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5-1
Chapter 5
IT Infrastructure and Emerging Technologies
Student Learning Objectives
1. What is IT infrastructure and what are the stages and drivers of IT infrastructure
evolution?
2. What are the components of IT infrastructure?
3. What are the current trends in computer hardware platforms?
4. What are the current trends in computer software platforms?
5. What are the challenges of managing IT infrastructure and management solutions?
Learning Catalytics is a “bring your own device” student engagement, assessment, and
Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The
page number for each key term is provided.
Android, 183
On-demand computing, 190
Application server, 174
Open-source software, 194
Apps, 200
Operating system, 182
Blade servers, 182
Outsourcing, 198
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Java, 194
Technology standards, 179
Legacy systems, 184
Total cost of ownership (TCO), 202
Linux, 182
UNIX, 182
Teaching Suggestions
Your students’ knowledge and comfort level with technology is likely to vary, making
this chapter difficult to teach and test. The technically-adept know most of this material,
and some of the nontechnical types may not find the chapter’s contents particularly
interesting. You may want to approach the chapter from a business standpoint—the role
of technology in the success of an organization.
One way to begin the chapter discussion is to present several horror stories. (Your
students may even be able to provide stories of their own.) For example, many firms have
The opening case about “Portugal Telecom Offers IT Infrastructure for Sale,” describes
how the company built a cloud data center that combines progressive architecture,
PT claims the benefits of its cloud services include having the information protected in
the country’s largest data center network, the speed and reliability that customers need
and want, access to PT’s cutting-edge technology and having certified security,
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Section 5.1, “What is IT infrastructure and what are the stages and drivers of IT
infrastructure evolution?” Introduces students to essential computer hardware
terminology and concepts. The trek through the five evolutionary stages in computing
platforms provides a backdrop for explaining how we got to the current phase of
computing. Moore’s Law, usually misstated, helps explain how the technology industry
Section 5.2, “What are the components of IT infrastructure?” Explains seven major
components that make up an IT infrastructure. These include: computer hardware
platforms, operating systems platforms, enterprise software applications, networking and
telecommunications technology, consultants and system integrators, data management
Section 5.3 “What are the current trends in computer hardware platforms?” Consider
spending most of your time on the newest hardware trends: netbooks, grid computing,
cloud computing, autonomic computing, virtualization, and multicore processors. That’s
where many businesses are headed and students are likely to bump into these trends when
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Interactive Session: Technology: Wearable Computers Go To Work?
Case Study Questions
1. Wearables aren’t just a consumer phenomenon: they have the potential to
change the way organizations and workers conduct business. Discuss the
implications of this statement.
Wearable devices offer a broad-based allure of hands-free data delivery that enables
workers to perform tasks while receiving visual and aural cues. The devices contain
multiple sensors that track various types of data ultimately improving the workplace
2. 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?
Management: Managers must ensure they seek employee buy-in for wearable devices by
demonstrating how the workers’ environment will improve and their jobs enriched by the
technology.
3. What kinds of businesses are most likely to benefit from mobile computing?
Select a business and describe how a mobile computing device could help that
business improve operations or decision making.
“The implications and uses of wearable technology are far reaching and can influence the
fields of health and medicine, fitness, aging, disabilities, education, transportation,
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enterprise, finance, gaming and music. The goal of wearable technologies in each of these
fields will be to smoothly incorporate functional, portable electronics and computers into
individuals’ daily lives.” (Tehrani, Kiana, and Andrew Michael. “Wearable Technology
Interactive Session: Organizations: Is It Time for Cloud Computing?
Case Study Questions
1. What business benefits do cloud computing services provide? What problems do
they solve?
• Eliminates need for large up-front capital investments in systems
• Eliminates lengthy implementations on corporate computers
• Low cost subscriptions; no expensive licensing and maintenance fees
2. What are the disadvantages of cloud computing?
The disadvantages include:
• Responsibility for data storage and control is transferred away from the
organization to a third party.
• Security risks and chances of data compromises are increased.
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3. How do the concepts of capacity planning, scalability, and TCO apply to this
case? Apply these concepts both to Amazon and to subscribers of its services.
Businesses should assess the costs and benefits of the service, weighing all people,
organization, and technology issues. Does the software-as-a-service applications
integrate well with the existing systems? Does it deliver a level of service and
performance that’s acceptable for the business? Does the SaaS fit with the business’s
overall competitive strategy and allow the company to focus on core business issues
instead of technology challenges?
