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6.1 © 2006 by Prentice Hall 7 Chapter IT Infrastructure Evolution.
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Transcript of 6.1 © 2006 by Prentice Hall 7 Chapter IT Infrastructure Evolution.
6.1 © 2006 by Prentice Hall
7Chapter
IT Infrastructure IT Infrastructure EvolutionEvolution
IT Infrastructure IT Infrastructure EvolutionEvolution
6.2 © 2006 by Prentice Hall
OBJECTIVES
• Define IT infrastructure and describe the components and levels of IT infrastructure
• Identify and describe the stages of IT infrastructure evolution
• Identify and describe the technology drivers of IT infrastructure evolution
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.3 © 2006 by Prentice Hall
OBJECTIVES (Continued)
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Assess contemporary computer hardware platform trends
• Assess contemporary software platform trends
6.4 © 2006 by Prentice Hall
IT INFRASTRUCTURE
The Connection between the Firm, IT Infrastructure, and Business Capabilities
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.5 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Levels of IT InfrastructureLevels of IT Infrastructure
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Three major levels of infrastructure:
• Public• Entails public infrastructure such as
internet, national back bones e.g. Uganda’s NBI
• Enterprise• Enterprise wide infrastructure
• Business unit
6.6 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Levels of IT Infrastructure
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.7 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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)
Evolution of IT Infrastructure: 1950–2005
6.8 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Eras in IT Infrastructure Evolution
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.9 © 2006 by Prentice Hall
IT INFRASTRUCTURE
A Multitiered Client/Server Network (N-tier)
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.10 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Moore’s law and microprocessing power • Moore's law is the observation that, over the
history of computing hardware, the number of transistors on integrated circuits doubles approximately every two years
• The law of mass digital storage• The amount of digital information is roughly
doubling every year: the amount of digital information is roughly doubling every year and the cost of information storage is approximately halving
Technology Drivers of Infrastructure Evolution
6.11 © 2006 by Prentice Hall
• Metcalfe’s law and network economics• A network’s value to participants grows exponentially as the network
takes on more members. As the number of members in a network grows linearly, the value of the entire system grows exponentially and theoretically continues to grow forever as members increase.
• Declining communications costs and the Internet• Rapid decline in costs of communication and the exponential growth in
the size of the Internet is a driving force that affects the IT infrastructure. As communication costs fall toward a very small number and approach zero, utilization of communication and computing facilities explodes.
• Standards and network effects• Growing agreement in the technology industry to use computing and
communication standards. Technology standards unleash powerful economies of scale and result in price declines as manufacturers focus on the products built to a single standard. Without economies of scale, computing of any sort would be far more expensive than is currently the case.
6.12 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Moore’s Law and Microprocessor Performance
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.13 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Falling Cost of Chips
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
6.14 © 2006 by Prentice Hall
IT INFRASTRUCTURE
The Capacity of Hard Disk Drives Grows Exponentially, 1980–2004
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Source: Authors.
6.15 © 2006 by Prentice Hall
IT INFRASTRUCTURE
Exponential Declines in Internet Communications Costs
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Source: Authors.
6.16 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Computer Hardware Platforms Computer Hardware Platforms
• $110 billion annually spent in the United States
• Dominance of Intel, AMD, and IBM 32-bit processor chips at the client level
• Server market increasingly dominated by inexpensive generic processors from the same manufacturers
INFRASTRUCTURE COMPONENTS
6.17 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Strong server market growth for 64 bit generic processors from AMD, Intel and IBM
• Blade servers replace box servers
• Mainframes continue as a presence working as very large servers
INFRASTRUCTURE COMPONENTS
Computer Hardware Platforms (Continued)
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Operating System Platforms
• $100 billion annually spent in the United States
• Continued dominance of Microsoft OS in the client (95%) and handheld market (45%)
• Growing dominance of Linux (UNIX) in the corporate server market (85%)
• Windows 2002 and 2003 Server remains strong in smaller enterprises and workgroup networks
INFRASTRUCTURE COMPONENTS
6.19 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Enterprise Software Applications
• $165 billion annually spent in the United States for basic enterprise software infrastructure
• SAP, Oracle, PeopleSoft (now Oracle), and Siebel dominate this market.
• Middleware firms like BEA and JD Edwards serve smaller firms, and work also in the Web services space.
INFRASTRUCTURE COMPONENTS
6.20 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• The enterprise market is consolidating around a few huge firms that have gained significant market share such as SAP and Oracle.
• Microsoft is expanding into smaller firm enterprise systems where it can build on its Windows server-installed base.
INFRASTRUCTURE COMPONENTS
Enterprise Software Applications (Continued)
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Data Management and Storage
• $70 billion annually spent in the United States.
• Oracle and IBM continue to dominate the database software market.
• Microsoft (SQL Server) and Sybase tend to serve smaller firms.
