IT Infrastructure and Emerging Technologies: Management Information Systems

05-02-2013
Management Information Systems

Chapter 5 Chapter 5 IT Infrastructure and Emerging Technologies
LEARNING OBJECTIVES
• Define IT infrastructure and describe its components.

• Identify and describe the stages and technology
IT Infrastructure drivers of IT infrastructure evolution.

• Assess contemporary computer hardware platform
and Emerging trends.

• Assess contemporary software platform trends.
Technologies • Evaluate the challenges of managing IT infrastructure
and management solutions.
5.1 © 2009 by Prentice Hall 5.2 © 2009 by Prentice Hall
Management Information Systems Management Information Systems

Chapter 5 IT Infrastructure and Emerging Technologies Chapter 5 IT Infrastructure and Emerging Technologies
Cars.com’s IT Infrastructure Drives Rapid Business Growth IT Infrastructure

• Problem: Aggressive growth plans hampered by outdated
technology. • Defining IT infrastructure:
• Set of physical devices and software required to operate
• Solutions: Replaced entire IT infrastructure to allow the
enterprise
company to keep pace with its quick expansion.
• Set of firmwide services including:
• IBM’s WebSphere application server and Rational • Computing platforms providing computing services
software led to reduced costs and increased productivity. • Telecommunications services
• Data management services
• Demonstrates IT’s role in fostering the growth of a • Application software services
business. • Physical facilities management services
• IT management, standards, education, research and development
• Illustrates IT infrastructure’s importance to a developing services
company.
• “Service platform” perspective more accurate view of value of
investments

IT Infrastructure IT Infrastructure
Connection Between the Firm, IT Infrastructure, and • Evolution of IT infrastructure

Business Capabilities • General-purpose mainframe and minicomputer era: 1959 to present
• 1958 IBM first mainframes introduced, eventually used to support thousands
of online remote terminals
The services a firm is
• 1965 less expensive DEC minicomputers introduced, allowing decentralized
capable of providing to
its customers,
computing
suppliers, and
employees are a direct • Personal computer era: 1981 to present
function of its IT
infrastructure. Ideally,
this infrastructure
• 1981 Introduction of IBM PC
should support the
firm’s business and • Proliferation in 80s, 90s resulted in growth of personal software
information systems
strategy. New
information
• Client/server era: 1983 to present
technologies have a
powerful impact on • Desktop clients networked to servers, with processing work split between
business and IT
strategies, as well as the clients and servers
services that can be
provided to customers. • Network may be two-tiered or multitiered (N-tiered)
Figure 5-1 • Various types of servers (network, application, Web)
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Eras in IT Infrastructure Evolution

• Evolution of IT infrastructure (cont.)
• Enterprise Internet computing era: 1992 to present
• Move toward integrating disparate networks, applications using
Internet standards and enterprise applications
• Cloud Computing: 2000 to present
• Refers to a model of computing where firms and individuals obtain
computing power and software applications over the Internet
• Fastest growing form of computing
Illustrated here are the typical computing configurations characterizing each

of the five eras of IT infrastructure evolution.
Figure 5-2A

Eras in IT Infrastructure Evolution (cont.) A Multitiered Client/Server Network (N-Tier)
In a multitiered client/server network, client requests for service are handled by different levels of servers.
Figure 5-2B Figure 5-3


Moore’s Law and Microprocessor Performance

• Technology drivers of infrastructure evolution
• Moore’s law and microprocessing power
• Computing power doubles every 18 months
• Nanotechnology: May shrink size of transistors to width of
several atoms
• Contrary factors: Heat dissipation needs, power consumption
concerns
• Law of Mass Digital Storage
• The amount of data being stored each year doubles
Packing more transistors into a tiny microprocessor has exponentially increased processing power.
Source: 2004 Intel Corporation; updated by the authors.
Figure 5-4
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Falling Cost of Chips Examples of Nanotubes
An Intel® processor today

can contain as many as 1
billion transistors, run at 3.2
GHz and higher, deliver over
10,000 MIPS, and can be
manufactured in high
volumes with transistors Nanotubes are tiny tubes about 10,000 times
that cost less than thinner than a human hair. They consist of
1/10,000th of a cent. That’s a rolled up sheets of carbon hexagons.
little less than the cost of Discovered in 1991 by researchers at NEC, they
one printed character in this have the potential uses as minuscule wires or in
book. ultrasmall electronic devices and are very
powerful conductors of electrical current.
Figure 5-5 Figure 5-6


