BlueCross BlueShield of SC IT Modernization Overview Anne Castro VP, Chief Design Architect Ravi Ravindra Chief Technology Officer

Who We Are BCBSSC is much more than a health insurance company. We own companies that are in the Life Insurance, Property and Casualty, and Healthcare Administrative Services businesses. In fact of our 12,000 employees, only about 2,500 are involved in the traditional Blue Cross Blue Shield health insurance business. BCBSSC is also a technology company. We process over 50% of the TRICARE program for the Department of Defense and we are one of the largest Medicare claims processors. Over 2,500 IT professionals that develop, execute, and monitor Healthcare Administration Systems that will process over 800 million health care claims and 8 billion online transactions.

IT Strategy Business drives technology Well defined Architecture, Technology Roadmaps Single System Solution Build vs Buy – R&D process Acquire Commercially Available Off The Shelf (COTS) applications when it makes sense. Backend Application Integration Adopt Industry Standards, Frameworks Implement Service Oriented Architecture to leverage investments SHARE Orlando Session #5210

IT Modernization Challenges 1996 – 2007 Cost of running Servers: increased unnecessary complexity in applications Web Applications - Screen scraped transactions from the Mainframe Complex Backend Applications Integration Data Centers, heating, cooling costs increased as Servers sprawled over the Data Centers Changing Business Needs, Time to Market Growing needs for IT talent pool – IT-oLogy SHARE Orlando Session #5210

IT Modernization Opportunity 2007 - Service Oriented Architecture (SOA), Cloud Computing Consolidation: Operating System, Network, & Storage using VIRTUALIZATION Mainframes once again became attractive to consolidate Servers, Reduce Space, Heating, Cooling, Software costs Web Sites – Portals, Mobile Web Sites Databases – Oracle, DB2 Applications Servers – IBM WebSphere, JBoss SHARE Orlando Session #5210

Linux Virtualization * Avoided >1000 Windows Servers November 2007 November 2009 Machine: z10 : IFL = 4 * Avoided >1000 Windows Servers * Eliminated 500+ Windows Servers * Total 600+ zLinux Servers * Several Mainframes * WON 2008 SHARE EXCELLENCE AWARD FOR OUTSTANDING INNOVATION SHARE Orlando Session #5210

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