Subscribe to CIO Magazine »

NAB private Cloud builds new paradigm: Part 3

Unchartered waters a challenge for core banking platform
NAB private Cloud builds new paradigm: Part 3

Unchartered waters a challenge for core banking platform

The development of a greenfield private Cloud is facilitating NAB’s IT revolution, but compared with more traditional banking platforms the new technologies may not be without challenges.

Delays in transaction processing has left workers across Australia without pay after a the fault crashed its payments system. The bank issued a media statement on Friday April 15 saying it was working to rectify the matter.

The meltdown is the second in less than six months; in November last year the bank was struck with technical problems resulting in delayed transaction processing. A few weeks later CEO, Cameron Clyne, said the problem was related to batch processing systems and a combination of factors, including a software change dating back to 2001.

Clyne said the problems validated the decision to move to a new core banking platform, but NAB may not escape technical challenges so easily. Sources familiar with NAB’s operations told CIO Oracle’s new banking Cloud is essentially an “untested platform”.

There have been several issues with UBank to the extent of having to reboot the platforms to keep them running. That said, apparently the problems exist across NAB’s mainframe and Oracle environments, as evidenced by the recent outages.

With NAB’s outsourcing and offshoring activities, the problems may be more closely related to skills dilution than the technology itself, according to the source.

The are concerns offshoring to India and the recent IBM outsourcing deal have watered down in-house skills at the bank. It means problems that would have been caught are slipping through — including standard tasks relating to database administration and systems management.

In another sign support is overwhelmed, lower-order issues are being escalated “in order to get something done about them”.

Another source close to the bank told CIO Oracle Enterprise Linux is now more prevalent at the NAB than Red Hat Enterprise Linux, but no decision has been made on whether to use Oracle or Red Hat as the standard server platform.

[ Read Part I of NAB's private Cloud journey at CIO ]

[ Read Part II of NAB's private Cloud journey at CIO ]

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: AB, IBM, IBM Australia, Linux, NAB, Oracle, Red Hat
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: private clouds, UBank, Linux, open source, banking, Adam Bennett, cloud computing, NAB, Oracle, National Australia Bank
Latest Blog Posts
  • Swiss Nuclear Power Plant Improves Business Continuity
    Learn how Kernkraftwerk Leibstadt (KKL), a Swiss nuclear power plant, achieved 95% virtualization with 50% fewer servers in just two months by implementing a Vblock System. The solution ensures that KKL can reliably deliver the continuous electricity supply safely and cost effectively.
    Learn more »
  • Stop Paying the Earth for Global Roaming
    Why do we continue to pay the earth for global roaming? With Telstra increasing global roaming charges by 100-500% in over 180 countries, bill shock can only get worse. This paper investigates why, what and how your company can address the need for global coverage.
    Learn more »
  • Case Study: Steel Blue
    Read how Perth-based safety footwear manufacturer, Steel Blue, was able to cut costs with shipping and improve efficiency while meeting the growing demand for their products as they expanded their national and export markets and increased their local market share, all thanks to a new ERP system.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments