CHAPTER FIVE IT Infrastructure and Emerging Technologies Oleh

CHAPTER FIVE IT Infrastructure and Emerging Technologies Oleh : Kundang K Juman Copyright © 2013 Pearson Canada Inc. 5 -1

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies LEARNING OBJECTIVES After reading this chapter, you will be able to answer the following questions: 1. What is IT infrastructure and what are its components? 2. What are the stages and technology driver of IT infrastructure evolution? 3. What are the current trends in computer hardware platforms? 4. What are the current trends in software platforms? 5. What are the challenges of managing IT infrastructure and management solutions? Copyright © 2013 Pearson Canada Inc. 5 -2

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Desktop Virtualization Pays Off • Problem: Voca. Link is a leader in automated payment and ATM systems, but its systems development efforts were hampered by the challenges of system integration • Solutions: invested in desktop virtualization supported Voca. Link’s goals and contributed to overall performance • Virtual desktop platform allowed Voca. Link to reduce wasted computer resources, cut costs and power consumption • Demonstrates that the right hardware and software investments not only improve business performance and contributes to social goals Copyright © 2013 Pearson Canada Inc. 5 -3

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure IT infrastructure • The shared technology resources that provide the platform for the firm’s specific information system applications. • Includes investment in hardware, software, and services, such as consulting, education, and training. Copyright © 2013 Pearson Canada Inc. 5 -4

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Defining IT infrastructure: • Set of physical devices and software required to operate enterprise • Set of firm wide services including: • Computing platforms providing computing services • Telecommunications services • Data management services • Application software services • Physical facilities management services • IT management, standards, education, research and development services Copyright © 2013 Pearson Canada Inc. 5 -5

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -6

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Evolution of IT infrastructure: • General-purpose mainframe and minicomputer era: 1959 to present • Personal computer era: 1981 to present • Client/server era: 1983 to present • Enterprise computing era: 1992 to present • Cloud Computing and Mobile Computing era: 2000 to present Copyright © 2013 Pearson Canada Inc. 5 -7

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -8

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -9

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Copyright © 2013 Pearson Canada Inc. 5 -10

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Moore’s law and microprocessing power Has been interpreted as: • The power of microprocessors doubles every 18 months • Computing power doubles every 18 months • The price of computing falls by half every 18 months Nanotechnology uses individual atoms and molecules to create computer chips and other devices Copyright © 2013 Pearson Canada Inc. 5 -11

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -12

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -13

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -14

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure The Law of Mass Digital Storage • • The amount of digital information is roughly doubling every year The cost of storage is falling at an exponential rate of 100 percent per year Metcalfe’s Law and Network Economics • The value of a network grows exponentially as a function of the number of network members Copyright © 2013 Pearson Canada Inc. 5 -15

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -16

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure Copyright © 2013 Pearson Canada Inc. 5 -17

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Computer Hardware Platforms • Client machines (desktops, laptops, and PDAs) • Server machines • Blade servers • Server Farms • Mainframes systems used as giant servers for enterprise networks and corporate Web sites Copyright © 2013 Pearson Canada Inc. 5 -18

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Copyright © 2013 Pearson Canada Inc. 5 -19

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Operating System Platforms • Microsoft Windows dominates the market of client machine software • Unix or Linux widely used as server software • Linux available as open-source software Copyright © 2013 Pearson Canada Inc. 5 -20

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Enterprise Software Applications • Largest suppliers of enterprise software • SAP • Oracle • People. Soft (acquired by Oracle) Copyright © 2013 Pearson Canada Inc. 5 -21

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies New to the Touch Read the Window on Technology and discuss the following questions: 1. What problems does multitouch technology solve? 2. What are the advantages and disadvantages of a multitouch interface? How useful is it? Explain. Continued … Copyright © 2013 Pearson Canada Inc. 5 -22

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies New to the Touch Read the Window on Technology and discuss the following questions (cont’d) 3. Describe three business applications that would benefit from a multitouch interface. 4. What management, organization, and technology issues must be addressed if you or your business were considering systems and computers with multitouch interfaces? Copyright © 2013 Pearson Canada Inc. 5 -23

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Data management and storage • Database software: IBM (DB 2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), My. SQL • Physical data storage: EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital • Storage area networks (SANs): connect multiple storage devices on dedicated network Copyright © 2013 Pearson Canada Inc. 5 -24

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Networking/Telecommunications Platforms • • Leading network hardware providers are Cisco, Lucent, Nortel, and Juniper Software leaders are Microsoft, Novell, Linux, and Unix Service vendors include Bell Canada, Primus, and regional carriers Growth of wireless and Voice over IP (Vo. IP) Copyright © 2013 Pearson Canada Inc. 5 -25

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components Internet platforms • Hardware, software, management services to support company Web sites, (including Web hosting services) intranets, extranets • Internet hardware server market: Dell, HP/Compaq, IBM • Web development tools/suites: Microsoft (Front. Page, . NET) IBM (Web. Sphere) Sun (Java), independent software developers: Macromedia/Adobe, Real. Media Copyright © 2013 Pearson Canada Inc. 5 -26

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Infrastructure Components 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 Copyright © 2013 Pearson Canada Inc. 5 -27

