Hardware and Software

IT Infastructure

provides foundation for all information systems

IT is a subset of info systems

• hardware

• software

• data management technology

• people (networking)

• processes (telecommunications tech)

• $6T

Technology Drivers (5)

1. Infrastructure Evolution

2. Law of Mass Digital Storage

3. Metcalfe’s Law + Network Economics

4. Declining Communication Costs and Internet

5. Development of Technology Standards

Infrastructure Evolution (TD 1/5)

1. Moore’s Law and microprocessing power - transistors

   1. Computing power doubles every 18 months (exponential increases)

      1. Nanotechnology: shrinks size of transistors to size comparable to size of virus

Law of Mass Digital Storage (TD 2/5)

amount of data stored each year 2x

• the world produces 5 exabytes (10^18) of unique info each year

Metcalfe’s law and network economics (TD 3/5)

value/power of a network grows upwards as a function of the # of network members

• as network members inc, MORE ppl want to use it (demand for network access inc)

• sources of network economics: net effects, net externalities

Declining communication costs and Internet (TD 4/5)

DIGITAL DIVIDE - 5.35B people have Internet access

• as costs to communicate decrease, usage of communication/computing facilities increases

• certain countries benefit most from declining communication costs

• ZARA

Development of technology standards

specifications that establish compatibility of products/ability to communicate in a network

• “System A will be able to talk to System B”

How do info systems collect + process data?

1. Batch processing

   1. transactions stored for predefined amount of time, then processed as group

2. Online processing

   1. transactions processed immediately

CHT Contemporary Hardware Trends (5)

1. Grid computing

2. Cloud computing

3. Autonomic computing

4. Mobile digital platform

5. Virtualization

Mobile Digital Platform (CHT 4/5)

handheld hardware - cell phones, tablet computers

• nanotechnology

  • computer chips/other smaller devices through manipulating individual atoms/molecules

grid computing (CHT 1/5)

connects geographically remote computers into a single network to combine processing power and create virtual supercomputer

• BENEFITS: cost savings, speed, agility

Virtualization (CHT 5/5)

virtualize = consolidate servers

• a single physical resource acts as multiple resources

• reduces hardware and power expenses

hardware centralization

cloud computing (CHT 2/5)

firms/individuals obtain computing resources over the Internet

• IAAS

• SAAS

• fastest growing segment

autonomic computing (CHT 3/5)

systems that can configure and heal themselves

• ex) self-updating antivirus software

software trends (2)

open source software

• linux, apache

cloud computing

• google apps, office web apps, amazon ec

how should IT dept be organized?

1. centralized

2. decentralized - business unit IT dept makes decisions

operating system

main set of controls for managing computer hardware

• easier for users to interact with computers

• easier for programmers to write application software

application software

performs the work that users and firms are directly interested in accomplishing

• more application software available for a platform, the more valuable it becomes

  • ex) radio, GPS, air conditioning inside of a car

application software categories

1. Desktop software

   1. apps installed on a personal computer

   2. word processors, web browsers, spreadsheets, presentation software

2. Enterprise software

   1. apps that address needs of various users in an organization

      1. inventory, record sales, payments to suppliers, employee paychecks

      2. ERP, CRM, SCM, BI systems

systems software

1. operating systems

2. language translators

3. utilities software

Open Source Software (OSS)

• anyone can modify the code

• free

vs conventional software firms - their data is a secret

• major source of income for OSS developers is through selling support and consulting services

scalability of a software product

ability to be easily expanded to manage workload increases

why do firms prefer to use OSS over conventional software

1. cost - free vs paid

2. reliability - more eyes = more errors spotted; research shows popular OSS products is better than proprietary commercial competitors

3. security - “many eyes” = faster corrections of security vulnerabilities

4. scalability - can operate on cheap and expensive hardware

5. agility + time to market - vendors who use OSS can skip segments of the software development process, new products reach the market faster vs in house development

SaaS

software that is made available by a third party online

• aka ASP (application service provider) and HSV (hosted software vendor)

• firms with SaaS never actually buy software/hardware, so they become variable operating expenses

• flexibility helps to mitigate financial risks associated with making large capital investments

SaaS benefits

1. centralized development > diff versions for diff operating systems

2. instantly deploying bug fixes and product enhancements

3. lowers distribution costs

4. accessible to anyone w Internet

5. reduce software piracy

SaaS risks

1. dependent on a single vendor

2. concern over LR viability of partner firms

3. reliance on network connection (slower, less stable + secure)

4. dada stored off-site

PaaS

supply applications created using programming languages; tools supported by the provider

• You bring your code, the provider handles everything under it

IaaS

consumer supplies processing, storage, networks, and other resources

consumer can deploy and run arbitrary software (ie. operating systems and applications)

• you get a server, you install the operating system and all software