JP Morgan Data Center Technology Town Hall 2008 John Napier.

1. Global Technology Infrastructure
Data Center Technologies Town Hall
January 30th, 2008
v1.0F

2. Agenda
Agenda Topic
Presenter
Time

Welcome
John Napier
5 minutes

2008 DCT Game Plan
John Napier
10 minutes

Data Center Operations
Mike Gotimer
10 minutes

Enterprise Computing Services
Doug Rennie
10 minutes

Regional Management - EMEA
Andy Maxey
10 minutes

Architecture / Infrastructure Technology
Management
Adam Richards /
Otto Noack
5 minutes

Business Management / Risk & Resiliency
David Johnson
5 minutes

2008 DCT Promotions & Recent Appointments
John Napier
10 minutes

Questions & Answers
--
25 minutes
Data Center Technologies
2

3. January 2008 DCT Townhall
Welcome
&
Review of Firm’s ’07
Results
John Napier
Data Center Technologies
3

4. Review of 2007 Financial Highlights
2007 Full Year Financial Highlights

Record earnings of $15.4B on record revenue of $74.8B

Record EPS of $4.38 up 15% from 2006 on continuing operations

Return on tangible common equity of 23%

Total credit reserve increased by $2.3B to $10.1B



Wholesale credit reserve strengthened by $769MM to $4.0B; 1.67% of loans
Consumer credit reserve strengthened by $1.5B to $6.1B or 2.01% of loans
Maintained strong Tier 1 capital ratio of 8.4% (estimated)
4Q07 Financial Highlights

Earnings of $3.0B on revenue of $18.3B

EPS of $0.86, down 21% from 4Q06 on continuing operations
Data Center Technologies
4

5. FY 2007 Managed Results
Data Center Technologies
5

6. 4Q’07 Managed Results
Data Center Technologies
6

7. January 2008 DCT Townhall
2008
DCT Game Plan
John Napier
Data Center Technologies
7

8. 2008 Key DCT Themes & Financial Goals
Themes
Themes



Increased standardisation across products and processes
Significantly reduce problems and improve/automate technology resiliency/failover
Innovate with new technology & scale-up (Carlstadt, Belleville, Sydney, Site
Consolidations, MF2010)




Optimisation of assets and automation
Drive increase in efficiency, utilising automation and faster cycle times (i.e. server
installs) with improved quality of end-to-end process
Reduce cost and maintain focus on quality and control
Continued excellence in people development, diversity, skill acquisition, and
reward/recognition
Financials
Financials
Data Center Technologies
8

9. 2008 Key DCT Metrics
Service Delivery
’07
Baseline
’08
Target

Reduce P1S1 Volume by 20%
41
33

Reduce P2/P3 Volume by 30%
--
30%

Improve ATTR (P1S1s) – mins.

Improve Production Change
Success
119
90
(‘07 avg)
(by Q4)
99.77%

ECS: Somerset Exit, MF2010, SBPlex
Resiliency
 DCO: Carlstadt, Belleville, Sydney,
TPrime
 SDCM: 4,000 Servers Migrated, 7 DCs
exited
 Asset Optimisation, Sustainability and
Utilisation
 Establish Merger Playbook

’08
Target
On
time,
within
Budget
and
within
scope
’08
Target
People Development
Monthly & Full-year Budget Actuals to
Plan Variance
+/-3%

Drive an average of 20-40 hrs of
appropriate Training to DCT Employees
80%
Close Financial Plan Gap to Target
$33MM

Deliver Metrics Training to DCT
Employees
50%

Goals, Development Plans, and Direct &
Actionable Mid-year / Year-end Reviews
Completed
100%
Financials / Controls

99.85%
Project Execution

CSAs/SOX/Risk Action Plans completed
on time (original date pre-extensions)

Internal/External Audit (inclu. SAS70s)
issues identified during prior CSA/SOX
testing
95%
95%
Data Center Technologies
’08
Target
9

10. January 2008 DCT Townhall
Data Center
Operations
Mike Gotimer
Data Center Technologies
10

11. 2008 Key Themes & Financial Goals – DCO
Themes
Themes






Project Execution: Builds - Carlstadt, Belleville, 340 McCoy, NOCV, MCC, CDC Restack;
7 Exits, 2,200 SDCM Migrations, 1 Workflow Toolset Prime, 1 DCO Monthly Report
Controls: T+1 Tape Handling with <1% internal break rate, 1 Tape Tracking System
(ETRS) with a continuation of C2B, R2C Phase II/III and the Failed Drive Program
Focus on RSO Locations: migration to strategic DC’s over 2,200 servers, 300+ sites
People Development via Skills Assessment and Rotational Assignments
DC Sustainability and the Syracuse DC Working LAB Programs
Focus on Project Mgmt and Key Metrics leading to staff reallocation and saves
Financials
Financials
Data Center Technologies
11

