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Enterprise All-Stars: Honoring 50 companies and their groundbreaking network projects

Financial All-Stars

The financial services industry has long been among the most intense consumers of new technology. The 13 winners here are no exception, whether they have implemented state-of-the-art business-centered management, Web services or efficient converged networks.
By Beth Schultz , Network World , 11/21/2005

MPLS pays off

State Street gets productivity gains, network efficiencies and business-enhancing services from its new, advanced WAN architecture.
Financial All-Stars
State Street | Citigroup | Farm Credit Services of America | Fidelity Investments | Fifth Third Bancorp | Fortis Prime Fund Solutions | GMAC Commercial Holding Corp. | H&R Block Financial Advisors | Lehman Brothers | Principal Financial Group | Prudential Financial | State Street Global Advisors | UMB Bank

When it comes to its next-generation network infrastructure, State Street takes no shortcuts.

"The devil is in the details," says Gordon Bither, senior vice president for integration network solutions at State Street, the world's largest institutional investment company, with $9.8 trillion in assets under custody.

Such an attitude led State Street to create a MPLS network for carrying converged voice, data and video simultaneously over two carrier networks, dubbed an active/active architecture. With active/active, traffic travels the shortest routing path, jumping from one carrier network to the other as necessary.

Detail-mindedness also led State Street to create six standardized architectural models for funneling traffic from global offices to its data centers and eight models for client connectivity. Among the client models are Gold and Silver options. Gold, the highest-availability service model, provides two routers for dual-carrier connectivity, says Steve White, vice president of network architecture and design at the Boston company. With Silver, two routers connect to a single carrier network, with ISDN for recovery, he says.

As of April, State Street has tied its eight data centers, 90 global offices and more than 250 clients to the new network, with nary a hiccup.

Validation first, contract second

Bither and State Street network engineers were thorough in plotting State Street's migration from the multicarrier frame-relay network it managed internally to the MPLS architecture it would rely on carriers to manage. Before they signed a contract, they wrote an architectural white paper for carriers, conducted 115 reference calls and spent 10 months gathering data on the carriers' global networks. They selected AT&T and MCI in November 2003, but didn't ink the contract until four months later. In the interim, State Street officials completed terms and conditions and set aggressive service-level agreements with the partners.

In another eight months of heads-down engineering, the MPLS team replicated the State Street WAN with a 72-router lab environment, and reverse-engineered the carriers' MPLS networks on that simulated backbone. Before it turned on the first site in October 2004, the project team validated all design models and thoroughly tested the MPLS architecture. "We had a very structured understanding of what we wanted to do," White says. "When the carriers' core engineers came here, we solved complex problems together, but we drove everything."

From the get-go, the project team understood that this new network would have to rely on enabling technologies, such as QoS. That way, if a business manager asked for videoconferencing, White could say, "No problem. We can do that today because we have QoS, and availability is baked into the architecture."

State Street’s All-Star project leaders, left to right, Gordon Bither, Richard Hamm, Steve White and Paul Sullivan.

In the frame-relay days, a videoconferencing request could have sent engineers scrambling to come up with a custom approach for involved sites. The frame-relay network had become overly complex and inefficient, growing as a series of these point solutions, Bither explains. Ultimately, about 18 service providers - one international and many regional carriers - provided the connectivity for that aged hub-and-spoke architecture.

In 2002, the frame-relay network situation had become untenable. The WAN had become a constant in the company's daily report on IT problems, and it was negatively affecting business. Bither relates his experience: "[The report] would come out at 8 a.m., and I would get a call from the CIO shortly thereafter to address the WAN issues."

As network executives began thinking about architectural options, MPLS topped everyone's minds. "MPLS was always our desired goal, with convergence in mind," Bither says.

Also clear to Bither and the executive management team was that State Street needed to get out of the business of managing its WAN services. "By outtasking WAN [moves, adds, changes, delete] work, addressing and those types of jobs, I was able to hire higher-level resources who understand the overall architecture and the business," he says. "We maintain the thought leadership and allow others to do the repeatable process as a managed service."

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