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1. Shinhan Bank Projects 524% ROI in 6 Years
and 43% Reduction in ATM Downtime
via Embedded Intel® vPro™ Technology
White Paper and ROI Study
Intel® Core™2 Processor with vPro™ Technology
Shinhan Bank
Finance
Embedded Systems
Shinhan Bank (Shinhan),1
headquartered in South Korea, has implemented the Intel®
Core™2 processor with vPro™ technology2
as an embedded controller in their automated
teller machines (ATMs). Shinhan found that embedded Intel® vPro™ technology allowed
better remote updates, patching, reimaging, and problem resolution of the machines.
The bank’s information technology (IT) technicians now remotely maintain, update,
diagnose, and repair ATMs for several types of issues that earlier required site visits.
IT technicians also better diagnose complex ATM Operating System (OS) hangs and
hardware failures caused by dirty power, power loss, or extreme temperatures. Shinhan
has already reduced ATM downtime by 1,014 hours (1.4 hours per ATM) within the first
year of implementation of Intel vPro technology in its ATMs.3
The Shinhan ROI study
projects a 43% reduction in ATM downtime,4
and a 33% reduction in the site visits
historically required for maintenance and problem resolution.3
Results of the study
showed a projected break-even point in year 2, savings of over $608,000 across
6 years, and a positive ROI of 524% in year 6.3
Author: Manoj Punamia
Advanced Technical Sales, Intel Corporation
2. Executive Summary
Automated teller machines, or ATMs, are the primary model for
self-service kiosks. ATM management can be challenging and
costly for IT administrators because ATMs are often distributed
across large geographic areas. Management costs may be both
direct and indirect in nature. Examples of direct costs are service
costs to maintain or repair systems. Examples of indirect costs
are the costs associated with downtime during maintenance
and repair, such as potential lost transactions and the loss of
dissatisfied customers to the competition.
Shinhan Bank (Shinhan),1
headquartered in South Korea, is an
award-winning financial institution with 5,000 ATMs distrib-
uted over a large geographic area. Recently, Shinhan began
implementing Intel® Core™2 processor with vPro™ technology2
as
an embedded hardware-based solution in their ATMs. Shinhan
found that the embedded Intel® vPro™ technology enabled a new
remote management paradigm that improved the efficiency of
their existing process for remote updates, patching, OS reimag-
ing, and problem resolution of ATMs. The improved process has
resulted in a significant downward trend in the number of site
visits required to address the above tasks and improved Mean
Time To Repair (MTTR) metrics. With protected, remote access
to BIOS via Intel vPro technology, Shinhan has also been able to
implement a remote procedure to quickly switch to a redundant
hard drive in their ATMs to address problems resulting from a
disk failure. On-site repair has been transferred to the off-hours
period when it doesn’t affect business. The bank’s ATM availab-
ility during business hours has significantly improved as a result
of the above process improvements.
Within the first year, ATM downtime was reduced by 1,014 hours
(1.4 hours per ATM)3
and 304 site visits for maintenance and prob-
lem resolution were avoided. Shinhan projects these numbers
will improve to 25,350 hours (43% downtime reduction4
) and
7,595 site visits (33% site visits reduced) over 6 years.3
Shinhan
projects a break-even point at 18 months, savings of over
$608,000, and a positive ROI of 524% by year 6.3
Table of Contents
ATMs: A strategic priority for Shinhan,
a challenge for IT administrators. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Analyzing the cost drivers for Shinhan’s ATM
support services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Intel® vPro™ technology in
embedded systems: Bank ATMs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Implementation of Intel® vPro™ technology
in Shinhan ATMs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
TCO investigation and positive results:
Projected 524% ROI in 6 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Planning for the future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
For more information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology
3. Patch failures: Failure of automated maintenance scripts
IT technicians keep ATMs updated with the latest OS, applications,
and security patches by patching the machines remotely using
in-house management software and automated scripts. If a critical
patch deployment fails, the ATM is normally shut down for security
reasons, and a technician is dispatched to resolve the issue on-site.
