Management Information Systems:

Managing the Digital Firm

Day (2)

IT Infrastructure and Emerging Technologies

Students Learning Outcomes

5.1 What is ITinfrastructure?

5.2 What are the components of ITinfrastructure?

5.3 What are the current trends in computer hardware platforms?

5.4 What are the current computer software platforms and trends?

5.5 What are the challenges of managing ITinfrastructure and management solutions?
PeroxyChem’s Cloud Computing Formula for Success

Problem • Shift from operational to strategic technology

orientation
• Loss of I T infrastructure from divestiture
• Limited time frame and resources • IBM managed cloud computing services
• SAP applications
• Inadequate in-house I T staff
Solutions
• Plan new I T Infrastructure
• Make I T infrastructure investments
• Outsource ITinfrastructure management and operations
• Demonstrates the role of cloud computing in re-shaping a firms infrastructure
• Illustrates how firms can integrate their existing applications into a cloud platform

Amazon Cloud Services

https://www.youtube.com/watch?v=dH0yz-Osy54
Defining I T Infrastructure

• Set of physical devices and software required to operate an enterprise

• Set of firm-wide services including:

o Computing platforms providing computing services

o Physical facilities management services

o I T management, education, and other services

• “Service platform” perspective

o More accurate view of value of investments

Figure 5.1 Connection Between the Firm, I T
Infrastructure, and Business Capabilities
What Are the Components of I T Infrastructure?
Computer Hardware Platforms
• Client machines

o Desktop P C s, laptops

o Mobile computing: smartphones, tablets

o Desktop chips vs. mobile chips

• Servers

• Mainframes

o IBM mainframe (More info. https://www.ibm.com/it-infrastructure/z/education/what-is-a-

mainframe)

o Digital workhorse for banking and telecommunications networks

Operating System Platforms

• Corporate servers

o Windows Server

o Unix

o Linux

• Client level

o Microsoft Windows

o Android, i O S, Windows 10 (mobile/multitouch)

o Google’s Chrome O S (cloud computing)

Enterprise Software Applications

• In 2018, firms spend $389 billion on software for enterprise applications

• Largest providers: S A P and Oracle

• Middleware providers: I B M, Oracle

Data Management and Storage
• Database software providers

o IBM (DB2)

o Oracle

o Microsoft (SQL Server)

o Sybase (Adaptive Server Enterprise),

o My SQL

o Apache Hadoop

• Physical data storage for large-scale systems

o Dell EMC

o Hewlett Packard Enterprise (H 3 C)

Networking/Telecommunications Platforms

Find out more about STC business services

• Network operating systems
Telecommunication services
o Windows Server, Linux, Unix oTelecommunications, cable, telephone company

• Network hardware providers charges for voice lines and Internet access

o Cisco, Juniper Networks oA T&T, Verizon

Internet Platforms

• Hardware, software, management services to support company websites, intranets

o Web-hosting services

o Routers

o Cabling or wireless equipment

• Internet hardware server market

o I B M, Dell, Oracle, H P

• Web development tools/suites

o Microsoft (Visual Studio and .NET), Oracle-Sun (Java), Adobe

Consulting and System Integration Services

• Even large firms do not have resources for full range of support for new, complex infrastructure

• Leading consulting firms: Accenture, I B M Global Services, H P, Infosys, Wipro Technologies

• 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
What Are the Current Trends in Computer Hardware
Platforms? (1 of 5)
• The mobile digital platform

o Smartphones

o Netbooks

o Tablet computers

o Digital e-book readers and apps (Kindle)

o Wearable devices (Case Study)

• Consumerization of IT and BYOD (bring your own device) - Case Study on Black Board

o Forces businesses and I T departments to rethink how IT equipment and services are
acquired and managed
What Are the Current Trends in Computer Hardware
Platforms? (2 of 5)
• Virtualization

o Allows single physical resource to act as multiple resources (i.e., run multiple instances of OS)

o Reduces hardware and power expenditures

o Facilitates hardware centralization

o Software-defined storage (SDS)

 What Are the Current Trends in Computer Hardware
Platforms? (3 of 5)
• Cloud computing

o On-demand computing services obtained over network

(Utility model)

o Cloud computing is a model of computing in which

computer processing, storage, software, and other
services are provided as a shared pool of virtualized
resources over a network, primarily the Internet

