you've seen how the fictitious bank, DemoBank, 5:26was able to drive innovation 5:28while maintaining security 5:31by using the IBM Cloud Pak for Multicloud Management 5:34as their control plane for multicloud resources. 5:38Thank you for watching this video. 5:40To learn more, check out the next video in the series 5:43where you can learn how the IBM Cloud Pak for Multicloud Management 5:45can help you with all of your multicloud 5:47governance, risk, and security needs.