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends • The emerging mobile digital platform • Grid computing • Cloud computing and Computing Utility • Autonomic computing • Virtualization and Multicore processors Copyright © 2013 Pearson Canada Inc. 5 -28

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends The emerging mobile digital platform • Cell phones, smartphones (Black. Berry, i. Phone) have assumed data transmission, Web surfing, email and IM duties • Netbooks: small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks Copyright © 2013 Pearson Canada Inc. 5 -29

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends Grid Computing • Involves connecting geographically remote computers into a single network capable of working in parallel on business problems that 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 Copyright © 2013 Pearson Canada Inc. 5 -30

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends Virtualization • Virtualization: presents computing resources so that they can be accessed in ways that are not restricted by configuration • Allows multiple operating systems to run on one machine; increases server utilization rates from 10 -15 to 70 percent of capacity • Multicore processors: reduced power requirements, enhanced performance Copyright © 2013 Pearson Canada Inc. 5 -31

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends Cloud Computing • Firms off-load peak demand for computing power to remote, large-scale data processing centres • Firms pay only for the computing power they use, as with an electrical utility • Excellent for firms with spiked demand curves caused by seasonal variations in consumer demand, e. g. holiday shopping • Saves firms from purchasing excessive levels of infrastructure • Data permanently stored in remote servers, accessed and updated over the Internet by users Copyright © 2013 Pearson Canada Inc. 5 -32

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Hardware Platform Trends Green computing – Practices and technologies for manufacturing, using, disposing of computing and networking hardware 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 Copyright © 2013 Pearson Canada Inc. 5 -33

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Is Green Computing Good for Business? Read the Window on Organizations and discuss the following questions: 1. What business and social problems does data center power consumption cause? 2. What solutions are available for these problems? Which are the most environment-friendly? 3. What are the business benefits and costs of these solutions? 4. Should all firms move toward green computing? Why or why not? Copyright © 2013 Pearson Canada Inc. 5 -34

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends • Linux and open-source software • Software for the Web: Java and Ajax • Web services and Service-Oriented Architecture • Mashups and Widgets • Software outsourcing Copyright © 2013 Pearson Canada Inc. 5 -35

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 worldwide network of programmers and designers under the management of user communities • Linux is the most widely used open-source software program. Linux is an operating system derived from Unix Copyright © 2013 Pearson Canada Inc. 5 -36

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends Software for the Web: Java and Ajax Java: • Object-oriented programming language (Sun Microsystems) • Operating system, processor-independent (Java Virtual Machine) • Leading programming environment for Web • Applets, E-commerce applications Ajax • Asynchronous Java. Script and XML • Allows client and server to exchange small pieces of data without requiring the page to be reloaded Copyright © 2013 Pearson Canada Inc. 5 -37

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends 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 • 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 Copyright © 2013 Pearson Canada Inc. 5 -38

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends Service-Oriented Architecture (SOA) 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 Copyright © 2013 Pearson Canada Inc. 5 -39

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends Service Outsourcing and Cloud Services Three external sources for software: 1. Software packages and enterprise software 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 Continued … Copyright © 2013 Pearson Canada Inc. 5 -40

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends Three external sources for software (cont. ) 3. Cloud-based software services • Software as a service (Saa. S) • 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 Copyright © 2013 Pearson Canada Inc. 5 -41

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends Copyright © 2013 Pearson Canada Inc. 5 -42

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends 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 – i. Phone, Black. Berry, Android • Generally delivered over the Internet Copyright © 2013 Pearson Canada Inc. 5 -43

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues • Dealing with infrastructure change • Management and governance • Making wise infrastructure investments • Competitive forces model for IT infrastructure • Total cost of ownership of technology assets Copyright © 2013 Pearson Canada Inc. 5 -44

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues Dealing with platform and infrastructure change • As firms shrink or grow, IT needs to be flexible and scalable • How does firm remain flexible and still make long term investments? • Scalability: Ability to expand to serve larger number of users • Firms using mobile computing and cloud computing require new policies and procedures for managing these new platforms • Contractual agreements with firms running clouds and distributing software required Copyright © 2013 Pearson Canada Inc. 5 -45

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues Management and governance – Who controls IT infrastructure – Centralized/decentralized – How are costs allocated between divisions, departments? Copyright © 2013 Pearson Canada Inc. 5 -46

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues Making wise infrastructure investments • Amount to spend on IT is complex question • Rent vs. buy, outsourcing Competitive forces model for IT infrastructure investment • • • Market demand for firm’s services Firm’s business strategy Firm’s IT strategy, infrastructure, and cost Information technology assessment Competitor firm services Competitor firm IT infrastructure investments Copyright © 2013 Pearson Canada Inc. 5 -47

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues Total Cost of Ownership of Technology Assets • TCO model: Used to analyze direct and indirect costs of systems • Hardware, software account for only about 20% of TCO • Other costs include: Installation, training, support, maintenance, infrastructure, downtime, space and energy • TCO can be reduced through greater centralization and standardization of hardware and software resources Copyright © 2013 Pearson Canada Inc. 5 -48

Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues Copyright © 2013 Pearson Canada Inc. 5 -49

CHAPTER FIVE IT Infrastructure and Emerging Technologies Copyright © 2013 Pearson Canada Inc. 5 -50