Common Securitization Solutions (CSS) is a venture established by Fannie Mae and Freddie Mac in 2019 to support home ownership in the US. They operate the largest mortgage securitization platform in the country, utilizing AWS to power their Common Securitization Platform (CSP) in the cloud. In 2021, CSS identified cost optimization opportunities related to their market pricing data transfer and connectivity. By working closely with Fannie Mae, Freddie Mac, and AWS, a cost-effective solution was implemented using Amazon S3 Same-Region Replication (S3 SRR) with S3 Replication Time Control (S3 RTC) and AWS PrivateLink. This new approach resulted in significant cost savings for CSS, Fannie Mae, and Freddie Mac while ensuring guaranteed delivery and zero data loss for critical market pricing data exchange.
To address the unique requirements of Fannie Mae and Freddie Mac, CSS utilized AWS PrivateLink VPC Interface endpoints for connectivity with Freddie Mac and S3 SRR with S3 RTC for data transfer with Fannie Mae. This approach replaced costly private cross connects and co-located circuits with a more efficient cloud-native solution. Additionally, an Active/Active configuration was implemented between CSS and Fannie Mae to improve resiliency for the CSP. This configuration ensured strong data consistency and efficient data replication between the two organizations.
With the implementation of AWS PrivateLink and S3 SRR, CSS achieved significant cost savings and operational efficiencies, reducing points of failure and network hops. By leveraging AWS native services, CSS, Freddie Mac, and Fannie Mae were able to enhance their data exchange process while ensuring compliance with regulatory requirements. The new architecture design also improved workload observability and resiliency, allowing for seamless data replication and processing in multiple AWS Regions.
The success of this project serves as a real-world example of how organizations can securely and efficiently exchange data without the need for costly private connectivity solutions. By utilizing Amazon S3, S3 Same-Region Replication, S3 Replication Time Control, and AWS PrivateLink, CSS and its partners were able to save $1.5M annually, with CSS alone realizing a 99% reduction in costs. This case study can serve as a blueprint for other organizations looking to optimize their data exchange processes while improving security and efficiency.
For organizations looking to implement similar solutions, AWS offers a range of resources to help get started with S3 Replication, AWS PrivateLink, and other native services. By following the best practices outlined in this case study, organizations can achieve significant cost savings, operational efficiencies, and improved data exchange processes.
Article Source
https://aws.amazon.com/blogs/storage/how-common-securitization-solutions-built-resiliency-while-optimizing-costs-with-aws-privatelink-and-amazon-s3-same-region-replication/