OMIS chapter 5

IT Infrastructure

The hardware, software, services, and people that support business technology.

Purpose of IT Infrastructure

Helps a business operate and provide services.

IT Infrastructure Includes

Hardware, software, services, consulting, and training.

IT Strategy

A plan for using technology to meet business goals.

Strategy and Infrastructure

Business goals help determine the technology a company needs.

IT Services

Technology services that support customers, suppliers, and employees.

Computing Platforms

Computers and servers used to run business systems.

Telecommunications Services

Connect people and devices using data, voice, and video.

Data Management Services

Store, organize, and analyze business data.

Application Software Services

Programs that help businesses perform tasks.

IT Management Services

Plan, budget, and coordinate technology.

IT Standards Services

Rules for choosing and using technology.

IT Education Services

Training employees to use technology.

IT Research and Development

Exploring new technology for future business needs.

5 Eras of Computing

Mainframe, PC, Client/Server, Enterprise, and Cloud/Mobile.

Mainframe Era

Large centralized computers shared by many users.

Personal Computer Era

Computers became available on individual desks.

Client/Server Era

Personal computers request information from shared servers.

Enterprise Computing Era

Networks and software connect the entire business.

Cloud and Mobile Era

Computing over the Internet using cloud services and mobile devices.

7 Components of IT Infrastructure

Hardware, operating systems, enterprise software, data, networking, Internet, and consulting.

Computer Hardware Platforms

Physical devices like computers, servers, and smartphones.

Operating System Platforms

Software that manages and controls a computer.

Enterprise Software Applications

Programs that connect and manage business activities.

Data Management and Storage

Systems that organize and store business information.

Networking and Telecommunications

Technology that connects computers and devices.

Internet Platforms

Technology that supports websites and Internet services.

Consulting and System Integration

Helping new technology work with existing systems.

Legacy System

An older system still used because replacing it is expensive.

Hardware Examples

Servers, laptops, smartphones, tablets, and chips.

Operating System Examples

Windows, Linux, macOS, Android, and iOS.

Enterprise Software Examples

SAP and Oracle.

Database Examples

Oracle, Microsoft SQL Server, and IBM Db2.

Mobile Platform

Portable technology like smartphones, tablets, and wearables.

Apps

Software programs used to perform specific tasks.

BYOD

Bring Your Own Device; using personal devices at work.

Consumerization of IT

Personal technology becoming part of business operations.

BYOD Risk

Personal devices can expose company information if lost.

Mobile Device Management (MDM)

Software that monitors, manages, and secures company mobile devices.

MDM Example

IT remotely locks a lost phone or erases company data.

Cloud Computing

Renting computing services over the Internet.

Main Benefit of Cloud Computing

Access computing resources without owning the equipment.

5 Characteristics of Cloud Computing

On-demand, network access, resource pooling, elasticity, and measured service.

On-Demand Self-Service

Users get computing resources whenever they need them.

Ubiquitous Network Access

Access cloud services from anywhere with Internet.

Resource Pooling

Multiple customers share the provider's computing resources.

Rapid Elasticity

Quickly increase or decrease computing resources.

Measured Service

Pay based on how much computing you use.

3 Types of Cloud Services

IaaS, PaaS, and SaaS.

IaaS (Infrastructure as a Service)

Rent servers, storage, and networking.

PaaS (Platform as a Service)

Rent tools to build and run applications.

SaaS (Software as a Service)

Use finished software through the Internet.

IaaS Examples

Amazon Web Services and Oracle Cloud Infrastructure.

PaaS Examples

Microsoft Azure App Service and Google App Engine.

SaaS Examples

Gmail, Microsoft 365, Salesforce, and QuickBooks Online.

IaaS vs. PaaS vs. SaaS

IaaS rents infrastructure; PaaS rents development tools; SaaS rents finished software.

Cloud Pizza Analogy

IaaS = kitchen; PaaS = kitchen plus ingredients; SaaS = delivered pizza.

Not Cloud Example

A company running its own servers in its basement.

Web Services

Technology that lets different business systems communicate.

Web Services Example

Southwest and Dollar Car Rental connecting reservation systems.

Why Businesses Use Web Services

Connect different systems without building separate links for every partner.

QRyde

A transportation management company using cloud computing and AI.

QRyde's Original Problem

Its old servers could not handle growing ride demand.

QRyde's Solution

Move to Oracle Cloud Infrastructure and use AI.

QRyde Cloud Benefits

Lower upfront costs, easier growth, and improved services.

Scalability

A system's ability to handle growth without breaking down.

Scalability Example

Cloud servers expanding when customer demand doubles.

AI Infrastructure

Special hardware and software needed to run artificial intelligence.

AI Hardware

Powerful processors, GPUs, fast storage, and high-speed networks.

GPU

A powerful processor used for demanding AI calculations.

AI Software

Machine-learning frameworks, models, and data platforms.

AI Computing Requirements

Depend on dataset size and the application's purpose.

Edge AI

Running AI directly on local devices instead of distant servers.

Edge AI Examples

Face unlock, smartwatches, security cameras, and self-driving cars.

Cloud AI

Running AI using computing resources in remote data centers.

Edge AI vs. Cloud AI

Edge runs locally; cloud runs in remote data centers.

Edge AI Example

Your phone recognizing your face without Internet.

Cloud AI Example

QRyde using cloud AI to optimize thousands of rides.

3 IT Management Challenges

Technology change, governance, and wise investments.

IT Governance

Deciding who controls technology and makes IT decisions.

Rent vs. Buy Decision

Choosing between renting cloud services and owning equipment.

Total Cost of Ownership (TCO)

The full cost of technology, including hidden expenses.

TCO Costs

Hardware, software, installation, training, support, maintenance, networks, downtime, space, and energy.

TCO Formula

Add all technology costs over the ownership period.

Hidden IT Costs

Training, maintenance, support, downtime, and energy.

Cloud vs. Owning Servers

Cloud means renting; owning means buying and maintaining equipment.

Cloud Financial Advantage

Lower upfront investment and flexible operating costs.

RideRight Base Case

Buying costs $370,000; renting cloud costs $339,000 over 3 years.

RideRight Base Case Savings

Cloud saves $31,000 over 3 years.

RideRight Demand Doubles

Buying costs $490,000; renting costs $411,000.

RideRight Increased Demand Savings

Cloud saves $79,000 when demand doubles.

When Might Buying Be Better?

Steady large workloads or strict data requirements.

Main Lesson of Chapter 5

Choose technology that supports business goals and controls total costs.