chap 5 infrastructure new
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5Chapter
IT Infrastructure andPlatforms
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IT INFRASTRUCTURE
Defining IT Infrastructure
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Includes hardware, software, and services
A set of physical devices and software applicationsthat are required to operate the entire enterprise
Your firm is largely dependent on its infrastructure fordelivering services to customers, employees, and
suppliers.
You can think of infrastructure as digital plumbing,but its much more than that!
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IT INFRASTRUCTURE
The Connection between the Firm, IT Infrastructure, andBusiness Capabilities
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-1
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IT INFRASTRUCTURE
Levels of IT Infrastructure
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Three major levels of infrastructure:
Public
Enterprise
Business unit
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IT INFRASTRUCTURE
Levels of IT Infrastructure
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-2
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IT INFRASTRUCTURE
Eras in IT Infrastructure Evolution
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-3
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IT INFRASTRUCTURE
A Multitiered Client/Server Network (N-tier)
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Figure 6-4
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IT INFRASTRUCTURE
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Moores law and microprocessing power
The law of mass digital storage
Metcalfes law and network economics
Declining communications costs and the Internet
Standards and network effects
Technology Drivers of Infrastructure Evolution
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IT INFRASTRUCTURE
Moores Law and Microprocessor Performance
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-5
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IT INFRASTRUCTURE
Falling Cost of Chips
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-6
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IT INFRASTRUCTURE
The Capacity of Hard Disk Drives Grows Exponentially,19802004
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-8Source: Authors.
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IT INFRASTRUCTURE
The Cost of Storing Data Declines Exponentially,19502004
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-9Source:Exponential Growth an Illusion?:
Response to Ilkka Tuomi, by Ray Kurzweil,KurzweilAl.net, September 23, 2003. Used
with permission.
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IT INFRASTRUCTURE
Exponential Declines in Internet Communications Costs
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-10Source: Authors.
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Computer Hardware Platforms
Operating System Platforms
Enterprise Software Applications
Data Management and Storage
Management Information SystemsChapter 6 IT Infrastructure and Platforms
INFRASTRUCTURE COMPONENTS
Seven Key Infrastructure Components
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Networking/Telecommunications Platforms
Internet Platforms
Consulting and System Integration Services
Management Information SystemsChapter 6 IT Infrastructure and Platforms
INFRASTRUCTURE COMPONENTS
Seven Key Infrastructure Components (Continued)
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The IT Infrastructure Ecosystem
Management Information SystemsChapter 6 IT Infrastructure and Platforms
INFRASTRUCTURE COMPONENTS
Figure 6-11
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Management Information SystemsChapter 6 IT Infrastructure and Platforms
Integration services involves integrating data,
and applications in a firm.
Connecting new applications and systems to
legacy systems
IBM has transformed itself into a systems
integration firm with IBM Global Services, the
largest system integration firm.
INFRASTRUCTURE COMPONENTS
Consulting and System Integration Services (Continued)
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Management Information SystemsChapter 6 IT Infrastructure and Platforms
Server level: The integration of voice telephone
and the Internet bring together two historicallyseparate and distinct global networks.
The network in many respects is the source of
computing power.
CONTEMPORARY HARDWARE PLATFORM TRENDS
The Integration of Computing and TelecommunicationsPlatforms (Continued)
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Grid Computing:
Involves connecting geographically remote
computers into a single network capable of
working in parallel on business problems thatrequire short-term access to large computational
capacity
Rather than purchase huge mainframes or supercomputers, firms can chain together thousands
of smaller desktop clients into a single computing
grid.
CONTEMPORARY HARDWARE PLATFORM TRENDS
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Most computers in the world are loafing, and atnight they are sleeping.
It is estimated that from 25% - 50% of thecomputing power in the United States is unused.
Grid computing saves infrastructure spending,
increases speed of computing, and increases theagility of firms.
Examples: Royal Dutch/Shell Group and theNational Digital Mammography Archive
CONTEMPORARY HARDWARE PLATFORM TRENDS
Grid Computing (Continued)
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On-Demand (Utility) Computing:
Firms off-loading peak demand for computing
power to remote, large-scale data processing
centers
Developed by IBM, SUN, and HP
Firms pay only for the computing power they use,as with an electrical utility.
CONTEMPORARY HARDWARE PLATFORM TRENDS
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Excellent for firms with spiked demand curves
caused by seasonal variations in consumer
demand, e.g. holiday shopping
Example: Harry and David use IBMs On-Demand
computing
Saves firms from purchasing excessive levels of
infrastructure
CONTEMPORARY HARDWARE PLATFORM TRENDS
On-Demand (Utility) Computing: (Continued)
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Management Information SystemsChapter 6 IT Infrastructure and Platforms
Autonomic Computing:
Computer systems (both hardware and software)have become so complex that the cost of
managing them has risen.
Thirty to fifty percent of a companys IT budget is
spent preventing or recovering from system
crashes.
Operator error is the most common cause ofcrashes.
CONTEMPORARY HARDWARE PLATFORM TRENDS
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Autonomic computing is an industry-wide effort
to develop systems that can:
Configure, optimize, and tune themselves
Heal themselves when broken
Protect themselves from outside intruders and
self-destruction
Example: Windows XP and Max X OSautomatically download patches and updates.
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Edge Computing:
Edge computing is a multitier, load-balancing
scheme for Web-based applications.
Processing load is distributed closer to the user
and handled by lower-cost servers.
Lowers cost of hardware
CONTEMPORARY HARDWARE PLATFORM TRENDS
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Increases service levels
Provides firm greater flexibility in responding toservice requests
Seasonal spikes in demand can be off-loaded to
other edge servers.
