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					                                            Microsoft Customer Solution
                                            Financial Services Industry Case Study

                                            Brazilian Stock Exchange Ushers in New Era
                                            with SQL Server–based Infrastructure

Overview                                    “We realized that with a Microsoft-based platform, we
Country or Region: Brazil
Industry: Financial services
                                            could get availability, security, and productivity all in
                                            one place.”
Customer Profile
                                            Carlos Umberto de Faria, Production Planning and Quality Manager, BOVESPA
The Brazilian São Paulo Stock Exchange
(BOVESPA) handles an average of 110,000
daily trades worth U.S.$1.5 billion. Its
financial infrastructure component, the     Starting in the late 1970s, the Brazilian São Paulo Stock Exchange
Brazilian Clearing and Depository
Corporation, retains custody of $400        (BOVESPA) ran its mission-critical applications on ever-larger, ever-
billion.                                    more costly mainframe platforms. By the early 2000s, with daily
Business Situation                          trading volume growing by 50 percent each year, BOVESPA IT
With dramatic growth in trade volume,       executives decided to evaluate their technology investments and
BOVESPA needed to replace its mainframe
and mainframe-based applications with a     infrastructure. Seeking a more flexible approach, they decided to
more flexible and robust IT platform.       migrate their entire operation to a Microsoft-based environment
Solution                                    using Microsoft® SQL Server™ 2005 with Intel® Itanium® 2 and
BOVESPA undertook a massive project to      Xeon® servers and ultimately retire the mainframe. Based on early
deploy a Microsoft® SQL Server™ solution
on Intel® Itanium 2 and Xeon® servers and   results, the decision was a wise one. BOVESPA is enjoying higher
migrate dozens of mission-critical          performance, stability, and security and a lower total cost of
applications to the new environment.
                                            ownership. The institution is also helping brokers and dealers
Benefits                                    become more productive, thereby facilitating access to securities
 Smoother growth path
 More cost-effective development
                                            trading by individuals and organizations of all sizes worldwide.
 Lower TCO, higher ROI
 Higher broker and dealer productivity
                                                Situation                                        phasing out the mainframe. As of early 2007,
“Compared with a                                In operation for well over a century, the        they had migrated 60 applications and were
mainframe environment,                          Brazilian São Paulo Stock Exchange
                                                (BOVESPA) is the sole institution for trading
                                                                                                 in process of migrating the last two.

we enjoy equal or better                        stock, debentures, investment fund quotas,       According to Carlos Umberto de Faria,
scalability, availability,                      and other securities issued by publicly owned
                                                companies in Brazil. It also is the largest
                                                                                                 BOVESPA Production Planning and Quality
                                                                                                 Manager, the decision to undertake such a
manageability, and                              stock exchange in Latin America.                 significant endeavor was based on several
security for lower capital                      Starting in the 1970s, the BOVESPA IT

and operating costs.”                           infrastructure was based primarily on            “We figured that development of core
                                                mainframe platforms. But as BOVESPA‟s            solutions connected with the bank payment
Luiz Gonzaga de Oliveira Simões, Chief
                                                trading volume grew dramatically in the last     system would be faster and less costly in a
Information Officer, BOVESPA and the
                                                decades of the 20th century and by 50            server environment than on the mainframes,
Brazilian Clearing and Depository Corporation
                                                percent yearly starting in 2002, IT executives   and that we could use the opportunity to
                                                recognized the need for a more cost-effective    evolve our knowledge of the new platform,”
                                                and versatile approach.                          Faria says. “We figured maintenance costs
                                                                                                 would be lower because of more affordable
                                                In particular, they wanted a platform that       hardware and greater choice of third-party
                                                would help them support continuing growth,       vendors. We also figured that by retiring the
                                                reduce costs, and simplify their technology      mainframes, we could avoid compatibility and
                                                environment, says Luiz Gonzaga de Oliveira       stability problems that might arise from trying
                                                Simões, Chief Information Officer for            to run the two different platforms.”
                                                BOVESPA and its financial infrastructure
                                                component, the Brazilian Clearing and            In sum, Faria points out, “We realized that
                                                Depository Corporation. For these reasons,       with a Microsoft-based platform, we could get
                                                Gonzaga and his colleagues turned their          availability, security, and productivity all in
                                                attention to Microsoft, HP, and Intel®.          one place.”

