Diebold Unveils Prototype for World’s First Virtualized ATM

Virtualization Can Bring More Reliable and Secure ATMs

Onboard computing technology has been at the core of automated teller machines (ATMs) for nearly 20 years, but Diebold is showing how that may soon change.

At the VMworld conference today in Las Vegas, Diebold, is introducing a prototype for what the company says is the world’s first virtualized ATM, and showing that Virtualization technology doesn’t have to be limited to the datacenter of the desktop.

Developed in collaboration with VMware, the virtualized ATM prototype showcases the companies’ vision for combining self-service and virtualization technologies that can enable financial institutions to enhance security, mitigate fraud, and improve operational efficiency. While the solution has yet to be tested in a real-world environment, Diebold is currently working to identify financial institutions to serve as sites for a virtual ATM proof-of-concept study.

Implementing Virtualization technology into ATMs removes the onboard computer from the machine, tying each terminal in a fleet to a centralized computing resource. In this scenario, the physical components of a single server provide resources to many “virtual” ATMs, similar to how desktop virtualiztion would be deployed in an enterprise.

The consolidation and sharing of resources across a fleet of ATMs will allow financial institutions to setup a single secure datacenter, allowing for greater control and a secure location for IP addresses. Virtualization will improve server utilization and provide unified ATM management, boosting operational efficiency and enabling faster failure recovery as well as the ability to rapidly deploy software upgrades and deploy other services. In short, Diebold says that virtualization will lead to a lower total cost of ownership and increased ATM uptime.

“Virtualization will fundamentally change the way Diebold – and its customers – deploy solutions to the marketplace. It enables unified management of a wide array of services and paves the way for orchestration of multiple channels,” said Frank A. Natoli, Jr., vice president and chief technology officer, Diebold. “This development is an important milestone on Diebold’s road map to leveraging cloud computing technology in the retail financial space. This technology is a game changer for our industry.”

Security Resource: A Practical Approach to Authentication in an Evolving Enterprise Environment