• Cloud can be public or private

• Allows companies to minimize I T investments

• Drawbacks: Concerns of security, reliability

What Are the Current Trends in Computer Hardware
Platforms? (3 of 5)
Cloud computing essential characteristics

• On-demand self-service: Consumers can obtain computing capabilities such as server time or network
storage as needed automatically on their own.
• Ubiquitous network access: Cloud resources can be accessed using standard network and Internet
devices, including mobile platforms.
• Location-independent resource pooling: Computing resources are pooled to serve multiple users, with
different virtual resources dynamically assigned according to user demand. The user generally does not
know where the computing resources are located.
• Rapid elasticity: Computing resources can be rapidly provisioned, in- creased, or decreased to meet
changing user demand.
• Measured service: Charges for cloud resources are based on amount of resources actually used.
What Are the Current Trends in Computer Hardware
Platforms? (4 of 5)
• Cloud computing consists of three different types of services: SaaS
(End Customers)
o Infrastructure as a service (IaaS)

o Platform as a service (PaaS) PaaS

(Developers)
o Software as a service (SaaS)

IaaS
(Systems Admins)
Figure 5.10 Amazon Web Services
What Are the Current Trends in Computer Hardware
Platforms? (4 of 4)
• Green computing (Green I T )

o Practices and technologies for manufacturing, using, disposing of computing and networking
hardware

o Reducing power consumption a high priority

o Data centers

• High performance, power-saving processors

o Multicore processors

o Power-efficient microprocessors
What Are the Current Computer Software Platforms and
Trends? (1 of 3)
• Linux and open-source software

o Produced by community of programmers

o Examples: Apache web server, Mozilla Firefox browser, OpenOffice

o Linux

• Software for the web: Java, HTML, and HTML5

o Java Virtual Machine

o Web browsers

o H T M L and H T M L 5

o Ruby and Python

What Are the Current Computer Software Platforms and
Trends? (3 of 3)
• Software outsourcing and cloud services

o Software packages and enterprise software

o Software outsourcing

o Cloud-based software services and tools

§ Service Level Agreements (S L A s): formal agreement with service providers

• Mashups and apps

Dealing with Platform and Infrastructure Change

• As firms shrink or grow, I T needs to be flexible and scalable

• Scalability

o Ability to expand to serve larger number of users

• For mobile computing and cloud computing

o New policies and procedures for managing these new platforms

o Contractual agreements with firms running clouds and distributing software required
 Management and Governance
• Governance Advantages of centralized IS Advantages of decentralized IS

Enforcement of hardware and software Better fit of IT to business needs.

• Who controls I T infrastructure? standards

• How should I T department be Efficient administration of resources Quick response time

organized?
Better staffing. Encouragement of end-user
o Centralized development of applications
• Central I T department makes
decisions Easier training Innovative use of information systems

o Decentralized
• Business unit I T departments make Effective planning of shared systems.
own decisions

• How are costs allocated between Tighter control by senior management

divisions, departments?
Making Wise Infrastructure Investments

• Under-investment and over-investment can hamper firm performance

• Rent-versus-buy

• Cloud computing

o Security requirements

o Impact on business processes and workflow

• Outsourcing
 Total Cost of Ownership (TCO) Model
• Analyzes direct and indirect costs

• Hardware, software account for only about

20% of T C O

• Other costs: Installation, training, support,

maintenance, infrastructure, downtime,
space, and energy

• TCO can be reduced

o Use of cloud services, greater

centralization and standardization of
hardware and software resources
Interactive Session: Technology: Is Business Ready for
Wearable Computers?
Class discussion
• Wearables have the potential to change the way organizations and workers conduct business.
Discuss the implications of this statement.

• What management, organization, and technology issues would have to be addressed if a company
was thinking of equipping its workers with a wearable computing device?

• What kinds of businesses are most likely to benefit from wearable computers? Select a business
and describe how a wearable computing device could help that business improve operations or
decision making.
Competitive Forces Model for I T Infrastructure
Investment
• Market demand for firm’s services

• Firm’s business strategy

• Firm’s I T strategy, infrastructure, and cost

• Information technology assessment

• Competitor firm services

• Competitor firm I T infrastructure investments

Figure 5.13 Competitive Forces Model for I T
Infrastructure
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