CONTEMPORARY HARDWARE PLATFORM TRENDS
Edge Computing: (Continued)
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Edge Computing Platform
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-12
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The four major themes in contemporary softwareplatform evolution:
Linux and open-source software
Java
Web services and service-oriented architecture
Software outsourcing
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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The Rise of Linux and Open-Source Software
Open-source software is free and can be modifiedby users.
Developed and maintained by a worldwidenetwork of programmers and designers under themanagement of user communities
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Linux is the most widely used open-sourcesoftware program. Linux is an operating system
derived from Unix.
Mozilla Firefox browser and Thunderbird mailclients are the most widely used open-source
applications. Others include MySQL.
IBM, HP, Intel, Dell, and Sun have adopted andsupport Linux. Linux is a major alternative toWindows server and even client operating systems.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
The Rise of Linux and Open-Source Software(Continued)
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Java:
An operating systemIndependent, processor-independent, object-oriented programminglanguage
Applications written in Java can run on anyhardware for which a Java virtual machine hasbeen defined.
Java is embedded in PDAs, cell phones, andbrowsers.
Java is a leading interactive programmingenvironment for the Web.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Java Is Everywhere
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Software for Enterprise Integration:
One of the most important software trends of the
last decade is the growth of enterprise in a box
or the purchase of enterprise-wide softwaresystems by firms.
Rather than build all their own software on a
custom basis, large firms increasingly purchaseenterprise applications prewritten by specialized
software firms like SAP, Oracle, PeopleSoft, and
others.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
M t I f ti S t
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The goal is to achieve an integrated firm-wide
information environment, reduce cost, increase
reliability, and to adopt business best practices
which are captured by the software.
Enterprise software firms achieve economies of scale
by selling the same software to hundreds of firms.
Today's enterprise systems are capable of integrating
older legacy applications with newer
Web-based applications.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Software for Enterprise Integration: (Continued)
M t I f ti S t
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Enterprise Application Integration (EAI) Software VersusTraditional Integration
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-13
CONTEMPORARY SOFTWARE PLATFORM TRENDS
EAI software (a) creates a common platform through which all applications can freely communicate with each other. EAIrequires much less programming than traditional point-to-point integration (b).
M t I f ti S t
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Management Information SystemsChapter 6 IT Infrastructure and Platforms
Web Services and Service-Oriented Architecture
Web Services:
An alternative to enterprise systems is to use new
Web-based standards to create a communicationplatform allowing older applications to
communicate with newer applications.
Web services refers to a set of loosely coupledsoftware components that exchange information
with each other using Web communication
standards and languages.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Management Information S stems
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Web services permit computer programs to
communicate with one another and shareinformation without rewriting applications, or
disturbing older legacy systems.
Web services are based on XML, and standardslike SOAP, WSDL, and UDDI to create this
communication environment.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Web Services and Service-Oriented Architecture(Continued)
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Service-Oriented Architecture
SOA refers to the use of Web services in a firm toachieve integration among disparate applications
and platforms.
A firm might have applications (payroll) running
on older AS400 IBM machines, IBM mainframes
(customer data and inventory) and newer
applications running on client/server networks.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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In SOA, these applications are integrated so that
information stored on various systems can be
brought together and fed into newer applications
running on more contemporary equipment.
SOA is generally less expensive than rebuildingall the older applications and adopting a new
enterprise wide system.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Service-Oriented Architecture (Continued)
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How Dollar Rent a Car Uses Web Services
Management Information SystemsChapter 6 IT Infrastructure and Platforms
Figure 6-14
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Software Outsourcing
Today large and small firms purchase most oftheir software from outside vendors.
Three kinds of outsourcing:
Purchase of software packages
Using application service providers
Custom outsourcing
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Application Service Providers:
A business that delivers and manages
applications and computer services from remote
computer centers to multiple users using theInternet or a private network
Enterprise software packages: prewritten off-the-shelfsoftware
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Purchase of Software Packages and Enterprise Software
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Application Service Providers:
Rather than purchase hardware and software, firms can
go onto the Internet and find providers who offer the
same functionality over the entertainment, and charge
on a per-user or license basis.
Example: Salesforce.com provides customer
relationship management and sales force management
services to firms
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Purchase of Software Packages and Enterprise Software(Continued)
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Software Outsourcing of Custom Applications
A firm contracts custom software development or
maintenance of existing legacy programs to
outside firms, often in low-wage countries.
Example: Dow Chemical hired IBM for $1.1 billion
to create an integrated communication system for
50,000 Dow employees in 63 countries.
Why would Dow not build this system itself?
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Changing Sources of Firm Software
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Figure 6-15
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Sources: BEA National Income and ProductAccounts, Forrester Research, December 2003;
eMarketer Inc., IT Spending 2004,
www.emarketer.com; and author estimates.
Management Information Systems
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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Management Opportunities:
Because of changes in hardware and software
platforms, firms face significant new opportunities toobtain hardware and software capabilities
that are more reliable, less costly, and more flexible
than in the past.
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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Management Challenges:
Making wise infrastructure investments
Choosing and coordinating infrastructurecomponents
Dealing with infrastructure change
Management and governance
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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Solution Guidelines:
Consider your strategic situation
Start out small, develop one module at a time
Consider the total cost of ownership
Figure 6-16, Competitive Forces Model for ITinfrastructure illustrates six strategic factors you
should consider when making infrastructure decisions
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Competitive Forces Model for IT Infrastructure
Figure 6-16
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Experiment with new technologies on a smaller scale
before taking up a large-scale infrastructure project.
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Starting out small:
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Total cost of ownership of technology assets:
When calculating the costs of systems, be sure toinclude all the costs:
Hardware acquisition Software acquisition Installation Training
Support Maintenance Infrastructure requirements Downtime Space and energy
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS