Management Chapter 5 As technology advances the types of hardware

Unlock access to all the studying documents.

View Full Document

5-1

Management Information Systems, 13E, Global Edition

Laudon & Laudon

Lecture Files by Barbara J. Ellestad

Chapter 5 IT Infrastructure and Emerging Technologies

As information becomes a valuable resource of a digital firm, the infrastructure used to

care for it takes on added importance. We’ll examine all of the components that comprise

today’s and tomorrow’s IT infrastructure and how best to manage it.

5.1 IT Infrastructure

When you mention the phrase “information technology infrastructure,” most people

immediately think of just hardware and software. However, there is more to it than just

Defining IT Infrastructure

If you define a firm’s IT infrastructure in terms of technology you limit the discussion to

the hardware and software components. By broadening the definition to that of service-

To round out the list of IT infrastructure components you need to add the following

services to computing hardware and software:

• Computing services: Provide platforms that ensure a coherent digital environment

• Telecommunications services: Determine appropriate data, voice, and video that

telecommunications, and data management services

5-2

Evolution of IT Infrastructure

Reviewing the evolution of corporate IT infrastructure offers some insight into where we

may be headed.

• General-purpose mainframe and minicomputer era (1959 to present): The

mainframe era began with highly centralized computing with networks of

terminals concentrated in the computing department. While early models

• Personal computer era (1981 to present): It’s interesting to note that the

advances developed for personal computers in the home have given rise to much

of the advances in corporate computing in the last 25 years. As the home user

became more comfortable with using computers, and more applications were

developed for personal computers, employees demanded increased use of

computers in the workplace. While the Wintel PC standard has dominated this

era, open-source software is starting to put a big dent into that stronghold.

• Client/server era (1983 to present): As the desktop and laptop personal

computers became more powerful and cheaper, businesses began using them to

replace mini-computers and some mainframe computers by networking them

5-3

servers allows faster, more efficient responses that cost a business less to process

than a mainframe would or one computer trying to do it all.

• Enterprise computing era (1992 to present): Perhaps no other era has seen the

explosive growth in functionality and popularity as this era. The problems created

• Cloud and mobile computing era (2000 to Present): It almost seems as though

we’ve come full circle with the concept of cloud computing. This model of

As you realize that each era built upon previous advances made in hardware, software,

and services, let your imagination drift for a moment to the possibilities that the future

holds. It truly is an exciting time to be involved in technology.

Technology Drivers of Infrastructure Evolution

Here are some of the reasons why we’ve evolved so much in the last 20 years.

• Moore’s Law and Microprocessing Power: Perhaps no other law holds as much

weight in the evolution of computers as Moore’s Law. Take a moment to visit the

5-4

find something to do with it or, I now have all these new applications therefore I

need more storage. One thing is certain, users will demand more storage and the

technologists will develop it.

• Metcalfe’s Law and Network economics: If you build a network for ten users,

you’ll spend the necessary money for the basic equipment. If you already have the

• Standards and network effects: Nothing has helped grow the Internet more than

having technology standards in place allowing suppliers to create and build

products that work seamlessly with each other. Users have come to rely on the

interoperability of products.

Table 5-1 explains the standards that have laid the groundwork for services we now enjoy

in technology.

Bottom Line: We’ve come so far so quickly in the evolution of technology. From

massive, expensive mainframe computers to inexpensive, hand-held devices, the

evolution and revolution continues.

5.2 Infrastructure Components

What if you bought a car that didn’t include tires, a steering wheel, a radio, or a heater?

After purchasing this vehicle, you had to shop around for the missing parts. When you

entered a store, you are confronted with eight different steering wheels, six different

radios, and nine different heaters. You quickly realize how incompatible the parts are

5-5

Computer Hardware Platforms

The microprocessor is the heart of any computing device no matter how small or large.

Two companies produce most microprocessing chips, Intel and Advanced Micro Devices

(AMD).

Although the network is becoming commonplace and the heart of computing, network

Operating System Platforms

Operating systems tell computers what to do, when to do it, and how. Operations such

as logging on, file management, and network connectivity are controlled by the operating

system. By far the most prolific operating system is Microsoft Windows in various

“Google Chrome OS is arriving just in time to take advantage of the

perfect storm of cloud services, cheap hardware, and a new generation of

platform-agnostic users. Unlike other Linux-based OSs, Chrome has brand

recognition that even the biggest neophyte could get comfortable with.

Chrome is also arriving just in time to take advantage of dirt-cheap

hardware and super-broke consumers. The future for Chrome based

netbooks is in the $200 and under space. At this price level, Microsoft

would have to virtually give away Windows. Within a year or two,

5-6

The Google Chrome OS makes it easy for users to access cloud computing services

through wireless networking. Almost all the software and data are stored on servers and

accessed through a Web browser.