12. 2008 DCO Project Execution
Data Center Builds
Q1’08
Q2’08
Q3’08
Q4’08
Aug 15: Belleville
Production Ready
(65K sq.ft.)
June 30: NOC5
Production Ready
(2 Containers)
Sep 2: Carlstadt
Production Ready
(120K sq.ft)
Jul 15: 340 McCoy
Production Ready
(4 Containers)
3CMC Media Bunker:
Tape Migration
Complete
TPrime Rollout
Strategic Data Center
Migrations
1201 N. Market (DE) Exit
4NYP 7th Flr. Exit
IBM North Harbour
(UK) Exit
1111 Fannin 9th Flr. Exit
73 Tremont Exit
10 Aldermanbury (UK) Exit
London Wall (UK) Exit
Data Center Technologies
12

13. 2008 DCO Service Stability Plan
DCO Service Stability Plan

Improve Customer Experience with the installation of PRIME - globally





Enhance Capacity Management Metrics




Enhance metrics to allow more detailed view of demand trending (historical, forecast, and
actual PRIME’s) vs. power/space/rack unit capacity
Working with CREGS – enhance allocated to actual metrics to demonstrate use of built data
DCS reporting on server utilization & mapped to power allocation to ensure sweating of assets
Reduce Control Issues and Improve Operations of RSO Locations




One Toolset, One Process
Define & track exceptions on ‘hard demand’ submission within 90 days (partnering w/ ICP)
Based on 2007 end to end review, the target for rack mounted install will move to 10 days
Track delivery to commitments made for custom/free standing installations
CSA for all DC and RSO sites under management with improvement programs
Apply consistent processes across all sites and expand to LOB managed sites
Drive the migration of work out of RSO sites and into strategic sites
Implement the Core 2 Bunker and Remote 2 Core Program – Phase II/III



Reduce risks of lost data
Speed the delivery of restoring data
Continue Failed disk and shredding program
Data Center Technologies
13

14. 2008 Key Metrics – DCO
’08
Target
Service Delivery

Accuracy of Install/Decom. Demand
Volume to Forecast
95%
Accuracy of Install/Decom. Demand - %
Forecast submitted
’08
Target
95%
Reduce Problem Tickets via analysis,
preventative programs & elimination
Project Execution

10%

Improve average number of days to
install a server

Reduce Third Party Vendor obligations
associated with Tape

Realize reduced expenses associated
with Site Consolidations
100%

Exit 7 Data Centers in 2008
100%
Execute on the forecasted 2,200
migrations to support DC strategy
100%
10 Days
’08
Target
Financials / Controls
Deliver 2008 Planned Data Center
Builds: 200,000+ Raised Sq. ft.



People Development
’08
Target
15%

Complete skills assessment & target
individual programs for staff
80%
$12+MM

Job Rotations
10%
Data Center Technologies
14

15. January 2008 DCT Townhall
Enterprise
Computing Services
Doug Rennie
Data Center Technologies
15

16. 2008 Key Themes & Financial Goals – ECS
Themes
Themes

Service Delivery Improvement to the Business

Key Program Management Execution (Somerset Exit, North Harbour Exit, MF2010,
Software Rationalization Program, iSeries Consolidation)

Efficiency Agenda (Resource Strategy, Demand Reduction with LoBs)

Product Governance and Financial Transparency
Financials
Financials
Data Center Technologies
16

