IT InfrastructureIT Infrastructure

MGMT 661, DannellyNight 2, Part 1Chapters 3 and 5

What is "IT Infrastructure"What is "IT Infrastructure"

•Computing Platforms

•Data and Voice Telecom Networks

•Application Software

•Physical Facilities

•IT Management

•IT Policies

•IT Education Services

IT's Impacts on ProductivityIT's Impacts on Productivity

•Easier for managers to oversee larger numbers of workers

• IT can substitute for some labor▫ Hardware is getting cheaper, while labor costs are

increasing

•Networks decrease transaction costs▫ easier to outsource▫ improved supply chain management

•Flatter OrganizationLaudon section 3.2

IT Flattens OrganizationsIT Flattens Organizations

Laudon Figure 3-8

Why?

IT for Competitive IT for Competitive AdvantageAdvantage•Product Differentiation

•Market Niche

•Customer Intimacy

•Core Competency Enhancement▫via Internal information sharing

•Easier to Create Synergies▫via External information sharing

Laudon Chapter 3

IT EcosystemIT Ecosystem

Figure 5-10

Standards

Microsoft Windows v. The World

http://blog.consumerpla.net/2011/05/os-market-share-april-2011.html

Evolution of ITEvolution of IT

•Mainframes•Minicomputers•PCs (microcomputers)

•PCs + Networks

En

terp

rise

Com

pu

tin

gLaudon section 5.1

Why the Evolution?

1. Moore's Law2. Declining Communication Costs3. Costs of Storage4. Standards

Storage Cost

1 GB in 1995 ($15,000) and 1GB Today

Future Infrastructure Future Infrastructure TrendsTrends Cloud Computing

Software as a Service = subscription to a cloud-based application

Server Virtualization

Autonomic Computing self repairing computers

more Grid Computing supercomputers on the cheap

Laudon section 5.3

ExerciseExercise•Management Decision Problem #1 on

Page 197 Univ of Pitt Med Center

▫Is there a problem with their infrastructure?

▫List factors to consider in deciding if a replacement is needed.