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Sydney, Australia - 09 Nov 2009: IBM (NYSE: IBM) today announced that Lumley Insurance, one of Australia’s prominent general insurance companies, has selected IBM WebSphere Application Server as the preferred platform for its core business applications.
Lumley Insurance’s IT division will use IBM WebSphere to develop and deliver services both internally and to insurance brokers and corporate partners.
The newly selected platform belongs to the IBM WebSphere suite of software which delivers the flexible and scalable infrastructure needed to build, deploy and manage all types of business applications. The key benefit is that applications will continue meeting business objectives regardless of changing external conditions, such as market fluctuations or changes in scalability.
According to Lumley Insurance’s Enterprise Architect, Rolle Walraven: “One of the biggest challenges the financial services sector currently faces is to control the cost base while continuing to invest for future growth, and emerging from the subdued market with new offerings, more competitive products and a better customer experience.”
“The decision to move to IBM WebSphere ticks all those boxes for us. It uses the Service Oriented Architecture (SOA) approach to applications development and delivery, which means we can protect our current IT investments and harvest intellectual property from across all lines of our business for sharing across the group.”
Lumley Insurance selected IBM WebSphere after reviewing the total cost of ownership (TCO). The analysis included ongoing system management and support costs, as well as the cost of risk. The risk element of the evaluation concerned system stability, availability and future scalability.
“If the GFC has shown us anything it’s that we have a natural tendency to undervalue risk,” Mr. Walraven said. “Any consideration of new technology must factor in an appropriate adjustment for the introduction of new risk into the environment. Insurance companies know better than most that adopting risk isn’t free.”
Mr. Walraven said that developers will enjoy many benefits from adopting the SOA approach to application development that IBM WebSphere supports. These include removing complexity, creating re-useable assets and enabling developers to continually leverage existing IT investments and intellectual property.
“WebSphere saves our developers time and effort by delivering a one stop shop of ‘ready-made’ features like database connectivity services, web services and messaging. This frees up our development team to focus on delivering business functionality unique to Lumley that will help differentiate us in the market.”
IBM’s vice president BPM, SOA and WebSphere IBM Software Group, Nancy Pearson commented on Lumley Insurance’s choice of IBM WebSphere:- “Our clients require an infrastructure that offers simplified development, easy management, high performance and industry leading innovation.
“As a result we are seeing many clients do precisely what Lumley Insurance has done and that is to evaluate IBM’s total cost of ownership against various open-source platforms. The decision is invariably to replace their existing solution with WebSphere.”
For more information on Lumley Insurance visit: www.lumley.com.au.
For more information on IBM insurance offerings and details on how IBM is helping clients to make smarter, faster decisions by using SOA, visit: http://www.ibm.com/soa
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** Editors Note: Fast Facts about Lumley Insurance’s review into Total Cost of Ownership.
Lumley Insurance found that IBM WebSphere provided a number of advantages over its existing open source application server including:
ABOUT IBM WEBSPHERE
IBM WebSphere delivers the infrastructure for building, deploying and managing all types of applications ensuring they deliver on business objectives regardless of the situation. At its core, it provides a highly-effective performance foundation for creating and implementing agile and re-useable SOA Applications and services. While open source application servers provide free licenses to start projects, ultimately they cost as much, as 70 percent more than IBM WebSphere Application Server V7 when considering ongoing management and infrastructure costs.
With more than 8,000 client engagements worldwide, IBM is the SOA market leader. This leadership in SOA is further illustrated by 7,420 IBM SOA business partners, 300 SOA-specific technology patents, a community of greater than 120,000 architects and developers, and more than 2,000 universities advancing the SOA curriculum.
Information Management, Lotus, Tivoli, Rational, WebSphere, Open standards, open source