IT Infrastrcture MIS
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Management Information Management Information SystemsSystems
Information Technology (Infrastructure and Emerging Technologies)
Management Information Management Information SystemsSystems
• Problem: Aging systems no longer able to provide
information rapidly enough for timely decisions; too
unreliable for 24/7 operations
• Solutions: Replaced and upgraded hardware and
software and used leading-edge technology
• CRIS (IRCTC) Speeds Up with a New IT Infrastructure
Solutions: Replaced and upgraded hardware and
software and used leading-edge technology
– Grid computing
– Virtualization
– Blade servers
• Demonstrates IT ’ s role in using resources more
efficiently; reducing computing energy usage,
modernizing services
© Prentice Hall 20112
Management Information Management Information SystemsSystems
• IT infrastructure:
– Set of physical devices and software required to operate enterprise
– Set of firmwide services including:• Computing platforms providing computing services
• Telecommunications services• Telecommunications services
• Data management services
• Application software services
• Physical facilities management services
• IT management, standards, education, research and development services
– ““““Service platform”””” perspective more accurate view of value of investments
© Prentice Hall 20113
Management Information Management Information SystemsSystems
• IT InfrastructureConnection 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.© Prentice Hall 20114
Management Information Management Information SystemsSystems
• Evolution of IT infrastructure– General-purpose mainframe & minicomputer era:
1959 to present• 1958 IBM first mainframes introduced
• 1965 Less expensive DEC minicomputers introduced
– Personal computer era: 1981 to present– 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)© Prentice Hall 20115
Management Information Management Information SystemsSystems
• Stages in IT infrastructure evolution
© Prentice Hall 20116
Management Information Management Information SystemsSystems
• Evolution of IT infrastructure (cont.)
– Enterprise computing era: 1992 to present
• Move toward integrating disparate networks, applicationsusing Internet standards and enterprise applications
– Cloud Computing: 2000 to present– Cloud Computing: 2000 to present
• Refers to a model of computing where firms andindividuals obtain computing power and softwareapplications over the Internet or other network
• Fastest growing form of computing
© Prentice Hall 20117
Management Information Management Information SystemsSystems
• Stages in IT infrastructure evolution
© Prentice Hall 2011
Management Information Management Information SystemsSystems
• Multitiered Client/Server Network (N-Tier)
In a multitiered client/server network, client requests for service are handled by different levels of servers.
© Prentice Hall 20119
Management Information Management Information SystemsSystems
• Technology drivers of infrastructure evolution
– Moore’’’’s law and microprocessing power
• Computing power doubles every 18 months
• Nanotechnology: • 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
© Prentice Hall 201110
Management Information Management Information SystemsSystems
MOORE’’’’S LAW AND
MICROPROCESSOR
PERFORMANCE
Packing over 2 billion
transistors into a tiny
microprocessor has
exponentially increased exponentially increased
processing power. Processing
power has increased to over
500,000 MIPS (millions of
instructions per second).
© Prentice Hall 201111
Management Information Management Information SystemsSystems
FALLING COST
OF CHIPS
Packing more transistors
into less space has
driven down transistor
cost dramatically as well
as the cost of the
products in which they products in which they
are used.
© Prentice Hall 201112
Management Information Management Information SystemsSystems
• IT Infrastructure has 7 main components
1. Computer hardware platforms
2. Operating system platforms
Infrastructure ComponentsInfrastructure Components
3. Enterprise software applications
4. Data management and storage
5. Networking/telecommunications platforms
6. Internet platforms
7. Consulting system integration services
© Prentice Hall 201113
Management Information Management Information SystemsSystems
THE IT
INFRASTRUCTURE
ECOSYSTEM
There are seven major
components that must be
coordinated to provide the firm
with a coherent IT with a coherent IT
infrastructure. Listed here are
major technologies and
suppliers for each component.
© Prentice Hall 201114
Management Information Management Information SystemsSystems
• Computer hardware platforms
– Client machines
• Desktop PCs, mobile devices – PDAs, laptops
– Servers
• Infrastructure Components
– 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
© Prentice Hall 201115
Management Information Management Information SystemsSystems
• Operating system platforms
– Operating systems
• Server level: 75% run Windows; 25% run Unix or Linux
• Client level:
• Infrastructure Components
• Client level:
– 90% run Microsoft Windows (XP, 2000, CE, etc.)
