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  • 1. 6.1 © 2006 by Prentice Hall6ChapterIT Infrastructure andIT Infrastructure andPlatformsPlatforms
  • 2. 6.2 © 2006 by Prentice HallOBJECTIVES• Define IT infrastructure and describe thecomponents and levels of IT infrastructure• Identify and describe the stages of ITinfrastructure evolution• Identify and describe the technology drivers of ITinfrastructure evolutionManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
  • 3. 6.3 © 2006 by Prentice HallOBJECTIVES (Continued)Management Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Assess contemporary computer hardwareplatform trends• Assess contemporary software platform trends• Evaluate the challenges of managing ITinfrastructure and management solutions
  • 4. 6.4 © 2006 by Prentice Hall• Challenge: fragmented, high-cost ITinfrastructure slowed down market andcustomer response times• Solutions: integrated storage area network toenable the flow of information among differenttypes and brands of computer servers• Reduce number of servers from 107 to 70• Illustrates the importance of IT infrastructurefor achieving business objectivesManagement Information SystemsManagement Information SystemsChapter 6Chapter 6IT Infrastructure and PlatformsIT Infrastructure and PlatformsHong Kong’s New World Telecommunications Case
  • 5. 6.5 © 2006 by Prentice HallIT INFRASTRUCTUREDefining IT InfrastructureManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Includes hardware, software, and services• A set of physical devices and software applicationsthat are required to operate the entire enterprise• Your firm is largely dependent on its infrastructure fordelivering services to customers, employees, andsuppliers.• You can think of infrastructure as digital plumbing,but its much more than that!
  • 6. 6.6 © 2006 by Prentice HallIT INFRASTRUCTUREThe Connection between the Firm, IT Infrastructure, andBusiness CapabilitiesManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-1
  • 7. 6.7 © 2006 by Prentice HallIT INFRASTRUCTURELevels of IT InfrastructureLevels of IT InfrastructureManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsThree major levels of infrastructure:• Public• Enterprise• Business unit
  • 8. 6.8 © 2006 by Prentice HallIT INFRASTRUCTURELevels of IT InfrastructureManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-2
  • 9. 6.9 © 2006 by Prentice HallIT INFRASTRUCTUREManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Electronic accounting machine era: (1930–1950)• General-purpose mainframe and minicomputerera: (1959 to present)• Personal computer era: (1981 to present)• Client/server era: (1983 to present)• Enterprise internet computing era: (1992 topresent)Evolution of IT Infrastructure: 1950–2005
  • 10. 6.10 © 2006 by Prentice HallIT INFRASTRUCTUREEras in IT Infrastructure EvolutionManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-3
  • 11. 6.11 © 2006 by Prentice HallIT INFRASTRUCTUREA Multitiered Client/Server Network (N-tier)Management Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-4
  • 12. 6.12 © 2006 by Prentice HallIT INFRASTRUCTUREManagement Information SystemsManagement Information SystemsChapter 6Chapter 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 effectsTechnology Drivers of Infrastructure Evolution
  • 13. 6.13 © 2006 by Prentice HallIT INFRASTRUCTUREMoore’s Law and Microprocessor PerformanceManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-5
  • 14. 6.14 © 2006 by Prentice HallIT INFRASTRUCTUREFalling Cost of ChipsManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-6
  • 15. 6.15 © 2006 by Prentice HallIT INFRASTRUCTUREExamples of NanotubesManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-7
  • 16. 6.16 © 2006 by Prentice HallIT INFRASTRUCTUREThe Capacity of Hard Disk Drives Grows Exponentially,1980–2004Management Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-8Source: Authors.
  • 17. 6.17 © 2006 by Prentice HallIT INFRASTRUCTUREThe Cost of Storing Data Declines Exponentially,1950–2004Management Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-9Source: “Exponential Growth an Illusion?:Response to Ilkka Tuomi,” by Ray Kurzweil,KurzweilAl.net, September 23, 2003. Usedwith permission.