Shinhan deploys approximately 180,000 patch instances per year
(36 for each of its 5,000 ATMs). Of these, about 3,600 (2%) fail,
either because the management agent on the ATMs is unrespon-
sive, or the machine is disconnected from power.6
The cost of a
site visit to resolve a single instance of patch failure is about $72.6
Major upgrade failures: Failure of automated
maintenance scripts
On average, a Shinhan ATM is also remotely reimaged (OS
reimaging), updated with new BIOS, drivers or requires a major
application release at least once per year. Site visits are required
for about 5% of the above cases that fail either because the ATM
is powered off, or there is some problem that cannot be resolved
remotely.6
The cost of a site visit to resolve a single instance of
such a failure is about $112.6
Problem Resolution: Hardware failures
or an unresponsive OS
ATMs experience OS hangs or hardware failures typically caused
by driver issues, hard disk failures, dirty power (spikes, dropouts,
voltage higher or lower than normal, and/or noise that can damage
sensitive devices) or even inclement weather. Such problems can
be especially complex to diagnose as well as resolve.
Depending on the level of the technician required to repair the
ATM, a single site visit can cost $45-$75 dollars.6
Resolution of
hard drive failures by replacing hard drives costs Shinhan $48
per site visit.6
ATMs: A strategic priority
for Shinhan, a challenge
for IT administrators
Automated teller machines, or ATMs, are costly, complex machines
that often use embedded PCs for control. They are the primary
model in the industry for self-service kiosks. ATMs have made
self-service transactions rapid and easy at a reduced cost and
have increased customer satisfaction. Most recent developments
in the ATM industry have been due to new developments in
technology and software.
As successful as ATMs are in the business model, they remain
challenging for information technology (IT) administrators who
must manage them. Scheduled maintenance of ATMs and soft-
ware or hardware problem resolution are two of the primary
challenges for administrators. Since the ATM is an important
interface between a bank and its customers, problems that
can bring down an ATM during business hours can be costly.
Shinhan Bank (Shinhan), established in 1982, is a prominent finan-
cial institution headquartered in Seoul, Korea.1
Shinhan’s strategic
priorities include fortifying market share in core businesses and
enhancing cost control and efficiency. The bank believes that
a key element of meeting its goals is keeping its 5,000 ATMs,
in working order during business hours.
ATM maintenance and problem resolution tasks are handled by
the bank’s IT department. A major task (and challenge) for the
IT administrators is to keep an ATM configuration composed
of several peripherals (printers, card readers, etc.) and software
elements (BIOS, OS, licenses, etc.) up to date and functioning
correctly. A second task is to expeditiously resolve complex
problems on systems at remote locations. The difficulty in
accomplishing these tasks directly translates into direct
and indirect costs for Shinhan.
• Direct costs include costs for the bank’s IT department to
maintain ATMs and resolve ATM problems.
• Indirect costs include potential lost transactions and revenue
loss from dissatisfied customers going over to the competition.
Analyzing the cost drivers for
Shinhan’s ATM support services
Geographic distribution makes site visits costly
Shinhan’s 5,000 ATMs are distributed across many sites in South
Korea, with an average of 5 ATMs per site. A site visit to address
a problem is very time-consuming and costly in terms of travel,
service and lost transaction costs. The site visits and associated
costs typically arise from the following issues:
Shinhan Bank: An honored
financial institution
Shinhan Bank provides commercial banking, trust operations,
personal and corporate banking products and services in
South Korea and internationally. Shinhan has been honored
by several organizations for ethical management, and has
received the Korea Service Grandprix for six consecutive
years from Korea Standards Association. The organization
has been ranked 47th out of the 2009 world’s global finan-
cial brands by The Banker magazine5
Shinhan currently has
over 1,040 branches and employs over 11,000 personnel.