– Handheld device OS’s (Android, iPhone OS)
– Cloud computing OS’s (Google’s Chrome OS)
• Enterprise software applications
– Enterprise application providers: SAP and Oracle
– Middleware providers: BEA
© Prentice Hall 201116
Management Information Management Information SystemsSystems
• Data management and storage
– Database software:
• IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), MySQLSybase (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
© Prentice Hall 201117
Management Information Management Information SystemsSystems
• Networking/telecommunications platforms– Telecommunication services
• Telecommunications, cable, telephone company charges for voice lines and Internet company charges for voice lines and Internet access
• AT&T, Verizon
– Network operating systems:
• Windows Server, Novell, Linux, Unix
– Network hardware providers:
• Cisco, Alcatel-Lucent, Nortel, Juniper Networks
© Prentice Hall 201118
Management Information Management Information SystemsSystems
The Evolution of NetworkingThe Evolution of Networking
Telecommunications, combined use of computer hardware andcommunications software for sending and receiving information overcommunications media, enables computer users throughout the world tocommunicate.
Management Information Management Information SystemsSystems
Data Transmission CharacteristicsData Transmission Characteristics
What are the characteristics of transmitted data?
– BandwidthBandwidth – number of bits that can be transferred
per second over a given medium
– AnalogAnalog signalssignals – continuous waves transmitted over a medium at a– AnalogAnalog signalssignals – continuous waves transmitted over a medium at a
certain frequency range
– Digital signals send data in the form of bits
Management Information Management Information SystemsSystems
Data Transmission CharacteristicsData Transmission Characteristics
Bandwidth
– number of bits that can be transmitted per second
– terms for measuring bandwidth
Analog and Digital Transmission
– Modulate – sending modem changes digital signal into analog signal
– Demodulate – receiving modem changes analog signal back into digital
Management Information Management Information SystemsSystems
Translating digital signals to analog signals
Management Information Management Information SystemsSystems
InternalInternal modemmodem – electronic boardplugged into a slot on a computer’smotherboard
ExternalExternal modemmodem – stand-alone device connected bycable to a computer
Management Information Management Information SystemsSystems
Serial transmission – data transmitted one bit after another
Parallel transmission – 8bits
(1 byte) plus a parity bittransmitted at the sametime over 9 separate paths
Management Information Management Information SystemsSystems
Data Transmission CharacteristicsData Transmission Characteristics
Parallel and Serial Transmission
– Serial transmission sends 1 byte plus the parity bit one bit after anotherin a continuous line.
– Parallel transmission sends 8 bits plus a parity bit at the same time over – Parallel transmission sends 8 bits plus a parity bit at the same time over 9 separate paths.
Management Information Management Information SystemsSystems
CommunicationsCommunications MediaMedia
TwistedTwisted--pairpair cablecable is two parallel copper wires, individually wrapped inplastic and bound by another plastic casing.
Management Information Management Information SystemsSystems
Communications MediaCommunications Media
Coaxial cableCoaxial cable is an insulated center wire grounded by a shield of braided wire.
Management Information Management Information SystemsSystems
FiberFiber--optic cableoptic cable transmits beams of light through a glass or plastic core.
Management Information Management Information SystemsSystems
– Integrated Services Digital Network (ISDN) Lines are used to dial into
the Internet and receive information at high speeds.
– Digital Subscriber Lines (DSL) use existing phone lines and new
switched connections to get faster speeds than traditional phone access.
Wired Communications Media
switched connections to get faster speeds than traditional phone access.
– T Lines are digital, high-speed, long-distance lines capable of carrying
signals across the line.
Management Information Management Information SystemsSystems
Microwave systems transmit data through the atmosphere from onemicrowave station to another.
Management Information Management Information SystemsSystems
HowHow doesdoes wirelesswireless communicationcommunication work?work?
– Satellite system is a solar-powered device containing radios called
transponders.
– Transponders receive signals from transmission stations on ground.
– Satellites receives signals, amplifies them, and retransmits them to other
locations on earth.
– Geosynchronous orbit rotates satellite at same speed as earth’s rotation.
Management Information Management Information SystemsSystems
Communications satellite is a solar-powered, electronic device withspecialized radios (transponders) for receiving signals from groundtransmission stations. A satellite receives transmitted signals, amplifiesthem, and retransmits them to other ground locations.
