If-116 Module 3 - IT Infrastructure and Emerging Technologies

Objectives
Budiraharjo: Information Technology - Module 3

Objectives
Define IT infrastructure and describe its components.
Identify and describe the stages of IT infrastructure evolution.
Identify and describe the technology drivers of IT infrastructure

evolution.
Assess contemporary computer hardware platform trends.
Assess contemporary software platform trends.
Evaluate the challenges of managing IT infrastructure and

management solutions.

What is IT Infrastructures?

A set of physical devices and software required to operate

enterprise. This is a firm-wide service package including:
• Computing platform providing computing services

• Telecommunications services
• Data management services
• Application software services
• Physical facilities management services
• IT management, education, research and development
services

Connection Between the Firm, IT Infrastructure, and

Business Capabilities
The services a firm is capable of providing to its

customers, suppliers, and employees are a direct function
of its IT infrastructure. Ideally, this infrastructure should
support the firm’s business and information systems
strategy. New information technologies have a powerful
impact on business and IT strategies, as well as the
services that can be provided to customers.

Evolution of IT Infrastructures

Electronic accounting machine era: 1930-1950

Specialized machines sorting computer cards, accumulating totals, printing
reports.
General-purpose mainframe and minicomputer era:

1959 to present
• 1958 IBM first mainframes introduced, eventually used to support
thousands of online remote terminals
• 1965 less expensive DEC minicomputers introduced, allowing
decentralized computing


Personal computer era: 1981 to present

• 1981 Introduction of IBM PC
• Proliferation in 80s, 90s resulted in growth of personal software
Client/server era: 1983 to present

• Desktop clients networked to servers, with processing work split
between clients and servers
• Network may be two-tiered or multi-tiered (N-tiered)
• Various types of servers (network, application, Web)
Enterprise Internet computing era: 1992 to present

Move toward integrating disparate networks, applications using Internet
standards and enterprise applications


A Multi-tiered Client/Server Network (N-Tier)


Technology Drivers of
IT Infrastructures Evolution

Technology Drivers of IT Infrastructures Evolution
Moore’s Law and Microprocessing Power

• Computing power doubles every 18 months
• Nanotechnology: May shrink size of transistors to width of
several atoms
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

Packing more transistors into less

space has driven down transistor
cost dramatically as well as the cost
of the products in which they are
used.

Nanotubes are tiny tubes about 10,000 times

thinner than a human hair. Discovered in
1991 by researchers at NEC, they have the
potential uses as wires or in ultra-small
electronic devices and are very powerful
conductors of electrical current.

From 1980 to 1990, hard disk drive capacities for PCs grew at the rate of 25 percent
annual compound growth, but after 1990, growth accelerated to more than 65
percent each year.

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 every 15
months on average.

Metcalfe’s Law and Network Economics

• Value or power of a network grows exponentially as a function of the
number of network members
• As network members increase, more people want to use it (demand for
network access increases).
Declining Communication Costs and the Internet

• An estimated 1.1 billion people worldwide have Internet access
• As communication costs fall toward a very small number and approach
0, utilization of communication and computing facilities explodes.

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.

The Components of IT Infrastructures

IT Infrastructure has 7 main components
• Networking and telecommunications equipment and

services (50% of U.S. expenditures)
• Enterprise and other IT software applications (19%)
• Computer hardware platforms (9%)
• Consulting services and system integrators (9%)
• Operating system platforms (7%)
• Database management and storage (3%)
• Internet platforms (2%)

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.

Computer Hardware Platforms

Client machines
Desktop PCs, mobile computing devices – PDAs, laptops
Servers
Blade servers: ultrathin computers stored in racks
Mainframes
IBM mainframe equivalent to thousands of blade servers
Top chip producers

AMD, Intel, IBM
Top firms
IBM, HP, Dell, Sun Microsystems

Computer software platforms

Operating systems
- Client level: 95% run Microsoft Windows (XP, 2000, CE, etc.)
- Server level: 85% run Unix or Linux
Enterprise software applications

- Enterprise application providers: SAP and Oracle
- Middleware providers: BEA (Oracle)

Data management and storage

Database software
IBM (DB2), Oracle, Microsoft (SQL Server),
Sybase (Adaptive Server Enterprise), MySQL
Physical data storage

EMC Corp (large-scale systems), Seagate, Maxtor,
Western Digital
Storage area networks

Connect multiple storage devices on dedicated network

Networking platforms
Telecommunication services
- Telecommunications, cable, telephone company charges
for voice lines and Internet access
- Regional provider (e.g: PT. Telkom Indonesia)
Network operating systems

Windows Server, Novell, Linux, Unix
Network hardware providers

Cisco, Lucent, Nortel, Juniper Networks

Internet platforms
Services
Hardware, software, management services to support company Web sites,
(including Web hosting services) intranets, extranets
Internet hardware server market

Dell, HP/Compaq, IBM
Web development tools/suites

Microsoft (FrontPage, .NET) IBM (WebSphere) Sun (Java), independent
software developers: Macromedia/Adobe, RealMedia

Consulting and system integration services
- Even large firms do not have resources

for full range of support for new, complex infrastructure.
- Software integration: ensuring new infrastructure

works with legacy systems.
- Legacy systems: older TPS created for mainframes

that would be too costly to replace or redesign.

