Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Day (March 2009)
142 slides from Aci Worldwide's investor day presentation, Mar 10, 2009
Slide 1: ACI Investor Day, Elkhorn, Nebraska, March 10, 2009
ACI Investor Day Elkhorn, Nebraska March 10, 2009
Slide 2: Safe Harbor for Forward-Looking Statements
2 This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward- looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-
Slide 3: 2009 Investor Day Agenda
3 2009 Investor Day Agenda Phil Heasley - Opening Remarks Ron Totaro- Business and Product Operations Dave McCann- Implementation Challenges & Opportunities Dan Archer- Base24-eps/PRM Demonstration Ralph Dangelmaier- General Market Environment 2009 Ajit Godbole- Technology & Architecture Scott Behre
Slide 4: Welcome
Welcome Phil Heasley, CEO
Slide 5: Global Operations
Global Operations Ron Totaro, Chief Operating Officer
Slide 6: Topics
6 Topics 2008 Recap: Rebuilding the Foundation 2009 Initiatives: Improving Our Ability to Execute Product Management IBM Alliance: Strategic Marketing Focus
Slide 7: Rebuilding the Foundation
7 Rebuilding the Foundation Corporate Strategy Business Planning Organizational Alignment Execution Reporting & Refinement ACI Corporate Strategy Validated 2Q'08 Organization & Operational Assessment 2Q'08 Development & Implementation of '09 Operating Plan 4Q'08 Implemented Monthly Dashboards & Repo
Slide 8: Rebuilding the Foundation: Corporate Strategy
8 Rebuilding the Foundation ACI Corporate Strategy (Jan '08 - current) Validated with external customers and IBM Organization and Operational Assessment (Mar '08 - Aug '08) Quantified addressable market opportunities Created product P&Ls Assessed implementation services operating model Identified or
Slide 9: Rebuilding the Foundation: Rationalized Cost Structure
9 Rebuilding the Foundation Rationalized Cost Structure and Organizations (Aug '08 - 2009) Established future state organizational objectives, operating structure and functional role alignments New services and project delivery model defined for '09 deployment New 'P&L-oriented' channel organization
Slide 10: Rebuilding the Foundation: Key Hires
10 Rebuilding the Foundation Chief Product Leader VP Global Risk Solutions APAC Strategy & Planning Leader EMEA Head of Services APAC Head of Services EMEA Strategy & Planning Leader Global Help24 Leader VP Human Resources Key Hires to Date: On-Demand Leader S. Europe / Middle East Leader Remaining
Slide 11: Rebuilding the Foundation: 2009 Operating Plan
11 Rebuilding the Foundation Developed the 2009 Operating Plan (Oct '08 - Dec '08) Bottoms-up revenue and cost plans from each organization Planning for substantial profitability improvements via 'controlled' sales growth, P&L focus and operating efficiencies Implemented Channel Financial/Operating
Slide 12: Improving Our Ability to Execute
12 Improving Our Ability to Execute Corporate Management Office (CMO) 1Q'09 New Product Roadmaps and Multi-Year Strategy 1Q'09 Updated 1Q'09 Implementation Services Methodology (ISM) New Deal Approval Process / Deal Review Committee 1Q'09 New Regional Go-To-Market Business Plans 2Q'09 New 3Q'09 Prod
Slide 13: Improving Our Ability to Execute: Go-To-Market Strategies
13 Improving Our Ability to Execute Country/Region Specific Go-To-Market Strategies Driving increased granularity into how we evaluate, manage and report our business operations Developing region-specific resourcing and selling strategies based upon local customer needs Ensuring there's a strong and
Slide 14: Improving Our Ability to Execute: Deal Approval Process
14 Improving Our Ability to Execute Deal Approval Process / Deal Review Committee Formalized and rigorous deal evaluation process has been put in place to ensure all aspects of customer requirements are fully understood when entering into a deal and so that the contracted economics are appropriate a
Slide 15: Improving Our Ability to Execute: SDLC
15 Improving Our Ability to Execute Software Development Life Cycle (SDLC) CIO organization has implemented a process to re-define how we design and develop software. The team has been reorganized around more purified roles to enable more efficient execution with strong knowledge centers and account
Slide 16: The Stage Is Set for Success
16 Planning Implement / Execute Report / Refine Go-to- Market Understand Customer Needs Execute Profitable Deals Deliver to the Customer Service the Customer Product Regardless of how good a company's products are, without the right business processes in place to manage the business, the company wil
Slide 17: ACI Product Portfolio
17 ACI Product Portfolio ACI Wholesale Payments Solution Payments Hub MTS-eps Online Banking ACI Enterprise Banker Trade Finance ACI Global Trade Manager ACI Open Account Manager Global Payments Processing ACI MTS / Money Transfer System ACI Payment File Manager ACI Common Infrastructure & Tools Aut
Slide 18: SOA-Based Solution and Architecture