Management Information Management Information SystemsSystems
InfraredInfrared technologytechnology allows data as infrared light waves to betransmitted from a special port in a computer to an infrared sensor in aprinter.
Management Information Management Information SystemsSystems
Signals sent by cell phones are transmitted and received from cell to cell until they reach their destination.
Management Information Management Information SystemsSystems
home
WiWi--FiFi--enabledenabled devices use abroadband Internet connectionthrough a wireless access point.
Management Information Management Information SystemsSystems
Wireless Communications Media
– Bluetooth technology offers short-range connectivity with otherBluetooth devices.
– Devices form a small, temporary network that can transmit voice anddata.
Management Information Management Information SystemsSystems
Network ClassificationsNetwork Classifications
Networking paths allow networked client computers to send information to aserver, which relays information back to the computer or to another on thenetwork. Fax machines and printers are shared resources. The file serveraccesses a shared hard disk.
Management Information Management Information SystemsSystems
In peer-to-peer architecture, computers act as both client and server.
Management Information Management Information SystemsSystems
Local area network (LAN)Local area network (LAN) is a private network using a file server that houses all network resources.
Management Information Management Information SystemsSystems
Wide area network (WAN) spans a large geographical area connecting two or more LANs.
Management Information Management Information SystemsSystems
An intranetintranet is a network within an organization to serve internal users.
Management Information Management Information SystemsSystems
An extranetextranet is an extension of an intranet that allows specified external users access via the Internet
Management Information Management Information SystemsSystems
Network TopologiesNetwork Topologies
Bus TopologyBus Topology
– all computers linked to a single line of cable (bus)
– all communications travel length of bus
Management Information Management Information SystemsSystems
Star Topology Star Topology links multiple computers and devices to a central hub in a configuration resembling a star.
Management Information Management Information SystemsSystems
RingRing TopologyTopology has no hub, and each computer is connected to two othercomputers in a circular path.
Management Information Management Information SystemsSystems
Network HardwareNetwork Hardware
HubHub It is a device that links computers in a network and coordinates messages computers send and receive
Management Information Management Information SystemsSystems
SwitchSwitch devicedevice that joins multiple computers within one local area network(LAN)
Management Information Management Information SystemsSystems
Repeater deviceRepeater device that receives signals, amplifies the signals, and sends the signals along the communication path
Management Information Management Information SystemsSystems
Router deviceRouter device that joins two or more networks
Management Information Management Information SystemsSystems
A gatewaygateway is a combination of hardware and software that allows dissimilarnetworks to communicate. This gateway connects a star network to a ringnetwork.
Management Information Management Information SystemsSystems
A bridgebridge is a combination of hardware and software that enables devices on similar networks to communicate. This bridgebridge connects two star networks.
Management Information Management Information SystemsSystems
Network Interface Card (NIE)Network Interface Card (NIE) connects each client computer to a network
A networkinterface card(NIC) is used forwiredwiredconnections in adesktop PC. A wireless NIC
allows notebookcomputers to useWi-Fi hotspots.
Management Information Management Information SystemsSystems
Network Operating Systems (NOS)Network Operating Systems (NOS)
– controls flow of messages from client computers and provides services such
as file access and printing
– systems such as UNIX and Mac OS have networking functions built in– systems such as UNIX and Mac OS have networking functions built in
– Windows systems include Novell’s Netware or Windows Server software to
enhance the basic operating system
Management Information Management Information SystemsSystems
Communications Software and ProtocolsCommunications Software and Protocols
Communication software programs can be used to
– access and use services of an Internet service provider for e-mail and Webbrowsers
– send and receive information to and from computers through LAN andWAN networksWAN networks
– send and receive faxes
Management Information Management Information SystemsSystems
CommunicationsCommunications SoftwareSoftware andand ProtocolsProtocols
What are protocolsprotocols?
– Protocols are rules and procedures for exchanging information amongcomputers on a network.
– Computers involved must have the same settings and follow the samestandards.standards.
Management Information Management Information SystemsSystems
Communications Software and ProtocolsCommunications Software and Protocols
Examples of communications protocols
Management Information Management Information SystemsSystems
With simplex datatransmission, dataflows only one way.
With half-duplex datatransmission,data flows inboth directionsbut only in onedirection at atime.