  • 18. 6.18 © 2006 by Prentice HallIT INFRASTRUCTUREExponential Declines in Internet Communications CostsManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-10Source: Authors.
  • 19. 6.19 © 2006 by Prentice Hall• Computer Hardware Platforms• Operating System Platforms• Enterprise Software Applications• Data Management and StorageManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsINFRASTRUCTURE COMPONENTSSeven Key Infrastructure Components
  • 20. 6.20 © 2006 by Prentice Hall• Networking/Telecommunications Platforms• Internet Platforms• Consulting and System Integration ServicesManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsINFRASTRUCTURE COMPONENTSSeven Key Infrastructure Components (Continued)
  • 21. 6.21 © 2006 by Prentice HallThe IT Infrastructure EcosystemManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsINFRASTRUCTURE COMPONENTSFigure 6-11
  • 22. 6.22 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsComputer Hardware PlatformsComputer Hardware Platforms• $110 billion annually spent in the United States• Dominance of Intel, AMD, and IBM 32-bitprocessor chips at the client level• Server market increasingly dominated byinexpensive generic processors from the samemanufacturersINFRASTRUCTURE COMPONENTS
  • 23. 6.23 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Strong server market growth for 64 bit genericprocessors from AMD, Intel and IBM• Blade servers replace box servers• Mainframes continue as a presence working asvery large serversINFRASTRUCTURE COMPONENTSComputer Hardware Platforms (Continued)
  • 24. 6.24 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsOperating System Platforms• $100 billion annually spent in the United States• Continued dominance of Microsoft OS in theclient (95%) and handheld market (45%)• Growing dominance of Linux (UNIX) in thecorporate server market (85%)• Windows 2002 and 2003 Server remains strong insmaller enterprises and workgroup networksINFRASTRUCTURE COMPONENTS
  • 25. 6.25 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsEnterprise Software Applications• $165 billion annually spent in the United Statesfor basic enterprise software infrastructure• SAP, Oracle, PeopleSoft (now Oracle), and Siebeldominate this market.• Middleware firms like BEA and JD Edwards servesmaller firms, and work also in the Web servicesspace.INFRASTRUCTURE COMPONENTS
  • 26. 6.26 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• The enterprise market is consolidating around afew huge firms that have gained significantmarket share such as SAP and Oracle.• Microsoft is expanding into smaller firmenterprise systems where it can build on itsWindows server-installed base.INFRASTRUCTURE COMPONENTSEnterprise Software Applications(Continued)
  • 27. 6.27 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsData Management and Storage• $70 billion annually spent in the United States.• Oracle and IBM continue to dominate thedatabase software market.• Microsoft (SQL Server) and Sybase tend to servesmaller firms.• Open source Linux MySQL now supported by HPand most consulting firms as an inexpensive,powerful database used mostly in small to mid-size firms.INFRASTRUCTURE COMPONENTS
  • 28. 6.28 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• $35 billion annually spent in the United States forphysical hard disk storage• The hard disk market is consolidating around afew huge firms like EMC and smaller PC hard diskfirms like Seagate, Maxtor, and Western DigitalINFRASTRUCTURE COMPONENTSData Management and Storage (Continued)
  • 29. 6.29 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsNetworking/Telecommunications Platforms• $150 billion annually spent on networking andtelecommunications hardware• $700 billion annually spent on telecommunicationsservices, e.g. phone and Internet connectivity• Local area networking still dominated byMicrosoft Server (about 75%) but strong growthof Linux challenges this dominanceINFRASTRUCTURE COMPONENTS
  • 30. 6.30 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Enterprise networking almost entirely Linux orUNIX• Cisco, Lucent, Nortel, and Juniper Networkscontinue to dominate networking hardware.• The telecommunications services market ishighly dynamic with MCI, AT&T, and Sprintproviding most trunk line services for both phoneand Internet.• Growth of non-telephone Wi-Fi and Wi-Maxservices, and Internet telephonyINFRASTRUCTURE COMPONENTSNetworking/Telecommunications Platform (Continued)