The Capacity of Hard Drives Grows Exponentially The Cost of Storing Data Declines Exponentially
1980-2007 1950-2010
Since the first magnetic

storage device was used in
1955, the cost of storing a
kilobyte of data has fallen
exponentially, doubling the
amount of digital storage
From 1980 to 1990, hard disk drive capacities for PCs grew at the rate of 25 percent annual compound growth, but after 1990, for each dollar expended
growth accelerated to more than 65 percent each year. every 15 months on
average.
Figure 5-7 Figure 5-8


• Technology drivers of infrastructure evolution Declining communication costs and the

(cont.) Internet
• An estimated 1.5 billion people worldwide have
• Metcalfe’s Law and network economics Internet access
• Value or power of a network grows exponentially as a function • As communication costs fall toward a very small
of the number of network members number and approach 0, utilization of
• As network members increase, more people want to use it communication and computing facilities explodes
(demand for network access increases)
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Exponential Declines in
Internet Communication Costs • Technology drivers of infrastructure evolution
(cont.)
• Standards and network effects
• Technology standards:
• Specifications that establish the compatibility of products and the
ability to communicate in a network
• Unleash powerful economies of scale and result in price declines
as manufacturers focus on the products built to a single standard
One reason for the growth in the Internet population is the rapid decline in Internet connection and overall communication costs.
The cost per kilobit of Internet access has fallen exponentially since 1995. Digital Subscriber Line (DSL) and cable modems now
deliver a kilobit of communication for a retail price of less than 2 cents.
Figure 5-9

Infrastructure Components Infrastructure Components
The IT Infrastructure Ecosystem

• IT Infrastructure has 7 main components
• Computer hardware platforms
• Operating system platforms
• Enterprise software applications
• Data management and storage
• Networking/telecommunications platforms
• Internet platforms
• Consulting system integration services There are seven major
components that must be
coordinated to provide the
firm with a coherent IT
infrastructure. Listed here
are major technologies and
suppliers for each
component. Figure 5-10

• Computer hardware platforms • Operating system platforms

• Client machines • Operating systems
• Desktop PCs, mobile computing devices – PDAs, laptops • Client level: 95% run Microsoft Windows (XP, 2000, CE, etc.)
• Servers • Server level: 85% run Unix or Linux
• Blade servers: ultrathin computers stored in racks • Enterprise software applications
• Mainframes:
• Enterprise software applications
• IBM mainframe equivalent to thousands of blade servers
• Enterprise application providers: SAP and Oracle
• Top chip producers: AMD, Intel, IBM
• Middleware providers: BEA
• Top firms: IBM, HP, Dell, Sun Microsystems
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• Data management and storage • Networking/telecommunications platforms

• Database software: IBM (DB2), Oracle, Microsoft (SQL • Telecommunication services
Server), Sybase (Adaptive Server Enterprise), MySQL • Telecommunications, cable, telephone company
• Physical data storage: EMC Corp (large-scale charges for voice lines and Internet access
systems), Seagate, Maxtor, Western Digital • AT&T, Verizon
• Storage area networks: connect multiple storage • Network operating systems:
devices on dedicated network
• Windows Server, Novell, Linux, Unix
• Network hardware providers: Cisco, Lucent, Nortel,
Juniper Networks

• Internet platforms • Consulting and system integration services

• Hardware, software, management services to support • Even large firms do not have resources for full range of
company Web sites, (including Web hosting services) support for new, complex infrastructure
intranets, extranets • Software integration: ensuring new infrastructure works
• Internet hardware server market: Dell, HP/Compaq, with legacy systems
IBM • Legacy systems: older TPS created for mainframes that
• Web development tools/suites: Microsoft (FrontPage, would be too costly to replace or redesign
.NET) IBM (WebSphere) Sun (Java), independent • Accenture, IBM Global Services, EDS, Infosys, Wipro
software developers: Macromedia/Adobe, RealMedia