With full-duplex datatransmission,data flows inboth directionsat the sametime.
Management Information Management Information SystemsSystems
DirectionalDirectional ProtocolsProtocols
–– SimplexSimplex transmissiontransmission – communications flow in only one direction
–– HalfHalf--duplexduplex transmissiontransmission – communications flow in both directions,
but not at the same timebut not at the same time
–– FullFull--duplexduplex transmissiontransmission – communications flow in both directions
simultaneously
Management Information Management Information SystemsSystems
• Internet platforms
– Hardware, software, management services tosupport company Web sites, (including Webhosting services) intranets, extranetshosting 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: Adobe,RealMedia
© Prentice Hall 201159
Management Information Management Information SystemsSystems
What is Web 2.0?What is Web 2.0?
• Web as a platform
• Software as services
• Architecture of participation• Architecture of participation
• Social media
• Harnessing collective intelligence
• Originated from O'Reilly and MediaLive
International in 2004
Management Information Management Information SystemsSystems
“Web 2.0 is the business revolution in the
computer industry caused by the move to
the Internet as a platform, and an attemptthe Internet as a platform, and an attempt
to understand the rules for success on that
new platform.”
- Tim O’Reilly
Management Information Management Information SystemsSystems
Traditional MediaTraditional Media
Management Information Management Information SystemsSystems
Social MediaSocial Media
Management Information Management Information SystemsSystems
Web Web 22..0 0 Provides the Infrastructure for InnovationProvides the Infrastructure for Innovation
Management Information Management Information SystemsSystems
And a personal changeAnd a personal change
Management Information Management Information SystemsSystems
Web Web 22..0 0 ConceptsConcepts• Blogging
• Forums
• Wikis
• Social Networks
• Syndication
• Instant Messaging
• Mashup
• RIA• Social Networks
• Bookmarking
• Folksonomy = Tagging
• E-commerce
• RIA
• Collaborative Software
Management Information Management Information SystemsSystems
BloggingBlogging
• Individuals broadcast ideas to like-mindedpeople
• Business to broadcast latest information tostakeholdersBusiness to broadcast latest information tostakeholders
• Citizen journalism
• Receive comments from readers
• Photos, videos, podcasts
• Micro-blogging (twitter)
Management Information Management Information SystemsSystems
ForumsForums
• Online message board around one topic
• Discussions with posts and replies
• Threads are collections of posts and replies• Threads are collections of posts and replies
• Moderators to clean up spam
• Software communities use forums as part
of support platform
Management Information Management Information SystemsSystems
WikiWiki
• Collectively share and edit a body of knowledge
• Ongoing process of creation and collaboration
• Knowledge Management • Knowledge Management
• Wikipedia
• Enterprise wikis
Management Information Management Information SystemsSystems
Social NetworkingSocial Networking
• Online communities
• Share information
• Connect people with same interest• Connect people with same interest
• Personal, Business, Political
• Facebook, Hyves, Friendster, Orkut,
MySpace, LinkedIn, Plaxo
• Flickr, You-Tube, Slideshare, Iens
Management Information Management Information SystemsSystems
EE--CommerceCommerce
• Connect seller and buyer
• Adds value by providing service
• Ebay, Amazon, Marktplaats• Ebay, Amazon, Marktplaats
• Kayak, hotels.com, Funda, Monsterboard
• Business model to leverage Web 2.0
technology
Management Information Management Information SystemsSystems
BookmarkingBookmarking
• Users save and share links
• Add meta-data
• Access bookmarks on any computer• Access bookmarks on any computer
• Delicio.us, Digg, Reddit, StumbledUpon
• Rating
• Also social networking sites
Management Information Management Information SystemsSystems
FolksonomyFolksonomy = Tagging= Tagging
• Cooperative Classification
• Classification by users not experts
• Easier to find• Easier to find
• Blog posts, photos, videos, bookmarks
• Common problems
– Spelling
– Plurals
– Specificity
Management Information Management Information SystemsSystems
Instant MessagingInstant Messaging
• MSN, Yahoo Messenger, ICQ, Aim, Jabber, Google Talk, Skype
• Instant updates and feedback
• Real-time communication• Real-time communication
• Mobile-enabled
• Extra features: file transfer, contact lists, conferences
• Business use to for more efficient communication
Management Information Management Information SystemsSystems
SyndicationSyndication
• Make updates come to you
• RSS (Rich Site Summary, Really Simple Syndication)
• Standard format used to publish frequently updated worksworks
– Blog posts, comments, news, forum feeds, audio, video, stock market
• Aggregated for you by a RSS feed reader
• Bloglines, GoogleReader
Management Information Management Information SystemsSystems
MashupMashup
• Aggregates data from more than one source
• Often using Open API to build services from
data sourcesdata sources
• e.g. Real estate data on Google map
Management Information Management Information SystemsSystems
RIARIA
• Rich Internet Application
• Enhance user experience
• Thin client to fat client• Thin client to fat client
• Technologies: Adobe Flex, JavaFX
Management Information Management Information SystemsSystems
Collaborative SoftwareCollaborative Software
• Google Docs
• Vyew
• Real-time collaboration on documents• Real-time collaboration on documents
• Change the way we work
Management Information Management Information SystemsSystems
Social Media Game
• Pick a character
• Discuss which Web 2.0 technology and how
they can be usedthey can be used
• Work as a group for this assignment. Split in
to groups of 5.
