1. 5-1 Copyright © 2013 Pearson Canada Inc. Lecture 3 IT Infrastructure and Emerging Technologies

2. 5-2 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies LEARNING OBJECTIVES Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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?

3. 5-3 Copyright © 2013 Pearson Canada Inc. 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.

4. 5-4 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 IT Infrastructure

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

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

7. 5-7 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure

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

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

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

11. 5-11 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure

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

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

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

15. 5-15 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies IT Infrastructure

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

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

18. 5-18 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Infrastructure Components

19. 5-19 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Enterprise Software Applications Largest suppliers of enterprise software are SAP Oracle PeopleSoft (acquired by Oracle) Infrastructure Components

20. 5-20 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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. New to the Touch Continued …

21. 5-21 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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? New to the Touch

22. 5-22 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Data management and storage Database software: IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), MySQL Physical data storage: EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital Storage area networks (SANs): connect multiple storage devices on dedicated network Infrastructure Components

23. 5-23 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 (VoIP) Infrastructure Components

24. 5-24 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 (FrontPage,.NET) IBM (WebSphere) Sun (Java), independent software developers: Macromedia/Adobe, RealMedia Infrastructure Components

25. 5-25 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Infrastructure Components

26. 5-26 Copyright © 2013 Pearson Canada Inc. 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

27. 5-27 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies The emerging mobile digital platform Cell phones, smartphones (BlackBerry, iPhone) have assumed data transmission, Web surfing, e- mail and IM duties Netbooks: small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks Contemporary Hardware Platform Trends

28. 5-28 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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

29. 5-29 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Contemporary Hardware Platform Trends

30. 5-30 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Contemporary Hardware Platform Trends

31. 5-31 Copyright © 2013 Pearson Canada Inc. 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

32. 5-32 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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? Is Green Computing Good for Business?

33. 5-33 Copyright © 2013 Pearson Canada Inc. 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

34. 5-34 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Contemporary Software Platform Trends

35. 5-35 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 JavaScript and XML Allows client and server to exchange small pieces of data without requiring the page to be reloaded Contemporary Software Platform Trends

36. 5-36 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Contemporary Software Platform Trends

37. 5-37 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Contemporary Software Platform Trends

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

39. 5-39 Copyright © 2013 Pearson Canada Inc. 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 (SaaS) 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

40. 5-40 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Contemporary Software Platform Trends

41. 5-41 Copyright © 2013 Pearson Canada Inc. 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 –iPhone, BlackBerry, Android Generally delivered over the Internet

42. 5-42 Copyright © 2013 Pearson Canada Inc. 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

43. 5-43 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Management Issues

44. 5-44 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management and governance –Who controls IT infrastructure –Centralized/decentralized –How are costs allocated between divisions, departments? Management Issues

45. 5-45 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Management Issues

46. 5-46 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies 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 Management Issues

47. 5-47 Copyright © 2013 Pearson Canada Inc. Management Information Systems Chapter 5 IT Infrastructure and Emerging Technologies Management Issues

48. 5-48 Copyright © 2013 Pearson Canada Inc. CHAPTER FIVE IT Infrastructure and Emerging Technologies