18 SOA-based solution and architecture Convergence of Wholesale, Retail and Risk Management Payment services Easy integration with the financial institution's enterprise infrastructure Long-term vision for ACI and ACI customers Over time, business functions in current products will be composed into
Slide 19: BASE24-eps
19 BASE24-eps Provides an end-to-end solution for the acquisition, authorization and recording of consumer based electronic payments High volume, high availability, multi-platform transaction processing engine Transaction acquiring: ATM, POS and interchange interfaces Device channel management: ATM
Slide 20: PRM
20 PRM Provides an end-to-end solutions for real-time and enterprise payments risk management: Fraud Detection and Money Laundering Detection Transaction monitoring solution to detect fraudulent and money laundering activity Solutions offered for Enterprise, Debit/Credit card, Merchant and Anti-Mone
Slide 21: PRM: Holistic Approach to Fraud & Risk Management
21 PRM A holistic approach to fraud & risk management Scalable to protect fraud on all delivery channels Monitors at a customer level Provides rapid detection of Identity Fraud Allows simultaneous cross product monitoring Flexible process & case management control Credit Card Debit Card Internet Ban
Slide 22: Without Enterprise Risk Management
22 22 Without Enterprise Risk Management Silo'd Risk Management Systems Retail Switching Routing Authorizations Host Credit Card ATM & Debit Card Check ATM Teller / Deposit Online Channel Access Vehicles Wire Phone Networks Visa MasterCard Pulse STAR NYCE Web Branch Corporate Switching Routing Autho
Slide 23: With ACI Enterprise Risk Management (PRM)
23 23 With ACI Enterprise Risk Management (PRM) Customer-Centric Risk Management Retail Switching Routing Authorizations Host Credit Card ATM & Debit Card Check ATM Teller / Deposit Online Channel Access Vehicles Wire Phone Networks Visa MasterCard Pulse STAR NYCE Web Branch Corporate Switching Rout
Slide 24: Retail Commerce Server
24 Retail Commerce Server Electronic payment processing platform for retailers that includes credit/debit card processing integrated with loyalty program support, refunds management, closed loop pre-paid card issuance and check acceptance risk management Target market is the top 100 retailers in Nor
Slide 25: MTS
25 MTS High value payments processing for both RTGS and SWIFT Low value bulk processing for domestic ACH payments Centralized messaging hub for RTGS, SWIFT & Bulk payments Multiple bank and multiple currency Functionality / Market Served World class financial payment clearing and routing engine Cont
Slide 26: Enterprise Banker
26 Enterprise Banker An online banking product that supports all market segments, from consumer to large corporate customers Real-time and batch balance and transaction reporting, with images, online statements ACH origination, wire transfer origination and reporting, account transfers, stop payment
Slide 27: IBM Alliance - Strategic Marketing Focus
27 IBM Alliance - Strategic Marketing Focus
Slide 28: Review of the IBM Alliance Marketing Target Focus
28 Review of the IBM Alliance Marketing Target Focus Most of our go-to-market activity has centered on Markets #2 & #4 Significant part of our pipeline is in Market #3 Market #6 has not received much attention from either party
Slide 29: Value Proposition and Go-to-Market Focus
29 Value Proposition and Go-to-Market Focus Revising our focus on Migrations Migrations are a consistent "overlay" to three different go to market approaches centered on different segments Migrations are the first step towards Transformation & Convergence Customer's Central Focus on Cost Take Out Pr
Slide 30: ACI Global Execution
30 ACI Global Execution Achieving Growth Through Greater Capability Dave McCann, Chief Information Officer Bob Cronin, Vice President, Corporate Management Office
Slide 31: Content
31 Content Corporate Management Office (CMO) ACI Implementation Services Methodology (ISM) Software Development Life Cycle (SDLC) Q&A
Slide 32: ACI's Organization, Process and Technology Capabilities
32 ACI's organization, process and technology capabilities - growing with the business Transitioned to a globally integrated enterprise Aligned process and project management so the right resources are deployed based on project needs Transitioned from a geo-centric/product centric model to a global
Slide 33: Aligning Efforts of Component Parts
33 Product Roadmap Requirements ROI analysis Sales Services Consulting Project Management Implementation Support Architecture Development Testing Quality Assurance Project Management Release Management Support Technology Direction Functionality Direction Solution Delivery & Support Product Managemen
Slide 34: Corporate Management Office: Nerve Center
34 The Corporate Management Office (CMO) is the "nerve center" for program excellence and coordination of projects across the enterprise The CMO provides the processes, tools and oversight to enable integrated planning and management across the business units (e.g. CIO, COO) to achieve strategic obj
