About  the  experience  of  Banco  Santander  with  OSS

November  2014  

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Introduction

About the Grupo Santander activities on Open Source

Conclusions

31 Introduction

GEOGRAPHIC  PRESENCE INFRASTRUCTURE

BRANCHES 14.392

PCs 281.946

POS 495.785

ATMs 39.026

MAINFRAME186.000  MIPS  

4,4  PB

SERVERS +50.000

STORAGE +40  PB

CUSTOMERS:  106  M  EMPLOYEES:  182.958

Some numbers about Banco Santander

4

Ubiquity of Mobility, Social Networks and Internet-of-Things are causing an explosive growth in the generation of data.

1 Introduction

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There is a lot of value that can be extracted from this haystack of data, but its nature has dramatically changed:

• Geo-localization of the user • Places that the user has visited • Shopping information • Places where the user makes the payments • People with whom the user has interacted • Websites that the user has visited • Interests that the user has made public

Data was always important, but its nature has changed:

• Variety: many new sources, specially unstructured data • Velocity: pace of data generation has exploded • Volume: we need to store all this data in order to analyse it

1 Introduction

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With their actions, clients make their data accessible to multiple players (giving apps permissions, posting comments in social networks, using aggregation services like in banking, continuously creating profiles,…)

Affordable massive storage capacity based on cloud infrastructure is available from providers like Amazon, Microsoft, etc

Thanks to Moore’s Law*, powerful computing infrastructure is available to everybody, from start-ups to large corporations

• Note: Moore’s Law applies strictly only to chip density. The equivalent for storage is Kryder's Law, and for data networks Gilder’s Law and Metcalfe's Law.

Moreover, data availability, storage capacity and process capabilities are becoming increasingly less

important as barriers to entry:

Data  availability  

Storage  capacity

Process  capabilities  and  communications

1 Introduction

7

* “The Unreasonable Effectiveness of Data” (2009, P. Norvig et al.) * “The End of Theory: The Data Deluge Makes the Scientific Method Obsolete” (2008, Chris Anderson)

Machine  learning  on  BigData  is  required  for    real-­‐time  reaction  to  customer  behaviour

The shifting nature of data and the lack of barriers of entry make real time approach based on machine learning a must:

Capturing data is not enough. We need to use it for Real time and relevant reactionto customer behaviour:

• A highly data-driven approach for businesses is emerging.

• In some domains, statistical machine learning with enormous amounts of data has beaten traditional methods*

Even a great debate has started: “More Data Beats Better Algorithms?”

1 Introduction

8

We are entering a new era in the history of computing

Nobody produced SW (except the HW providers).

HW became a commodity.

SW became the critical differentiator for businesses.

FuturePast

Focus shifts from transaction execution to Data capture and exploitation.

HW (cloud) and SW (OSS) are becoming critical enablers all together: the key drivers are usability and costs.

1 Introduction

8

ERA of HW ERA of SW ERA of DATA

We are entering a new era in the history of computing

Nobody produced SW (except the HW providers).

HW became a commodity.

SW became the critical differentiator for businesses.

FuturePast

Focus shifts from transaction execution to Data capture and exploitation.

HW (cloud) and SW (OSS) are becoming critical enablers all together: the key drivers are usability and costs.

1 Introduction

9

• The best way to control explosion of SW costs is the use of OSS

• If we add other features of OSS like vendor independence, greater innovation, community collaboration, and control over the evolution of SW

Then

But explosive growth in processing, produces an equal explosive growth in cost of proprietary SW:

Open  Source  Software  (OSS)  is  inevitable  and  a  key  enabler  of  the  Era  of  Data

1 Introduction

103 Introduction

For us, embracing OSS is not about cheaper or free

We shift from vendor-dependence to SW-dependence. This is good, specially for mission-critical SW. We have more choices for SW maintenance and evolution.

It is easier to influence/participate in the strategic evolution of the SW that we use.

It is easier to innovate with a white-box approach (OSS) than with a black-box approach (proprietary SW).

Vendor  independence

Strategic  evolution  of  SW

Open  innovation

Shift from traditional hierarchical SW development structure to a distributed collaborative development culture.

Change  of  internal  development  culture

‹Nº›

Introduction

About the Grupo Santander activities on Open Source

Conclusions

123 About  the  Grupo  Santander  activities  on  Open  Source

OSS external communities We have 4 initiatives

123 About  the  Grupo  Santander  activities  on  Open  Source

1

OSS external communities

Consumption  of  OSS1

We have 4 initiatives

123 About  the  Grupo  Santander  activities  on  Open  Source

1

2

OSS external communities

Consumption  of  OSS

Production  of  OSS

1 2

We have 4 initiatives

123 About  the  Grupo  Santander  activities  on  Open  Source

1

2

OSS external communities

3

Consumption  of  OSS

Production  of  OSS

InnerSource  (internal  OSS)

1 2

3

We have 4 initiatives

123 About  the  Grupo  Santander  activities  on  Open  Source

1

2

4

OSS external communities

3

Consumption  of  OSS

Production  of  OSS

InnerSource  (internal  OSS)

Observatory  of    OSS

1 2

3

We have 4 initiatives

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Kosmos a PMF tool

Kid a PMF tool

eureka

Operation Services

3 About  the  Grupo  Santander  activities  on  Open  Source

We have several Open Source initiatives developed internally in different stages of maturity…

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WE  ARE  PROUDLY  SPONSORING  SOME  PROJECTS…

…AND  GIVING  BACK  TO  THE  COMMUNITY

3 About  the  Grupo  Santander  activities  on  Open  Source

…and external involvement too…

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WHERE  WE  ARE  RUNNING  SEVERAL  APPLIED-­‐RESEARCH  PROJECTS

IS  AN  AGREEMENT  WITH

3 About  the  Grupo  Santander  activities  on  Open  Source

…and we have an open innovation collaboration with universities…

…with ambitious long-term objectives…

163 About  the  Grupo  Santander  activities  on  Open  Source

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CREATION  OF  AN  OPEN  PUBLIC-­‐PRIVATE  INNOVATION  ECOSYSTEM  FOR  THE  DEVELOPMENT  AND  PROMOTION  OF  “TECHNOLOGIES  FOR  THE  DIGITAL  BUSINESS”

• Promote the development and market introduction of technology, systems, services and applications for the new digital economy in an Open Source Software model

• Test and validate new business models associated to Open Ecosystems and Open Source Software

• Joint participation in international research programs with emphasis on the Public-Private Partnership model (eg. EU Horizon 2020)

• Improve the competences and skills of all the people participating in the ecosystem, specially of students graduating from the participating universities.

3 About  the  Grupo  Santander  activities  on  Open  Source

…with ambitious long-term objectives…

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Introduction

About the relevance of Open Source worldwide

About the Grupo Santander activities on Open Source

Conclusions

194 Conclusions    Take  home  messages

• Open Source Software is a critical enabler for the new Era of Data

• Europe has to aggressively promote pan-european Public-Private Partnerships around OSS and new business models for the Digital Economy

• This is critical to compete with USA (Amazon, Google, Apple,…) and Asia (Alibaba,…) in the number and size of digital innovative companies

• Banco Santander is willing to participate actively on such ambitious initiatives