A Call to Arms – Seizing Control of Enterprise Grids Through Open Source and StandardsCondor Week, 2007

Mike RyanChief Technologist, Compute BackBonemike.ryan@jpmorgan.com

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JPMorganChase Is One of the Largest Financial Institutions

RetailFinancialServices

InvestmentBank

Treasury& Securities

Services

Asset Management

InvestmentManagement

& PrivateBanking

Clients

Core Technology

Over 160,000 employees

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JP Morgan’s Investment Bank is an industry leader offering thousands of clients expert advice and execution in all aspects of capital formation, growth and preservation.

The Investment Bank

People: 18,000 in IB; 4,000 in IBTechLocations: Offices in 50 countriesClients: More than 90% of Fortune 1,000Revenues: $12 billion

Who We Are Lines of Business

Global Syndicated LoansInterest Rate DerivativesAsset-Backed SecuritiesInvestment Grade Corporate DebtEmerging Markets International BondsGlobal Announced M&A

Leadership Positions

The Investment Bank

Fixed IncomeCredit & Rates MarketsExotics & HybridsInstitutional Equities, EDG, F&OGlobal M&AProprietary PositioningGlobal Commodities & CurrenciesGlobal Credit Risk Management

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The Investment Bank – where we fit in

Lines of Business

Fixed IncomeCredit & Rates MarketsExotics & HybridsInstitutional Equities, EDG, F&OGlobal M&AProprietary PositioningGlobal Commodities & CurrenciesGlobal Credit Risk Management

Core IB Technology

•Architecture

• Solution Selection governance

• Engineering governance

• Best practices / patterns

• Technology Portfolio management

• Foundational Components

• Identity / Access Management

• Enterprise BPM

• Enterprise Message Bus

• Grid Computing

• AMQP

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Investment banks have computationally intense problems at enormous scale – such as risk management and derivatives pricing – that must be completed in a relatively short period of time

Risk Management Investment banking is one of the most highly regulated industries, with formalized risk-

based capital requirements for Value at Risk (VaR) and portfolio credit risk.

These risks are modeled through stochastic processes such as binomial trees and monte-carlo simulations, which scale linearly with increased computational resources

A high degree of accuracy in these risk models can seriously impact the bottom line: Lowers the level of regulatory capital required

Increases understanding of sensitivity to market changes or credit events

Derivatives Pricing New derivative products are created with increasing frequency

The ability to accurately price them is critical to future success

Has to be fast (literally millions / hour)

Portfolio optimization for algorithmic trading

Why Grid?

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The JP Morgan grid is known as the “Compute BackBone” (CBB), and consists of the application of over 12,000 shared, networked computers distributed globally.

The CBB’s Infrastructure Investment In 2004 Achieved A 60% To 70+% Utilization Versus The 15% Utilization Typically Observed In Line Of Business Dedicated Computing. (Business Week, October-18-2004).

The CBB’s Reliability Has Been Clearly Demonstrated With Only “Minutes” Of Downtime Since Inception In June/2003. (Over Five 9’s.)

The CBB was named Waters magazine’s IT Project of the Year (December / 2003), and Computerworld’s Best in Class for 2004.

JP Morgan’s Answer: the CBB

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The Compute Grid

Spare Computers

Smart Software Layer

Rates Equities Credit Global Credit Risk Proprietary Positioning

How does it work?

Computing power is harnessed into a central utility – the grid

Grid management software coordinates the supply of computing power with demands of the business

Jobs are submitted by applications, then executed on the grid, with the results returned to the applications

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How does it work?

Rates Equities Credit Global Credit Risk Proprietary Positioning

The Compute Grid

Smart Software Layer

Spare Computers

When one line of business needs more resources than usual, additional power can be drawn from under utilized machines

Compute Backbone can also add new computing capacity in 24 hours Our target for On Demand initiative is 1 hour

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CBB Challenges

Issue For 2006? Issue For 2007?Topics

YESMore Flexible

Resource Utilization

YES, but Condor is being used in development environments to

increase utilization

Deterministic &

Opportunistic

Grid Scheduling

YES NO – solved with Condor

On Demand Grids YESYES, but progress is being made

… and Condor will be a factor

64 bit support YES NO – solved with Condor

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CBB Challenges

Issue For 2006? Issue For 2007?Topics

YESImproved Data

CachingNO – bolted a cache onto our grid

Orchestration

(parent / child)YES NO – built it ourselves

Coordinated view

beyond single

compute cluster

YES NO – built it ourselves

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Phase I was Condor on the Desktop First application is a stateless pricing calculator running on over two thousand

desktop machines for our Exotics & Hybrids business in London

Runs hundreds of thousands of pricing jobs per day

Currently in production

Phase II was Condor in the Datacenter First application is risk calculator for CDO products

Currently in production on 64 bit RHEL 4 in NY

Built a queuing layer on top of Condor to warm start pricers and eliminate 98% of Condor’s scheduling overhead

Built management tools to simplify grid operations

What have we done with Condor?

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Vastly expand the presence of Condor across the bank

Manage resource allocation between applications in our Condor grid

Manage multiple Condor pools efficiently

Drive migration from legacy grid infrastructure to next generation platform

What are we doing with Condor next?

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We need developer / customer driven ownership of standards definitions There is appetite amongst enterprise customers to drive them

Current standards focus on “job submission” Collecting resources together for a job Managing individual long-running parallel jobs

Need a broader scope Grid services are composed of code, processes, requests, data storage, queries,

events – all with different lifecycles The standards need to manage all those aspects Platform independence & virtualization More Security Features

Proposed standards concepts: manage services and inter-relations between services manage data submission / staging REAL TIME SCHEDULING STANDARDS!!!!

What are we looking for from the community?

Standards, standards, standards!!!!

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Thank you!

Thanks to Miron, Todd, and the entire Condor Team

We’re always looking for bright, talented people

We’re also looking to partner with

Condor thought leaders

Please feel free to talk with any of us:

Mike Ryan Evan Junek

mike.ryan@jpmorgan.com evan.a.junek@jpmchase.com

(212) 622-4191 (212) 622-4559

Madji Lo

ndeye.m.lo@jpmchase.com

(212) 622-0651