Capacity planning predicts when a computer hardware system becomes saturated and
how that affects performance measures such as minimum response time for
processing business transactions. Business managers need to determine acceptable
4. What kinds of businesses are most likely to benefit from using cloud computing?
Why?
Small to medium-size businesses are probably the most likely ones to switch to cloud
computing because of cost factors and the lack of having in-house resources to
provide the same level of computing capacity. Businesses that are trying to increase
the sophistication of their computing capabilities could also benefit from switching to
Section 5.4, “What are the current trends in computer software platforms?” introduces
students to emerging software platforms that they probably are not familiar with. Most of
these software programs focus on Internet and Web applications. Open-source software is
a good discussion point. Most students may think because it is developed by an open
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community of programmers that it’s not “safe or secure.” You should try to dispel this
myth by reviewing the Mozilla Firefox Web browser. Because most students probably
Perhaps the most important point of this section is to show how these technologies are
designed to make computing more seamless between applications and between
computing hardware platforms. Increasingly, software is taking on three major
Section 5.5 “What are the challenges of managing IT infrastructure and management
solutions?” This section helps students understand that there is more to managing IT
infrastructure than just deciding which hardware and software components to purchase
and use. Ask students how difficult it is for them to keep up with all the new options
Review Questions
5-1 What is IT infrastructure and what are the stages and drivers of IT
infrastructure evolution?
Define IT infrastructure from both a technology and a services perspective.
• Technical perspective is defined as the shared technology resources that provide
the platform for the firm’s specific information system applications. It consists of
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List each of the eras in IT infrastructure evolution and describe its
distinguishing characteristics.
Five stages of IT infrastructure evolution include:
• General-purpose mainframe and minicomputer era (1959 to present): Consists of
a mainframe performing centralized processing that could be networked to
thousands of terminals and eventually some decentralized and departmental
computing using networked minicomputers.
• Personal computer era (1981 to present): Dominated by the widespread use of
Define and describe the following: Web server, application server, multitiered
client/server architecture.
• Web server: Software that manages requests for Web pages on the computer
where they are stored and that delivers the page to the user’s computer.
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Describe Moore’s Law and the Law of Mass Digital Storage
• Moore’s Law: The number of components on a chip with the smallest
manufacturing costs per component (generally transistors) has doubled each year.
Describe how network economics, declining communications costs, and
technology standards affect IT infrastructure.
Network economics: Metcalfe’s Law helps explain the mushrooming use of
computers by showing that a network’s value to participants grows exponentially as
the network takes on more members. As the number of members in a network grows
5-2 What are the stages and technology drivers of IT infrastructure evolution?
List and describe the components of IT infrastructure that firms need to
manage.
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IT infrastructure includes hardware, software, and services:
• Computing platforms: Includes mainframes, midrange computers, desktop and
laptop computers, and mobile handheld devices—anything that connects
employees, customers, and suppliers into a coherent digital environment.
• Telecommunications services: Data, voice, and video connectivity among
employees, customers, and suppliers.
• Data management: Store, manage, and analyze data.
• Application software: Includes enterprise resource planning, customer
5-3 What are the current trends in computer hardware platforms?
Describe the evolving mobile platform, quantum computing, and cloud
computing.
Mobile platform: More and more business computing is moving from PCs and
desktop machines to mobile devices such as cell phones and smartphones. Data
transmissions, Web surfing, e-mail and instant messaging, digital content displays,
Quantum computing: Gains enormous processing power through the ability to be in
many different states at once, allowing it to perform multiple operations
simultaneously and solve scientific and business problems millions of times faster
than can be done today.
Cloud computing: A model of computing where firms and individuals obtain
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servers in massive data centers, and can be accessed by anyone with an Internet
connection and standard Web browser. Public clouds are maintained by external
service providers while private clouds are restrained inside a proprietary network or a
data center. (Learning Objective 5.3: What are the current trends in computer
hardware platforms? AACSB: Application of knowledge.)
Explain how businesses can benefit from virtualization, green computing, and
multicore processors.
Virtualization
Benefits of server virtualization include:
• Run more than one operating system at the same time on a single
machine.
• Increase server utilization rates to 70 percent or higher.
Green computing
Businesses can minimize their impact on the environment by adopting better practices
and technologies for designing, manufacturing, using, and disposing of computers,
servers, and other computing devices. Reducing power consumption in data server
centers is the leading practice in the green computing movement.
Multicore processors
Benefits of multi-core processors:
• Cost savings by reducing power requirements and hardware sprawl.
