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  1. 6 Chapter IT Infrastructure and Platforms

  2. Management Information Systems Chapter 6 IT Infrastructure and Platforms OBJECTIVES • Define IT infrastructure and describe the components and levels of IT infrastructure • Identify and describe the stages of IT infrastructure evolution • Identify and describe the technology drivers of IT infrastructure evolution

  3. Management Information Systems Chapter 6 IT Infrastructure and Platforms OBJECTIVES • Assess contemporary computer hardware platform trends • Assess contemporary software platform trends • Evaluate the challenges of managing IT infrastructure and management solutions

  4. Challenge: fragmented, high cost IT infrastructure slowed down market and customer response times Solutions: integrated storage area network to enable the flow of information among different types and brands of computer servers Reduce number of servers from 107 to 70 Illustrates the importance of IT infrastructure for achieving business objectives Management Information Systems Chapter 6 IT Infrastructure and Platforms Hong Kong’s New World Telecommunications Case

  5. Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Defining IT Infrastructure • Includes hardware, software, and services • A set of physical devices and software applications that are required to operate the entire enterprise • Your firm is largely dependent on its infrastructure for delivering services to customers, employees and suppliers • You can think of infrastructure as digital plumbing, but its much more than that!

  6. Figure 6-1 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE The Connection between the Firm, IT Infrastructure, and Business Capabilities

  7. Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Levels of IT Infrastructure • Three major levels of infrastructure: • Public • Enterprise • Business unit

  8. Figure 6-2 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Levels of IT Infrastructure

  9. Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Evolution of IT Infrastructure: 1950–2005 • Electronic accounting machine era: (1930–1950) • General-purpose mainframe and minicomputer era: (1959 to present) • Personal computer era: (1981 to present) • Client/server era: (1983 to present) • Enterprise internet computing era: (1992 to present)

  10. Figure 6-3 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Eras in IT Infrastructure Evolution

  11. Figure 6-4 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE A Multitiered Client/Server Network (N-tier)

  12. Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Technology Drivers of Infrastructure Evolution • Moore’s law and microprocessing power • The law of mass digital storage • Metcalfe’s law and network economics • Declining communications costs and the Internet • Standards and network effects

  13. Figure 6-5 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Moore’s Law and Microprocessor Performance

  14. Figure 6-6 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Falling Cost of Chips

  15. Figure 6-7 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Examples of Nanotubes

  16. Figure 6-8 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE The Capacity of Hard Disk Drives Grows Exponentially, 1980–2004

  17. Figure 6-9 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE The Cost of Storing Data Declines Exponentially,1950–2004

  18. Figure 6-10 Management Information Systems Chapter 6 IT Infrastructure and Platforms IT INFRASTRUCTURE Exponential Declines in Internet Communications Costs

  19. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Seven Key Infrastructure Components • Computer Hardware Platforms • Operating System Platforms • Enterprise Software Applications • Data Management and Storage

  20. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • Networking/Telecommunications Platforms • Internet Platforms • Consulting and System Integration Services

  21. Figure 6-11 Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS The IT Infrastructure Ecosystem

  22. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Computer Hardware Platforms • $110 billion annual spend in the U.S. • Dominance of Intel, AMD and IBM 32 bit processor chips at the client level • Server market increasingly dominated by inexpensive generic processors from the same manufacturers

  23. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • Strong server market growth for 64 bit generic processors from AMD, Intel and IBM • Blade servers replace box servers • Mainframes continue as a presence working as very large servers

  24. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Operating System Platforms • $100 billion annual spend in the U.S. • Continued dominance of Microsoft OS in the client (95%) and handheld market (45%) • Growing dominance of Linux (UNIX) in the corporate server market (85%) • Windows 2002 and 2003 Server remains strong in smaller enterprises and workgroup networks

  25. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Enterprise Software Applications • $165 billion annual spend in the U.S. for basic enterprise software infrastructure • SAP, Oracle, PeopleSoft (now Oracle), and Siebel dominate this market • Middleware firms like BEA and JD Edwards serve smaller firms, and work also in the Web services space

  26. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • The enterprise market is consolidating around a few huge firms that have gained significant market share such as SAP and Oracle • Microsoft is expanding into smaller firm enterprise systems where it can build on its Windows server installed base

  27. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Data Management and Storage • $70 billion annual spend in the U.S. • Oracle and IBM continue to dominate the database software market • Microsoft (SQL Server) and Sybase are tend to serve smaller firms • Open source Linux MySQL now supported by HP and most consulting firms as an inexpensive, powerful database used mostly in small to mid-size firms