IT Technology Trends

Cloud Computing
Cloud computing is a phrase used to describe a variety of computing

concepts that involve a large number of computers connected through a
real-time communication network such as the Internet. In science, cloud
computing is a synonym for distributed computing over a network, and
means the ability to run a program or application on many connected
computers at the same time.
Typically, the seller has actual energy-consuming servers which host

products and services from a remote location, so end-users don't have to;
they can simply log on to the network without installing anything. The
major models of cloud computing service are known as software as a
service, platform as a service, and infrastructure as a service. These cloud
services may be offered in a public, private or hybrid network. Google,
Amazon, Salesforce, and Microsoft Azure are some well-known cloud
vendors.

Cloud Computing
Infrastructure as a service (IAAS)
In the most basic cloud-service model, providers of IaaS offer computers –
physical or (more often) virtual machines – and other resources. For wide-
area connectivity, customers can use either the Internet or carrier clouds
(dedicated virtual private networks).
To deploy their applications, cloud users install operating-system images

and their application software on the cloud infrastructure. In this model,
the cloud user patches and maintains the operating systems and the
application software.
Cloud providers typically bill IaaS services on a utility computing basis cost
reflects the amount of resources allocated and consumed.

Cloud Computing
Platform as a service (PAAS)

In the PaaS models, cloud providers deliver a computing platform, typically
including operating system, programming language execution environment,
database, and web server.
Application developers can develop and run their software solutions on a

cloud platform without the cost and complexity of buying and managing the
underlying hardware and software layers.

Cloud Computing
Software as a service (SAAS)

In the business model using software as a service (SaaS), users are provided
access to application software and databases.
In the SaaS model, cloud providers install and operate application software
in the cloud and cloud users access the software from cloud clients. Cloud
users do not manage the cloud infrastructure and platform where the
application runs. This eliminates the need to install and run the application
on the cloud user's own computers, which simplifies
maintenance and support.
The pricing model for SaaS applications is typically a monthly

or yearly flat fee per user.

Cloud Computing

Cloud Computing

Open Source Software (OSS)
Open-source software (OSS) is computer software with its source code

made available and licensed with a license in which the copyright holder
provides the rights to study, change and distribute the software to anyone
and for any purpose.
Open-source software is very often developed in a public, collaborative

manner. Open-source software is the most prominent example of open-
source development and often compared to (technically defined) user-
generated content or (legally defined) open-content movements.
A report by the Standish Group (from 2008) states that adoption of open-
source software models has resulted in savings of about $60 billion per year
to consumers.

Projects and organizations

Some of the "more prominent organizations" involved in OSS development
include the Apache Software Foundation, creators of the Apache web
server; the Linux Foundation, a nonprofit which as of 2012 employed Linus
Torvalds, the creator of the Linux operating system kernel; the Eclipse
Foundation, home of the Eclipse software development platform; the
Debian Project, creators of the influential Debian GNU/Linux distribution;
and the Mozilla Foundation, home of the Firefox web browser.
Open Source development is often performed "live and in public", using

services provided for free on the Internet, such as the Launchpad and
SourceForge web sites.

Open source vs. closed source

The debate over open source vs. closed source
(alternatively called proprietary software) is sometimes heated.
The top four reasons (as provided by Open Source Business Conference
survey) individuals or organizations choose open source software are:
1) Lower cost,
2) Security,
3) No vendor 'lock in', and
4) Better quality.

Widely used open-source software

Open source software projects are built and maintained by a network of
volunteer programmers. Prime examples of open-source products are the
Apache HTTP Server, the e-commerce platform osCommerce and the
internet browser Mozilla Firefox.
One of the most successful open-source products is the GNU/Linux

operating system, an open-source Unix-like operating system, and its
derivative Android, an operating system for mobile devices. In some fields,
open software is the norm, as in voice over IP applications with Asterisk
(PBX).

Business applications of open-source software

There are a number of commonly recognized barriers to the adoption of
open-source software by enterprises. These barriers include the perception
that open-source lacks of formal support and training, the velocity of
change, and a lack of a long-term roadmap. The majority of these barriers
are risk-related.
From the other side, not all OSS projects disclose exact future plans, many
serious OSS projects (especially operating systems) actually make money
from paid support and documentation.
A commonly employed business strategy of commercial open-source

software firms is the dual-license strategy, as demonstrated by Ingres,
MySQL, eXo Platform, Alfresco, Sleepycat and others.

Screenshot of Debian GNU/Linux (version 7.1, "Wheezy")

with the GNOME desktop environment, Mozilla Firefox, Tor, and VLC media player running.
All of this is open source software.

Emerging IT Technologies

Gartner, Inc. (an American information technology research and

advisory firm) and International Data Corporation or IDC
(an American market research, analysis and advisory firm
specializing in information technology, telecommunications,
and consumer technology.) recently highlighted several technologies
and trends that will be strategic for most organizations in 2014.
Some of the predictions that have the potential

to leverage the competitive advantages of organizations
are discussed as follow.

Mobile apps and applications
Gartner recommends that developers focus on creating

expanded user interface models including richer voice and
video that can connect people in new and different ways. Apps
will continue to grow while applications will begin to shrink.
Apps are smaller, and more targeted, while a larger application
is more comprehensive. Developers should look for ways to
snap together apps to create larger applications.

Cloud service providers will increasingly drive the IT market
As cloud-dedicated datacenters grow in number and

importance, the market for server, storage, and networking
components will increasingly be driven by cloud service
providers. The incumbent IT hardware vendors will be forced
to adopt a “cloud-first” strategy, IDC predicts.

The Era of Personal Cloud
According to Gartner, the personal cloud era will mark a power

shift away from devices toward services. In this new world, the
specifics of devices will become less important for the
organization to worry about, although the devices will still be
necessary. Users will use a collection of devices, with the PC
remaining one of many options, but no one device will be the
primary hub. Access to the cloud and the content stored or
shared from the cloud will be managed and secured, rather
than solely focusing on the device itself.

The Internet of Everything
Gartner predicts that the Internet is expanding beyond PCs and

mobile devices into enterprise assets such as field equipment,
and consumer items such as cars and televisions. Imagine
digitizing the most important products, services and assets.
The combination of data streams and services
will be created by digitizing everything
(people, things, information and places).

Here comes the social enterprise
IDC predicts increased integration of social technologies into

existing enterprise applications. “In addition to being a
strategic component in virtually all customer engagement and
marketing strategies,” IDC says, “data from social applications
will feed the product and service development process.” By
2017, 80% of Fortune 500 companies will have an active
customer community, up from 30% today.

Smart Machines
Through 2020, the smart machine era will blossom. The

machine is capable of contextual thinking in forms of
intelligent personal assistants, smart advisors (such as IBM
Watson), and advanced global industrial systems.
Enterprises will be likely to invest in smart machines,

Gartner predicts.

IBM Watson is an artificially intelligent super computer system

capable of answering questions posed in natural language.

The digitization of all industries
By 2018, 1/3 of share leaders in virtually all industries will be

“Amazoned” by new and incumbent players. IDC suggests that
a key to competing in these disrupted and reinvented
industries will be to create industry-focused
innovation platforms.

3-D Printing
Gartner predicts worldwide shipments of 3D printers are

expected to grow 75 percent in 2014 followed by a near
doubling of unit shipments in 2015.
3D printing or additive manufacturing is a process of making a

three-dimensional solid object of virtually any shape from a
digital model. 3D printing is achieved using an additive process,
where successive layers of material are laid down in different
shapes.

A 3D printer is a limited type of industrial

robot that is capable of carrying out an
additive process under computer control.

Assignment and Exercises

Assignment
1. Identify the technology and suppliers of the 7 main

components of IT infrastructure being deployed at the
organization that your study group choose as case study for
this subject. Two or three groups will make presentations
the result of the identification.
2. Simulate how the organization you use as case study would

adapt the trends and emerging IT technologies, if they
haven’t already, in helping its business process to
strengthen its competitive advantage. Two or three groups
will make presentations of the simulation.

Thank you… 

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Objectives

Budiraharjo: Information Technology - Module 3

Define IT infrastructure and describe its components.

Identify and describe the stages of IT infrastructure evolution.

Identify and describe the technology drivers of IT infrastructure

Assess contemporary computer hardware platform trends.

Assess contemporary software platform trends.

Evaluate the challenges of managing IT infrastructure and

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

A set of physical devices and software required to operate

• Computing platform providing computing services

Budiraharjo: Information Technology - Module 3

Connection Between the Firm, IT Infrastructure, and

The services a firm is capable of providing to its

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Electronic accounting machine era: 1930-1950

General-purpose mainframe and minicomputer era:

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Personal computer era: 1981 to present

Client/server era: 1983 to present

Enterprise Internet computing era: 1992 to present

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

A Multi-tiered Client/Server Network (N-Tier)

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Moore’s Law and Microprocessing Power

Mass Digital Storage

Budiraharjo: Information Technology - Module 3

Packing more transistors into a tiny microprocessor

Budiraharjo: Information Technology - Module 3

Packing more transistors into less

Budiraharjo: Information Technology - Module 3

Nanotubes are tiny tubes about 10,000 times

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Since the first magnetic

Budiraharjo: Information Technology - Module 3

Metcalfe’s Law and Network Economics

Declining Communication Costs and the Internet

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

Budiraharjo: Information Technology - Module 3

IT Infrastructure has 7 main components

• Networking and telecommunications equipment and

Budiraharjo: Information Technology - Module 3

There are seven major components

Budiraharjo: Information Technology - Module 3

Computer Hardware Platforms

Top chip producers

Budiraharjo: Information Technology - Module 3

Computer software platforms

Enterprise software applications

Budiraharjo: Information Technology - Module 3

Data management and storage

Physical data storage

Storage area networks

Budiraharjo: Information Technology - Module 3

Network operating systems

Network hardware providers