                                                As Gonzaga explains, BOVESPA IT executives       Solution
                                                first became familiar with large-scale           The initial phase of the project, to migrate the
                                                computing environments based on                  existing mainframe-based applications, ran
                                                Microsoft® technology with the proliferation     from 2003 to 2005. It involved a team of
                                                of the Internet in the mid-1990s. Over the       more than 200 peopleabout 80 from
                                                next few years they migrated a number of         BOVESPA, 100 from partner companies, and
                                                applications to Microsoft-based servers,         30 from Microsoft Services and other
                                                including a payment solution for the Brazilian   Microsoft organizationswho generated
                                                Central Bank that became operational in          upwards of 4 million lines of code. Technical
                                                2002.                                            experts from HP, the hardware provider, were
                                                                                                 also heavily involved.
                                                After evaluating the success of that
                                                application, they decided to proceed with a      With the help of Microsoft Visual Studio
                                                major mainframe migration project, which         .NET, Microsoft Visual Studio 2005, COM+,
                                                included migrating 62 legacy applications        and other technologies in the Microsoft .NET
                                                based on COBOL and DB2 to a Microsoft            Framework, Microsoft Services helped the
                                                environment, committing to future application    team utilize a service-oriented architecture,
                                                development on that platform, and ultimately     including XML and Microsoft Distributed
                                     Transaction Coordinator, for strengthening        Benefits
                                     security and integration among applications       With the migration, BOVESPA is beginning to
                                     that reside on opposite sides of multiple         enjoy significant benefits in terms of growth,
                                     firewalls.                                        costs, and productivity.

“The Microsoft Official              In accordance with the Microsoft Solutions        Simplifying Growth
                                     Framework, Microsoft Services also helped         Perhaps most important, growth is easier now
Curriculum not only                  the team adopt a new methodology for              that BOVESPA can rely on the cost-effective
brought the company‟s                quality control of development and                horizontal scalability of an Intel-based server-
                                     standardization of documentation.                 based infrastructure. “Being able to scale out
internal mainframe                                                                     and up in a fast and flexible way helps
experts up to speed on               At the hardware level, HP Critical Service        BOVESPA keep up with market evolution,”
                                     assisted with availability, service levels,       Gonzaga says. “In this way we are better able
the new technologies,                efficiency, and uptime.                           to support the rapidly expanding capital
but also enabled                                                                       market in Brazil.”
                                     The project also involved 350 Microsoft
BOVESPA to retain these              Official Curriculum training sessions for         “Fast and flexible” can also describe the new
valuable professionals               developers and other IT professionals. As         BOVESPA development environment,
                                     André Vieira, BOVESPA Supervisor of System        according to Faria.
through this major                   Development, points out, “The Microsoft
transitiona central                 Official Curriculum not only brought the          “From developer-productivity enhancements
                                     company‟s internal mainframe experts up to        like multilanguage debugging in Visual Studio
objective.”                          speed on the new technologies, but also           2005 to the greater access to skilled
                                     enabled BOVESPA to retain these valuable          developers and a vibrant third-party
André Vieira, Supervisor of System
                                     professionals through this major                  ecosystem, it is easier and more cost-efficient
Development, BOVESPA
                                     transitiona central objective.”                  to build new products and services on a
                                                                                       Microsoft-based platform,” Faria says.
                                     According to Deodoro Bruzadin, BOVESPA            “Through both the Microsoft .NET technology
                                     Infrastructure Manager, the Microsoft-based       and the Microsoft Solutions Framework
                                     platform consists of Intel processor–based        methodology, we anticipate higher
                                     servers with 40 HP ProLiant DL360 or similar      application performance and reliability for
                                     HP Blades for development and testing, and        currently deployed applications and lower
                                     52 for production, and Integrity rx7640 and       costs for future application upgrades.”
                                     rx8620 servers. The ProLiant DL360 servers
                                     with Intel Xeon® processors run the Windows       Cutting Costs
                                     Server 2003 operating system and are             Over the long term, those lower development
                                     distributed across two locations and deployed     costs, along with the lower maintenance
                                     in clusters for redundancy and security. The      costs of an Intel server–based hardware
                                     Integrity rx8620 servers, which are powered       infrastructure, will help BOVESPA reduce its
                                     by four single-core Intel Itanium 2 processors,   total cost of ownership and enhance its
                                     run Microsoft SQL Server™ 2000 databases         return on investment. As Gonzaga
                                     and the applications that run against them.       emphasizes, this will be a dramatic
                                     These databases and applications are being        improvement over the costly environment of
                                     moved to SQL Server 2005 using Integrity          running an entire IT environment on
                                     rx7640 servers powered by eight dual-core         mainframe computers.
                                     Intel Itanium® 2 processors.
“BOVESPA has become                         “What we are seeing is that even large
                                            mainframes, like the system we were using
a truly „people-ready‟                      before, can be replaced by a Microsoft-based
business that can make                      platform,” Gonzaga says. “Compared with a
                                            mainframe environment, we enjoy equal or
investing in Brazilian                      better scalability, availability, manageability,
securities more                             and security for lower capital and operating
                                            costs. The greater flexibility for growth is an
available to investors of                   added bonus.”
all sizes and in all
                                            Boosting Productivity
locations, and thereby                      Similarly, the higher performance and
help to grow the                            availability of the new infrastructure is
                                            helping the brokers and dealers who work in
Brazilian economy.”                         and with BOVESPA to conduct their
Deodoro Bruzadin, Infrastructure Manager,   operations a lot more efficiently. “Our
BOVESPA                                     productivity improvement stems from a
                                            powerful combination of stability, security,
                                            and robustness that we enjoy and will
                                            continue to enjoy as a result of moving to a
                                            Microsoft-based platform,” Gonzaga says.