3
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology
4. Shinhan estimates that fixing patch failures costs $259,200 and
problem resolution (OS reimaging, BIOS/drivers/application updates,
remote software diagnostics and repair, and hardware problems)
costs $46,600 in terms of annual service costs.6
As a result of all
the failures, the bank’s ATMs have historically experienced over
12,743 hours (2.5 hours per ATM on average) downtime per year
during business hours.6
Intel® vPro™ technology in embedded
systems: Bank ATMs
Intel® Core™2 processor with vPro™ technology provides
protected, remote, hardware-based management capabilities
that can be embedded into ATMs and other self-service kiosks
to improve remote maintenance and problem remediation. Being
hardware-based, it offers several benefits over software-only
solutions for ATM maintenance, including:
• A protected remote communication channel for communication
between the service center and the networked remote ATM.
• Access to the ATM even if the OS is unresponsive, the primary
hard drive has failed or the ATM is powered down.
• Protected, remote power up/down, reboot of ATMs, BIOS
updates or change of settings.
• Resistance to tampering.
The sidebar contains further details on the benefits.
Implementation of Intel® vPro™ technology
in Shinhan ATMs
ATMs typically have a 5- to 6-year life cycle. As part of its
planned hardware refresh cycle, Shinhan recently began
refreshing its ATMs with machines with embedded Intel vPro
technology.3
The bank purchased the Intel vPro technology-
based ATMs from multiple ATM vendors.
Setup and configuration
Shinhan used the Intel® Setup and Configuration Server (SCS) to
configure Intel vPro technology in their ATMs. The systems were
configured in enterprise mode with digest authentication in a
staging environment. Since Shinhan’s ATMs were not integrated
with Microsoft Active Directory,* the ATMs equipped with Intel
vPro technology were first pre-provisioned using USB media in
a DHCP environment. Scripts were then used to automate the
configuration change on the machines from DHCP to static IP
addresses required by Shinhan.7
The ATMs were then shipped
to the appropriate location.
In the future, Shinhan plans to integrate Intel vPro technology
ATMs with Microsoft Active Directory.
Benefits through remote manageability
Intel® vPro™ technology includes many hardware-based
capabilities that enable remote diagnostics and repair,
even when an OS is not functioning, and regardless of the
ATM configuration.2
An authorized IT technician can query
and inventory such machines from a central management
console even if the ATM OS is not responding.
Perform more maintenance remotely
Using Intel vPro technology, an authorized technician can
remotely power up ATMs, patch, update, reimage systems,
and install the latest BIOS and drivers. As long as the ATM
is connected to a power supply, an authorized technician
can use the hardware-based “out of band” channel to
remotely access, diagnose, and repair the machine. Intel
vPro technology also provides the capability to receive
hardware-based alerts from the ATM even if the ATM
OS is unresponsive.
Reduce site visits traditionally required
for hardware diagnostics
Since critical system data is stored in isolated, protected
nonvolatile memory, the technician can use the BIOS device
list from POST (power-on self test) to remotely identify the
exact part that is not functioning. When a site visit is neces-
sary, a technician can take the correct replacement part to
the ATM site and repair the system in a single trip. The
result can be fewer onsite visits, improved time to repair,
and reduced service costs.
Identify and resolve more software problems remotely
Intel vPro technology also includes built-in hardware-
based capabilities that help IT technicians identify and
resolve even complex software problems remotely. For
example, an authorized technician can use hardware-
based serial-over-LAN (SOL) and hardware-based KVM
(keyboard-video-mouse) Remote Control8
to more securely
control ATMs reliably in all states – even beyond the corpo-
rate firewall. With KVM Remote Control, technicians have
full, secure interactivity with the machine in order to better
identify and remotely resolve complex issues with BIOS,
startups/shutdowns, blue screens, OS freezes, disk failures,
and network software issues.
With Intel vPro technology, technicians can bring ATMs
back into service more quickly, eliminating many costly
site visits, reducing ATM downtime, and improving
customer satisfaction.