Slide 35: Project Management System Performance Data
35 Project Management System Performance Data and Delivery Scorecard Project status Revenue plan vs. actual, variation Cost plan vs. actual, variation Risks Issues Resource demand and supply forecasts PM skills, gaps QA ratings Project health assessments Customer satisfaction Project Managers Manage
Slide 36: Governance Structure of the CMO
36 Governance is the underlying structure that aligns strategic, management and operational aspects of the CMO Organization Operations PROCESSES/ PROCEDURES MEASURES POLICIES CHARTER STRUCTURE ROLES AND RESPONSIBILITIES How do we organize for success? How do we execute for success? Charter The purpo
Slide 37: Dashboard Reporting of Program Health
37 Consistent dashboard reporting of program health are tracked using IBM's Seven Keys to Success(tm) reporting framework IBM's Seven Keys Health Indicators Under Project/Program Manager Direct Control Project/Program Manager Usually Has Indirect Control Red: Corrective action required immediately Y
Slide 38: Define & Build, Implement, Operate
38 Define & Build Key Activities Refined approach to customer project development and delivery Refined project and program management processes Implement corporate governance structure Organizational alignment/ changes New skillsets identified, recruited New tools deployed Key Activities Continuous
Slide 39: Content
39 Content Corporate Management Office (CMO) ACI Implementation Services Methodology (ISM) Software Development Life Cycle (SDLC) Q&A
Slide 40: Implementation Services Methodology (ISM)
40 ACI Implementation Services Methodology (ISM) Provide a common methodology enabling: Consistency in estimations worldwide Common terminology across Channels Increased focus on requirements and testing Creation of a standard set of project deliverables Define standard roles in customer projects: S
Slide 41: ISM - Delivering Customer Solutions
41 Product Management General Availability Standard Product CIO Organization Channel Organization Software Solution Customer Solution ISM - Delivering Customer Solutions
Slide 42: ISM - Project Organization Chart
42 ISM - Project Organization Chart for Customer Projects Project Manager (COO) Sales (COO) Product Management (COO) Delivery Services (COO) Product Development (CIO) Account Manager Solution Consultant Business Solution Analyst Client Solution Manager Technical Lead Technical Consultant(s) Developm
Slide 43: ISM - Key Phase Activities
43 ISM - Key Phase Activities Focused process to achieve quality and timeliness.
Slide 44: Content
44 Content Corporate Management Office (CMO) Implementation Services Methodology (ISM) Software Development Life Cycle (SDLC) Q&A
Slide 45: SDLC for Customer and Product Projects
45 SDLC - For Customer and Product Projects Requirements Impact Assessment & Estimates Business Case Design Development Testing Distribution Implement Production Maintenance & Support Retirement Concept Phase Development Phase Implementation Phase Production Phase Retirement Phase SDLC Phases SDLC S
Slide 46: ACI Enterprise Project Management Framework
46 ACI Enterprise Project Management Framework Implementation Services Methodology (ISM) Implementation Design Plan Business Assessment Engagement Launch Solution Scope Payments Strategy Assessment Deal Review Process (DRP) Sales and Opportunity Management Qualified Opportunities Indicative Pricing
Slide 47: Content
47 Content Corporate Management Office (CMO) Implementation Services Methodology (ISM) Software Development Life Cycle (SDLC) Q&A
Slide 48: General Market Environment 2009
General Market Environment 2009 Ralph Dangelmaier, President, Americas
Slide 49: Topics
49 Topics Key Questions What We Sell 2008 ACI in its Markets
Slide 50: Questions I Would Ask
50 Questions I Would Ask Why is ACI doing so well when others are not? Why were results in the U.S. so positive in this current environment? How are you improving your deal economics? Why do you think there is opportunity going forward? Is ACI positioned to win? How?
Slide 51: What We Sell and How We Position It
51 What We Sell and How We Position It
Slide 52: ACI Product History
52 ACI Product History 1975 1982 1985 1990 1995 2000 2005 2008 BASE24-atm TRANS24 Payments Manager ICE Smart Chip Manager Proactive Risk Manager OCM24 MTS ASx Trade Finance Enterprise Banker ON/2 OpeN/2 Retail Banking Wholesale Banking Risk Management Tools & Infrastructure BASE24-eps Network Expres
Slide 53: Global Payment Solutions Product Strategy
53 Global Payment Solutions Product Strategy Channels ATM POS Branch Call Center Web Banking Channels Cash Mgmt. Small Business Wealth Mgmt. Retail Banking Trade Remittances Networks Settlement & Card Mgmt. Systems Systems of Record Networks Payment Settlement Systems of Record Retail Payments Autho
Slide 54: ACI Global Retail Solution Overview