                                             Bruzadin concurs, emphasizing the related
                                            advantage of retaining the BOVESPA‟s
                                            “business brain”: the skilled IT professionals
                                            who supported the mainframe systems and
                                            are now applying their training and expertise
                                            to the Microsoft-based platform. “As a result,
                                            BOVESPA has become a truly „people-ready‟
                                            business that can make investing in Brazilian
                                            securities more available to investors of all
                                            sizes and in all locations, and thereby help to
                                            grow the Brazilian economy,” he says.
For More Information                                            Microsoft Solutions for the
For more information about Microsoft                            Financial Services Industry
products and services, call the Microsoft                       Financial institutions continue to seek cost-
Sales Information Center at (800) 426-                          effective solutions that create rapid and
9400. In Canada, call the Microsoft                             sustainable competitive advantage while
Canada Information Centre at (877) 568-                         laying the groundwork for future innovation.
2495. Customers who are deaf or hard-of-                        Microsoft and its ever-growing partner
hearing can reach Microsoft text telephone                      community develop solutions that meet the
(TTY/TDD) services at (800) 892-5234 in                         industry-specific needs of banks, insurance
the United States or (905) 568-9641 in                          companies, and capital markets firms
Canada. Outside the 50 United States and                        worldwide, and help financial services
Canada, please contact your local                               customers realize their full potential.
Microsoft subsidiary. To access information
using the World Wide Web, go to:                                For more information about Microsoft                                               solutions for the financial services industry,
                                                                go to:
For more information about Intel®                     
technology, visit:                                              ces

For more information about BOVESPA
products and services, visit the Web site at:

                                                                 Software and Services                           Hardware
                                                                  Products                                         HP ProLiant DL360 servers
                                                                   − Microsoft SQL Server 2005                      HP Integrity rx7640 servers
                                                                   − Microsoft SQL Server 2000                      HP Integrity rx8620 servers
                                                                   − Microsoft Visual Studio 2005                   HP XP512 7.7-terabyte disk array storage
                                                                   − Microsoft Systems Management Server            Intel Xeon processors
                                                                   − Windows 2000 Server and Windows                Intel Itanium 2 processors
                                                                     Server 2003
                                                                  Technologies
                                                                   − Microsoft Distributed Transaction
                                                                     Coordinator                                 Partners
                                                                   − Windows® 2000 Terminal Services                HP
                                                                     Remote Desktop Protocol                        Intel
                                                                   − HP Systems Insight Manager
                                                                  Microsoft Services
                                                                  Microsoft Premier Support

This case study is for informational purposes only. MICROSOFT

Document published May 2007