Chap 5 Infrastructure New

7/30/2019 Chap 5 Infrastructure New

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6.1 2006 by Prentice Hall

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


Figure 6-1


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IT INFRASTRUCTURE

Levels of IT Infrastructure


Three major levels of infrastructure:

Public

Enterprise

Business unit


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IT INFRASTRUCTURE

Levels of IT Infrastructure


Figure 6-2


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IT INFRASTRUCTURE

Eras in IT Infrastructure Evolution


Figure 6-3


7/516.7 2006 by Prentice Hall

IT INFRASTRUCTURE

A Multitiered Client/Server Network (N-tier)


Figure 6-4



IT INFRASTRUCTURE


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



IT INFRASTRUCTURE

Moores Law and Microprocessor Performance


Figure 6-5



IT INFRASTRUCTURE

Falling Cost of Chips


Figure 6-6



IT INFRASTRUCTURE

The Capacity of Hard Disk Drives Grows Exponentially,19802004


Figure 6-8Source: Authors.



IT INFRASTRUCTURE

The Cost of Storing Data Declines Exponentially,19502004


Figure 6-9Source:Exponential Growth an Illusion?:

Response to Ilkka Tuomi, by Ray Kurzweil,KurzweilAl.net, September 23, 2003. Used

with permission.



IT INFRASTRUCTURE

Exponential Declines in Internet Communications Costs


Figure 6-10Source: Authors.



Computer Hardware Platforms

Operating System Platforms

Enterprise Software Applications

Data Management and Storage


INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components



Networking/Telecommunications Platforms

Internet Platforms

Consulting and System Integration Services



Seven Key Infrastructure Components (Continued)



The IT Infrastructure Ecosystem



Figure 6-11




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.


Consulting and System Integration Services (Continued)


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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.



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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


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.



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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


On-Demand (Utility) Computing: (Continued)


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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.



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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



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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.


Edge Computing: (Continued)


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Edge Computing Platform


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



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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.


The Rise of Linux and Open-Source Software(Continued)

M I f i S


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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.


Java Is Everywhere

M I f i S


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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.


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.


Software for Enterprise Integration: (Continued)

M t I f ti S t


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Enterprise Application Integration (EAI) Software VersusTraditional Integration


Figure 6-13


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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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.


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.


Web Services and Service-Oriented Architecture(Continued)

Management Information Systems


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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.




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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.


Service-Oriented Architecture (Continued)



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How Dollar Rent a Car Uses Web Services


Figure 6-14




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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




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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


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


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?




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Changing Sources of Firm Software


Figure 6-15


Sources: BEA National Income and ProductAccounts, Forrester Research, December 2003;

eMarketer Inc., IT Spending 2004,

www.emarketer.com; and author estimates.

http://www.emarketer.com/http://www.emarketer.com/


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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS


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 Challenges:

Making wise infrastructure investments

Choosing and coordinating infrastructurecomponents

Dealing with infrastructure change

Management and governance



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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




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Experiment with new technologies on a smaller scale

before taking up a large-scale infrastructure project.


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


Chap 5 Infrastructure New

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