Contemporary Hardware Platform Trends Contemporary Hardware Platform Trends
• While cost of computing is lower, infrastructure costs • Grid computing

have expanded • Connects geographically remote computers into a single network
• More computing, more sophisticated computing, increased to combine processing power and create virtual supercomputer
consumer expectations, need for security • Provides cost savings, speed, agility
• The emerging mobile digital platform
• Cell phones, smartphones (BlackBerry, iPhone) have assumed • Cloud computing (utility computing)
data transmission, Web surfing, e-mail and IM duties • Data permanently stored in remote servers, accessed and updated
• Netbooks: small, low-cost lightweight notebooks optimized for over the Internet by users
wireless communication and core computing tasks • Organizations using cloud computing need only pay for the
computing power they actually use (on-demand or utility
computing)
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Contemporary Hardware Platform Trends Contemporary Hardware Platform Trends
Computing Goes Green • Autonomic computing

• Industry-wide effort to develop systems that can configure, optimize
• Read the Interactive Session: Technology, and then
themselves, heal themselves when broken, and protect themselves
discuss the following questions: from outside intruders
• What business and social problems does data center power • Similar to self-updating antivirus software; Apple and Microsoft both
consumption cause? use automatic updates
• What solutions are available for these problems? Which are • Virtualization and multicore processors
the most environment-friendly? • Virtualization: presents computing resources so that they can be
• What are the business benefits and costs of these solutions? accessed in ways that are not restricted by configuration
• Allows multiple operating systems to run on one machine; increases
• Should all firms move toward green computing? Why or why server utilization rates from 10-15 to 70 percent of capacity
not?
• Multicore processors: reduced power requirements, enhanced
performance

Contemporary Software Platform Trends Software Platform Trends and Emerging Technologies
• Linux and open-source software

• Open-source software: Produced by community of programmers,
• Web Services
free and modifiable by user • Software components that exchange information using Web
• Linux: Open-source software OS standards and languages
• XML: Extensible Markup Language
• Java • More powerful and flexible than HTML
• Object-oriented programming language (Sun Microsystems) • Tagging allows computers to process data automatically
• Operating system, processor-independent (Java Virtual Machine) • SOAP: Simple Object Access Protocol
• Leading programming environment for Web • Rules for structuring messages enabling applications to pass data and
• Applets, E-commerce applications instructions
• Ajax • WSDL: Web Services Description Language
• Framework for describing Web service and capabilities
• Asynchronous JavaScript and XML
• Allows client and server to exchange small pieces of data without • UDDI: Universal Description, Discovery, and Integration
requiring the page to be reloaded • Directory for locating Web services

Contemporary Software Platform Trends Contemporary Software Platform Trends
How Dollar Rent a Car Uses Web Services

• SOA: Service-oriented architecture
• Set of self-contained services that communicate with each other to
create a working software application
• Software developers reuse these services in other combinations to
assemble other applications as needed
• Example: an “invoice service” to serve whole firm for calculating and
sending printed invoices
• Dollar Rent A Car
• Uses Web services to link online booking system with Dollar Rent A Car uses Web
Southwest Airlines’ Web site services to provide a
standard intermediate layer
of software to “talk” to other
companies’ information
systems. Dollar Rent A Car
can use this set of Web
services to link to other
companies’ information
systems without having to
build a separate link to each
firm’s systems. Figure 5-11
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Contemporary Software Platform Trends Contemporary Software Platform Trends
The Changing Sources of Software

• Mashups and widgets
• Mashups: Combinations of two or more online applications, such
as combining mapping software (Google Maps) with local content
• Widgets: small programs that can be added to Web pages or
placed on the desktop to add additional functionality
• Software outsourcing
• Three sources: external commercial vendor, online service
providers, offshore firms U.S. firms currently spend
about $250 billion each
year on software. In 2008,
• Software packages: prewitten set of software available about 40 percent of that
software will originate
commercially outside the firm, either
from enterprise software
vendors selling firmwide
• Software as a service (SaaS): software delivered over the Internet applications or individual
application service
• Offshore outsourcing: usually governed by service level agreement

providers selling software
modules.
Figure 5-12

Contemporary Software Platform Trends Management Issues
Salesforce.com: Software-as-a-Service Goes Mainstream

• Dealing with platform and infrastructure
• Read the Interactive Session: Organizations, and then
change
discuss the following questions:
• As firms shrink or grow, IT needs to be flexible and scalable
• What are the advantages and disadvantages of the software- • How does firm remain flexible and still make long term
as-a-service model? investments?
• What are some of the challenges facing Salesforce as it • Scalability: Ability to expand to serve larger number of users
continues its growth? How well will it be able to meet those • Firms using mobile computing and cloud computing require new
challenges? policies and procedures for managing these new platforms
• What kinds of businesses could benefit from switching to • Contractual agreements with firms running clouds and
Salesforce and why? distributing software required
• What factors would you take into account in deciding whether
to use Salesforce.com for your business?