  • 31. 6.31 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsInternet Platforms• $32 billion annually spent on Internetinfrastructure in the United States• Internet hardware server market concentrated inDell, HP, and IBM• Prices falling rapidly by up to 50% in a single yearfor low-power serversINFRASTRUCTURE COMPONENTS
  • 32. 6.32 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Open-source Apache remains the dominant Webserver software, followed by Microsoft’s IISserver.• Sun’s Java grows as the most widely used toolfor interactive Web applications.• Microsoft and Sun settle a long-standing law suitand agree to support a common Java.INFRASTRUCTURE COMPONENTSInternet Platforms (Continued)
  • 33. 6.33 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsConsulting and System Integration Services• Most firms today, even large firms, cannotdevelop their systems without significant outsidehelp.• $130 billion annually spent on computer systemdesign, and related business services likebusiness process redesign in the United States• About 85% of business consulting in the UnitedStates involves IT business consulting.INFRASTRUCTURE COMPONENTS
  • 34. 6.34 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Integration services involves integrating data,and applications in a firm.• Connecting new applications and systems tolegacy systems• IBM has transformed itself into a systemsintegration firm with IBM Global Services, thelargest system integration firm.INFRASTRUCTURE COMPONENTSConsulting and System Integration Services (Continued)
  • 35. 6.35 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsThe Integration of Computing and TelecommunicationsPlatforms• Increasingly computing takes place over thenetwork.• Client level: integration of cell phones and PDAs(Example: Palm Treo)• Television, video, and radio move toward digitalproduction.CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 36. 6.36 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Server level: The integration of voice telephoneand the Internet bring together two historicallyseparate and distinct global networks.• The network in many respects is the source ofcomputing power.CONTEMPORARY HARDWARE PLATFORM TRENDSThe Integration of Computing and TelecommunicationsPlatforms (Continued)
  • 37. 6.37 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsGrid Computing:• Involves connecting geographically remotecomputers into a single network capable ofworking in parallel on business problems thatrequire short-term access to large computationalcapacity• Rather than purchase huge mainframes or supercomputers, firms can chain together thousandsof smaller desktop clients into a singlecomputing grid.CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 38. 6.38 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Most computers in the world are loafing, and atnight they are sleeping.• It is estimated that from 25% - 50% of thecomputing power in the United States is unused.• Grid computing saves infrastructure spending,increases speed of computing, and increases theagility of firms.• Examples: Royal Dutch/Shell Group and theNational Digital Mammography ArchiveCONTEMPORARY HARDWARE PLATFORM TRENDSGrid Computing (Continued)
  • 39. 6.39 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsOn-Demand (Utility) Computing:• Firms off-loading peak demand for computingpower to remote, large-scale data processingcenters• Developed by IBM, SUN, and HP• Firms pay only for the computing power they use,as with an electrical utility.CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 40. 6.40 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Excellent for firms with spiked demand curvescaused by seasonal variations in consumerdemand, e.g. holiday shopping• Example: Harry and David use IBM’s On-Demandcomputing• Saves firms from purchasing excessive levels ofinfrastructureCONTEMPORARY HARDWARE PLATFORM TRENDSOn-Demand (Utility) Computing: (Continued)
