IT Infrastructure and Emerging IT Infrastructure and Emerging TechnologiesTechnologies

Chapter Five (10Chapter Five (10thth ed) ed)

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Significance of IT InfrastructureSignificance of IT Infrastructure

IT infrastructure (ITI) is the foundation forIT infrastructure (ITI) is the foundation for Serving customersServing customers Working with suppliers andWorking with suppliers and Managing internal business processesManaging internal business processes

An example: If you are a bank and you want An example: If you are a bank and you want to sell banking services (savings, checking, to sell banking services (savings, checking, car loans, home loans, brokerage accounts, car loans, home loans, brokerage accounts, etc) to all of your customers on a global etc) to all of your customers on a global level, your choices of ITI will make or break level, your choices of ITI will make or break you.you.

ITI is critical component of any business ITI is critical component of any business strategystrategy

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The Connection between the Firm, IT Infrastructure, and Business

Capabilities

Figure 6-1

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Definitions of ITIDefinitions of ITI

(1) (1) ITI is the shared technology resources that ITI is the shared technology resources that provide the platform for the firm’s specific provide the platform for the firm’s specific information system applications. These information system applications. These technology resources include the hardware and technology resources include the hardware and software required to operate the enterprise. software required to operate the enterprise.

(2) ITI is a set of firm wide services budgeted by (2) ITI is a set of firm wide services budgeted by management and comprising both human and management and comprising both human and technical capabilities that provide services to technical capabilities that provide services to employees, customers, and suppliers.employees, customers, and suppliers.

The latter definition puts more emphasis on the The latter definition puts more emphasis on the business value provided by investments in ITIbusiness value provided by investments in ITI

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Listing of the Services from the Listing of the Services from the Second Definition of ITISecond Definition of ITI

Computing platforms Computing platforms that provide that provide computing services computing services

Telecommunication Telecommunication services provide services provide data, voice, and data, voice, and video connectivityvideo connectivity

Application software Application software services provide services provide access to ERP, SCM, access to ERP, SCM, CRM, and KMCRM, and KM

Physical facilities Physical facilities management management servicesservices

IT management IT management services for planning services for planning and managing ITIand managing ITI

IT standards services IT standards services for developing policiesfor developing policies

IT education services IT education services that provide trainingthat provide training

IT research and IT research and development services development services for developing future for developing future projectsprojects

Data management Data management services that manage services that manage data and provide data and provide analysis tools analysis tools

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Evolution of IT InfrastructureEvolution of 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)

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Technology Drivers of Infrastructure Evolution

Moore’s law and microprocessing power Microprocessor power (MIPS) doubles every 18 months Number of transistors on a chip doubles every 18

months Cost of computing falls by ½ every 18 months Near future will continue, but heat issues and consumer

needs may slow this process The law of mass digital storage

The number of kilobytes stored for $1 has doubled every 15 months since 1950

Metcalfe’s law and network economics Power of a network grows exponentially as a function of

the number of network members (network economics) Declining communications costs and the Internet Standards and network effects

ASCII, COBOL, UNIX TCP/IP, Ethernet, and WWW IBM/Microsoft/Intel

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Moore’s LawMoore’s Law

Figure 6-5

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Moore’s Moore’s Law: Law: Falling Cost of Chips

Figure 6-6

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The Growth of Mass Digital The Growth of Mass Digital StorageStorage

Figure 6-8

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Cost of Mass Digital StorageCost of Mass Digital Storage

Figure 6-9

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Exponential Declines in Internet Communications Costs

Figure 6-10

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Seven Key Infrastructure Components

Computer Hardware Platforms Operating System Platforms Enterprise Software Applications Data Management and Storage Networking/Telecommunications Platforms Internet Platforms Consulting and System Integration Services

Estimated Size of US Estimated Size of US Infrastructure Components (2005)Infrastructure Components (2005)

Expenditure (billions) % of total

Computer hardware 145 9%

Operating system platforms 110 7%

Enterprise and other IT soft apps

297 19%

Database mgmt and storage 42 3%

Networking and telecom 769 50%

Internet platforms 35 2%

Consulting services 130 9%

Total 1,528

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Computer Hardware PlatformsComputer Hardware Platforms

Client machinesClient machinesDesktops and mobile computing devices Desktops and mobile computing devices