54 ACI Global Retail Solution Overview Integrated Retail Payments Processing Hub Internal Bank Host Systems CIF/CRM Revolving Credit Prepaid Cust Service Brokerage DDA External Networks and Hosts Transaction Acquiring Integrated Fraud Detection Authorization and Switching Settlement and Reconciliati
Slide 55: ACI Global Wholesale Solution Overview
ACI Global Wholesale Solution Overview ACI Payments Processing Host Systems Security Clients Retail - Small Business - Middle Market - Corporate - Internal Channels Branch Web Touchtone Mobile Phone Fax Reporting and Image Bulk, EFT, ACH FX Remittance Cards Remote Deposit Transfers High Value, Wire
Slide 56: Solutions for Retailers - ACI Retail Commerce Server
56 Solutions for Retailers - ACI Retail Commerce Server ACI Retail Commerce Server ACI Retail Commerce Server Integrated payments platform targeted to specific needs of retailers
Slide 57: ACI On Demand
57 ACI On Demand ACI hosts image of its solutions on behalf of the customer Expands market to those who lack internal IT sophistication or scale Common theme for companies to look at solutions on- demand Reduces customer costs while maintaining control Results in faster deployment for the customer M
Slide 58: 2008 - How We Did
58 2008 - How We Did
Slide 59: Quick 2008 Review
59 Quick 2008 Review Revenue grew in a tough market Sales increased over 2007 Note - Americas new business sales up 14% Note - U.S. sales up 14%, headcount down 17% 34 new accounts 72 new applications Over 55 deals in excess of $1 million in contract value Over 15 major renewals
Slide 60: 2008 - Key Changes
60 2008 - Key Changes Product BASE24 sunset announcement The IBM Alliance Refined Professional Services processes Improved professional services margins Continued integration of retail and wholesale groups in the channel i.e. customer management, marketing, services, sales, consulting Further refine
Slide 61: Driving Better Deal Economics
61 Driving Better Deal Economics "Market-based" pricing Key market alternative is usually payment processors Example - the top three renewals in the Americas in Q4 results in over $6m in incremental annual revenue, with no upsell Better estimating methodology and competitive rates for specialized se
Slide 62: ACI in its Markets - Where We Fit and Where Our Opportunities Are
62 ACI in its Markets - Where We Fit and Where our Opportunities Are
Slide 63: Primary Segments We Attack
63 Primary Segments We Attack Financial Institutions Payment Processors Retailers ACI is differentiated at the high end of each segment
Slide 64: Secular Market Trends and Drivers
64 Secular Market Trends and Drivers Continued desire to reduce costs and increase productivity Need for end-to-end solutions Need for platform and solutions convergence Need to automate manual, cumbersome processes ACI will drive customers to new releases to address these needs Electronic payment v
Slide 65: Transaction Volumes Continue to Grow
65 Transaction Volumes Continue to Grow ACI's customers run over 90 billion retail payment transactions per year, and move over $10 trillion dollars per day in wholesale payments ACI recorded 27% year-over-year growth in end-customers in the Enterprise Banker AOD operation. Year-over-year growth in
Slide 66: More Immediate Drivers/Issues
66 More Immediate Drivers/Issues U.S. credit crisis Drives extreme focus on ROI Accelerated M&A among our customers and target accounts Increasing levels of payments fraud Increasing debit card volumes as consumers move away from checks and credit cards Likelihood of increased bank regulation Focus
Slide 67: Americas Market Penetration
67 Americas Market Penetration Retail Payments Wholesale Payments Fraud Online Banking Other Potential 500 500 100 300 50 Retail Payments Wholesale Payments Fraud Online Banking Other Revenue 50 17 2 41 20 Total annual potential >$2.0 billion per year Market Potential Current Penetration ACI has cap
Slide 68: ACI in the U.S. Market
68 ACI in the U.S. Market ACI is leading provider of enterprise electronic payment systems Systems deployed in 24 of the top 25 banks, 33 of the top 100 retailers, major processors and switches Market dynamics will create a migration from legacy solutions and processors to new solutions Pressure on
Slide 69: ACI Wholesale Solutions in Top U.S. Banks
69 ACI Wholesale Solutions in Top U.S. Banks* * Bank rankings by assets, as of 6/30/08 22 of the top 25 U.S. banks have ACI wholesale solutions 22 of the top 25 U.S. banks have ACI wholesale solutions
Slide 70: ACI ATM/Debit Solutions at Top US Banks
70 70 ACI ATM/Debit Solutions at Top US Banks* * Bank rankings by deposits, as of 6/30/08 ACI has significant market potential remaining in the U.S. ACI has significant market potential remaining in the U.S.
Slide 71: ACI Risk Mgt Solutions in Top U.S. Banks
71 71 ACI Risk Mgt Solutions in Top U.S. Banks* * Bank rankings by deposits, as of 6/30/08 ACI has significant market potential remaining in the U.S. ACI has significant market potential remaining in the U.S.
