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6.1 © 2006 by Prentice Hall 6 Chapter IT IT Infrastructure Infrastructure and Platforms and Platforms

IT Infrastructure and Platforms

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Page 1: IT Infrastructure and Platforms

6.1 © 2006 by Prentice Hall

6Chapter

IT Infrastructure and IT Infrastructure and PlatformsPlatforms

IT Infrastructure and IT Infrastructure and PlatformsPlatforms

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6.2 © 2006 by Prentice Hall

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

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

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OBJECTIVES (Continued)

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

• Assess contemporary computer hardware platform trends

• Assess contemporary software platform trends

• Evaluate the challenges of managing IT infrastructure and management solutions

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• 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 SystemsManagement Information SystemsChapter 6Chapter 6

IT Infrastructure and PlatformsIT Infrastructure and Platforms

Hong Kong’s New World Telecommunications Case

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IT INFRASTRUCTURE

Defining IT Infrastructure

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

• 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!

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IT INFRASTRUCTURE

The Connection between the Firm, IT Infrastructure, and Business Capabilities

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Figure 6-1

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IT INFRASTRUCTURE

Levels of IT InfrastructureLevels of IT Infrastructure

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Three major levels of infrastructure:

• Public

• Enterprise

• Business unit

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IT INFRASTRUCTURE

Levels of IT Infrastructure

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Figure 6-2

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IT INFRASTRUCTURE

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

• 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)

Evolution of IT Infrastructure: 1950–2005

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IT INFRASTRUCTURE

Eras in IT Infrastructure Evolution

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Figure 6-3

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IT INFRASTRUCTURE

A Multitiered Client/Server Network (N-tier)

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Figure 6-4

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IT INFRASTRUCTURE

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

• 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

Technology Drivers of Infrastructure Evolution

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IT INFRASTRUCTURE

Moore’s Law and Microprocessor Performance

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Figure 6-5

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IT INFRASTRUCTURE

Falling Cost of Chips

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Figure 6-6

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IT INFRASTRUCTURE

Examples of Nanotubes

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Figure 6-7

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IT INFRASTRUCTURE

The Capacity of Hard Disk Drives Grows Exponentially, 1980–2004

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Figure 6-8Source: Authors.

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IT INFRASTRUCTURE

The Cost of Storing Data Declines Exponentially,1950–2004

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Figure 6-9Source: “Exponential Growth an Illusion?: Response to Ilkka Tuomi,” by Ray Kurzweil, KurzweilAl.net, September 23, 2003. Used with permission.

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IT INFRASTRUCTURE

Exponential Declines in Internet Communications Costs

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Figure 6-10Source: Authors.

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• Computer Hardware Platforms

• Operating System Platforms

• Enterprise Software Applications

• Data Management and Storage

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

    INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components

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• Networking/Telecommunications Platforms

• Internet Platforms

• Consulting and System Integration Services

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

    INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components (Continued)

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The IT Infrastructure Ecosystem

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

    INFRASTRUCTURE COMPONENTS

Figure 6-11

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Computer Hardware Platforms Computer Hardware Platforms

• $110 billion annually spent in the United States

• 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

    INFRASTRUCTURE COMPONENTS

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• 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

    INFRASTRUCTURE COMPONENTS

Computer Hardware Platforms (Continued)

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Operating System Platforms

• $100 billion annually spent in the United States

• 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

    INFRASTRUCTURE COMPONENTS

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Enterprise Software Applications

• $165 billion annually spent in the United States 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.

    INFRASTRUCTURE COMPONENTS

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• 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.

    INFRASTRUCTURE COMPONENTS

Enterprise Software Applications (Continued)

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Data Management and Storage

• $70 billion annually spent in the United States.

• Oracle and IBM continue to dominate the database software market.

• Microsoft (SQL Server) and Sybase 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.

    INFRASTRUCTURE COMPONENTS

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• $35 billion annually spent in the United States 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

    INFRASTRUCTURE COMPONENTS

Data Management and Storage (Continued)

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Networking/Telecommunications Platforms

• $150 billion annually spent on networking and telecommunications hardware

• $700 billion annually spent 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

    INFRASTRUCTURE COMPONENTS

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• 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 Sprint providing most trunk line services for both phone and Internet.

• Growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony

    INFRASTRUCTURE COMPONENTS

Networking/Telecommunications Platform (Continued)

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Internet Platforms

• $32 billion annually spent on Internet infrastructure in the United States

• 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

    INFRASTRUCTURE COMPONENTS

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• Open-source Apache remains the dominant Web server software, followed by Microsoft’s 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.

    INFRASTRUCTURE COMPONENTS

Internet Platforms (Continued)

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Consulting and System Integration Services

• Most firms today, even large firms, cannot develop their systems without significant outside help.

• $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.

    INFRASTRUCTURE COMPONENTS

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• Integration services involves integrating data, and applications in a firm.

• Connecting new applications and systems to legacy systems

• IBM has transformed itself into a systems integration firm with IBM Global Services, the largest system integration firm.

    INFRASTRUCTURE COMPONENTS

Consulting and System Integration Services (Continued)

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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.

CONTEMPORARY HARDWARE PLATFORM TRENDS

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• 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.

CONTEMPORARY HARDWARE PLATFORM TRENDS

The Integration of Computing and Telecommunications Platforms (Continued)

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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.

CONTEMPORARY HARDWARE PLATFORM TRENDS

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• Most computers in the world are loafing, and at night they are sleeping.

