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Barclays snubs tech titans to save billions

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The Sunday Times reported that the Barclays Bank could reduce costs by 90 per cent

BARCLAYS will slash billions of pounds from its annual bill for IT spending a computer systems in a move that could upset technology giants such as Microsoft, Google, Oracle and SAP.

The bank has built its own “internal cloud” — a network of computer servers that can support the development of cutting-edge software. It is also starting to run large parts of its business using Linux, the open source software hailed by many experts as superior to offerings from market leaders such as Microsoft.

These actions in developing their own specialist software and Apps will slash the cost of developing computer systems by as much as 90%, Barclays claims.

Over time, the decision to build everything in-house will also slash annual licence payments made to tech giants for the use of their software.


The likes of Oracle, Microsoft and SAP have built their empires by making most of the worlds multinationals reliant on their technology and perpetual licence payments.

According to the newspaper, COO for retail and business banking Shaygan Kheradpir is rolling out the new system, which shuns traditional vendors in favour of open source solutions, across various departments of the bank, and he expects to save Barclays billions.

A new frontier

According to the paper, by avoiding products from Microsoft, Google, Oracle and SAP. The non-traditional infrastructure has also helped the bank cut down mobile app development time dramatically, and release its PingIt mobile service in seven months instead of two years.

Both Microsoft and Oracle have long made money from arcane charging models on their operating systems, could this be the example that shifts the power?

There are plenty of more companies still paying substantial royalties to Oracle and Microsoft for the privilege, either through habit or ignorance. Then there are the SQL and database costs.

http://www.thesundaytimes.co.uk/sto/business/Finance/article1188867.ece

According to the report, the bank is also beginning to use Linux, and this is the most interesting part of Barclays' decision to move its IT back in-house. Barclays decision to move to Linux is a great example of innovation although we will wait an see if the corporate crowd follows.

This decision by Barclays will mean it can re-invest the money for application development.

Part of this investment started last year, when Barclays ordered over 8,400 iPads for front-office staff in its 1,600 branches