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6. Chapter. IT Infrastructure and Platforms. Management Information Systems Chapter 6 IT Infrastructure and Platforms. OBJECTIVES. Define IT infrastructure and describe the components and levels of IT infrastructure Identify and describe the stages of IT infrastructure evolution - PowerPoint PPT Presentation
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6.1 © 2005 by Prentice Hall
6Chapter
IT Infrastructure and IT Infrastructure and PlatformsPlatforms
IT Infrastructure and IT Infrastructure and PlatformsPlatforms
6.2 © 2005 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
6.3 © 2005 by Prentice Hall
OBJECTIVES
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
6.4 © 2005 by Prentice Hall
• 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
6.5 © 2005 by Prentice Hall
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!
6.6 © 2005 by Prentice Hall
IT INFRASTRUCTURE
The Connection between the Firm, IT Infrastructure, and Business Capabilities
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-1
6.7 © 2005 by Prentice Hall
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
6.8 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Levels of IT Infrastructure
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-2
6.9 © 2005 by Prentice Hall
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
6.10 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Eras in IT Infrastructure Evolution
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-3
6.11 © 2005 by Prentice Hall
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
6.12 © 2005 by Prentice Hall
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
6.13 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Moore’s Law and Microprocessor Performance
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-5
6.14 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Falling Cost of Chips
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-6
6.15 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Examples of Nanotubes
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-7
6.16 © 2005 by Prentice Hall
IT INFRASTRUCTURE
The Capacity of Hard Disk Drives Grows Exponentially, 1980–2004
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-8
6.17 © 2005 by Prentice Hall
IT INFRASTRUCTURE
The Cost of Storing Data Declines Exponentially,1950–2004
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-9
6.18 © 2005 by Prentice Hall
IT INFRASTRUCTURE
Exponential Declines in Internet Communications Costs
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-10
6.19 © 2005 by Prentice Hall
• 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
6.20 © 2005 by Prentice Hall
• 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
6.21 © 2005 by Prentice Hall
The IT Infrastructure Ecosystem
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
INFRASTRUCTURE COMPONENTS
Figure 6-11
6.22 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Computer Hardware Platforms Computer Hardware Platforms
• $110 billion annual spend in the U.S.
• 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
6.23 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.24 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Operating System Platforms
• $100 billion annual spend in the U.S.
• 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
6.25 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Enterprise Software Applications
• $165 billion annual spend in the U.S. 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
6.26 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.27 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Data Management and Storage
• $70 billion annual spend in the U.S.
• Oracle and IBM continue to dominate the database software market
• Microsoft (SQL Server) and Sybase are 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
6.28 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• $35 billion annual spend in the U.S. 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
6.29 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Networking/Telecommunications Platforms
• $150 billion annual spend on networking and telecommunications hardware
• $700 billion annual spend 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
6.30 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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 Spring 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
6.31 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Internet Platforms
• $32 billion annual spend on Internet infrastructure in the U.S.
• 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
6.32 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Open-source Apache remains the dominant Web server software, followed by Microsofts 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
6.33 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Consulting and System Integration Services
• Most firms today, even large firms, cannot develop their systems without significant outside help
• $130 billion annual spend on computer system design, and related business services like business process re-design in the U.S.
• About 85% of business consulting in the U.S. involves IT business consulting
INFRASTRUCTURE COMPONENTS
6.34 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Integration services involves integrating data, and applications, in a firm
• Connecting new applications and systems to legacy systems
• IBM has transformed itself in a systems integration firm with IBM Global Services, the largest system integration firm
INFRASTRUCTURE COMPONENTS
6.35 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.36 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.37 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Grid Computing:
• Involves connecting geographically remote computers into a single network capable of working in parallel on business problems which 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
6.38 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Most computers in the world are loafing, and at night they are sleeping
• It is estimated that from 25% - 50% of the computing power of the U.S. 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
6.39 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.40 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.41 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Autonomic Computing:
• Computer systems (both hardware and software) have become so complex that the cost of managing them has risen
• 30-50% 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
6.42 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.43 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.44 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.45 © 2005 by Prentice Hall
Edge Computing Platform
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-12
CONTEMPORARY HARDWARE PLATFORM TRENDS
6.46 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.47 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
The Rise of Linux and Open-Source Software
• Open source software is free and can be modified by users
• Developed and maintained by a world-wide network of programmers and designers under the management of user communities
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.48 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.49 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.50 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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 pre-written by specialized software firms like SAP, Oracle, PeopleSoft, and others
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.51 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.52 © 2005 by Prentice Hall
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
6.53 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.54 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Web services permit computer programs to communicate with one another and share information without re-writing 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
6.55 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.56 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.57 © 2005 by Prentice Hall
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
6.58 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Software OutsourcingSoftware Outsourcing
• Today large firms and small 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
6.59 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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: pre-written off the shelf software
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Purchase of Software Packages and Enterprise Software
6.60 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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
6.61 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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
6.62 © 2005 by Prentice Hall
Changing Sources of Firm Software
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Figure 6-15
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.63 © 2005 by Prentice Hall
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Opportunities:
Because of changes in hardware and software
platforms, firms face significant new opportunities to
obtain hardware and software capabilities
which are more reliable, less costly, and more flexible
than in the past
6.64 © 2005 by Prentice Hall
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Challenges:
• Making wise infrastructure investments
• Choosing and coordinating infrastructure components
• Dealing with infrastructure change
• Management and governance
6.65 © 2005 by Prentice Hall
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Solutions:
• Consider your strategic situation
• Start out small, develop one module at a time
• Consider the total cost of ownership
This model illustrates six strategic factors you should consider when making infrastructure decisions
6.66 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Competitive Forces Model for it Infrastructure
Figure 6-16
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
6.67 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Experiment with new technologies on a smaller scale before taking up a large-scale infrastructure project
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Starting out small:
6.68 © 2005 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
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