• It is estimated that from 25% - 50% of the computing power in the United States 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

CONTEMPORARY HARDWARE PLATFORM TRENDS

Grid Computing (Continued)

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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.

CONTEMPORARY HARDWARE PLATFORM TRENDS

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• 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

CONTEMPORARY HARDWARE PLATFORM TRENDS

On-Demand (Utility) Computing: (Continued)

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Autonomic Computing:

• Computer systems (both hardware and software) have become so complex that the cost of managing them has risen.

• Thirty to fifty percent of a company’s IT budget is spent preventing or recovering from system crashes.

• Operator error is the most common cause of crashes.

CONTEMPORARY HARDWARE PLATFORM TRENDS

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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.

CONTEMPORARY HARDWARE PLATFORM TRENDS

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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

CONTEMPORARY HARDWARE PLATFORM TRENDS

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• Increases service levels

• Provides firm greater flexibility in responding to service requests

• Seasonal spikes in demand can be off-loaded to other edge servers.

CONTEMPORARY HARDWARE PLATFORM TRENDS

Edge Computing: (Continued)

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Edge Computing Platform

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Figure 6-12

CONTEMPORARY HARDWARE PLATFORM TRENDS

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The four major themes in contemporary software platform evolution:

• Linux and open-source software

• Java

• Web services and service-oriented architecture

• Software outsourcing

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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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

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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• 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.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

The Rise of Linux and Open-Source Software (Continued)

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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.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Java Is Everywhere

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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 prewritten by specialized software firms like SAP, Oracle, PeopleSoft, and others.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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• 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.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Software for Enterprise Integration: (Continued)

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Enterprise Application Integration (EAI) Software Versus Traditional Integration

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Figure 6-13

CONTEMPORARY SOFTWARE PLATFORM TRENDS

EAI software (a) creates a common platform through which all applications can freely communicate with each other. EAI requires much less programming than traditional point-to-point integration (b).

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Web Services and Service-Oriented ArchitectureWeb Services and Service-Oriented Architecture

Web Services:

• An alternative to enterprise systems is to use new Web-based standards to create a communication platform allowing older applications to communicate with newer applications.

• Web services refers to a set of loosely coupled software components that exchange information with each other using Web communication standards and languages.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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• Web services permit computer programs to communicate with one another and share information without rewriting applications, or disturbing older legacy systems.

• Web services are based on XML, and standards like SOAP, WSDL, and UDDI to create this communication environment.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Web Services and Service-Oriented Architecture Web Services and Service-Oriented Architecture (Continued)(Continued)

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Service-Oriented Architecture

• SOA refers to the use of Web services in a firm to achieve integration among disparate applications and platforms.

• A firm might have applications (payroll) running on older AS400 IBM machines, IBM mainframes (customer data and inventory) and newer applications running on client/server networks.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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• In SOA, these applications are integrated so that information stored on various systems can be brought together and fed into newer applications running on more contemporary equipment.

• SOA is generally less expensive than rebuilding all the older applications and adopting a new enterprise wide system.

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Service-Oriented Architecture (Continued)

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How Dollar Rent a Car Uses Web Services

Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms

Figure 6-14

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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Software OutsourcingSoftware Outsourcing

• Today large and small firms purchase most of their software from outside vendors.

Three kinds of outsourcing:

• Purchase of software packages

• Using application service providers

• Custom outsourcing

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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Application Service Providers:

• A business that delivers and manages applications and computer services from remote computer centers to multiple users using the Internet or a private network

Enterprise software packages: prewritten off-the-shelf software

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Purchase of Software Packages and Enterprise Software

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Application Service Providers:

• Rather than purchase hardware and software, firms can

go onto the Internet and find providers who offer the

same functionality over the entertainment, and charge

on a per-user or license basis.

• Example: Salesforce.com provides customer

relationship management and sales force management

services to firms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Purchase of Software Packages and Enterprise Software (Continued)

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Software Outsourcing of Custom Applications

• A firm contracts custom software development or maintenance of existing legacy programs to outside firms, often in low-wage countries.

• Example: Dow Chemical hired IBM for $1.1 billion to create an integrated communication system for 50,000 Dow employees in 63 countries.

• Why would Dow not build this system itself?

CONTEMPORARY SOFTWARE PLATFORM TRENDS

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Changing Sources of Firm Software

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Figure 6-15

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Sources: BEA National Income and Product Accounts, Forrester Research, December 2003; eMarketer Inc., “IT Spending 2004,” www.emarketer.com; and author estimates.

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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

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Management Opportunities:

Because of changes in hardware and software

platforms, firms face significant new opportunities to

obtain hardware and software capabilities

that are more reliable, less costly, and more flexible

than in the past.

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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

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Management Challenges:

• Making wise infrastructure investments

• Choosing and coordinating infrastructure components

• Dealing with infrastructure change

• Management and governance

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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

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Solution Guidelines:

• Consider your strategic situation

• Start out small, develop one module at a time

• Consider the total cost of ownership

Figure 6-16, “Competitive Forces Model for IT infrastructure” illustrates six strategic factors you should consider when making infrastructure decisions

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Competitive Forces Model for IT Infrastructure

Figure 6-16

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

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• Experiment with new technologies on a smaller scale before taking up a large-scale infrastructure project.

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Starting out small:

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Total cost of ownership of technology assets: When calculating the costs of systems, be sure to include all the costs:

• Hardware acquisition• Software acquisition• Installation• Training• Support• Maintenance• Infrastructure requirements• Downtime• Space and energy

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS