C2

IT Infrastructure and Emerging Technologies

Defining IT Infrastructure

  • IT infrastructure is the set of physical devices and software required to operate an enterprise.

  • It includes firm-wide services such as:

    • Computing platforms providing computing services.

    • Physical facilities management services.

    • IT management, education, and other services.

  • A "service platform" perspective provides a more accurate view of the value of IT investments.

Connection Between Firm, IT Infrastructure, and Business Capabilities

  • IT infrastructure and strategy should align with the business strategy to deliver IT services that support customer, supplier, and enterprise services.

  • (Figure 5.1) illustrates the connection between the firm, IT infrastructure, and business capabilities.

Evolution of IT Infrastructure

  • General-purpose mainframe and minicomputer era: 1959 to present

  • Personal computer era: 1981 to present

  • Client/server era: 1983 to present

  • Enterprise computing era: 1992 to present

  • Cloud and mobile computing: 2000 to present

Stages in IT Infrastructure Evolution

  • (Figure 5.2) illustrates the stages in IT infrastructure evolution, beginning with the mainframe/minicomputer era and progressing through personal computers, client/server architecture, enterprise computing, and cloud computing.

Multi-tiered (N-Tier) Client/Server Network

  • (Figure 5.3) depicts a multi-tiered client/server network with clients accessing web servers, which in turn interact with application servers and data.

Technology Drivers of Infrastructure Evolution

  • Moore’s Law and Microprocessing Power

    • Computing power doubles approximately every 2 years.

    • Nanotechnology is emerging.

  • Law of Mass Digital Storage

    • The amount of data being stored each year doubles.

  • Metcalfe’s Law and Network Economics

    • The value or power of a network grows exponentially as a function of the number of network members.

  • Declining Communication Costs and the Internet

    • There has been exponential growth in the size of the Internet.

  • Standards and Network Effects

    • Technology standards establish the compatibility of products and the ability to communicate in a network.

    • Standards unleash powerful economies of scale and result in price declines.

Moore's Law

  • (Figure 5.4) illustrates Moore's Law, showing the exponential increase in microprocessor performance over time.

Nanotubes

  • (Figure) shows Nanotubes.

Data Storage

  • (Figure 5.6) shows The Amount of Storage Per Dollar Rises Exponentially, 1950–2016

Internet Communication Costs

  • (Figure 5.7) shows Exponential Declines in Internet Communications Costs

Components of IT Infrastructure

  1. Computer hardware platforms

  2. Operating system platforms

  3. Enterprise software applications

  4. Data management and storage

  5. Networking/telecommunications platforms

  6. Internet platforms

  7. Consulting system integration services

IT Infrastructure Ecosystem

  • (Figure 5.8) depicts the IT infrastructure ecosystem, including computer hardware platforms, operating systems, enterprise software applications, data management and storage, networking/telecommunications, internet platforms, and consultants/system integrators.

Computer Hardware Platforms

  • Client machines: Desktop PCs, laptops

    • Mobile computing: smartphones, tablets

    • Desktop chips vs. mobile chips

  • Mainframes

    • IBM mainframe

    • Digital workhorse for banking and telecommunications networks

Operating System Platforms

  • Corporate servers

    • Windows Server

    • Unix

    • Linux

  • Client level

    • Microsoft Windows

    • Android, iOS, Windows 10 (mobile/multitouch)

    • Google’s Chrome OS (cloud computing)

Enterprise Software Applications

  • In 2016, firms spent 321 billion on software for enterprise applications.

  • Largest providers: SAP and Oracle

  • Middleware providers: IBM, Oracle

Data Management and Storage

  • Database software providers

    • IBM (DB2)

    • Oracle

    • Microsoft (SQL Server)

    • Sybase (Adaptive Server Enterprise)

    • MySQL

    • Apache Hadoop

  • Physical data storage for large-scale systems

    • EMC Corporation

Networking/Telecommunications Platforms

  • Network operating systems

    • Windows Server, Linux, Unix

  • Network hardware providers

    • Cisco, Juniper Networks

  • Telecommunication services

    • Telecommunications, cable, telephone company charges for voice lines and Internet access

    • AT&T, Verizon

Internet Platforms

  • Hardware, software, management services to support company websites, intranets

    • Web-hosting services

    • Routers

    • Cabling or wireless equipment

  • Internet hardware server market

    • IBM, Dell, Oracle, HP

  • Web development tools/suites

    • Microsoft (Visual Studio and .NET), Oracle-Sun (Java), Adobe

Consulting and System Integration Services

  • Even large firms do not have resources for the full range of support for new, complex infrastructure.