( PDAs or laptops )( PDAs or laptops )Server marketServer market

Blade serversBlade serversMajor playersMajor players

Microprocessors – IBM, Intel, and AMDMicroprocessors – IBM, Intel, and AMDHardware – HP, IBM, Dell, and SunHardware – HP, IBM, Dell, and Sun

Mainframes Mainframes Market dominated by IBMMarket dominated by IBMServe as giant servers (an alternative to Serve as giant servers (an alternative to

blade servers)blade servers)

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Computer Software Platforms

Operating systemsOperating systems Client OS dominated by some form of Microsoft Client OS dominated by some form of Microsoft

WindowsWindows Server OS dominated by UNIX and LinuxServer OS dominated by UNIX and Linux Major providers of UNIX are IBM, HP, and SunMajor providers of UNIX are IBM, HP, and Sun

Enterprise applications (e.g., SCM, CRM, ERP)Enterprise applications (e.g., SCM, CRM, ERP) Major providers are SAP and OracleMajor providers are SAP and Oracle Microsoft is trying to capture the low end of Microsoft is trying to capture the low end of

this marketthis market

Client applicationsClient applications Microsoft is the dominant providerMicrosoft is the dominant provider

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Data Management and Storage Data management software

Oracle and IBM dominate the market. Microsoft (SQL Server) and Sybase tend to

serve smaller firms. Open source Linux MySQL

Data storage hardware 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

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Networking/Telecommunications Platforms

Network operating systems LANS are dominated by Windows Server other

players include Novell, Linux, and Unix Enterprise networking almost entirely Linux or

UNIX Virtually all networks use the TCP/IP protocols Networking hardware providers

Cisco, Lucent, Nortel, and Juniper Networks Telecommunications services market

MCI, AT&T, and Sprint providing most trunk line services for both phone and Internet.

Rapid growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony

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Internet Platforms This area overlaps with networking,

hardware, and software platforms Internet hardware server market

Dell, HP, and IBM Some Web software tools

Microsoft’s ExpressionWeb and .Net families of tools

Adobe software (Dreamweaver and Flash) WebSphere from IBM to manage a Web

site Apache server is an open source software

tool for managing stored Web pages on a server (on 70 percent of all Web servers)

Java from Sun for interactive applications

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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.

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.

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Contemporary Hardware Platform Trends: Overview

Cost of IT infrastructure is rising Cost of computing services and software Intensity of computing & communications has increased requiring

more powerful networks and client devices Other challenges

Integration of data across platforms Infrastructures must withstand huge spikes in demand and

continual assaults from hackers High customer expectations

Five trends Integration of Computing and Telecommunications Platforms Grid Computing On-Demand (utility) Computing Autonomic Computing and edge computing Virtualization and multicore processors

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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.

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.

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Grid Computing

Rather than purchase huge mainframes or super computers, firms can chain together thousands of smaller desktop clients into a single computing grid; computers may be geographically remote

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

Another example from the University of Wisconsin (http://www.cs.wisc.edu/condor/)

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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. 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

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Autonomic Computing 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 Why is there a need for this?

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.

Example: Windows XP and Max X OS automatically download patches and updates.

Virtualization and Multicore Virtualization and Multicore ProcessorsProcessors

Both of these techniques are designed to Both of these techniques are designed to reduce power consumptionreduce power consumption

VirtualizationVirtualization is the process of presenting a set is the process of presenting a set of computing resources so that they can be of computing resources so that they can be access in multiple ways without regard to access in multiple ways without regard to physical configuration or geographical locationphysical configuration or geographical location

Multicore processorsMulticore processors As the clockspeed of cpus increased, the As the clockspeed of cpus increased, the

amount of heat generated and electricity amount of heat generated and electricity consumed increased.consumed increased.

Solution is to use two or more slower Solution is to use two or more slower processors to generate the same computing processors to generate the same computing power but reduce heat and power power but reduce heat and power consumptionconsumption

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Intel Chip HistoryIntel Chip History

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Software Platform Trends: Software Platform Trends: OverviewOverview

Linux and the open-source software Linux and the open-source software movementmovement

JavaJava Software for enterprise integrationSoftware for enterprise integration

Enterprise wide systemsEnterprise wide systems Linkage to older systems and applications Linkage to older systems and applications

Enterprise application integrationEnterprise application integration MiddlewareMiddleware Web services and service-oriented Web services and service-oriented

architecturearchitecture AJAX, Mashups and Web-based software AJAX, Mashups and Web-based software

applicationsapplications Software outsourcingSoftware outsourcing

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The Open-Source Software The Open-Source Software MovementMovement

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 (opensource.org).

