NYSE Euronext Standardizes on JBoss Enterprise Middleware

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June 19, 2010

Customer: NYSE Euronext, Inc.

"We’ve been running mission-critical applications on Red Hat Enterprise Linux for a long time. It was that experience and those results that led us to consider JBoss Enterprise Middleware." - Brian Clark, chief software architect, NYSE Euronext

Video: NYSE Euronext

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Geography: North America
Country: United States


Business Challenge:

Needed a single, common, and flexible platform that would simplify NYSE Euronext’s application development, deployment, and management processes while still meeting mission-critical requirements for reliability, performance, and scalability

Migration Path:

Multiple application servers to Red Hat® JBoss® Enterprise Application Platform and a legacy portal server to Red Hat® JBoss® Enterprise Portal Platform

Software:

Red Hat® JBoss® Enterprise Application Platform, Red Hat® JBoss® Enterprise Portal Platform, Red Hat® Enterprise Linux®

Hardware:

x86-based servers and blades

Benefits:

Experienced 50-60 percent cost savings; simplified architecture, management, deployment, and usability by moving to JBoss Enterprise Middleware; increased performance, speed of deployment, flexibility, reliability, access to support, and control of the infrastructure; improved regulation and security; streamlined processes; reduced failovers and development lifecycles

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Background:

As the leading and most liquid equities exchange group, NYSE Euronext powers the exchanging world and is comprised of equities and derivatives exchanges across the United States and Europe that trade cash equities, futures, options, fixed-income, and exchange-traded products. With more than 8,000 listed issues, NYSE Euronext is home to the world's leading companies providing access to the global liquidity they need to collaborate, compete, and grow. For issuers of all sizes and geographies, NYSE Euronext offers maximum flexibility to raise capital through its various listing choices. NYSE Euronext's family of exchanges, located in six countries, includes the New York Stock Exchange, the world’s largest cash equities market, NYSE Euronext, the Eurozone's largest cash equities market, and NYSE Alternext, a pan-European market designed specifically for emerging companies. From an IT perspective, NYSE Euronext's requirements for performance, scalability, and reliability are second to none. Applications deployed and managed by NYSE Euronext must maintain a high degree of integrity and peak performance throughout the trading day. If systems should stall or fail, the world's financial markets could be significantly impacted.

Business Challenge:

While multiple mergers and acquisitions cemented NYSE Euronext’s position as the world’s preeminent marketplace, they also left the holding company with heterogeneous middleware technologies and standards across its IT infrastructure that resulted in latency, slow response times, and complicated data management. “We had no common way to build, test, verify, deploy, and monitor applications,” said Michael Gendelman, technical lead, NYSE Euronext.

With more than 3,000 customers using the NYSE Euronext network for critical trading transactions, the exchange needed to keep its trading system operational to ensure its business, as well as its clients’ businesses, continued to run smoothly. NYSE Euronext’s use of multiple vendors reduced developer performance, because it left no single vendor accountable when issues arose. The amount of time developers spent on support limited the amount of time they spent on innovation and business needs. In addition to better access to support, NYSE Euronext developers required more control over the infrastructure, which included opportunities to turn processes on or off, download new features and functions, and rapidly deploy applications.

NYSE Euronext also needed to displace its inflexible architecture, which was not providing a cost-effective way to scale to meet performance demands and operational management requirements for simplicity. Striving for technology consistency (especially at the middleware level), reduced costs, and high performance for its systems, NYSE Euronext began investigating alternative leading middleware technologies to adopt as an organizational standard and build on its already successful Red Hat Enterprise Linux platform.

Solution:

To determine the best middleware solution, NYSE Euronext conducted use cases that quickly revealed the many strengths of JBoss Enterprise Middleware, including increased performance, reliability, simplicity, flexibility, and cost savings. “The success in the regulation area was especially impactful in our decision,” said Brian Clark, chief software architect at NYSE Euronext. “Its ease of deployment and use helped to make JBoss Enterprise Middleware an easy sell.”

In addition to the ability to drive simplicity and reduce costs, NYSE Euronext’s positive experience with Red Hat Enterprise Linux influenced its decision to migrate to JBoss Enterprise Middleware. “Red Hat Enterprise Linux helped us to optimize our critical trading platform, and we use it everywhere,” said Clark. “It’s the corporate standard in our trading complex, for post-trade, and even in our corporate systems.”

NYSE Euronext developers were able to preview and gain confidence with Red Hat’s middleware products through JBoss Community projects. “In addition to previewing the JBoss Community versions in our environment, this model allowed us to demonstrate to our management team which particular problem was being solved, rather than saying, ‘can we buy this, and then maybe it will solve a particular problem,’” said Gendelman. As NYSE Euronext moved more of its mission-critical, public-facing applications to Red Hat’s middleware platform, upper management approved the final and complete migration to Red Hat’s enterprise-ready, supported, and tested JBoss Enterprise Application Platform.

