- Industry: Financial services
- Region: EMEA
- Location: Solothurn, Switzerland
- Company size: 370 employees
Baloise Bank SoBa found its legacy IT systems too complex and expensive to operate and maintain. The proprietary UNIX platform had reached its limits, causing performance problems and high maintenance costs. Using Red Hat® solutions, the bank moved its core banking application to an open source platform, improving performance and reducing total cost of ownership (TCO).
Baloise Bank SoBa struggled to manage growing complexity and meet changing requirements while running its core banking system on a legacy, proprietary UNIX platform. The bank saw increasing performance problems and maintenance expenses. It needed a new, modern solution to boost efficiency and flexibility and reduce TCO. “Nowadays, banks have to lower their operating costs if they want to stay competitive,” said Rolf Vogt, IT project manager at Baloise Bank SoBa AG.
Baloise Bank SoBa migrates core banking application to Red Hat Enterprise Linux
After exhaustive testing, the bank’s IT department determined that its core banking system, and its database, storage, and network components, would work together successfully with Red Hat Enterprise Linux®. Baloise Bank became the first financial institution to make this change, though two other European banks have since followed its lead. “Banks looking to reduce their TCO, and whose UNIX systems are long overdue for an upgrade ... are increasingly interested in open source alternatives to proprietary solutions,” said Vogt.
With its new solution, Baloise Bank SoBa has reduced TCO by around CHF 240,000 per year and expects to achieve a return on investment within 18 months. Also, the bank has boosted its performance, now completing batch processes up to four times faster. In addition, its new management solution makes systems management significantly easier and more streamlined. “Baloise Bank SoBa can react to new requirements more quickly, more flexibly, and more cost-effectively today,” said Vogt.