Slide 72: ACI in the Merchant Retail Sector
72 ACI in the Merchant Retail Sector U.S. Target, Safeway, Sears, Winn Dixie, Publix, Walgreens, JC Penney, Sheetz, Pier 1, Shopko, HyVee and more Mexico Walmart, McDonalds, Home Depot, Office Depot and more Canada Shoppers Drug Mart Other Sainsburys (UK), El Corte Ingles (Spain), BP Australia, Cole
Slide 73: U.S. Opportunities by Segment
73 U.S. Opportunities by Segment Banks Consolidating redundant payment silos 'Retail and wholesale Winning top banks away from processors Risk management cross-sell/up-sell Migrating older ACI solutions to newer versions Professional services and AOD Winning retailers away from processors Replacing
Slide 74: And More Opportunity in the Americas
74 And More Opportunity in the Americas Canada Leadership position in ATM/POS Leadership in risk management, especially debit Greenfield opportunity in wholesale payments, BASE24-eps and Payments Mgr IBM Leadership position in ATM/POS Limited position in risk management Greenfield opportunity in who
Slide 75: Base24-eps Montpelier Presentation
Base24-epstm Montpelier Presentation Dan Archer, Manager, Business Analysis
Slide 76: Every Second Every Day
76 Every Second Every Day
Slide 77: ACI Retail Payments Solution
77 ACI Retail Payments Solution Payments Processing Message Management Acquiring Endpoint Management Transactional Fraud Management Rules Management Transactional Data Management Enterprise Services Risk Management Services Settlement, Disputes and Fee Mgmt. Services Security Services Processing Ser
Slide 78: BASE24-eps - Introduction
78 BASE24-eps - Introduction Integrated e-payment processing engine Processes consumer transactions from any endpoint Debit, Credit, and Chip cards Channel integration ATM and POS device management WEB, IVR and Branch/Teller interfaces Flexible switching and routing Interchanges, Processors, Card As
Slide 79: BASE24-eps - Scripted Authorization
79 BASE24-eps - Introduction Scripted Authorization provides powerful user control over: Authorization Transaction log perusal Extract and Reporting Minimizes the need for custom development to implement new services No need for source code changes Compatible with future releases Easier to stay curr
Slide 80: PRM - Integration
80 PRM - Integration ACI Proactive Risk Manager online interface Enterprise Risk Debit and Credit Reduces fraud losses and minimizes operating costs Detect fraud during authorization BASE24-eps scripting decides when to call PRM
Slide 81: ACI Product Demo System View
81 ACI ASSET (ATM Acquiring) ACI ASSET (POS Acquiring) ACI ASSET (VISA POS) ACI ASSET (HOST Issuer) ACI Product Demo System View Application Server ACI BASE24-eps ACI PRM NCR APACS VISA Presentation Server ACI Desktop User Interfaces Asset Simulators ACI Remote Access Host System
Slide 82: Scenario #1 - Scripted Authorization
82 Scenario #1 - Scripted Authorization Banks and service providers need a way to provide higher levels of service to consumers offer unique products and services with limited customization and increased speed to market stay current with software releases more easily To prevent or minimize declined
Slide 83: Scenario #1 - Scripted Authorization Flow
83 BASE24-eps Proactive Risk Manager Scenario #1 - Scripted Authorization Network Interface PRM Interface Acquiring Point Checking Account Balance = $200 Savings Account Balance = $2,000 Purchase of $250 from Checking would typically be declined. Scripted authorization allows funds from Savings to b
Slide 84: Scenario #2 - Scripted Authorization
84 BASE24-eps Proactive Risk Manager Scenario #2 - Scripted Authorization Network Interface PRM Interface Checking Account Balance = $100 Savings Account Balance = $2,000 Purchase of $150 from Checking would typically be declined. Scripted authorization allows overdraft on the account within limits
Slide 85: Scripted Authorization Business Value
85 Scripted Authorization Business Value Value Proposition Reduced cost per transaction Fewer and lighter-weight customizations based on scripts, parameters, and configuration options Simplified customizations (when necessary) due to object- oriented design Future proof solution (staying current wit
Slide 86: Scenario #3 - Integrated Fraud Mgmt.
86 Scenario #3 - Integrated Fraud Mgmt. Banks and service providers need powerful tools to combat fraud in today's global payments environment flexibility to deny transactions perceived as fraudulent protecting their cardholders while minimizing the impact to their normal spending patterns Fraudulen
Slide 87: Scenario #3 - Integrated Fraud Mgmt. Flow
87 BASE24-eps Proactive Risk Manager Scenario #3 - Integrated Fraud Mgmt. Network Interface PRM Interface Purchase from Switzerland passes all fraud checks in BASE24-eps and PRM Purchase from Australia is declined in PRM as the result of a user- defined rule Subsequent routing to a Host is executed
Slide 88: Scenario #3 - Value Proposition
88 Scenario #3 - Integrated Fraud Mgmt. Value Proposition Reduced cost per transaction No software customization required in order to configure a vast array of dynamic rules and thresholds Increased integration across the payments value chain Reduced fraud losses and minimized operating costs quickl
