Article

XFS: Hype versus reality

With changing software, ATM deployers have to look before they leap.

March 26, 2008 by Jorge Fernandez — SVP, Cardtronics

Jorge Fernandez is a seasoned ATM-industry expert who specializes in ATM software. He is a regular contributor to ATM Marketplace. To submit a comment about this article, contact theeditor. Not long ago ATMs were generally seen as nothing more than expensive machines, solely to be used for their intended purpose — to dispense cash to customers in a fast, efficient, safe and convenient way.

ATM technology seemed to pay little attention to the fast-paced world of IT, while PCs were evolving and changing faster that consumers could pay for upgrades.

Many industry insiders both credit and blame IBM's OS/2 for the high degree of stability and slow evolution of ATM technology. ATM applications were proprietary and vendor-specific, and even the so-called standards of NDC and Diebold 911/912 were developed by specific vendors designed to make their own products better than their competition.

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As a deployer, if they wanted to support more than one vendor, you had to purchase a different host driver for each vendor.

So, some industry experts blame the vendors for intentionally creating proprietary systems that held customers hostage.

And, finally, some blame the financial institutions themselves for getting complacent and letting the industry dictate product offerings, rather than taking control of their experience and demanding more sophisticated and technically advanced products.

Now, however, it doesn't really matter. IBM announced the discontinuance of OS/2 and change was upon us like a tidal wave. Without having a variety of true alternatives, the industry adopted Microsoft Windows as the new OS of choice.

On one hand, it seems to make sense. Windows provides a flexible platform from which to build graphically enhanced, user-friendly applications that support open standards for communications and interfaces that the IT world has used to for years — thousands of trained professionals around the world are on-hand, ready to support new Windows applications and functionality.

On the other hand, those who have tried to run several concurrent applications on a PCS know too well the "CTRL-ALT-DEL" problem of the Windows OS, not to mention the high profile security breaches that we have all become so familiar with.

But the new OS offered opportunity for new and radical changes at the ATM, and the first thing to change was communications. Old SNA and X.25 networks were quickly replaced by less-expensive and more efficient TCP/IP networks.

Then the industry took a look at the applications within the ATM itself: Were they graphical and friendly?

In this new OS environment, XFS quickly evolved as the white-and-shinning standard that would make ATM applications uniform across any Windows base ATM. The deployer could then choose any ATM brand that supported Windows and run an XFS application without having to make any changes.

In essence, the experience was expected to mirror that of buying MS-Office and running it on your home PC, regardless of the PC's brand.The promise was huge. The reality didn't live up.

What to consider

1) What experience does the vendor have in the EFT industry, particularly in writing ATM applications?

2) Does the vendor have other ATM solutions or is this the company's only product?

3) Support. Try to look for the most local support possible, as XFS implementations often takes longer and is more complex than usually anticipated.

4) Does the software provider have a good relationship with the dominant ATM hardware vendors? While in theory XFS is an open standard, nuances in implementation across different hardware platforms still exist. The better the relationship with the hardware vendor, the more quickly issues will be resolved.

5) How many similar implementations has they company done? Even though most XFS implementations are different, experience is important.

6) Which XFS version is the company supporting? XFS is an evolving standard, and it's important to be working with the latest release.

7) Take your time during the negotiations. It will pay in the end.

8) Make sure you understand the maintenance updates and what is and is not included in the contract.

Two different camps — one on the software side, another on the hardware side — quickly emerged. The, independent, software companies did develop applications that closely adhered to the XFS standard. But the hardware vendors capitalized on the existing relationships with financial institutions, especially the larger FIs, and wound up with hardware and software that kept them locked to one vendor.

Some small and medium-sized FIs did move ahead and sign with independent software, but that was not the norm.

Those FIs that purchased XFS-based applications are quickly finding that the standard is very open to interpretation, and that hardware vendors still play around with its implementation.

There is no doubt that XFS and IFX (another soon-to-be-widely-adopted standard) will take ATM implementation to the next level. And there is no right or wrong answer as to who is a better provider of XFS-based applications. If you are a large deployer who needs stability, then established vendors may be your best choice. But also remember that hardware vendors that also sell XFS-based applications want you to buy their hardware.

Ultimately, the best choice is the one that best fits your organization, which is true of any IT purchase. There is no doubt open standards is the future of the ATM; avoiding it is only going to make migration more difficult in the future. But, like anything new, look before you leap. The decision being made will affect your organization for a long time.