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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. 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!

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

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

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

  8. 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)

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

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

  11. 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

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

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

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

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

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

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

  18. 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

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

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

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. 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

  35. 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

  36. 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

  37. 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

  38. 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

  39. 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

  40. 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

  41. 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.

  42. 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

  43. 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

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

  45. 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

  46. 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

  47. 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

  48. 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

  49. 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

  50. Management Information Systems Chapter 6 IT Infrastructure and Platforms CONTEMPORARY SOFTWARE PLATFORM TRENDS • 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