• Discuss how Web 2.0 concepts can help thefollowing characters
Management Information Management Information SystemsSystems
Character #1:
Project Manager
• Ramesh is a project manager for aproject whose team is split between theproject whose team is split between theAustralia and India. The client for theproject, which in the US, would like tobe informed about how the project isgoing.
Management Information Management Information SystemsSystems
Character #2:
Freelance Consultant
• Soundarya is a freelance consultant with expertise in environmental law. She would like to show potential clients the with expertise in environmental law. She would like to show potential clients the extent of her knowledge. She would also like to expand her network so as to reach more potential clients.
Management Information Management Information SystemsSystems
Character #3:
Campaign Manager
• Soumitra is the campaign manager for anational politician. She would like to letmore people know about her candidatenational politician. She would like to letmore people know about her candidateand would like to get more peopleinvolved in the cause.
Management Information Management Information SystemsSystems
Character #4
University Dean
Prof. Sangvikar HOD PUMBA. He is settingup a program that will introduce students toup a program that will introduce students tocultural differences and prepare them forworking in a global economy. To do this,there will be assignments to be done bystudent from 3 other participatinguniversities around the world.
Management Information Management Information SystemsSystems
Character #5: PRO
• Shital is Public Relations Officer at theKattaPWN (Professional Women's
Network). She wants to get moreNetwork). She wants to get morevisibility for the KattaPWN and shewants to use the internet for that. Shealso wants to get more people involvedin activities.
Management Information Management Information SystemsSystems
Character #6: Marketing
• Praful is VP of marketing at a companythat sells electronics online. He wantshis company website to be the one thathis company website to be the one thatpeople come to for information aboutthe products.
Management Information Management Information SystemsSystems
• Consulting and system integration services
– Even large firms do not have resources for a full range of support for new, complex infrastructure
– Software integration: ensuring new
• Infrastructure Components
– 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
© Prentice Hall 201186
Management Information Management Information SystemsSystems
• The emerging mobile digital platform
– Cell phones, smartphones (BlackBerry, iPhone)
• Have assumed data transmission, Web surfing, e-mail and IM duties
• Contemporary Hardware Platform Trends
e-mail and IM duties
– Netbooks:
• Small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks
– Tablets (iPad)
– Networked e-readers (Kindle)
© Prentice Hall 201187
Management Information Management Information SystemsSystems
• Grid computing
– Connects geographically remote computers into a single network to combine processing power and create virtual supercomputer
• Contemporary Hardware Platform Trends
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
© Prentice Hall 201188
Management Information Management Information SystemsSystems
• Cloud computing
– On-demand (utility) computing services obtained over network
• Infrastructure as a service
• Contemporary Hardware Platform Trends
• 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
© Prentice Hall 201189
Management Information Management Information SystemsSystems
• Green computing– Practices and technologies for manufacturing, using,
disposing of computing and networking hardware
• Autonomic computing
• Contemporary Hardware Platform Trends
• 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
• High performance, power-saving processors
– Multi-core processors
© Prentice Hall 201190
Management Information Management Information SystemsSystems
• Linux and open-source software– Open-source software: Produced by community of
programmers, free and modifiable by user– Linux: Open-source software OS
• Software for the Web
• Contemporary Software Platform Trends
• Software for the Web
– Java: • Object-oriented programming language• Operating system, processor-independent
– Ajax• Asynchronous JavaScript and XML• Allows client and server to exchange small pieces of
data without requiring the page to be reloaded
© Prentice Hall 201191
Management Information Management Information SystemsSystems
• Web Services– Software components that exchange information using
Web standards and languages
– XML: Extensible Markup Language• More powerful and flexible than HTML