4
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology
5. In-house management software
To manage the ATMs, Shinhan uses in-house management
software that supports Intel vPro technology.
TCO investigation and positive results:
Projected 524% ROI in 6 years
After deploying 1,500 ATMs with Intel vPro technology, Shinhan
studied the return on investment (ROI) realized through improved
remote management of ATMs. Shinhan found that it had been
able to reduce about 50% of site visits related to patching and
about 80% of the visits related to problem resolution. Shinhan
directly attributes this improvement to the implementation of
Intel vPro technology.
Patching: 50% reduction in site visits
Shinhan found that most patch failures were because of an
unresponsive management agent on the ATM or a powered
down ATM.
After implementing Intel vPro technology, Shinhan found that
its technicians were able to remotely power up an ATM that
was powered down. The technicians were also able to remotely
reboot an ATM to a working state. In just the first year Shinhan
eliminated 270 site visits and more importantly, the bank reduced
ATM downtime from patch failures by 810 hours.3
By improving remote patch resolution, Shinhan expects to elimi-
nate more than 50% of its normal patching related site visits.3
Major Upgrades (reimaging and BIOS/drivers/applications
updates): 4,780 fewer hours of downtime
Shinhan found that automated script failures caused many major
upgrades and updates to fail. With Intel vPro technology, Shinhan’s
IT technicians used protected, remote console redirection and
remote boot capabilities to resolve the failures from their service
center. The technicians were able to remotely control the ATM and
avoid a site visit even in cases where the OS was unresponsive.
Using remote console redirection, technicians substantially
reduced site visits, MTTR, and ATM downtime. Shinhan projects
a reduction of 4,780 hours of ATM downtime over 6 years and
a cumulative 6-year savings of over $114,750.3
Problem Resolution: 45% reduction in service costs
• Software and hardware problem resolution: After deploying
ATMs with Intel vPro technology, the bank’s IT technicians
have been able to use protected, remote console redirection to
access ATMs even when the OS has been unresponsive or hard-
ware has required replacement. IT technicians have been able to
diagnose and repair software problems from their service center
and identify the correct hardware to take to repair the ATM.
• Redundant hard drives and remote BIOS access keep ATMs
working: New ATMs with Intel vPro technology have a redundant
hard drive with OS and application images identical to the primary
hard drive. When a primary hard drive failed, the bank’s technicians
were able to use Intel vPro technology capabilities to directly
access the BIOS and change the boot order of the machine and
utilize the secondary drive. This enabled the bank to keep the
ATMs in service for customers during business hours and repair
them after-hours along with other regular maintenance tasks,
with minimal impact to business.3
The bank has seen reduced service times, ATM downtime, and
site visits due to hardware and software problems. It projects a
reduction in ATM downtime by up to 310 hours over 6 years –
a 48% reduction.3
TCO/ROI investigation environment
Shinhan’s ROI investigation was conducted in an environ-
ment of 5,000 ATMs, of which 1,500 (about 30%) were
new ATMs with embedded Intel® vPro™ technology. Data
was collected for one year and was analyzed for three key
IT service tasks: patching, OS reimaging, and remote prob-
lem resolution. Data was then projected for 5 years, with
the assumption that the bank would continue to refresh
its ATM fleet as part of its typical 5-year hardware refresh
cycle. ROI was calculated conservatively, for only the
three service tasks of remote patching, OS reimaging
and problem resolution.