  • 41. 6.41 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsAutonomic Computing:• Computer systems (both hardware and software)have become so complex that the cost ofmanaging them has risen.• Thirty to fifty percent of a company’s IT budget isspent preventing or recovering from systemcrashes.• Operator error is the most common cause ofcrashes.CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 42. 6.42 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsAutonomic computing is an industry-wide effortto develop systems that can:• Configure, optimize, and tune themselves• Heal themselves when broken• Protect themselves from outside intruders andself-destruction• Example: Windows XP and Max X OSautomatically download patches and updates.CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 43. 6.43 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsEdge Computing:• Edge computing is a multitier, load-balancingscheme for Web-based applications.• Processing load is distributed closer to the userand handled by lower-cost servers.• Lowers cost of hardwareCONTEMPORARY HARDWARE PLATFORM TRENDS
  • 44. 6.44 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Increases service levels• Provides firm greater flexibility in responding toservice requests• Seasonal spikes in demand can be off-loaded toother edge servers.CONTEMPORARY HARDWARE PLATFORM TRENDSEdge Computing: (Continued)
  • 45. 6.45 © 2006 by Prentice HallEdge Computing PlatformManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-12CONTEMPORARY HARDWARE PLATFORM TRENDS
  • 46. 6.46 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsThe four major themes in contemporary softwareplatform evolution:• Linux and open-source software• Java• Web services and service-oriented architecture• Software outsourcingCONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 47. 6.47 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsThe Rise of Linux and Open-Source Software• Open-source software is free and can be modifiedby users.• Developed and maintained by a worldwidenetwork of programmers and designers under themanagement of user communitiesCONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 48. 6.48 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Linux is the most widely used open-sourcesoftware program. Linux is an operating systemderived from Unix.• Mozilla Firefox browser and Thunderbird mailclients are the most widely used open-sourceapplications. Others include MySQL.• IBM, HP, Intel, Dell, and Sun have adopted andsupport Linux. Linux is a major alternative toWindows server and even client operating systems.CONTEMPORARY SOFTWARE PLATFORM TRENDSThe Rise of Linux and Open-Source Software(Continued)
  • 49. 6.49 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsJava:• An operating system—Independent, processor-independent, object-oriented programminglanguage• Applications written in Java can run on anyhardware for which a Java virtual machine hasbeen defined.• Java is embedded in PDAs, cell phones, andbrowsers.• Java is a leading interactive programmingenvironment for the Web.CONTEMPORARY SOFTWARE PLATFORM TRENDSJava Is Everywhere
  • 50. 6.50 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsSoftware for Enterprise Integration:• One of the most important software trends of thelast decade is the growth of “enterprise in a box”or the purchase of enterprise-wide softwaresystems by firms.• Rather than build all their own software on acustom basis, large firms increasingly purchaseenterprise applications prewritten by specializedsoftware firms like SAP, Oracle, PeopleSoft, andothers.CONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 51. 6.51 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• The goal is to achieve an integrated firm-wideinformation environment, reduce cost, increasereliability, and to adopt business best practiceswhich are captured by the software.• Enterprise software firms achieve economies of scaleby selling the same software to hundreds of firms.• Todays enterprise systems are capable ofintegrating older legacy applications with newerWeb-based applications.CONTEMPORARY SOFTWARE PLATFORM TRENDSSoftware for Enterprise Integration: (Continued)
  • 52. 6.52 © 2006 by Prentice HallEnterprise Application Integration (EAI) Software VersusTraditional IntegrationManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-13CONTEMPORARY SOFTWARE PLATFORM TRENDSEAI software (a) creates a common platform through which all applications can freely communicate with each other. EAIrequires much less programming than traditional point-to-point integration (b).