• Open source Linux MySQL now supported by HP and most consulting firms as an inexpensive, powerful database used mostly in small to mid-size firms.
INFRASTRUCTURE COMPONENTS
6.22 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• $35 billion annually spent in the United States for physical hard disk storage
• 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
INFRASTRUCTURE COMPONENTS
Data Management and Storage (Continued)
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Networking/Telecommunications Platforms
• $150 billion annually spent on networking and telecommunications hardware
• $700 billion annually spent on telecommunications services, e.g. phone and Internet connectivity
• Local area networking still dominated by Microsoft Server (about 75%) but strong growth of Linux challenges this dominance
INFRASTRUCTURE COMPONENTS
6.24 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Internet Platforms
• $32 billion annually spent on Internet infrastructure in the United States
• Internet hardware server market concentrated in Dell, HP, and IBM
• Prices falling rapidly by up to 50% in a single year for low-power servers
INFRASTRUCTURE COMPONENTS
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Open-source Apache remains the dominant Web server software, followed by Microsoft’s IIS server.
• Sun’s Java grows as the most widely used tool for interactive Web applications.
• Microsoft and Sun settle a long-standing law suit and agree to support a common Java.
INFRASTRUCTURE COMPONENTS
Internet Platforms (Continued)
6.26 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
The four major themes in contemporary software platform evolution:
• Linux and open-source software
• Java
• Web services and service-oriented architecture
• Software outsourcing
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
The Rise of Linux and Open-Source Software
• 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
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Java: • An operating system—Independent, processor-
independent, object-oriented programming language
• Applications written in Java can run on any hardware for which a Java virtual machine has been defined.
• Java is embedded in PDAs, cell phones, and browsers.
• Java is a leading interactive programming environment for the Web.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Java Is Everywhere
6.29 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Software for Enterprise Integration:
• One of the most important software trends of the last decade is the growth of “enterprise in a box” or the purchase of enterprise-wide software systems by firms.
• Rather than build all their own software on a custom basis, large firms increasingly purchase enterprise applications prewritten by specialized software firms like SAP, Oracle, PeopleSoft, and others.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• 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.
• Today's enterprise systems are capable of integrating older legacy applications with newer
Web-based applications.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Software for Enterprise Integration: (Continued)
6.31 © 2006 by Prentice Hall
Enterprise Application Integration (EAI) Software Versus Traditional Integration
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
CONTEMPORARY SOFTWARE PLATFORM TRENDS
EAI software (a) creates a common platform through which all applications can freely communicate with each other. EAI requires much less programming than traditional point-to-point integration (b).
6.32 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Web Services and Service-Oriented ArchitectureWeb Services and Service-Oriented Architecture
Web Services:
• An alternative to enterprise systems 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.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
• Web services permit computer programs to communicate with one another and share information without rewriting applications, or disturbing older legacy systems.
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Web Services and Service-Oriented Architecture Web Services and Service-Oriented Architecture (Continued)(Continued)
6.34 © 2006 by Prentice Hall
How Dollar Rent a Car Uses Web Services
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.35 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Software OutsourcingSoftware Outsourcing
• Today large and small firms purchase most of their software from outside vendors.
Three kinds of outsourcing:
• Purchase of software packages
• Using application service providers
• Custom outsourcing
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.36 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Application Service 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
Enterprise software packages: prewritten off-the-shelf software
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Purchase of Software Packages and Enterprise Software
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Application Service Providers:
• Rather than purchase hardware and software, firms can
go onto the Internet and find providers who offer the
same functionality over the entertainment, and charge
on a per-user or license basis.
• Example: Salesforce.com provides customer
relationship management and sales force management
services to firms
CONTEMPORARY SOFTWARE PLATFORM TRENDS
Purchase of Software Packages and Enterprise Software (Continued)
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Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Software Outsourcing of Custom Applications
• 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?
CONTEMPORARY SOFTWARE PLATFORM TRENDS
6.39 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Mobile platform:
Mobile platform: more and more business computing is moving from PCs and desktop machines to mobile devices like cell phones and smartphones. Data transmissions, Web surfing, e-mail and instant messaging, digital content displays, and data exchanges with internal corporate systems are all available through a mobile digital platform. Netbooks, small low-cost lightweight subnotebooks that are optimized for wireless communication and Internet access, are included.
CONTEMPORARY INFRASTRUCTURE TRENDS
6.40 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 6 Chapter 6 IT Infrastructure and PlatformsIT Infrastructure and Platforms
Grid and Cloud Computing
Grid computing: connects geographically remote computers into a single network to create a “virtual supercomputer” by combining the computational power of all computers on the grid. Cloud computing: a model of computing where firms and individuals obtain computing power and software applications over the Internet, rather than purchasing their own hardware and software. Data are stored on powerful servers in massive data centers, and can be accessed by anyone with an Internet connection and standard Web browser.
CONTEMPORARY INFRASTRUCTURE TRENDS