• Contemporary Software Platform Trends
• More powerful and flexible than HTML
• Tagging allows computers to process data automatically
– SOAP: Simple Object Access Protocol• Rules for structuring messages enabling applications to pass data
and instructions
– WSDL: Web Services Description Language• Framework for describing Web service and capabilities
– UDDI: Universal Description, Discovery, and Integration• Directory for locating Web services
© Prentice Hall 201192
Management Information Management Information SystemsSystems
• 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
• Contemporary Software Platform Trends
– 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
© Prentice Hall 201193
Management Information Management Information SystemsSystems
Example Case StudiesExample Case Studies
www.makemytrip.com , www.cleartrip.com
http://in.bookmyshow.com/
© Prentice Hall 201194
Management Information Management Information SystemsSystems
• Software outsourcing and cloud services
– Three external sources for software:
1. Software packages and enterprise software
2. Software outsourcing (domestic or offshore)
• Contemporary Software Platform Trends
2. Software outsourcing (domestic or offshore)
– Domestic:
» Primarily for middleware, integration services, software
support
– Offshore:
» Primarily for lower level maintenance, data entry, call
centers, although outsourcing for new-program
development is increasing
© Prentice Hall 201195
Management Information Management Information SystemsSystems
• Three external sources for software (cont.)
3. Cloud-based software services
• Software as a service (SaaS)
• Accessed with Web browser over Internet
• Contemporary Software Platform Trends
• Accessed with Web browser over Internet
• Ranges from free or low-cost services for individuals to business and enterprise software
• Users pay on subscription or per-transaction
• E.g. Salesforce.com
• Service Level Agreements (SLAs): formal agreement with service providers
© Prentice Hall 201196
Management Information Management Information SystemsSystems
• Software outsourcing and cloud services (cont.)
– Mashups
• Combinations of two or more online applications, such as combining mapping software (Google Maps) with
• Contemporary Software Platform Trends
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, BlackBerry, Android
• Generally delivered over the Internet
© Prentice Hall 201197
Management Information Management Information SystemsSystems
• Dealing with platform and infrastructure change
– As firms shrink or grow, IT needs to be flexible and scalable
– Scalability:
• Management Issues
– Scalability:
• Ability to expand to serve larger numbers 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
© Prentice Hall 201198
Management Information Management Information SystemsSystems
• Management and governance
– Who controls IT infrastructure?
– How should IT department be organized?
• Management Issues
• Centralized
– Central IT department makes decisions
• Decentralized
– Business unit IT departments make own decisions
– How are costs allocated between divisions, departments?
© Prentice Hall 201199
Management Information Management Information SystemsSystems
• Making wise infrastructure investments
– Amount to spend on IT is complex question• Rent vs. buy, outsourcing
– Total cost of ownership (TCO) model
• Management Issues
– Total cost of ownership (TCO) model • Analyzes direct and indirect costs
• Hardware, software account for only about 20% of TCO
• Other costs: Installation, training, support, maintenance, infrastructure, downtime, space and energy
• TCO can be reduced through use of cloud services, greater centralization and standardization of hardware and software resources
© Prentice Hall 2011100
Management Information Management Information SystemsSystems
• Competitive forces model for IT infrastructure investment
1. Market demand for firm’’’’s services
2. Firm’’’’s business strategy
• Management Issues
2. Firm’’’’s business strategy
3. Firm’’’’s IT strategy, infrastructure, and cost
4. Information technology assessment
5. Competitor firm services
6. Competitor firm IT infrastructure investments
© Prentice Hall 2011101
Management Information Management Information SystemsSystems
Management IssuesManagement Issues
COMPETITIVE FORCES MODEL FOR IT INFRASTRUCTURE
There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, There are six factors you can use to answer the question, ““““““““How much How much How much How much How much How much How much How much should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?should our firm spend on IT infrastructure?””””””””
© Prentice Hall 2011102