Banco Santander es la empresa de mayor capitalización bursátil de España y uno de los bancos más importantes del mundo. Exposición de las razones que les han llevado no solo a utilizar software abierto en el core del software del Banco Santander, sino a liderar y desarrollar una de las iniciativas de código abierto: Open Nebula. Open Nebula es una plataforma de cloud computing para manejar infraestructuras heterogéneas de data center. ¿Por qué un banco líder apuesta por el software libre? Autor: Jesus Ruiz Martínez (Director of Open Innovation en Banco Santander). Librecon.io

1. About
the
experience
of
Banco
Santander
with
OSS
November
2014

2. ‹Nº›
Introduction
About the Grupo Santander activities
on Open Source
Conclusions

3. 1 Introduction 3
Some numbers about Banco Santander
GEOGRAPHIC
PRESENCE INFRASTRUCTURE
BRANCHES 14.392
PCs 281.946
POS 495.785
ATMs 39.026
MAINFRAME
186.000
MIPS
4,4
PB
SERVERS +50.000
STORAGE +40
PB
CUSTOMERS:
106
M
EMPLOYEES:
182.958

4. 4
1 Introduction
Ubiquity of Mobility, Social Networks and Internet-of-Things
are causing an explosive growth in the generation of data.

5. 5
1 Introduction
There is a lot of value that can be extracted from this haystack
of data, but its nature has dramatically changed:
• Geo-localization of the user
• Places that the user has visited
• Shopping information
• Places where the user makes the payments
• People with whom the user has interacted
• Websites that the user has visited
• Interests that the user has made public
Data was always important, but its nature has changed:
• Variety: many new sources, specially unstructured data
• Velocity: pace of data generation has exploded
• Volume: we need to store all this data in order to analyse it

6. 6
1 Introduction
Moreover, data availability, storage capacity and process
capabilities are becoming increasingly less
important as barriers to entry:
Thanks to Moore’s Law*, powerful computing
infrastructure is available to everybody, from start-ups to
large corporations
Affordable massive storage capacity based on cloud
infrastructure is available from providers like Amazon,
Microsoft, etc
With their actions, clients make their data accessible to
multiple players (giving apps permissions, posting
comments in social networks, using aggregation services
like in banking, continuously creating profiles,…)
Process
capabilities
and
communications
Storage
capacity
Data
availability
• Note: Moore’s Law applies strictly only to chip density. The equivalent for storage is Kryder's Law,
and for data networks Gilder’s Law and Metcalfe's Law.

7. 7
1 Introduction
The shifting nature of data and the lack of barriers of entry make
real time approach based on machine learning a must:
Capturing data is not enough. We need to use it for Real time and relevant reaction
to customer behaviour:
• A highly data-driven approach for businesses is emerging.
• In some domains, statistical machine learning with enormous amounts of data has
beaten traditional methods*
Even a great debate has started: “More Data Beats Better Algorithms?”
Machine
learning
on
BigData
is
required
for
real-­‐time
reaction
to
customer
behaviour
* “The Unreasonable Effectiveness of Data” (2009, P. Norvig et al.)
* “The End of Theory: The Data Deluge Makes the Scientific Method Obsolete” (2008, Chris Anderson)

8. 8
We are entering a new era in the history of computing
Past Future
Nobody produced
SW (except the
HW providers).
HW became a
commodity.
SW became the
critical
differentiator for
businesses.
Focus shifts from transaction
execution to Data capture and
exploitation.
HW (cloud) and SW (OSS) are
becoming critical enablers all
together: the key drivers are
usability and costs.
1 Introduction

9. 8
We are entering a new era in the history of computing
Past Future
ERA of HW ERA of SW ERA of DATA
Nobody produced
SW (except the
HW providers).
HW became a
commodity.
SW became the
critical
differentiator for
businesses.
Focus shifts from transaction
execution to Data capture and
exploitation.
HW (cloud) and SW (OSS) are
becoming critical enablers all
together: the key drivers are
usability and costs.
1 Introduction