Key projections from TCO/ROI analysis
• Positive ROI of 524% over 6 years, after deploying
ATMs with embedded Intel® vPro™ technology to
support improved patching, OS reimaging, and
remote problem resolution.3
• Reduction of 43% in ATM downtime,4
by speeding
up remote maintenance for patching, OS reimaging,
and remote problem resolution through the use of
Intel vPro technology.3
• Break-even point achieved in 18 months.3
• Projected cumulative net benefits of up to $574,900
by using Intel vPro technology to improve remote service
efficiencies and reduce site visits for patching, OS
reimaging, and remote problem resolution.3
5
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology
6. Substantial benefits already seen in year 1
After seeing the results of their investigation, Shinhan is pleased
with the improved service efficiency and reduction in ATM down-
time. Since deploying Intel vPro technology-based ATMs, Shinhan
has already reduced ATM downtime by 1,014 hours (1.4 hours per
ATM) within one year. Shinhan projects a 43% reduction in ATM
downtime4
and a reduction in service costs of over $608,000
across 6 years through improved remote patching, OS reimaging,
and remote problem resolution.3
The bank projects a break-even
point in 18 months, and a positive ROI of 524% in 6 years.3
Planning for the future
Shinhan is investigating the use of other hardware-based Intel
vPro technology capabilities to further enhance the security of
ATMs. Some of the items under consideration are: (a) utilization
of hardware-based filters that can help ensure an ATM commu-
nicates only with authorized system addresses; (b) use of agent
presence checking; (c) improved monitoring; and (d) mechanisms to
shut down the network in a controlled manner if problems arise.
Adding security to self-service kiosks via
embedded security technologies
Security of ATMs and protection of resources is critical
to financial institutions and other businesses that use
self-service kiosks. For example, ATMs handle sensitive
customer data, which can include bank account information,
credit card numbers, and other personal information. Many
of the hardware-based capabilities of a new 2010 Intel®
Core™ processor with vPro™ technology can help improve
security for such self-service kiosks:2
• Intel® Active Management Technology (Intel® AMT)
security capabilities2
• Intel® Virtualization Technology (Intel® VT)9
• Intel® Trusted Execution Technology (Intel® TXT)10
Intel® Active Management Technology
(Intel® AMT) security capabilities
Intel® AMT includes hardware-based security features that can
automatically detect the presence of critical security agents,
prevent tampering, enable compliance with various network
security protocols, log events and send alerts to describe ATM
behavior. Because Intel® vPro™ technology is OS-independent,
it can function even if an ATM has already been infected or
attacked by malware or a hacker.
Intel® Virtualization Technology (Intel® VT)
Intel® VT supports both traditional and alternate computing
models. In banking, virtualization could allow IT administrators to
isolate the ATM’s execution environment from the more visible
user OS. Such isolation could improve security by locking down
ATM applications and better isolating the ATM or machine
OS from unauthorized access, while still allowing users the
customized interface and performance they demand.
Intel® Trusted Execution Technology (Intel® TXT)
Intel® TXT helps the ATM boot software into a trusted state.
With Intel TXT, software applications can build a chain of trust
from the “bare metal” hardware to a fully functional virtual
machine manager (VMM). Because Intel TXT can detect changes
to the VMM during its launch, this helps ensure that virtual
machines run as expected on the ATM.
In the past, security credentials have not traditionally been
protected before the OS and security applications are launched
or during disorderly shutdowns, such as during power transitions.
This is particularly important for ATMs, which can experience
power failures as well as disorderly shutdowns caused by temper-
ature-related failures (ATMs are often installed in areas exposed
to weather, including extreme hot or cold temperatures).
With Intel TXT, security credentials can be protected during
both orderly and disorderly shutdowns. This helps ensure that,
from BIOS up through the application layer, only the software
stack intended to run on an ATM is actually executing on the
system. This prevents an altered software stack, which could
contain malware, from executing on the system. Further, IT
administrators can use attestation processes and supporting
applications to verify that the intended stack has launched on
the system.
Together, Intel vPro technology, Intel VT, and Intel TXT deliver
hardware-based protection for critical business data and
assets to help IT administrators improve security for ATMs
and minimize business risk.
