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London Stock Exchange to abandon failed Windows platform

Anyone who was ever fool enough to believe that Microsoft software was good enough to be used for a mission-critical operation had their face slapped this September when the LSE (London Stock Exchange)'s Windows-based TradElect system brought the market to a standstill for almost an entire day. While the LSE denied that the collapse was TradElect's fault, they also refused to explain what the problem really wa. Sources at the LSE tell me to this day that the problem was with TradElect.

Since then, the CEO that brought TradElect to the LSE, Clara Furse, has left without saying why she was leaving. Sources in the City-London's equivalent of New York City's Wall Street--tell me that TradElect's failure was the final straw for her tenure. The new CEO, Xavier Rolet, is reported to have immediately decided to put an end to TradElect.

TradElect runs on HP ProLiant servers running, in turn, Windows Server 2003. The TradElect software itself is a custom blend of C# and .NET programs, which was created by Microsoft and Accenture, the global consulting firm. On the back-end, it relied on Microsoft SQL Server 2000. Its goal was to maintain sub-ten millisecond response times, real-time system speeds, for stock trades.

It never, ever came close to achieving these performance goals. Worse still, the LSE's competition, such as its main rival Chi-X with its MarketPrizm trading platform software, was able to deliver that level of performance and in general it was running rings about TradElect. Three guesses what MarketPrizm runs on and the first two don't count. The answer is Linux.

It's not often that you see a major company dump its infrastructure software the way the LSE is about to do. But, then, it's not often you see enterprise software fail quite so badly and publicly as was the case with the LSE. I can only wonder how many other Windows enterprise software failures are kept hidden away within IT departments by companies unwilling to reveal just how foolish their decisions to rely on archaic, cranky Windows software solutions have proven to be.

I'm sure the LSE management couldn't tell Linux from Windows without a techie at hand. They can tell, however, when their business comes to a complete stop in front of the entire world. 

So, might I suggest to the LSE that they consider Linux as the foundation for their next stock software infrastructure? After all, besides working well for Chi-X, Linux seems to be doing quite nicely for the CME (Chicago Mercantile Exchange), the NYSE (New York Stock Exchange), etc., etc.

What People Are Saying

do you remember this article:

While eating lunch, I was flipping through eTimes, and found this in the insider front cover.

http://www.sandelman.ca/mcr/humhour/microsoft-gets-london-stock-exchange1.jpg

Blogger

This piece, like any written by Nichols, is pure propaganda and a joke in terms of jouralism. He's as much a journalist as I am the Pope.
Like RMS, he'll get extremely fat and fade into oblivion with the rest of the relgious zealots who have no place anywhere near anything but perhaps a very pitiful comic book.

New LSE management have done the right thing

Steven, a big THANK YOU for your fine work !

The new LSE management took a wise decision by abandoning the proprietary OS. Building such complex systems on proprietary software, that do not follow Open Standards (TM), good quality and vendor-neutral ones, is simply insane.

I wish to see more Free Software solutions implemented in public administrations, including at DESKTOP level. Unfortunately, it seems Microsoft is pushed back, day by day, from Western IT infrastructure, so it relies more and more on emerging markets in Eastern Europe - counting on the public level of IT ignorance and officials corruption here ! I wish to see the day when small stock exchanges, like the Bucharest Stock Exchange, follows the LSE's model !

And YES, NYSE is running on Red Hat Enterprise Linux - please don't spread lies about that:

http://customers.redhat.com/2008/05/12/nyse/

Enterprise Linux Free!?

That's a good legend, Red Hat Enterprise 5 Advanced costs $1,499-$2,499 per year. How is that Free? Also Open Standards doesn't mean free. To license an enterprise size app on enterprise version of "free" OS, will probably cost the same if not more to run similar app on Windows.

Red Hat Enterprise Linux IS Free Software (TM)

Actually, Red Hat Enterprise Linux IS Free Software, because "free" means "free as is speech" (libre), not "free as in beer" (gratis). All details here:

http://www.gnu.org/philosophy/free-sw.html

As for the costs, please note that the above figures are the cost of annual SUPPORT, not the OS itself. One may LEGALLY use a single Red Hat CD to install 1000 machines and have A SINGLE paid subscription for all of them...

www.centos.org. RedHat

www.centos.org. RedHat Enterprise Linux for free.

Thanks for the great

Thanks for the great reading, we buy stock market bullion in a recession.

Exemption

This is a very exempt journalist, I googled the following words "Linux failure Windows" and the result was the following article:
http://blogs.computerworld.com/how_vistas_total_failure_hurt_linux

With the following phrase:

"So what can Linux do? Well, for one thing, we need to get the word out that desktop Linux is available and every bit as good, when it's not better, than Windows."

The "we" is very careless for a true journalist which is giving only the facts...

This is only a commercial war between Linux, Unix, Windows, Java, C#, .NET, Apache, IIS, etc. It's only for sell...

Believe it, the guys that screwed up the project would screw it up in Linux too or whichever platform they would do the work.

Wrong technology-mix choices

I will not comment here about how good I am, how many servers I've seen, what I've developed lately or anything similar (even if I have some 60 completed projects on SQL+SSAS+SSIS+ASP.NET+IIS, both on 2K and 2K5 versions, relying on Windows 2003). I will state only two issues that were wrongly chosen in this project :
a) SQL 2000 -> even if it may be pretty good for its age (~10 y), it is not built for such stuff ( .NET is a technology that has nothing to do with SQL 2000. It is from different era. Even if you can get decent communication between the two, it's not logical to combine them. SQL 2K was designed to work with VB 6 and stuff like that. So SQL 2005 was the only logical choice. I see some say it works shitty. I will contradict them. Framework.NET works great with SQL 2005. And this SQL is way better than its predecessor.
Of course, everybody can say Linux+Apache+PHP+MySQL or anything else in there (Oracle,DB2,Java) just for being against MS (a.k.a. M$). But I say projects should be done considering only their requirements, ignoring (and sometimes) despite any marketing-based choices.

Generalists vs. Specialists

I think the basic issue is having a general IT integrator develop very technically demanding software (HA + Low Latency + High Load.) This should have been contracted out to a specialty team with a proven track record making very similar software.

There are companies that specialize in this. I worked at one several years ago that developed Windows-based low latency transaction routing software. But, it was not .NET, and it relied heavily on proprietary C libraries that had been developed and stabilized in financial transaction processing for over a decade.

I speculate that for this project someone at the overall project level looked at build or buy, and concluded they could build an acceptable solution inhouse for much less money than outsourcing it. Another painful lesson on the real value of a proven track record!

It is too simplistic to blame this outage entirely on OS platform selection, though it probably resonates well with people's black and white views of OS environments.