10. 9
1 Introduction
But explosive growth in processing, produces an equal
explosive growth in cost of proprietary SW:
• The best way to control explosion of SW costs is the use of OSS
• If we add other features of OSS like vendor independence, greater
innovation, community collaboration, and control over the evolution of SW
Then
Open
Source
Software
(OSS)
is
inevitable
and
a
key
enabler
of
the
Era
of
Data

11. 3 Introduction 10
For us, embracing OSS is not about cheaper or free
We shift from vendor-dependence to SW-dependence. This
is good, specially for mission-critical SW. We have more
choices for SW maintenance and evolution.
It is easier to influence/participate in the strategic evolution
of the SW that we use.
It is easier to innovate with a white-box approach (OSS)
than with a black-box approach (proprietary SW).
Vendor
independence
Strategic
evolution
of
SW
Open
innovation
Shift from traditional hierarchical SW development structure
to a distributed collaborative development culture.
Change
of
internal
development
culture

12. ‹Nº›
Introduction
About the Grupo Santander activities
on Open Source
Conclusions

13. 3 About
the
Grupo
Santander
activities
on
Open
Source 12
OSS external communities We have 4 initiatives

14. 3 About
the
Grupo
Santander
activities
on
Open
Source 12
1
OSS external communities
Consumption
of
OSS
1
We have 4 initiatives

15. 3 About
the
Grupo
Santander
activities
on
Open
Source 12
1
2
OSS external communities
Consumption
of
OSS
Production
of
OSS
1 2
We have 4 initiatives

16. 3 About
the
Grupo
Santander
activities
on
Open
Source 12
1
2
OSS external communities
3
Consumption
of
OSS
Production
of
OSS
InnerSource
(internal
OSS)
1 2
3
We have 4 initiatives

17. 3 About
the
Grupo
Santander
activities
on
Open
Source 12
1
2
4
OSS external communities
3
Consumption
of
OSS
Production
of
OSS
InnerSource
(internal
OSS)
Observatory
of
OSS
1 2
3
We have 4 initiatives

18. 13
Kosmos
a PMF tool
Kid
a PMF tool
eureka
Operation Services
3 About
the
Grupo
Santander
activities
on
Open
Source
We have several Open Source initiatives developed internally
in different stages of maturity…

19. 14
WE
ARE
PROUDLY
SPONSORING
SOME
PROJECTS…
…AND
GIVING
BACK
TO
THE
COMMUNITY
3 About
the
Grupo
Santander
activities
on
Open
Source
…and external involvement too…

20. 15
IS
AN
AGREEMENT
WITH
WHERE
WE
ARE
RUNNING
SEVERAL
APPLIED-­‐RESEARCH
PROJECTS
3 About
the
Grupo
Santander
activities
on
Open
Source
…and we have an open innovation collaboration with universities…
…with ambitious long-term objectives…

21. 3 About
the
Grupo
Santander
activities
on
Open
Source 16

22. 17
3 About
the
Grupo
Santander
activities
on
Open
Source
…with ambitious long-term objectives…
CREATION
OF
AN
OPEN
PUBLIC-­‐PRIVATE
INNOVATION
ECOSYSTEM
FOR
THE
DEVELOPMENT
AND
PROMOTION
OF
“TECHNOLOGIES
FOR
THE
DIGITAL
BUSINESS”
• Promote the development and market introduction of technology, systems,
services and applications for the new digital economy in an Open Source
Software model
• Test and validate new business models associated to Open Ecosystems and
Open Source Software
• Joint participation in international research programs with emphasis on the
Public-Private Partnership model (eg. EU Horizon 2020)
• Improve the competences and skills of all the people participating in the
ecosystem, specially of students graduating from the participating universities.

23. ‹Nº›
Introduction
About the relevance of Open Source
worldwide
About the Grupo Santander activities
on Open Source
Conclusions

24. 4 Conclusions
19
Take
home
messages
• Open Source Software is a critical
enabler for the new Era of Data
• Europe has to aggressively
promote pan-european
Public-Private Partnerships
around OSS and new
business models for the
Digital Economy
• This is critical to compete
with USA (Amazon, Google,
Apple,…) and Asia (Alibaba,
…) in the number and size of
digital innovative companies
• Banco Santander is
willing to participate
actively on such
ambitious initiatives