• Less costly to maintain as fewer systems need to be monitored.
• Performance and productivity benefits beyond the capabilities of today’s
5-4 What are the current trends in computer software platforms?
Define and describe open source software and Linux and explain their business
benefits.
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Open-source software provides all computer users with free access to the program
code so they can modify the code, fix errors in it, or to make improvements. Open-
Linux is the most well-known open-source software. It’s a UNIX-like operating
system that can be downloaded from the Internet, free of charge, or purchased for a
small fee from companies that provide additional tools for the software. It is reliable,
Thousands of open-source programs are available from hundreds of Web sites.
Businesses can choose from a range of open-source software including operating
Define Java and HTML5 and explain why they are important.
Java is used for building applications that run on the Web and HTML is used for
creating Web pages. Java is an operating system that is processor-independent. Its
object-oriented programming language has become the leading interactive
programming environment for the Web. Java enables users to manipulate data on
networked systems using Web browsers, reducing the need to write specialized
software.
Hypertext markup language (HTML) is a page description language for specifying
how text, graphics, video, and sound are placed on a Web page and for creating
dynamic links to other Web pages and objects. HTML programs can be custom
HTML5 makes it possible to embed images, audio, video, and other elements
directly into a document without processor-intensive add-ons. It also makes it easier
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Define and describe Web services and the role played by XML.
Web services offer a standardized alternative for dealing with integration across
various computer platforms. Web services are loosely coupled software components
based on XML and open Web standards that are not product specific and can work
with any application software and operating system. They can be used as components
Businesses use Web services to tie their Web sites with external Web sites creating an
apparently seamless experience for users. The benefit derives from not having to re-
create applications for each business partner or specific functions within a single
company.
XML provides a standard format for data exchange, enabling Web services to pass
data from one process to another. It performs presentation, communication, and
Name and describe the three external sources for software.
Software packages and enterprise software: Prewritten commercially available set
of software programs that eliminate the need for a firm to write its own software
Cloud-based software services and tools: A business that delivers and manages
applications and computer services from remote computer centers to multiple users
using the Internet or a private network. Instead of buying and installing software
programs, subscribing companies can rent the same functions from these services.
Outsourcing custom application development: An organization contracts its
custom software development or maintenance of existing legacy programs to outside
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firms, frequently firms that operate offshore in low-wage areas of the world An
Define and describe software mashups and apps.
Mashups are new software applications and services based on combining different
online software applications. Users create new software applications and services by
combining different online software applications into a new application. The idea is
to take different sources and produce a new work that is “greater than” the sum of its
parts. Web mashups combine the capabilities of two or more online applications to
create a kind of hybrid that provides more customer value than the original sources
alone.
5-5 What are the challenges of managing IT infrastructure and management
solutions?
Name and describe the management challenges posed by IT infrastructure.
Creating and maintaining a coherent IT infrastructure raises multiple challenges
including:
Dealing with platform and infrastructure change: As firms grow, they can quickly
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Management and governance: Involves who will control and manage the firm’s IT
infrastructure. Will the IT infrastructure be centrally controlled and managed or
divided among departments and divisions? How will infrastructure costs be allocated
among business units?
Making wise infrastructure investments: IT infrastructure is a major capital
investment for the firm. If too much is spent on infrastructure, it lies idle and
Coordinating infrastructure components: Firms create IT infrastructures by
choosing combinations of vendors, people, and technology services and fitting them
Explain how using a competitive forces model and calculating the TCO of
technology assets help firms make infrastructure investments.
The competitive forces model can be used to determine how much to spend on IT
infrastructure and where to make strategic infrastructure investments. What is the
market demand for the organization’s services? What is the organization’s business
strategy? What is the organization’s information technology (IT) strategy,
infrastructure, and costs? Has the organization performed an IT assessment? What
technology services do competitors offer to their customers, suppliers, and
employees? How much do the organization’s competitors spend on IT infrastructure?
The total cost of owning technology resources includes not only the original cost of
acquiring and installing hardware and software, but it also includes the ongoing
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Discussion Questions
5-6 Why is selecting computer hardware and software for the organization an
important management decision? What management, organization, and technology
issues should be considered when selecting computer hardware and software?
5-7 Should organizations use software service providers for all their software needs?
Why or why not? What management, organization, and technology factors should
be considered when making this decision?
5-8 What are the advantages and disadvantages of cloud computing?