Several of NYSE Euronext’s mission-critical applications use JBoss Enterprise Middleware. JBoss Enterprise Application Platform is used in NYSE Euronext’s operational data store application for the trading floor, which captures trades and orders in real time, and in its back office and regulatory business. “If you can’t surveil, you can’t trade,” said Clark. “Using JBoss Enterprise Application Platform, we generate Java code that runs surveillances to ensure that trading is conducted properly.”

JBoss Enterprise Middleware provides a middle tier for NYSE Euronext’s business analysts to monitor the market via its Stockwatch application. Stockwatch, a mission-critical regulatory application that connects to NYSE Euronext’s trading systems, provides real-time surveillance and handles more than 100,000 messages per second.

JBoss Enterprise Middleware is also used by an entire server farm at NYSE Euronext for its web applications, running all of NYSE Euronext’s external websites, such as nyx.com, nysedata.com, and nysemoneysense.com. NYSE Euronext also uses JBoss Enterprise Middleware to create tools for operations, enabling the development team to quickly deploy applications to production and save manual intervention on the systems.

Benefits:

“We saw major benefits in two particular areas: cost savings and the simplicity of the architecture,” said Clark. “As we migrated applications from our former platforms to JBoss Enterprise Middleware, we were able to achieve a 50-60 percent cost reduction.”

Simplicity and flexibility
“The microkernel architecture and the ability to turn processes on or off depending on what the application needs is very significant,” said Clark. “One of the things we strive for is simplicity, because it’s easier to manage, it’s easier to deploy, and it’s easier to use.”

Unlike some of NYSE’s Euronext’s prior proprietary products, JBoss Enterprise Middleware provided an easy migration and today provides quick application deployments. “Some of the other products in this space tend to be overly complex,” said Clark. “We were able to migrate to JBoss Enterprise Middleware quickly and the solutions enabled us to reduce our processing needs.”

The flexibility of JBoss Enterprise Application Platform enabled NYSE Euronext to easily integrate with its existing security architecture. “We didn’t have to rebuild our security infrastructure,” said Sunny Xiao Liu, director of regulatory systems, NYSE Euronext. “We were able to plug our security module into the JBoss container to authenticate and authorize our existing infrastructure, which sped up and simplified the migration.”

“With JBoss Enterprise Application Platform, we were able to easily and efficiently migrate our applications and standardize our building mechanism,” said Gendelman. “We can now build, test, verify, and deploy applications the same way.”

Prior to the migration, NYSE Euronext employees and developers had to understand multiple toolsets and environments to move from application to application. “Now, everyone is able to follow the same process,” said Gendelman. “Standardizing our entire environment on JBoss Enterprise Middleware has enabled us to solve problems once and share solutions across the entire platform.”

Cost savings
Due to the lightweight nature of JBoss Enterprise Application Platform, NYSE Euronext’s application deployment required less hardware than its legacy server deployment. Due to its simplicity and ease of use, both developers and IT operations are now more productive on the JBoss Enterprise Middleware platform. By moving to JBoss, NYSE Euronext was able to achieve a 50-60 percent cost reduction.

JBoss Enterprise Middleware gives NYSE Euronext developers a sense of control. “We can configure our architecture when we need to, and if we have to build out a stack to meet a certain need, we can do that,” said Gendelman. “It’s not overly complicated. We can solve the problems that we need to solve.”

“JBoss Enterprise Application Platform enables easy environment control, integration, and deployment,” said Liu. “It speeds environment processes, reduces development lifecycles, and increases time-to-market.”

Performance, reliability, and scalability
“When we first started with JBoss, we brought in the community edition for some non-critical systems, which allowed us to get our feet wet and gain confidence with the middleware solutions,” said Gendelman. “As we started moving to mission-critical systems, the ones that faced outside companies, the ones that had the reputation of the New York Stock Exchange on the line, we moved to the supported version.”

Because NYSE Euronext uses both Red Hat’s platform and middleware solutions, it can go to the same vendor for support. “You don’t have one vendor pointing to another vendor saying it’s the other vendor’s fault,” said Gendelman. “When we’ve had issues, we were able to call Red Hat Global Support Services and they bent over backwards to help us figure out what the issues were. Even though some of the questions that we put forth to them might have been a little gray about where the problem lies, it was really nice because they had the operating system and the stack together. They were there to help support us; and we were able to get through it.”

“We’ve been running mission-critical applications on Red Hat Enterprise Linux for a long time,” said Clark. “It was that experience and those results that led us to consider JBoss Enterprise Middleware, and we’re satisfied, and not surprised, knowing that Red Hat’s middleware solutions are as enterprise-class as its platform solutions.”

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