Slide 89: Technology & Architecture
Technology & Architecture Ajit Godbole, Chief Architect
Slide 90: Architecture Topics
90 Architecture Origins Evolution through 1998 Evolution 1999 - 2007 Snapshot: Architecture Progression 1975 to 2007 2008: IBM Alliance - (Retail) 2009: IBM Alliance (Wholesale) Towards the Payments Hub ACI Labs Topics
Slide 91: Architecture Origins - Retail Payments
Architecture Origins - Retail Payments Architecture Origins - Retail Payments One payment application, one platform - embedded at all points in the Payments Pentagram Platform fundamentals were universally understood - NonStop, Scalable Payment application - world standard to handle any type of cons
Slide 92: Architecture Evolution through 1998
92 Architecture Evolution through 1998 BASE24-atm H24pos TargetMaster VISA Cash & Mondex BASE24-billpay i24 TM-Monitor WINPAY24 BASE24-card InfoBase TRANS24 Auth MF XPRESS Banking BASE24-pos LINK24 MF TRANS24 Auth Unix XPRESS Bill Payer BASE24-telebanking MONAD TRANS24 Card Processing MF XPRESS Cash
Slide 93: Architecture Origins - Wholesale Payments
93 Architecture Origins - Wholesale Payments High Value - Inter-Bank Payment Processing, Time Sensitive (example: Wire) Low Value - Batch Payment Processing (example: ACH) ACI's Money Transfer System (MTS) product world standard for Wholesale Payment Engine ACI's Enterprise Banker fills the Front Of
Slide 94: Architecture Evolution 1999 - 2009
94 Architecture Evolution 1999 - 2009 Insession 1999 SDM 1999 Workpoint 2000 MD 2001 S2 2005 eps 2006 P&H 2006 Visualweb 2007 Stratasoft 2007 <none> 2008 Picked up bloodline after bloodline of similar products. Went from being something to being many things, many architectures, many perspectives, an
Slide 95: Architecture Evolution 1975 - 2007
95 Architecture Evolution 1975 - 2007 Architecture Evolution 1975 - 2007 Consumer Payments 6 Platforms 5 Databases 3 Middleware 5 Prog. Languages Wholesale Payments 5 Platforms 3 Databases 3 Middleware 4 Prog. Languages
Slide 96: 2008 - IBM Enablement (Retail)
2008 - IBM Enablement (Retail) Completed IBM bluestack enablement of all strategic retail solutions Co-location of applications on the IBM system z platform will allow integration efficiencies
Slide 97: 2009 - IBM Enablement (Wholesale)
97 2009 - IBM Enablement (Wholesale) 2009 - IBM Enablement (Wholesale) Getting existing MTS product on IBM system z for High Value payments MTS-eps is the SOA based solution for high and low value corporate payments
Slide 98: Architecture Evolution - 1975 - 2009
98 Architecture Evolution - 1975 - 2009 Architecture Evolution - 1975 - 2009 Architecture Evolution - 1975 - 2009 Focus and Simplify: IBM - Platform, Bluestack ACI - All Payments Soln
Slide 99: Architecture Evolution - 1975 - 2012
99 Architecture Evolution - 1975 - 2012 Architecture Evolution - 1975 - 2012 Architecture Evolution - 1975 - 2012 1975 2007 2009 2010-2012 Payment Hub
Slide 100: ACI Product Vision & Strategy: The ACI Payments Hub
100 Payment Access Services Wholesale Payments Solution Retail Payments Solution Risk Management Solution The ACI Payments Hub is the strategic destination for all Payment Types Built on IBM middleware assets including the IBM Payments Framework It facilitates building SOA applications in a predicta
Slide 101: SOA-Based Solution and Architecture
101 SOA-based solution and architecture Convergence of Wholesale, Retail and Risk Management Payment services Easy integration with the financial institution's enterprise infrastructure Long-term vision for ACI and ACI customers Over time, business functions in current products will be composed into
Slide 102: Millisecond Rule
102 100 Millisecond Rule Consumer Response Time: 1 second = 1000 millisecond Maximum Time within ACI instance of Payment Engine = 100 milliseconds Currently require only 30 milliseconds to Acquire, Route, Switch, Authorize Leaves 70 milliseconds time to add further value to the Financial Transaction
Slide 103: ACI Labs - Goals
103 ACI Labs - Goals Development of next generation Payment Solutions Established in Chennai, India in late 2008 Focus areas: Data Mining & Data Analysis domains within payment streams Ad insertion in payment streams Intelligent/Least Cost Routing Mobile/p2p payments Data Security, Risk Management &
Slide 104: ACI Labs - Operational Framework
104 ACI Labs - Operational Framework Research, Monitor and Track payments industry direction Evaluate impact of evolving technologies and changes Create an atmosphere that encourages thinking big and solving challenging problems Work closely with Thought Leaders in Industry/Academia Acquire best pos
Slide 105: ACI Labs - Current Status
105 ACI Labs - Current Status Meeting/Discussions with Computer Science faculty at the Indian Institute of Technology - Madras (IITM ) Explained the ACI Lab concept and explored faculty engagement/participation - Response has been Positive Exploring taking up of Space within the IITM Research Park R
Slide 106: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 107: Topics