  • Leading consulting firms: Accenture, IBM Global Services, HP, Infosys, Wipro Technologies

  • Software integration: ensuring new infrastructure works with legacy systems

  • Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign

Current Trends in Computer Hardware Platforms

  • The mobile digital platform

    • Smartphones

    • Netbooks

    • Tablet computers

    • Digital e-book readers (Kindle)

    • Wearable devices

  • Consumerization of IT and BYOD (bring your own device)

    • Forces businesses and IT departments to rethink how IT equipment and services are acquired and managed

  • Quantum computing

    • Uses quantum physics to represent and operate on data

    • Dramatic increases in computing speed

  • Virtualization

    • Allows a single physical resource to act as multiple resources (i.e., run multiple instances of OS)

    • Reduces hardware and power expenditures

    • Facilitates hardware centralization

    • Software-defined storage (SDS)

  • Cloud computing

    • On-demand computing services obtained over network

      • Infrastructure as a service (IaaS)

      • Software as a service (SaaS)

      • Platform as a service (PaaS)

    • Cloud can be public or private

    • Allows companies to minimize IT investments

    • Drawbacks: Concerns of security, reliability

    • Hybrid cloud computing model

Cloud Computing Platform

  • (Figure 5.9) illustrates a cloud computing platform with various services, including platform services, application services, and infrastructure services.

Amazon Web Services

  • (Figure 5.10) shows Amazon Web Services, including computing, analytics, networking, application services, content delivery, management, deployment, database, and data storage.

Current Trends in Computer Software Platforms

  • Linux and open-source software

    • Produced by a community of programmers

    • Examples: Apache web server, Mozilla Firefox browser, OpenOffice

    • Linux

  • Software for the web: Java, HTML, and HTML5

    • Java Virtual Machine

    • Web browsers

    • HTML and HTML5

    • Ruby and Python

  • Web services and service-oriented architecture

    • Web services

    • XML: Extensible Markup Language

    • SOA: service-oriented architecture

      • Set of self-contained services that communicate with one another to create a working software application

      • Software developers reuse these services in other combinations to assemble other applications as needed

Web Services Example

  • (Figure 5.11) illustrates how Dollar Rent A Car uses web services to integrate with tour operators, airlines, travel reservation systems, and other business partners.

Software Outsourcing and Cloud Services

  • Software packages and enterprise software

  • Software outsourcing

  • Cloud-based software services and tools

    • Service Level Agreements (SLAs): formal agreement with service providers

  • Mashups and apps

Dealing with Platform and Infrastructure Change

  • As firms shrink or grow, IT needs to be flexible and scalable.

  • Scalability

    • Ability to expand to serve a larger number of users

  • For mobile computing and cloud computing

    • New policies and procedures for managing these new platforms

    • Contractual agreements with firms running clouds and distributing software are required

Infrastructure Investments

  • Under-investment and over-investment can hamper firm performance

  • Rent-versus-buy

  • Cloud computing

    • Security requirements

    • Impact on business processes and workflow

  • Outsourcing

Total Cost of Ownership (TCO) Model

  • Analyzes direct and indirect costs

  • Hardware, software accounts for only about 20\% of TCO

  • Other costs: Installation, training, support, maintenance, infrastructure, downtime, space, and energy

  • TCO can be reduced

    • Use of cloud services, greater centralization, and standardization of hardware and software resources

Competitive Forces Model for IT Infrastructure Investment

  • Market demand for the firm’s services

  • Firm’s business strategy

  • Firm’s IT strategy, infrastructure, and cost

  • Information technology assessment

  • Competitor firm services

  • Competitor firm IT infrastructure investments

Competitive Forces Model for IT Infrastructure

  • (Figure 5.13) illustrates the competitive forces model for IT infrastructure, which includes internal factors such as business strategy, IT strategy, and external market factors like market demand and competitor firms' IT investments.