  • 53. 6.53 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsWeb Services and Service-Oriented ArchitectureWeb Services and Service-Oriented ArchitectureWeb Services:• An alternative to enterprise systems is to use newWeb-based standards to create a communicationplatform allowing older applications tocommunicate with newer applications.• Web services refers to a set of loosely coupledsoftware components that exchange informationwith each other using Web communicationstandards and languages.CONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 54. 6.54 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Web services permit computer programs tocommunicate with one another and shareinformation without rewriting applications, ordisturbing older legacy systems.• Web services are based on XML, and standardslike SOAP, WSDL, and UDDI to create thiscommunication environment.CONTEMPORARY SOFTWARE PLATFORM TRENDSWeb Services and Service-Oriented ArchitectureWeb Services and Service-Oriented Architecture(Continued)(Continued)
  • 55. 6.55 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsService-Oriented Architecture• SOA refers to the use of Web services in a firm toachieve integration among disparate applicationsand platforms.• A firm might have applications (payroll) runningon older AS400 IBM machines, IBM mainframes(customer data and inventory) and newerapplications running on client/server networks.CONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 56. 6.56 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• In SOA, these applications are integrated so thatinformation stored on various systems can bebrought together and fed into newer applicationsrunning on more contemporary equipment.• SOA is generally less expensive than rebuildingall the older applications and adopting a newenterprise wide system.CONTEMPORARY SOFTWARE PLATFORM TRENDSService-Oriented Architecture (Continued)
  • 57. 6.57 © 2006 by Prentice HallHow Dollar Rent a Car Uses Web ServicesManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-14CONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 58. 6.58 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsSoftware OutsourcingSoftware Outsourcing• Today large and small firms purchase most oftheir software from outside vendors.Three kinds of outsourcing:• Purchase of software packages• Using application service providers• Custom outsourcingCONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 59. 6.59 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsApplication Service Providers:• A business that delivers and managesapplications and computer services from remotecomputer centers to multiple users using theInternet or a private networkEnterprise software packages: prewritten off-the-shelfsoftwareCONTEMPORARY SOFTWARE PLATFORM TRENDSPurchase of Software Packages and Enterprise Software
  • 60. 6.60 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsApplication Service Providers:• Rather than purchase hardware and software, firms cango onto the Internet and find providers who offer thesame functionality over the entertainment, and chargeon a per-user or license basis.• Example: Salesforce.com provides customerrelationship management and sales force managementservices to firmsCONTEMPORARY SOFTWARE PLATFORM TRENDSPurchase of Software Packages and Enterprise Software(Continued)
  • 61. 6.61 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsSoftware Outsourcing of Custom Applications• A firm contracts custom software development ormaintenance of existing legacy programs tooutside firms, often in low-wage countries.• Example: Dow Chemical hired IBM for $1.1 billionto create an integrated communication system for50,000 Dow employees in 63 countries.• Why would Dow not build this system itself?CONTEMPORARY SOFTWARE PLATFORM TRENDS
  • 62. 6.62 © 2006 by Prentice HallChanging Sources of Firm SoftwareManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsFigure 6-15CONTEMPORARY SOFTWARE PLATFORM TRENDSSources: BEA National Income and ProductAccounts, Forrester Research, December 2003;eMarketer Inc., “IT Spending 2004,”www.emarketer.com; and author estimates.
  • 63. 6.63 © 2006 by Prentice HallMANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONSManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsManagement Opportunities:Because of changes in hardware and softwareplatforms, firms face significant new opportunities toobtain hardware and software capabilitiesthat are more reliable, less costly, and more flexiblethan in the past.
  • 64. 6.64 © 2006 by Prentice HallMANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONSManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsManagement Challenges:• Making wise infrastructure investments• Choosing and coordinating infrastructurecomponents• Dealing with infrastructure change• Management and governance
  • 65. 6.65 © 2006 by Prentice HallMANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONSManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsSolution Guidelines:• Consider your strategic situation• Start out small, develop one module at a time• Consider the total cost of ownershipFigure 6-16, “Competitive Forces Model for ITinfrastructure” illustrates six strategic factors youshould consider when making infrastructure decisions
  • 66. 6.66 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsCompetitive Forces Model for IT InfrastructureFigure 6-16MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
  • 67. 6.67 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms• Experiment with new technologies on a smaller scalebefore taking up a large-scale infrastructure project.MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONSStarting out small:
  • 68. 6.68 © 2006 by Prentice HallManagement Information SystemsManagement Information SystemsChapter 6Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and PlatformsTotal cost of ownership of technology assets:When calculating the costs of systems, be sure toinclude all the costs:• Hardware acquisition• Software acquisition• Installation• Training• Support• Maintenance• Infrastructure requirements• Downtime• Space and energyMANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS