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Deutsche Bank to eliminate 9,000 IT jobs, has 45 different OSs

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November 3, 2015

Deutsche Bank said earlier today it is doing a complete revamping of its excessively complex IT department, including cutting the number of its operating systems from an incredible 45 down to four.

The move is intended as part of a sweeping strategic overhaul across the whole bank and its global operations.

How the bank ever got to 45 different operating systems is a complete mystery. Under its major rationalization plans, the bank will also pull out of ten countries and slash 9,000 jobs across the globe.

Part of that IT restructuring will also include cutting another 6,000 of its 30,000 external consultants it uses in areas such as IT and other segments of its operations.

A few days ago, the bank promoted Kim Hammonds, global chief information officer, to the role of chief operating officer, signifying its clear intention to put IT at the heart of its operational changes.

Part of that decision will also include moving from having about 46.3 percent of its infrastructure virtualized to 95 percent, and a 20 percent private cloud adoption to 80 percent by 2020.

Peter Roe, an analyst at TechMarketView said-- "The bank's management is looking at a total overhaul of IT infrastructure: re-engineering the architecture, industrializing and automating its various processes and digitalizing the customer experience throughout the globe."

As such, operating costs are expected to drop by about €800 million and a further cut of 6,000 contractors will provide roughly €1 billion in total savings.

"This is a significant proportion of the net savings planned for the Group of €1.5 to 2.5 billion in an effort to reduce the total to €22 billion by 2018," Roe added.

But he cautioned that the plans may not be ambitious enough, nevertheless. "To succeed, Deutsche Bank will need to be very bold and clinical with respect to its IT transformation, which may well prove counter-cultural."

"Greater reliance on big IT vendors, including significant outsourcing, such as evidenced in the HP split-up yesterday, should be a major part of their plans. There is much to do," he added.

It will be interesting to see where this leaves the bank vis-a-vis its other main rivals. Forty-five different OSs. Even down to just four, isn't just one or two sufficient, you may ask?

Source: Deutsche Bank.

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