17. 2008 ECS Project Execution
Evergreen
Software
Rationalization
Program
Consolidations
LOB Events
Q1’08
ER207B ‘Go-Live’
Q2’08
Q3’08
Q4’08
ER108 ‘Go-Live’
Collegiate Funding
‘Go-Live’
PB Rehost
Complete
IWP: STAR ‘Go-Live’
Vision Drive Tape
Media Clean up
HP OpenVMS Site
Consolidation: ‘Go-Live’
HP OpenVMS IDSS-G
‘Go-Live’
Somerset HP Decom.
Complete
Convert BMC
AutoOperator
to IBM SA/ZOS
Somerset: ECS
Equipment
Install
Complete
Cast Manager Stratus:
Decom. Complete
HP OpenVMS Site
Consolidations: Ph2 ‘Go-Live’
MOBIUS US Exit
Convert
BMC
Mainview
Monitors to
Omegamon
BMC Data Accelerator
to IBM SMS
CMCz Production
Cutover
CHF: z/OS 1.7
Upgrades Complete
MR2-07 Implementations
File App. Server:
Implement Perf.
Application on
OVMS System
Somerset Mainframe
Migration ‘Go-Live’
Diversified JobScan
Conversion to CAJCLCheck
Somerset Site Exit
Automon/RDO
to ASG CATS
Conversion
Compuware Exit
Network: Remediate
HODS
MR1-08 Implementations
Network: Remediate
3745s, SNAsw
Data Center Technologies
17

18. 2008 ECS Service Improvement Plan
ECS Service Improvement Plan

Service Delivery Improvement will be ECS’s #1 Objective

A formal program structure is being established & will be led by Barry
Scheetz and Mary Kropczynski

Goal of program is to significantly improve service delivery to the
businesses by reducing P1S1s, MTTR, & Customer Impacts

Implementation items will be cross-ECS to ensure consistency and
effectiveness of execution

Program deliverables to be communicated in February
Data Center Technologies
18

19. 2008 Key Metrics – ECS
Service Delivery
’07
Baseline
’08
Target
987K
691K

Reduce # of External Customer
Impacts

Reduce P1S1 Volume by 20%
37
30

Reduce P1S2 Volume by 20%
14
11
Project Execution
’08
Target

Key Projects completed on time and on
budget
90%

Project Governance - Projects w/
monthly governance meetings
100%

PM Feedback – Projects w/ survey
responses
100%
’08
Target
People Development
Monthly & Full-year Budget Actuals to
Plan Variance
+/-3%


Recover all Products on a full year basis
100%

Risk Action Plans closed on or before
original due date
90%
Financials / Controls


’08
Target
Goals, Development Plans, and Direct
& Actionable Mid-year / Year-end
Reviews Completed
100%
FTEs engaged in zUniversity program
4
Data Center Technologies
19

20. January 2008 DCT Townhall
Regional
Management:
EMEA
Andy Maxey
Data Center Technologies
20

21. 2008 Key Themes & Financial Goals - DCT EMEA
Themes
Themes








Improve the stability, resiliency and predictability of service delivery; inclu. 24X7 onsite
support for all UK Data Centres
Exit of North Harbour DC and build out of in-house Tape Bunker at Basingstoke
Consolidation to new i570/DS8300 environment & deployment of z/Linux
Roll out integrated TPrime toolset under ITAM
SDCM: decommissioning & removal of 973 servers, install 420 servers & forklift 285 servers
Software Rationalisation and Standardisation
DC Optimization: instigate best-in-class power efficiency ratings across data centers
Evergreen Deployments: z/OS, Adabas, MQ, CA-Spool, NDM, XCOM, CICS Web, NPP, etc.
Financials
Financials
Data Center Technologies
21

22. 2008 EMEA Project Execution
Q1’08
Q2’08
Q3’08
Q4’08
DCO
24 x 7
Support
SDCM
Media
Library
Basingstoke Media Library
Construction Complete
North Harbour
Application Exit
Complete
Media Movement
Complete
10 Aldermanbury
Application Exit Complete
London Wall Application
Exit Complete
24 x 7 Live
33% Staff Accredited
66% Staff Accredited
Site Ready
iSeries
z/Linux
North Harbour Exited
Omegamon z/OS and
CICS Live
SRS &
SM/SA
NHBR
ECS
iSeries
Infrastructure
Ready
TADDM Deployed
North Harbour
Exited
Production Ready Status
VPS, $AVRS, and
ViewDirect Migrated
Omegamon MQ, DB2
and Networks Live
Refresh Complete
Omegamon, MQ, and NDM
Production Deployments
Commence
Data Center Technologies
22

23. 2008 Key Metrics - DCT EMEA
Service Delivery
’07
Baseline
’08
Target
Project Execution
’08
Target