107 Topics Revenue Mix and Customer Concentration Backlog and Customer Attrition by Geography Impact of Rollover of Dis-economic PUFs Customer Life Cycle Opex and Operating Free Cash Flow
Slide 108: Calendar Year Revenue Mix
108 Calendar Year Revenue Mix 57% 30% 13% 14% 29% 16% 57% 30% 17% 54% 24% 59% 20% 23% 57%
Slide 109: CY 2008 Revenue Concentration
109 CY 2008 Revenue Concentration = Revenue from Top 20 Customers = Revenue from All Other Customers Represents Top 20 out of 826 Customers Top 1 4% Top 5 13% Top 10 20% Top 20 29% 2008 Rank 2007 Rank Channel #1 #6 Americas #2 #1 EMEA #3 #119 Americas #4 n/a EMEA #5 #5 Americas #6 #2 EMEA #7 #40 EME
Slide 110: Backlog Transition
110 Backlog Transition 60-Month Backlog as of 12-31-08 A = 2008 Revenue from Current Year Sales B = 2008 Revenue from Backlog C = 2008 Revenue from Deferred Revenue = Deferred Revenue = Committed Backlog = Renewal Backlog CY 2008 Revenue
Slide 111: Relative Attrition by Geography and Product
111 Relative Attrition by Geography and Product 4.2% Global Attrition in 2008 Relative Attrition by Channel Americas Slightly Higher Than Average EMEA and Asia-Pacific Slightly Lower Than Average Relative Attrition by Product Retail Payment Engine Products at the Average Wholesale Products Better Th
Slide 112: Revenue as Former Dis-Economic PUFs Renew
112 Revenue as Former Dis-Economic PUFs Renew Pre-2007 Post-2007 Renews as Recurring Streams Historical PUF Activity Customer A Renewal Customer B Renewal Customer C Renewal Customer D Renewal Customer E Renewal Timing Illustration
Slide 113: Revenue as Former Dis-Economic PUFs Renew
113 Revenue as Former Dis-Economic PUFs Renew Pre-2007 Post-2007 Renews as Recurring Streams Historical PUF Activity Economic Illustration
Slide 114: Illustrative Customer Life Cycle
114 Illustrative Customer Life Cycle Customer Margins (cumulative) Add-On Sale Stage (typically 5-years) Renewal and Add-On Sale Stage (typical renewal is 5-years from go- live / customer lives are 20+ years) Pre-Sale Stage (2 - 6 Qtrs) New Account Sale Event Go-Live Event Renewal Sale Event Multipl
Slide 115: Operating Expenses
115 Operating Expenses 2006-07-08 Operating Expenses 2006-07-08 Operating Expenses 2006-07-08 In $ Thousands
Slide 116: Operating Free Cash Flow
116 Operating Free Cash Flow 2007-08-09 Operating Free Cash Flow 2007-08-09 In $ Thousands In $ Thousands
Slide 117: ACI and IBM Data Center Delivery Profile
ACI and IBM Data Center Delivery Profile David Sonier, Global IT Operations
Slide 118: Goal: Attainment of a World Class Enterprise Environment
Goal: Attainment of a World Class Enterprise Environment Centralize computing equipment: Upgrade in technology Cover all equipment under maintenance Greater utilization of resources Create a secure environment Build environment to support 7x24 processing Provide a robust Business Continuity and Disa
Slide 119: Goal: Attainment of a World Class Enterprise Environment (continued)
Goal: Attainment of a World Class Enterprise Environment (continued) Enhance skill set Implement tools to improve monitoring and shorten recovery time Implement capacity and trending capabilities Move processing to a higher level of Data Center Reduce capital investments by moving to operating expen
Slide 120: Goal: Consolidate and Upgrade ACI Computing Environments
Goal: Consolidate and Upgrade ACI computing environments Goal: Consolidate and Upgrade ACI computing environments Goal: Consolidate and Upgrade ACI computing environments Goal: Consolidate and Upgrade ACI computing environments ACI computer room- Before ACI computer room- Before (c) 2009 120
Slide 121: Achievement: Consolidated ACI Computing Environments
Achievement- Consolidated ACI computing environments in modern, secure and upgraded environment in modern, secure and upgraded environment in modern, secure and upgraded environment in modern, secure and upgraded environment in modern, secure and upgraded environment in modern, secure and upgraded e
Slide 122: Achievement: IBM Reliability Level 3+
Achievement: IBM Reliability Level 3+ Features IBM ACI Dual Electric Utility Feed ^ Dual Power Path Above 600V ^ Ups System N+1 Standby Generators provide For Critical Loads N+1 Fuel Systems N+1 Dual Power Path to PDU ^ Dual Feed CAC Units ^ Dual power Path For Dual Power Cord Loads ^ Chiller Plant
Slide 123: IBM Strategic U.S. Data Centers
IBM Strategic U.S. Data Centers Southbury Poughkeepsie Rochester Columbus St. Louis Raleigh Dallas Boulder Lexington Boulder Columbus Dallas Lexington Poughkeepsie Raleigh Rochester St. Louis Southbury Location 282647 102470 66499 86047 171873 118192 73819 81965 150328 Total US Data Center Space 1,1
Slide 124: IBM Boulder Capacities
IBM Boulder Capacities 6 different computer rooms make up the data center Customer Service and Operations also hardened Redundant Xcel Energy Electrical Service Stable Climate / Seismic Profile / Power Grid All raised floor open architected, multi customer Total commercial raised floor space 282,647
Slide 125: Corporate Reliability Criteria
Corporate Reliability Criteria Dual Power Support utility power sources to the site power paths to all data center buildings power paths for dual powered devices Backup Power Support UPS battery power system with N+1 redundancy EPS generator power system with N+1 redundancy On site diesel fuel stora