Enterprise Software Applications

Integrating applications into seamless processes across the organization is the goal of

enterprise software applications. Customer relationship management and supply chain

Data Management and Storage

Businesses and organizations are gathering more and more data on customers,

employees, and even the business itself. Managing and storing the data so they are easily

Networking/Telecommunications Platforms

As we continue the march toward convergence of all things digital, networking and

telecommunications platforms will merge into one. Rather than having one platform for

Internet Platforms

The Internet and its technology standards continue to expand the services businesses are

able to provide their employees, customers, suppliers, and business partners. Intranets

5-7

Consulting and System Integration Services

Systems used in many medium- and large-sized companies and organizations are so

complex that most businesses simply can’t manage all of them on their own. Integration

services provided by the likes of IBM and Hewlett-Packard are necessary to simply keep

Bottom Line: There are seven major components of a modern IT infrastructure:

Hardware platforms, operating system platforms, enterprise software applications,

data management and storage, networking/telecommunications platforms, Internet

platforms, and consulting and system integration services. Melding them into a

cohesive system that adequately serves the digital corporation is difficult but the

rewards are many.

5.3 Contemporary Hardware Platform Trends

If some of these IT infrastructure components like storage and telecommunications have

gotten so cheap, why does it seem like companies are spending more and more money on

The Emerging Mobile Digital Platform

Anytime, anywhere, 24/7, 365. That’s what computer users now expect. Technology

manufacturers are meeting the demand with a host of new communication devices like

cell phones and smartphones. The newest gadgets on the market are tablets and e-book

readers like the Kindle from Amazon.com or Barnes & Noble’s Nook reader.

5-8

Consumerization of IT and BYOD

In the past, computing devices and software were developed specifically for business

applications. Very seldom did the hardware and software spill over into the consumer

market. On the flip side, hardware and software created for consumer use saw very little

application in the business world. That has changed in the last few years as the two have

Interactive Session: Management: Should You Use Your iPhone for Work (see page

212 of the text), explores total cost of ownership issues companies face when they

allow employees to use their personal smartphones and other digital devices on

company-owned networks.

Grid Computing

Take a moment and think about how much time you don’t use your personal computer.

It’s actually quite a lot. In fact, most computers are idle more time than not. What if you

could combine all the idle time of hundreds or thousands of computers into a continuous,

connected computing capacity to capture, process, manage, store, and retrieve data? You

wouldn’t have to purchase mammoth, super computers to realize this capability and

capacity. You just have to turn to grid computing.

Three reasons why grid computing is appealing to companies include:

• Cost savings

5-9

Virtualization

Server computer hardware prices have fallen over the years to the point where they’re

relatively cheap. Hence, the problem. Rather than increase the efficiency and utilization

of existing hardware, many companies just buy more of it and stick it on the shelf. Not

Enter virtualization. It’s the process of running multiple operating systems and

application programs on one machine and increasing the overall utilization rates of the

device. Instead of having ten servers running ten different applications, virtualization

consolidates the programs onto one or two servers.

Here’s a list of the benefits businesses enjoy from using virtualization:

• Increase equipment utilization rates

Cloud Computing

Most companies don’t build their own electrical generating plants or their own water

treatment facilities. They purchase only the utilities they need, even in peak demand

Cloud computing is defined by five characteristics:

• On-demand self-service: Users can access computing capabilities whenever and

wherever they are.

5-10

Almost any type of computing device can access data and applications from these clouds

through three types of services:

• Cloud infrastructure as a service: Allows customers to process and store data,

and use networking and other resources available from the cloud.

“Amazon.com Inc.’s Internet-based computing services, used by

thousands of business customers to run their Web pages and store data,

crashed this morning and knocked sites across the U.S. offline.

“Customers need to start asking tough questions and not assume

everything will be taken care of in the cloud, because it will not,” Alvarez

said. ‘They shouldn’t be counting on a cloud service provider like Amazon

to provide disaster recovery.’ ” (BusinessWeek.com, Amazon Web

Services Disruption Knocks Customer Sites Offline, Galante, Joseph, April

21, 2011)

Three kinds of clouds are available:

• Public cloud: Owned and operated by external service providers; accessed

through the Internet; available to anyone; generally used for non-sensitive data.

On-demand computing, another term for cloud computing, mirrors other utilities that

provide necessary infrastructure from centralized sources. It’s cheaper and helps

Green Computing

Virtualization that we discussed earlier makes the concept of green computing more of a

reality. It allows businesses to reduce their total cost of ownership of hardware through