6
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology
7. The bank is already studying the use of additional capabili-
ties of Intel vPro technology to improve its efficiency and
reduce costs further. Of particular interest are the hardware-
based security capabilities built into Intel vPro technology like
Intel® Virtualization Technology (Intel® VT)9
and Intel® Trusted
Execution Technology (Intel® TXT)10
to help mitigate the risk of
unauthorized software on ATMs (see sidebar on page 6).
Table 1. Cost and ROI analysis for IT tasks performed via Intel® vPro™ technology3,6
Without
Intel® vPro™
technology ATMs with Intel® vPro™ technology activated
Estimated savings
with 100% ATMs with
Intel® vPro™ technology
Year 0a
Year 1a
Year 2b
Year 3b
Year 4b
Year 5b
Year 6b
5,000
ATMs
750 (15%)
Intel vPro
ATMs
1,938 (39%)
Intel vPro
ATMs
2,813 (56%)
Intel vPro
ATMs
3,688 (74%)
Intel vPro
ATMs
4,563 (91%)
Intel vPro
ATMs
5,000 (100%)
Intel vPro
ATMs
Patching failure
instances
3,600 3,330 2,903 2,588 2,273 1,958 1,800
Desk-side visits
required to fix patch
failures: 50% fewer
Cumulative 6-year
savings: over
$486,000
ATM downtime:
20,250 hours less
over 6 years
ATM downtime due
to patching failures
(hours)
10,800 9,990 8,710 7,760 6,820 5,870 5,400
Benefits from reduced
service costs for patch
resolution via Intel®
vPro™ technology
N/A $19,400 $50,200 $72,900 $95,600 $118,300 $129,600
ATM downtime due
to OS reimaging and
BIOS/drivers/apps
updates (hours)
1,830 1,640 1,340 1,120 890 670 560
Cumulative 6-year
savings: over $114,750
Service costs:
44% lower
ATM downtime:
4,780 hours less
over 6 years
Benefits from reduced
service costs for OS
reimaging and BIOS/
drivers/application
updates via Intel®
vPro™ technology
N/A $4,600 $11,860 $17,200 $22,570 $27,920 30,600
ATM downtime due
to remote hardware
and software problem
resolution (hours)
110 100 80 60 50 35 25
Cumulative 6-year
savings: over $7,100
Service costs:
45% lower
ATM downtime:
310 hours less
over 6 years
Benefits from reduced
service costs for
remote hardware and
software problem
resolution
N/A $285 $735 $1,065 $1,395 $1,725 $1,895
ROI Summaryc
Cost of Intel®
vPro™ Technology
Implementation
N/A $48,200 $6,100 $6,200 $6,300 $6,500 $1,000
Break-even point:
year 2c
ROI: 524% in year 6c
Cumulative ATM
downtime hours saved:
25,350 hours
Cumulative 6-year NPV
benefits: $350,000
Total Benefits N/A $24,300 $64,100 $94,900 $126,900 $160,100 $179,000
Cumulative Net
Benefits
N/A -$23,900 $34,100 $122,700 $243,200 $396,900 $574,900
a
Data is the result of measurements.
b
Data is the result of projections based on measured data in Year 1, Shinhan Banks ATM management and support practices, ATM deployment plan, and IT labor cost.
c
ROI is calculated based solely on the IT areas of ATM patching, OS reimaging, hardware/ software diagnostics and repair; and assumes a 2% inflation and 15% discount rate.
Summary
The realized and projected savings from reducing site visits are
expected to help Shinhan achieve its strategic goals of enhanced
cost control and efficiency. By taking advantage of the hardware-
based manageability features of Intel vPro technology, Shinhan
expects to further improve service efficiency, reduce ATM down-
time, and realize greater savings. The bank also expects that
increased ATM uptime will translate into greater customer satis-
faction – a key goal in the competitive banking industry. Shinhan
is confident that Intel vPro technology enables the secure remote
IT services that will help the bank minimize its risks.
7
White Paper and ROI Study: Shinhan Bank Projects 524% ROI in 6 Years and 43% Reduction in ATM Downtime via Embedded Intel® vPro™ Technology