Reduction of Problem Tickets
by 20% (no more than 12 P1Sx)
2,961
2,369

North Harbour Exit (application)
6/08

Improve ATTR (P1S1s) by 30% Mins.
278
195

Basingstoke Media Library
7/08

Improve Production Change
Success
99.7%
99.85%

iSeries Consolidation/Migration
11/08
’08
Target
Financials / Controls

Deliver on Regional EMEA Productivity
$5MM

Plan Reduction Target
(BAU & Initiatives)
>$5MM
People Development
’08
Target

Objectives and Development Plans in
PMC & agreed by end of February
100%

All Staff to have Two Appraisal Reviews
100%
Data Center Technologies
23

24. January 2008 DCT Townhall
Architecture /
Infrastructure
Technology Management
Adam Richards / Otto Noack
Data Center Technologies
24

25. 2008 Key Themes – Architecture / ITM
Themes --Architecture
Themes Architecture







Leadership role for the GTI architecture forum (AF)
Leverage the strategic technology themes to produce an integrated, multi-year GTI
technology plan
Facilitate cross-tower architectural planning; produce reference architecture designs
Advise the GTI management team on project/investment prioritization
Engage the firm-wide AB to ensure alignment with LoB requirements
Engage the EB to turn architecture designs into engineered solutions
Cultivate relationships with key technology suppliers; influence product development
Themes --ITM
Themes ITM






Continue to provide basic infrastructure technology governance
Renovate the Engineering Board: membership, meeting format and content, focus
Commitment to develop enterprise-wide solutions: focus areas determined on 2/27
Drive cost/energy efficiencies through the Optimization steering committee
Host EB technology briefing series: timely, relevant topics by industry leaders
Innovation leadership: IT industry research
Data Center Technologies
25

26. January 2008 DCT Townhall
Business
Management /
Risk & Resiliency
David Johnson
Data Center Technologies
26

27. 2008 Business Management / Risk & Resiliency Themes & Metrics
Themes
Metrics
’08
Target



Business
Management





Risk &
Resiliency


Enhance DCT metrics to include
predictive/projected modeling
Implement a Balance Scorecard for DCT
Optimise the Global Business
Management Agenda to deliver efficient
products and services
Market, internally and externally, the
successes of and the challenges overcome
by the DCT organisation
Maintain fundamental control and risk
focus for operations (CSA, SOX)
Improve accuracy of action plan timeline
to close issues (Audit, CSA, SOX)
Ensure all projects are built in
compliance with all IT Risk policies and
standards (Secure from the Start)
Perform operation and control
threats/vulnerability assessments and
deep dive risk reviews
Implement risk monitoring utilities (ESM)
and remediate exceptions
Monthly effort and cost efficiency
coverage
>90%

Monthly and End of year resource
actuals versus forecast/plan
<1%/2%

Delivery on new productivity
$20MM

Execute on communication events
across DCT, within group and
region (completed)
>90%

CSA/SOX tests, in all cycles,
completed on-time
100%

Action plans completed on/before
their original due date
>95%

Pre-identification of issues raised
by non-DCT reviews
>95%

Open SOX SAD items by the end of
2008
0

Major projects assessed against
SFTS by 4Q’08
Data Center Technologies
100%
27

28. 2008 DCT VP & Associate Promotions
Vice President
DCO










ECS
Matthew Aldridge
Thomas Farruggia
Bernard George
Donald Hunker
Robert Jones
Jeff Lang
Paul Mason
Laila Sholy
Michael Trakan
Darryl Wylie








Patrick Androsik
Joseph Franze
Clifford Gerber
Douglas Greenleaf
Martin Hastings
Sherill Holston Jr.
Robert Husted
Dave McFadden
SDCM
Anthony J Montera
Jeffrey Osick
Stephen Rees
James Schleter
Thomas Skeen
Mohammed Khalil
Ullah
 Joseph Varanelli






 Jill Alves
 Sandi Robbins
Associate
DCO






Jereme Buuck
Gary Chapman
Kimberly Delaney
Mark De Villiers
Michael Murdoch
John Oliver






ECS
Shaikh Qadeer
Tyler Rigby
Cynthia Smith
Terrence Vickers
James White
Robert Wilkerson







Babar Ahmad
Simon Casey
Sandra Hague
Catherine Hall
Nathaniel Hurley
Octavia Ratliff
Jason Warner
Data Center Technologies
28

29. 2008 Key Appointments
Welcome Sunil Khatri -- new head of
Data Center Technologies, Asia
Pacific effective February 1, 2008.
Data Center Technologies
29

30. 2008 DCT People Agenda Calendar
Data Center Technologies
30

31. January 2008 DCT Townhall
Q&A
Data Center Technologies
31