Management Information Systems

Chapter 5 IT Infrastructure and Emerging Technologies

Roadmap
1. IT INFRASTRUCTURE Defining IT Infrastructure Evolution of IT Infrastructure: 19502007 Technology Drivers of Infrastructure Evolution 2. INFRASTRUCTURE COMPONENTS Computer Hardware Platforms Operating System Platforms Enterprise Software Applications Data Management and Storage Networking/Telecommunications/Internet Platforms Consulting and System Integration Services 3. HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES The Integration of Computing and Telecommunications Platforms Grid Computing On-Demand Computing (Utility Computing)

4. SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES The Rise of Linux and Open-Source Software Software for Enterprise Integration Software Outsourcing 5. MANAGEMENT ISSUES Dealing with Infrastructure Change Management and Governance Making Wise Infrastructure Investments

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Management Information Systems

Chapter 5 IT Infrastructure and Emerging Technologies OBJECTIVES

Define IT infrastructure, components and levels. Describe the stages of IT infrastructure evolution. Identify and describe technology drivers of IT infrastructure evolution. Understand computer hardware components. Understand software types and trends. Understand challenges of managing IT infrastructure and management solutions.
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MANAGEMENT CHALLENGES

Making wise infrastructure investments Integration of infrastructure components Scalability and change Who should govern and manage IT infrastructure?

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

-a set of firm-wide services budgeted by

management and comprising both human and technical capabilities.
It includes things like:
Computer hardware Physical facilities IT management services IT educational services IT research and development

Telecommunications
Data management Application software

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!
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Chapter 5 IT Infrastructure and Emerging Technologies

Technology Drivers of IT Infrastructure

Moores Law 2x18, $/2-18 Law of Mass Digital Storage 2x/yr Metcalfs Law network power/value
increase exponentially with new users

Declining Communication Costs as

costs decline, users increase

Standards and Network Effects

standards reduce costs, increase productivity
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Chapter 5 IT Infrastructure and Emerging Technologies

Seven Key Infrastructure Components

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Computer Hardware Platforms Operating Systems Platforms Enterprise Software Applications Networking/Telecommunications Consultants and System Integrators Data Management and storage Internet Platforms

Management Information Systems

Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components Computer Hardware Platforms

Includes PCs, PDAs, Laptops, servers Use Intel and AMD chips

Mainframes on the rise About $150 Billion in 2005 150 Million PCs shipped in 2004 in US Strong server market growth for 64 bit generic processors from AMD, Intel and IBM

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components

Operating Systems Platforms

Windows runs 95% of clients Unix/Linux run 85% of servers Linux gaining in PC client market
Free, open source

Market of ~$100 Billion per year

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components
Enterprise Software Applications

Plug and play modules all connected SAP, Oracle and Peoplesoft Market of ~300 Billion per year
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.

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components Data Management and Storage Databases run information systems
IBM(DB2), Oracle, MS(SQL Server), Sybase the big players Market ~$50 billion per year

Storage SANS connect multiple storage devices over network

Digital information is doubling every 3 yearsneed more storage Market ~$35 billion per year
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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components
Networking/Telecommunications Platforms

Software Windows variants, Linux, Unix

Market ~$750 billion per year $700 billion annually spent on telecommunications services, e.g. phone and Internet connectivity

Hardware Cisco, Lucent, Nortel, Juniper TCP/IP standard protocol Growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components

Internet Platforms
Internet and e-commerce created rise in server needs and web hosting services
Market ~$35 billion per year

Web software development by Frontpage, .NET, Java, Macromedia, Real Media, Adobe

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure Components
Consulting and System Integration Services

Software integration ensuring new technologies work with Legacy systems

Market ~$HUGE billions per year

$130 billion annually spent on computer system design, and related business services like business process redesign in the United States About 85% of business consulting in the United States involves IT business consulting. Services provided by Accenture, KPMG, Bearingpoint, IBM

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Chapter 5 IT Infrastructure and Emerging Technologies

The Major Types of Software

Software program: Series of

statements or instructions to the computer
1. System software: Generalized programs, manages computers resources 2. Application software: Programs written to perform functions specified by end users

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Chapter 5 IT Infrastructure and Emerging Technologies

Software Review
TYPES OF SOFTWARE

Enterprise Software is Application Software

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Chapter 5 IT Infrastructure and Emerging Technologies TYPES OF SOFTWARE

Software for Enterprise Integration

Enterprise software
Set of integrated modules for major business functions Allows data to be used by multiple functions and business processes

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Chapter 5 IT Infrastructure and Emerging Technologies TYPES OF SOFTWARE

Software for Enterprise Integration

Middleware
Allows two disparate applications to communicate to exchange data

Web server
Manages requests for Web pages on the computer where they are stored

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Chapter 5 IT Infrastructure and Emerging Technologies

Software Trends
Use of Linux and other open-source software
OpenOffice, Mozilla, MySQLnot MS stuff

Use of Java
Used for web applications Platform and OS independent

Enterprise Integration using Middleware

Allows two disparate applications to communicate to exchange data

Integration using Enterprise Application Integration Software

Custom software to link programs w/o middleware

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Chapter 5 IT Infrastructure and Emerging Technologies

Software Trends (Continued)

Use of software to lower training and support costs Integration of tools to use and share data over the net Use of enterprise resource planning (ERP another name for Enterprise Software) across whole enterprise Service Oriented Architecture (SOA) self
contained services that communicate with each other for cross-functional task.
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Chapter 5 IT Infrastructure and Emerging Technologies

Software Outsourcing
Software packages and Enterprise Software
SAP, Oracle, Peoplesoft have modular packages

Application Service providers

Rent software functionality from vendor

Outsource development or maintenance

Offshore operation of firms software Must have trust and connectivity Ethical issues involved
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Chapter 5 IT Infrastructure and Emerging Technologies MANAGING HARDWARE AND SOFTWARE ASSETS

Total Cost of Ownership (TCO) of Technology Assets

Designates the total cost of owning technology resources Includes:

Software acquisition Hardware acquisition Training for both IS and end-user Support tech support, help desks Maintenance upgrade, bugs Infrastructure acquisition and maintenance Downtime cost of system failure Space and Energy real estate and utilities for all of above

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Chapter 5 IT Infrastructure and Emerging Technologies MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Challenges:

Making wise infrastructure investmentsbeware of Digital Concrete

Choosing and coordinating infrastructure components Dealing with infrastructure change Management and governing the system
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Chapter 5 IT Infrastructure and Emerging Technologies MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Solution Guidelines:

Consider your strategic situation

Start out small, develop one module at a time Consider the total cost of ownership

Figure 5-15, Competitive Forces Model for IT infrastructure illustrates six strategic factors you should consider when making infrastructure decisions
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Chapter 5 IT Infrastructure and Emerging Technologies

In Summary
UNDERSTAND TECHNOLOGY REQUIREMENTS DETERMINE TOTAL COST OF OWNERSHIP: Hardware, software, installation, training, support, maintenance, infrastructure PLAN CAPACITY & SCALABILITY IDENTIFY TRENDS

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Chapter 5 IT Infrastructure and Emerging Technologies

So What? Im not a techo-nerd!

Managers need an appreciation for the types of computers, their power, and purposes Know the different types of processing and connectivity options Keep current on industry trends Keep in touch with your IS/IT group

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Chapter 5 IT Infrastructure and Emerging Technologies

So What?
Managers need to know strengths of software, tools, their fit to the org Organizational long term plans determine software and hardware selection Understand options available to you Use appropriate technology and tool for the task

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