Management Issues Management Issues
• Management and governance • Making wise infrastructure investments

• Amount to spend on IT is complex question
– Who controls IT infrastructure • Rent vs. buy, outsourcing
– Centralized/decentralized • Competitive forces model for IT infrastructure
– How are costs allocated between divisions, investment
departments? • Market demand for firm’s services
• Firm’s business strategy
• Firm’s IT strategy, infrastructure, and cost
• Information technology assessment
• Competitor firm services
• Competitor firm IT infrastructure investments
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Management Issues Management Issues
Competitive Forces Model for IT Infrastructure • Total Cost of Ownership of Technology Assets
• TCO model: Used to analyze direct and indirect costs

of systems
• Hardware, software account for only about 20% of
TCO
• Other costs include: Installation, training, support,
maintenance, infrastructure, downtime, space and
energy
• TCO can be reduced through greater centralization and
There are six factors you can use to answer the question, “How much should our firm spend on IT
standardization of hardware and software resources
infrastructure?”
Figure 5-13
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05-02-2013

Management Information Systems

• Define IT infrastructure and describe its components.

IT Infrastructure drivers of IT infrastructure evolution.

and Emerging trends.

5.1 © 2009 by Prentice Hall 5.2 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Cars.com’s IT Infrastructure Drives Rapid Business Growth IT Infrastructure

5.3 © 2009 by Prentice Hall 5.4 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Connection Between the Firm, IT Infrastructure, and • Evolution of IT infrastructure

5.5 © 2009 by Prentice Hall 5.6 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Eras in IT Infrastructure Evolution

Illustrated here are the typical computing configurations characterizing each

Management Information Systems Management Information Systems

Eras in IT Infrastructure Evolution (cont.) A Multitiered Client/Server Network (N-Tier)

Figure 5-2B Figure 5-3

Management Information Systems Management Information Systems

Moore’s Law and Microprocessor Performance

Management Information Systems Management Information Systems

Falling Cost of Chips Examples of Nanotubes

An Intel® processor today

Figure 5-5 Figure 5-6

Management Information Systems Management Information Systems

Since the first magnetic

Figure 5-7 Figure 5-8

Management Information Systems Management Information Systems

• Technology drivers of infrastructure evolution Declining communication costs and the

5.17 © 2009 by Prentice Hall 5.18 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Management Information Systems Management Information Systems

Infrastructure Components Infrastructure Components

The IT Infrastructure Ecosystem

Management Information Systems Management Information Systems

Infrastructure Components Infrastructure Components

• Computer hardware platforms • Operating system platforms

5.23 © 2009 by Prentice Hall 5.24 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Infrastructure Components Infrastructure Components

• Data management and storage • Networking/telecommunications platforms

5.25 © 2009 by Prentice Hall 5.26 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Infrastructure Components Infrastructure Components

• Internet platforms • Consulting and system integration services

5.27 © 2009 by Prentice Hall 5.28 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Contemporary Hardware Platform Trends Contemporary Hardware Platform Trends

• While cost of computing is lower, infrastructure costs • Grid computing

5.29 © 2009 by Prentice Hall 5.30 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Contemporary Hardware Platform Trends Contemporary Hardware Platform Trends

Computing Goes Green • Autonomic computing

5.31 © 2009 by Prentice Hall 5.32 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

• Linux and open-source software

5.33 © 2009 by Prentice Hall 5.34 © 2009 by Prentice Hall

Management Information Systems Management Information Systems

Contemporary Software Platform Trends Contemporary Software Platform Trends

How Dollar Rent a Car Uses Web Services

Management Information Systems Management Information Systems

Contemporary Software Platform Trends Contemporary Software Platform Trends

The Changing Sources of Software