  28. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • $35 billion annual spend in the U.S. for physical hard disk storage • The hard disk market is consolidating around a few huge firms like EMC and smaller PC hard disk firms like Seagate, Maxtor and Western Digital

  29. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Networking/Telecommunications Platforms • $150 billion annual spend on networking and telecommunications hardware • $700 billion annual spend on telecommunications services, e.g. phone and Internet connectivity • Local area networking still dominated by Microsoft Server (about 75%) but strong growth of Linux challenges this dominance

  30. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • Enterprise networking almost entirely Linux or UNIX • Cisco, Lucent, Nortel and Juniper Networks continue to dominate networking hardware • The telecommunications services market is highly dynamic with MCI, AT&T, and Spring providing most trunk line services for both phone and Internet • Growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony

  31. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Internet Platforms • $32 billion annual spend on Internet infrastructure in the U.S. • Internet hardware server market concentrated in Dell, HP and IBM • Prices falling rapidly by up to 50% in a single year for low-power servers

  32. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • Open-source Apache remains the dominant Web server software, followed by Microsofts IIS server • Sun's Java grows as the most widely used tool for interactive Web applications • Microsoft and Sun settle a long-standing law suit and agree to support a common Java

  33. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS Consulting and System Integration Services • Most firms today, even large firms, cannot develop their systems without significant outside help • $130 billion annual spend on computer system design, and related business services like business process re-design in the U.S. • About 85% of business consulting in the U.S. involves IT business consulting

  34. Management Information Systems Chapter 6 IT Infrastructure and Platforms INFRASTRUCTURE COMPONENTS • Integration services involves integrating data, and applications, in a firm • Connecting new applications and systems to legacy systems • IBM has transformed itself in a systems integration firm with IBM Global Services, the largest system integration firm

  35. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS The Integration of Computing and Telecommunications Platforms • Increasingly computing takes place over the network • Client level: integration of cell phones and PDAs (Example: Palm Treo) • Television, video, and radio move toward digital production

  36. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS • Server level: The integration of voice telephone and the Internet bring together two historically separate and distinct global networks • The network in many respects is the source of computing power

  37. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS Grid Computing: • Involves connecting geographically remote computers into a single network capable of working in parallel on business problems which require short-term access to large computational capacity • Rather than purchase huge mainframes or super computers, firms can chain together thousands of smaller desktop clients into a single computing grid

  38. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS • Most computers in the world are loafing, and at night they are sleeping • It is estimated that from 25% - 50% of the computing power of the U.S. is unused • Grid computing saves infrastructure spending, increases speed of computing, and increases the agility of firms • Examples: Royal Dutch/Shell Group and the National Digital Mammography Archive

  39. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS 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

  40. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS • Excellent for firms with spiked demand curves caused by seasonal variations in consumer demand, e.g. holiday shopping • Example: Harry and David use IBM's On Demand computing • Saves firms from purchasing excessive levels of infrastructure

  41. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS Autonomic Computing: • Computer systems (both hardware and software) have become so complex that the cost of managing them has risen • 30-50% of a company's IT budget is spent preventing or recovering from system crashes • Operator error is the most common cause of crashes

  42. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS • 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 OS automatically download patches and updates.

  43. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS 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

  44. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS • Increases service levels • Provides firm greater flexibility in responding to service requests • Seasonal spikes in demand can be off-loaded to other edge servers

  45. Figure 6-12 Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY HARDWARE PLATFORM TRENDS Edge Computing Platform

  46. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS The four major themes in contemporary software platform evolution: • Linux and open-source software • Java • Web services and service-oriented architecture • Software outsourcing

  47. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS The Rise of Linux and Open-Source Software • Open source software is free and can be modified by users • Developed and maintained by a world-wide network of programmers and designers under the management of user communities

  48. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS • Linux is the most widely used open source software program. Linux is an operating system derived from Unix. • Mozilla Firefox browser and Thunderbird mail clients are the most widely used open source applications. Others include MySQL. • IBM, HP, Intel, Dell, and Sun have adopted and support Linux. Linux is a major alternative to Windows server and even client operating systems

  49. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS Java: • An operating system independent, processor-independent, object-oriented programming language • Applications written in Java can run on any hardware for which a Java virtual machine has been defined • Java is embedded in PDAs, cell phones, and browsers • Java is a leading interactive programming environment for the Web

  50. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS 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 software systems by firms • Rather than build all their own software on a custom basis, large firms increasingly purchase enterprise applications pre-written by specialized software firms like SAP, Oracle, PeopleSoft, and others