Presentation 3

IT Infrastructure and IT Infrastructure and PlatformsPlatforms

IT Infrastructure and IT Infrastructure and PlatformsPlatforms

IT INFRASTRUCTURE

Defining IT Infrastructure

Management Information SystemsManagement Information SystemsIT 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!

IT INFRASTRUCTURE

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


Figure 6-1

IT INFRASTRUCTURE

Levels of IT InfrastructureLevels of IT Infrastructure


Three major levels of infrastructure:

• Public

• Enterprise

• Business unit

IT INFRASTRUCTURE

Levels of IT Infrastructure


Figure 6-2

IT INFRASTRUCTURE


• 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

IT INFRASTRUCTURE

A Multitiered Client/Server Network (N-tier)


Figure 6-4

• Computer Hardware Platforms

• Operating System Platforms

• Enterprise Software Applications

• Data Management and Storage


INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components

• Networking/Telecommunications Platforms

• Internet Platforms

• Consulting and System Integration Services



Seven Key Infrastructure Components (Continued)

The IT Infrastructure Ecosystem INFRASTRUCTURE COMPONENTS

Figure 6-11


• 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.


Enterprise Software Applications (Continued)


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


• 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


Grid Computing (Continued)


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.



• 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


On-Demand (Utility) Computing: (Continued)


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.



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.



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



• Increases service levels

• Provides firm greater flexibility in responding to service requests

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


Edge Computing: (Continued)

Edge Computing Platform

Figure 6-12



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

Enterprise Application Integration (EAI) Software Versus Traditional Integration


Figure 6-13


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).


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.



• 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.


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


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



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


Purchase of Software Packages and Enterprise Software


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


Purchase of Software Packages and Enterprise Software (Continued)


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?


MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS


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.



Management Challenges:

• Making wise infrastructure investments

• Choosing and coordinating infrastructure components

• Dealing with infrastructure change

• Management and governance



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

Competitive Forces Model for IT Infrastructure

Figure 6-16


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


Presentation 3

Documents

infrastructure levels

infrastructure figure

infrastructure spending

infrastructure evolution

major levels of infrastructure

demand computing

computing power

speed of computing