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.
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.
FIGURE 5-1
CONNECTION BETWEEN THE FIRM, IT INFRASTRUCTURE, AND BUSINESS CAPABILITIES
Evolution of IT infrastructure
Evolution of IT infrastructure
General-purpose mainframe and minicomputer era: 1959 to present
1958: IBM first mainframes introduced
1965: less expensive DEC minicomputers introduced
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 multitiered (N-tiered)
Various types of servers (network, application, Web)
IT Infrastructure
Evolution of IT infrastructure (cont.)
Evolution of IT infrastructure (cont.)
Enterprise computing era: 1992 to present
Move toward integrating disparate networks, applications using Internet standards and enterprise applications
Cloud and mobile computing: 2000 to present
Cloud computing: computing power and software applications supplied over the Internet or other network
Fastest growing form of computing
IT Infrastructure
Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.
Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.
Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.
Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.
FIGURE 5-2
STAGES IN IT INFRASTRUCTURE EVOLUTION (cont.)
In a multitiered client/server network, client requests for service are handled by different levels of servers.
In a multitiered client/server network, client requests for service are handled by different levels of servers.
FIGURE 5-3
A MULTITIERED CLIENT/SERVER NETWORK (N-TIER)
Technology drivers of infrastructure evolution
Technology drivers of infrastructure evolution
Moore’s law and microprocessing power
Computing power doubles every 18 months
Nanotechnology:
Shrinks size of transistors to size comparable to size of a virus
Law of Mass Digital Storage
The amount of data being stored each year doubles
IT Infrastructure
Packing more than 2 billion transistors into a tiny microprocessor has exponentially increased processing power. Processing power has increased to more than 500,000 MIPS (millions of instructions per second).
Packing more than 2 billion transistors into a tiny microprocessor has exponentially increased processing power. Processing power has increased to more than 500,000 MIPS (millions of instructions per second).
FIGURE 5-4
MOORE’S LAW AND MICROPROCESSOR PERFORMANCE
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.
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.
FIGURE 5-5
FALLING COST OF CHIPS
Nanotubes are tiny tubes about 10,000 times thinner than a human hair. They consist of rolled up sheets of carbon hexagons and have the potential uses as minuscule wires or in ultrasmall electronic devices and are very powerful conductors of electrical current.
Nanotubes are tiny tubes about 10,000 times thinner than a human hair. They consist of rolled up sheets of carbon hexagons and have the potential uses as minuscule wires or in ultrasmall electronic devices and are very powerful conductors of electrical current.
FIGURE 5-6
EXAMPLES OF NANOTUBES
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 for each dollar expended every 15 months on average.
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 for each dollar expended every 15 months on average.
FIGURE 5-7
THE COST OF STORING DATA DECLINES EXPONENTIALLY 1950–2012
Technology drivers of infrastructure evolution (cont.)
Technology drivers of infrastructure evolution (cont.)
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)
IT Infrastructure
Technology drivers of infrastructure evolution (cont.)
Technology drivers of infrastructure evolution (cont.)
Declining communication costs and the Internet
An estimated 2.3 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
IT Infrastructure
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 around 2 cents.
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 around 2 cents.
FIGURE 5-8
EXPONENTIAL DECLINES IN INTERNET COMMUNICATIONS COSTS
Technology drivers of infrastructure evolution (cont.)
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
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.
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 5-9
THE IT INFRASTRUCTURE ECOSYSTEM
Computer hardware platforms
Computer hardware platforms
Client machines
Desktop PCs, mobile 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
Infrastructure Components
Operating system platforms
Operating system platforms
Operating systems
Server level: 65% run Unix or Linux; 35% run Windows
Client level:
90% run Microsoft Windows (XP, 2000, CE, etc.)
Mobile/multitouch (Android, iOS)
Cloud computing (Google’s Chrome OS)
Enterprise software applications
Enterprise application providers: SAP and Oracle
Middleware providers: BEA
Infrastructure Components
Data management and storage
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 (SANs):
Connect multiple storage devices on dedicated network
Infrastructure Components
Networking/telecommunications platforms
Networking/telecommunications platforms
Telecommunication services
Telecommunications, cable, telephone company charges for voice lines and Internet access
AT&T;, Verizon
Network operating systems:
Windows Server, Linux, Unix
Network hardware providers:
Cisco, Alcatel-Lucent, Nortel, Juniper Networks
Infrastructure Components
Internet platforms
Internet platforms
Hardware, software, management services to support company Web sites, (including Web-hosting services) intranets, extranets
Internet hardware server market: IBM, Dell, Sun (Oracle), HP
Web development tools/suites: Microsoft (Expression Studio, .NET) Oracle-Sun (Java), Adobe, Real Networks
Infrastructure Components
Consulting and system integration services
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
Accenture, IBM Global Services, EDS, Infosys, Wipro
Infrastructure Components
The mobile digital platform
The mobile digital platform
Cell phones, smartphones (iPhone, Android, and Blackberry)
Data transmission, Web surfing, e-mail, and IM duties
Netbooks:
Small lightweight notebooks optimized for wireless communication and core tasks
Tablets (iPad)
Networked e-readers (Kindle and Nook)
Contemporary Hardware Platform Trends
BYOD (Bring your own device)
BYOD (Bring your own device)
Allowing employees to use personal mobile devices in workplace
Forces businesses and IT departments to rethink how IT equipment and services are acquired and managed
Contemporary Hardware Platform Trends
What are the advantages and disadvantages of allowing employees to use their personal smartphones for work?
What are the advantages and disadvantages of allowing employees to use their personal smartphones for work?
What management, organization, and technology factors should be addressed when deciding whether to allow employees to use their personal smartphones for work?
Allowing employees to use their own smartphones for work will save the company money. Do you agree?
SHOULD YOU USE YOUR IPHONE FOR WORK?
Grid computing
Grid computing
Connects geographically remote computers into a single network to combine processing power and create virtual supercomputer
Provides cost savings, speed, agility
Virtualization
Allows single physical resource to act as multiple resources (i.e., run multiple instances of OS)
Reduces hardware and power expenditures
Facilitates hardware centralization
Contemporary Hardware Platform Trends
Cloud computing
Cloud computing
On-demand (utility) computing services obtained over network
Infrastructure as a service
Platform as a service
Software as a service
Cloud can be public or private
Allows companies to minimize IT investments
Drawbacks: Concerns of security, reliability
Hybrid cloud computing model
Contemporary Hardware Platform Trends
In cloud computing, hardware and software capabilities are a pool of virtualized resources provided over a network, often the Internet. Businesses and employees have access to applications and IT infrastructure anywhere, at any time, and on any device.
In cloud computing, hardware and software capabilities are a pool of virtualized resources provided over a network, often the Internet. Businesses and employees have access to applications and IT infrastructure anywhere, at any time, and on any device.
Figure 5-10
CLOUD COMPUTING PLATFORM
Green computing
Green computing
Practices and technologies for manufacturing, using, disposing of computing and networking hardware
High performance, power-saving processors
Multi-core processors
Autonomic computing
Industry-wide effort to develop systems that can configure, heal themselves when broken, and protect themselves from outside intruders
Similar to self-updating antivirus software; Apple and Microsoft both use automatic updates
Contemporary Hardware Platform Trends
What business and social problems does data center power consumption cause?
What business and social problems does data center power consumption cause?
What solutions are available for these problems? Are they management, organizational, or technology solutions?
What are the business benefits and costs of these solutions?
Should all firms move toward green computing?
GREEN DATA CENTERS: GOOD FOR BUSINESS?
Open-source software:
Open-source software:
Produced by community of programmers
Free and modifiable by user
Examples: Apache web server, Mozilla Firefox browser, OpenOffice
Linux
Open-source OS
Used in mobile devices, local area networks, Web servers, high-performance computing
Specifies how text, graphics are placed on Web page
HTML5 is latest evolution
Includes animation and video processing functionality previously provided by third party add-ons such as Flash
Contemporary Software Platform Trends
Web Services
Web Services
Software components that exchange information using Web standards and languages
XML: Extensible Markup Language
More powerful and flexible than HTML
Tagging allows computers to process data automatically
Contemporary Software Platform Trends
SOA: Service-oriented architecture
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 Southwest Airlines’ Web site
Contemporary Software Platform Trends
Dollar Rent A Car uses Web 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.
Dollar Rent A Car uses Web 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.
Service Level Agreements (SLAs): formal agreement with service providers
Contemporary Software Platform Trends
In 2012, U.S. firms will spend more than $279 billion on software. About 35 percent of that ($98 billion) will originate outside the firm, either from enterprise software vendors selling firmwide applications or individual application service providers leasing or selling software modules. Another 4 percent ($11 billion) will be provided by SaaS vendors as an online cloud-based service.
In 2012, U.S. firms will spend more than $279 billion on software. About 35 percent of that ($98 billion) will originate outside the firm, either from enterprise software vendors selling firmwide applications or individual application service providers leasing or selling software modules. Another 4 percent ($11 billion) will be provided by SaaS vendors as an online cloud-based service.
Figure 5-12
CHANGING SOURCES OF FIRM SOFTWARE
Software outsourcing and cloud services (cont.)
Software outsourcing and cloud services (cont.)
Mashups
Combinations of two or more online applications, such as combining mapping software (Google Maps) with local content
Apps
Small pieces of software that run on the Internet, on your computer, or on your cell phone
iPhone, Android
Generally delivered over the Internet
Contemporary Software Platform Trends
Dealing with platform and infrastructure change
Dealing with platform and infrastructure change
As firms shrink or grow, IT needs to be flexible and scalable
Scalability:
Ability to expand to serve larger number of users
For mobile computing and cloud computing
New policies and procedures for managing these new platforms
Contractual agreements with firms running clouds and distributing software required