Hands-On MIS Projects
Management Decision Problems
5-9 University of Pittsburgh Medical Center: Demand for additional servers and
storage technology was growing by 20 percent each year. UPMC was setting up a
separate server for every application; servers and other computers were running
different operating systems; it was using technologies from many different vendors.
This case provides an excellent example of how a business can inadvertently create a
quagmire with technology. UPMC should consider virtualization as a way to manage
its server situation. Virtualization would allow the organization to consolidate many
5-10 Quantas Airways: Needs to keep costs low while providing a high level of
customer service. Management had to decide whether to replace its 30-year-old IT
infrastructure with newer technology or outsource it. What factors should be
considered in the outsourcing decision? List and describe points that should be
addressed in an outsourcing service level agreement.
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Quantas should use the competitive forces model to help determine how much it
should spend on its IT infrastructure. Then it should determine its total cost of
ownership of technology assets. It should assess the costs and benefits of software-as-
a-service outsourcing, weighing all the management, organizational, and technology
issues, including the ability to integrate with existing systems and deliver a level of
Improving Decision Making: Using a Spreadsheet to Evaluate Hardware and
Software Options
Software skills: Spreadsheet formulas
Business skills: Technology pricing
5-11 This project requires students to use their Web research skills to obtain hardware
and software pricing information, and then use spreadsheet software to calculate costs
for various system configurations. Answers may vary, depending on when students
accessed the vendors’ Web sites to obtain pricing information. The sample solution
Improving Decision Making: Using Web Research to Budget for a Sales
Conference
Software skills: Internet-based software
Business skills: Researching transportation and lodging costs
5-12 The students will likely find hotels that interest them personally. The template
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Collaboration and Teamwork Project
5-12. In MyMISLab, you will find a Collaboration and Teamwork Project dealing
with the concepts in this chapter. You will be able to use Google Drive, Google Docs,
Google Sites, Google +, or other open source collaboration tools to complete the
assignment.
Case Study: The Pleasures and Pitfalls of BYOD
5-14 What are the advantages and disadvantages of allowing employees to use their
personal smartphones for work?
Advantages: Employees using their own smartphones would allow companies to
enjoy all of the same benefits of a mobile workforce without spending company funds
on the devices. Mobility experts can help a company leverage mobility more
effectively. Employees can be more productive and happier with a BYOD policy in
place.
Disadvantages: IT departments need to overcome several logistical hurdles before
allowing employees to use their own smartphones, including security, inventory
management, support, integrating mobile devices into pre-existing IT functions and
systems, and measuring return on investment. When employees are not able to access
critical data or encounter other problems with their mobile devices, they will need
5-15 What management, organization, and technology factors should be addressed
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when deciding whether to allow employees to use their personal smartphones for
work?
Management: When employees make changes to their personal phone, such as
Organization: A significant portion of corporate IT resources is dedicated to
managing and maintaining a large number of devices within an organization. In the
past, companies tried to limit business smartphone use to a single platform, making it
Technology: The most popular employer-issued smartphone was Research in
Motion’s BlackBerry, which is considered the most secure mobile platform available.
The mobile digital landscape is now much more complicated, with a variety of
5-16 Compare the BYOD experiences of IBM and Intel. Why did BYOD at Intel
work so well?
IBM: BYOD was not saving IBM any money and had actually created new
challenges for the IT department because employees’ devices are full of software
that IBM doesn’t control. The IT department had no grasp of which apps and
services employees were using. Employees were unaware of the security risks
Intel: The company tried to find ways to make BYOD work rather than find ways
to prevent it. It created an end-user service-level agreement that clarified that end
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blocks those that don’t meet its requirements. The company has an internal app
store and uses a variety of software and security tools to manage devices and
access. Intel’s goal for BYOD is not to save money but to make employees happier
5-17 Allowing employees to use their own smartphones for work will save the
company money. Do you agree? Why or why not?
Allowing employees to use their own smartphones won’t necessarily save money
when you consider the TCO and the extra efforts required on the part of the IT staff,
especially if the smartphone becomes a point of entry for malware. There are
significant concerns with securing company information accessed with mobile
devices.
By using virtualization, employees can access their entire desktop on their
smartphones and mobile handhelds and thus are able to use the same programs on the
5-18 What are the distinguishing characteristics of cloud computing and what are
the three types of cloud services?
Visit MyMISLab for suggested answers.
5-19 What is the total cost of ownership of technology assets and what are tis cost
components?
Visit MyMISLab for suggested answers.
For an example illustrating the concepts found in this chapter, view the
videos in mymislab.com.