The movement has evolved over 30 years and has demonstrated it can provide high quality software.

Major examples include Linux, Firefox (browser), and Apache (Web server software that resides on the server and delivers Web content to your browser)

• Linux is the most widely used open-source software program. Linux is an operating system derived from Unix. IBM, HP, Intel, Dell, and Sun have adopted and support Linux.

Linux is a major alternative to Windows server and even client operating systems

Linux runs on all major hardware platforms – mainframes, servers, and clients

Major threat to Microsoft

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JavaJava A programming language that is independent of

the operating system and hardware processor. Applications written in Java can run on any

hardware for which a Java virtual machine has been defined.

Anytime an object moves or input is required from a user a Java applet has been employed

Applets are small Java programs that are downloaded from the server. Users do not need to have complex software on their machines.

Java is embedded in PDAs, cell phones, music players, automobiles, set-top cable TV systems, and browsers.

Java is the leading interactive programming environment for the Web.

Dispute with Microsoft

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Software For Enterprise Software For Enterprise IntegrationIntegration

An important software trend of the last decade is the usage of enterprise-wide software systems by firms (SCM, ERP, CRM, and KM).

Rather than build their own software, large firms increasingly purchase enterprise applications prewritten by specialized software firms like SAP or Oracle.

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.

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Software For Enterprise Software For Enterprise Integration (continued)Integration (continued)

How do you link new enterprise software with How do you link new enterprise software with older legacy applications?older legacy applications?

Middleware approachMiddleware approach Special software that creates an interface Special software that creates an interface

between two different systemsbetween two different systems Enterprise application integration approachEnterprise application integration approach

Enterprise application integration software Enterprise application integration software creates a single software hub where multiple creates a single software hub where multiple systems can exchange data through a single systems can exchange data through a single hub rather than building countless interfaces hub rather than building countless interfaces for each systemfor each system

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Enterprise Application Integration (EAI) Software Versus Traditional

Integration

Figure 6-13

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Web Services And Service-Web Services And Service-Oriented ArchitectureOriented Architecture

An alternative to middleware and EAI 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.

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Web Services And Service-Web Services And Service-Oriented Architecture (continued)Oriented Architecture (continued)

XML stands for extensible markup language and is a XML stands for extensible markup language and is a more powerful version of HTML that enables one to more powerful version of HTML that enables one to tag items that provide meaning to data.tag items that provide meaning to data.

Web Services Description Language (WSDL) describes Web Services Description Language (WSDL) describes the tasks performed by the Web service and the the tasks performed by the Web service and the commands and data it will accept so that it can be commands and data it will accept so that it can be used by other applications.used by other applications.

Universal description discovery and integration Universal description discovery and integration (UDDI) enables a Web service to be listed in a (UDDI) enables a Web service to be listed in a directory of Web services for easy location.directory of Web services for easy location.

The collection of Web services used to build a firm’s The collection of Web services used to build a firm’s software constitute what is know as a service-software constitute what is know as a service-oriented architecture (SOA)oriented architecture (SOA)

AJAXAJAX

Ajax (asynchronous JavaScript and XML) is a Ajax (asynchronous JavaScript and XML) is a group of inter-related Web development tools for group of inter-related Web development tools for creating interactive Web applications . Ajax creating interactive Web applications . Ajax enables increased responsiveness and interactivity enables increased responsiveness and interactivity of Web pages by exchanging small amounts of of Web pages by exchanging small amounts of data with the server "behind the scenes" so entire data with the server "behind the scenes" so entire Web pages do not have to be reloaded each time Web pages do not have to be reloaded each time there is a need to fetch data from the server. there is a need to fetch data from the server. JavaScript is the language in which AJAX function JavaScript is the language in which AJAX function calls are usually made.calls are usually made.[1

Ajax is one form of a set of related techniques Ajax is one form of a set of related techniques called rich Internet applications (RIA). Adobe’s called rich Internet applications (RIA). Adobe’s Flash is another member of RIA.Flash is another member of RIA.

