Daiwa Next Bank Deploys Red Hat Enterprise Linux as its Core Banking Platform

By Anil Sharma December 22, 2011

Daiwa Next Bank, the Internet bank of Daiwa Securities Group, has selected Red Hat Enterprise Linux as its enterprise operating system for its core banking system. Red Hat is the world's leading provider of open source solutions.

The financial institution claimed that it has been able to reduce its technology costs by 50 percent by migrating from UNIX to Red Hat Enterprise Linux.

 "When Daiwa Securities Group's system renovation started in 2002, we realized that open source software is necessary for IT standardization to reduce cost, depart from vendor lock-in, and achieve reliable and stable operations," said Koichi Suzuki, senior executive managing director, Daiwa Institute of Research Ltd., a core information-generating institution within the Daiwa Securities Group, in a statement.

Suzuki said that Red Hat has a proven adoption track record with leading organizations, including the group companies.

“Since Red Hat Enterprise Linux is highly versatile, we can continuously utilize knowledge cultivated from others who have similar deployments and then apply these best practices to our systems,” he said.

Daiwa Next Bank completed the migration of moving from the UNIX-based package system to Red Hat Enterprise Linux in only nine months. Officials with Red Hat said that migrating to Red Hat Enterprise Linux provided the banking institution with several cost-cutting advantages.

"The cost to build our core banking system with Red Hat Enterprise Linux was cut in half compared to deploying UNIX," said Masami Mizushima, managing director, head of information technology department, Daiwa Next Bank.

"In addition, when hardware is procured in the future, we expect that the cost-effectiveness will be lower due to the high-availability of versatile servers. In the end, this will lead us to be able to provide valuable, long-term services to our customers," said Mizushima.

Company officials said that while maximizing Red Hat technology and synergy inside Daiwa Securities Group, the company will be able to provide optimized products and services that align with its customers' needs all from using open source technology as an enabler to achieve these goals.

"I think open source is the future and is most definitely the mainstream in cloud computing," said Suzuki.

"We believe that Red Hat, as a leading open source technology company, will continue to provide our firm with robust support and services enabling users to fully enjoy the benefits of open source,” he added.

Anil Sharma is a contributing editor for TechZone360. To read more of his articles, please visit his columnist page.

Edited by Jamie Epstein

TechZone360 Contributor

Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More