Slide 126: Level 3+ Reliability Diagram
Level 3+ Reliability Diagram PDU - Power Distribution Unit Raised Floor Area Diesel Generators Diesel Fuel 48 hours Public Utility Provider PDU A PDU B Chiller Plant Cooling Towers Makeup Water Storage Evaporation Server under floor cavity Static Switch A/C Power Distribution Unit Substation Batteri
Slide 127: Typical Building Power Profile
Typical Building Power Profile EPS Generators UPS Batteries Switch Gear A Switch Gear B 3 Alternate Power Circuits PDU Static Switch Single Power Device Redundant Utility Power Feeds to all Substations A B B B A A Utility Power Substation UPS System Dual Power Device PDU PDU Substation Substation Su
Slide 128: EPS and UPS Characteristics
EPS and UPS Characteristics UPS / Batteries provide 15 minutes of continuous power EPS Generators online in under 30 seconds UPS filters incoming utility power 48 hour fuel storage capacity onsite All systems fully redundant (c) 2009 128
Slide 129: Environmental Systems
Environmental Systems Room temperature requirement is 72° F (22.2°C) +/- 2 Multiple redundant AC units on the floor Water temperature supply is 48° - 50°F (9°C - 11°C) Under floor air temperature of 55° - 60°F (13°C - 15°C) Relative Humidity requirement is 45% +/- 5% Low ambient humidity / continuou
Slide 130: Raised Floor Environment
Raised Floor Environment Open architected, multi-customer Water detection under the floor Smoke and fire detection Multi zoned sprinkler system IT equipment modeling and profiling capabilities Hot aisle cold aisle equipment layout Under floor cable management PDUs loaded to 45% capacity for fail ove
Slide 131: Data Center Power Consumption
Data Center Power Consumption 35 30 25 20 15 10 5 0 Humidifier Information Technology Switch/ Gen Lighting Cooling systems Electrical and building systems PDUs UPS Computer Room HVAC Chiller/ Cooling Tower For the typical 25,000 square foot data center that spends $2.6 million in power annually, ene
Slide 132: Existing Data Center Energy Management
Existing Data Center Energy Management Maximize raised floor power utilization Seal all floor hole penetrations Use modeling tools to manage I/T loading Map temperature profile (MMT) Maximize A/C unit efficiencies Turn off A/C units where possible Fewer A/C units on line may be cooler Koldlok tile i
Slide 133: IBM New Data Center Strategies
IBM New Data Center Strategies Same level of reliability and redundancy Ideally design to 140 watts/ sq.ft. (868 watts / sq.m.) Variable speed pumps and motors in the air conditioning system Ability to package IT equipment at higher densities (watts per IT space) Additional chilled water capacity to
Slide 134: Boulder Utility Power Grid
Boulder Utility Power Grid Primary Underground Power Feed 230Kv 50Mva Redundant Power Feeds 13.2 Kva 2 Secondary Power Feeds 13.2Kv 20Mva Utility Substation On site Sub-Station Excel Energy 230 Kv Utility Power Grid Sub-Stations Bkr Bkr Bkr Bkr Ring Design for Bi-directional Power (c) 2009 134
Slide 135: Energy Efficient Chiller Plant
Energy Efficient Chiller Plant Pre Cooling Heat exchanger can supply water below the return temperature Free Cooling Heat exchange can supply water below the supply temperature Chiller Plant With VFD Separate Cooling Towers Backup Water Storage Water Evaporation Domestic Water Supply Raised Floor Ar
Slide 136: Energy Efficient Air Conditioning
Energy Efficient Air Conditioning Servers 55°F +70°F Server A/C 55°F 55°F Traditional Raised Floor Efficient Raised Floor 2 foot raised floor A/C fans running at constant speed Input air temperature set point is 71°F chilled water valves opens based on input temp Units seeing no load pass thru 70°F
Slide 137: Forward-Looking Statements
137 Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as "b
Slide 138: Forward-Looking Statements
138 Forward-Looking Statements Anticipated benefits from the implementation of the corporate management office; Anticipated benefits arising from the implementation services methodology; ACI's ability to drive better deal economics; ACI's ability to respond to market trends and drivers; Expectation
Slide 139: Forward-Looking Statements
139 Forward-Looking Statements Any or all of the forward-looking statements may turn out to be wrong. They can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining the Company's a
Slide 140: Forward-Looking Statements
140 Forward-Looking Statements Risks associated with tax positions taken by the Company which require substantial judgment and with which taxing authorities may not agree; Risks associated with consolidation in the financial services industry which may adversely impact the number of customers and th
Slide 141: Forward-Looking Statements
141 Forward-Looking Statements Risks associated with new accounting standards or revised interpretations or guidance regarding existing standards; Risks associated with the Company's offshore software development activities, which may put its intellectual property at risk; Risks associated with secu
Slide 142: Every Second. Every Day.
Ml EVERY SECOND. EVERY DAY. www.aciworldwide.com