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Web-Based ApplicationsWeb-Based Applications

The Google modelThe Google model Google delivers a number of applications including a Google delivers a number of applications including a

word processor, spreadsheet, email, instant word processor, spreadsheet, email, instant messaging, and a calendar in a suite called Google messaging, and a calendar in a suite called Google Apps.Apps.

Users pay a subscription fee that provides unlimited Users pay a subscription fee that provides unlimited usage for a specified time.usage for a specified time.

All of the apps and data are stored on Google servers.All of the apps and data are stored on Google servers. Google uses Ajax and other RIA tools to do this. Google uses Ajax and other RIA tools to do this.

Enterprise software firms like SAP and Oracle are also Enterprise software firms like SAP and Oracle are also delivering software in this same mannerdelivering software in this same manner

The Google model is a direct threat to Microsoft’s The Google model is a direct threat to Microsoft’s business model business model

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MashupsMashups

A mashup is a Web application that combines data A mashup is a Web application that combines data and/or functionality from more than one source. The and/or functionality from more than one source. The term is derived from the hip hop practice of building term is derived from the hip hop practice of building a new song by combining parts of other songs.a new song by combining parts of other songs.

Example mashups Example mashups Typical mashups combine mapping and satellite Typical mashups combine mapping and satellite

image software with local content (see image software with local content (see http://housingmaps.com or or http://zillow.com ). ). Enables real estate listings to be displayed on Enables real estate listings to be displayed on Google maps.Google maps.

Celebrities linked to maps and YouTube Celebrities linked to maps and YouTube http://www.mibazaar.com/top100celebrities/

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Software Outsourcing: PackagesSoftware Outsourcing: Packages

• Prewritten off-the-shelf software built by a Prewritten off-the-shelf software built by a software companysoftware company

• Eliminates the need for the company to Eliminates the need for the company to write their ownwrite their own

• Available for all standard business Available for all standard business applications within and across industriesapplications within and across industries

• Includes all the transaction processing Includes all the transaction processing systems mentioned in earlier chapterssystems mentioned in earlier chapters

• Also includes the large enterprise Also includes the large enterprise applicationsapplications

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Software Outsourcing: Application Software Outsourcing: Application Service ProvidersService 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. Software is not installed on the firm’s systems.

Rather than purchase hardware and software, firms can go onto the Internet and find providers who offer the same functionality over the Internet, and charge on a per-user or license basis.

Example: Salesforce.com provides customer relationship management and sales force management services to firms

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Software Outsourcing: Custom Software Outsourcing: Custom SoftwareSoftware

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?

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Changing Sources of Firm Software

Figure 6-15

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Management IssuesManagement Issues ITI management must be guided by the firm’s ITI management must be guided by the firm’s

need to provide computer-based services to need to provide computer-based services to customers, employees, and suppliers. To this customers, employees, and suppliers. To this wisely the firm must deal with:wisely the firm must deal with: How do we make wise infrastructure

investments?

How do we allocate control and management of III (centralize or decentralized control)

How do we prepare for infrastructure change (scalability)?

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Management SolutionsManagement Solutions

Consider your strategic situation: six questions to ask (see next slide)

Start out small, with respect to large scale infrastructure changes (develop one module at a time)

Consider the total cost of ownership Develop benchmarks for the total cost of Develop benchmarks for the total cost of

ownershipownership

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Six Questions to AskSix Questions to Ask 1. What is the market demand for computer-based 1. What is the market demand for computer-based

services from customers, employees, and suppliers?services from customers, employees, and suppliers? 2. What is your firm’s business strategy or what new 2. What is your firm’s business strategy or what new

services are needed to achieve goals? services are needed to achieve goals? 3. What is the firm’s IT strategy with respect to ITI 3. What is the firm’s IT strategy with respect to ITI

and costs?and costs? 4. What is the position of your firm with respect to 4. What is the position of your firm with respect to

IT compared to your competition (ahead or behind)?IT compared to your competition (ahead or behind)? 5. What is the position of your firm with respect to 5. What is the position of your firm with respect to

computer-based services to customers, employees, computer-based services to customers, employees, and suppliers compared to your competition?and suppliers compared to your competition?

6. How do your expenditures for ITI compare with 6. How do your expenditures for ITI compare with your competition? your competition?

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Total Cost of OwnershipTotal Cost of Ownership 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

The desktop management concept for distributed computer assets (http://cais.isworld.org/articles/8-6/default.asp?View=Journal&x=50&y=7 )