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Chapter 5 IT Infrastructure and Emerging Technologies Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies IT Infrastructure IT infrastructure: – Set of physical devices and software...

Chapter 5 IT Infrastructure and Emerging Technologies Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies IT Infrastructure IT infrastructure: – Set of physical devices and software required to operate enterprise – Set of firm-wide services including: Computing services Telecommunications services Data management services Application software services Education, and other services – “Service platform” perspective More accurate view of value of investments 5.2 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT Infrastructure Evolution of IT infrastructure – General-purpose mainframe and minicomputer era: 1959 to present 1958: IBM first mainframes introduced 1965: Less expensive DEC minicomputers introduced – Personal computer era: 1981 to present 1981: Introduction of IBM PC Proliferation in 80s, 90s resulted in growth of personal software – Client/server era: 1983 to present Desktop clients networked to servers, with processing work split between clients and servers Network may be two-tiered or multitiered (N-tiered) 5.3 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT Infrastructure Evolution of IT infrastructure (cont.) – Enterprise computing era: 1992 to present Move toward integrating disparate networks, applications using Internet standards and enterprise applications – Cloud and mobile computing: 2000 to present Cloud computing: computing power and software applications supplied over the Internet or other network 5.4 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT Infrastructure Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution. FIGURE 5-2 5.5 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Moore’s Law Technology drivers of infrastructure evolution – Moore’s law and microprocessing power Computing power doubles every 18 months Nanotechnology: – Shrinks size of transistors to size comparable to size of a virus – Law of Mass Digital Storage 5.6 The amount of data being stored Copyright © 2016 each Inc. Pearson Education, Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Processing Packing more than 5 billion Power transistors into a tiny microprocessor has exponentially increased processing power. Processing power has increased to more than 200,000 MIPS (2.6 billion instructions per second). FIGURE 5-4 5.7 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Processing Packing more transistors into Cost less space has driven down transistor cost dramatically as well as the cost of the products in which they are used. FIGURE 5-5 5.8 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Storage Cost Since the first magnetic storage device was used in 1955, the cost of storing a kilobyte of data has fallen exponentially, doubling the amount of digital storage for each dollar expended every 15 months on average. Cloud storage services provide 100 gigabytes of storage for about $1.00. FIGURE 5-7 5.9 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Communication Cost FIGURE 5-8 One reason for the growth in the Internet population is the rapid decline in Internet connection and overall communication costs. The cost per kilobit of Internet access has fallen exponentially since 1995. Digital subscriber line (DSL) and cable modems now deliver a kilobit of communication for a retail price of less than one penny. 5.10 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Ethical Issues Key technology trends that raise ethical issues – Doubling of computer power More organizations depend on computer systems for critical operations. – Rapidly declining data storage costs Organizations can easily maintain detailed databases on individuals. – Networking advances and the Internet Copying data from one location to another and accessing personal data from remote locations are much easier. 5.11 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Ethical Issues – Advances in data analysis techniques Profiling – Combining data from multiple sources to create dossiers of detailed information on individuals Nonobvious relationship awareness (NORA) – Combining data from multiple sources to find obscure hidden connections that might help identify criminals or terrorists 5.12 – Mobile device growth Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Evolution of IT and Ethical NORA technology can take Issues information about people from disparate sources and find obscure, nonobvious relationships. It might discover, for example, that an applicant for a job at a casino shares a telephone number with a known criminal and issue an alert to the hiring manager. Figure 4-2 5.13 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies IT Infrastructure Components IT Infrastructure has seven main components 1. Computer hardware platforms 2. Operating system platforms 3. Enterprise software applications 4. Data management and storage 5. Networking/telecommunications platforms 6. Internet platforms 5.14 7. Consulting system Copyright integration © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies IT Infrastructure Components: Hardware Computer hardware platforms – Client machines Desktop PCs, laptops Mobile computing: smartphones, tablets – Servers Blade servers: ultrathin computers stored in racks – Mainframes: IBM mainframe equivalent to thousands of blade servers 5.15 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Current Trends in IT Infrastructure Components The mobile digital platform – Smartphones (iPhone, Android, and Blackberry) Data transmission, Web surfing, e-mail – Netbooks: Small lightweight notebooks optimized for wireless communication and core tasks – Tablets (iPad) – Networked e-readers (Kindle) – Wearable devices (smart watches, smart glasses) 5.16 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies IT Infrastructure Components: Operating Systems and Applications Operating system platforms – Operating systems Server level: 65% run Unix or Linux; 35% run Windows Client level: – 90% run Microsoft Windows (Windows 8, Windows 7, etc.) – Mobile/multitouch (Android, iOS) – Cloud computing (Google’s Chrome OS) Enterprise software applications – Enterprise application providers: SAP 5.17 and Oracle Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Current Trends in IT Infrastructure Components Software outsourcing and cloud services – Three external sources for software: Software packages and enterprise software Software outsourcing – Contracting outside firms to develop software Cloud-based software services – Software as a service (SaaS) – Accessed with Web browser over Internet – Service Level Agreements (SLAs): formal agreement with service providers 5.18 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Current Trends in IT Infrastructure Components Cloud computing – On-demand (utility) computing services obtained over network Infrastructure as a service (IaaS) Platform as a service (PaaS) Software as a service (SaaS) – Cloud can be public or private – Allows companies to minimize IT investments – Drawbacks: Concerns of security, reliability 5.19 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Current Trends in IT Infrastructure Components Figure 5-12 In 2014, U.S. firms will spend more than $279 billion on software. About 35 percent of that will originate outside the firm, either from enterprise software vendors selling firm-wide applications or individual application service providers leasing or selling software modules. Another 4 percent ($11 billion) will be provided by SaaS vendors as an online cloud-based service. 5.20 Copyright © 2016 Pearson Education, Inc. Management Information Systems Chapter 5: IT Infrastructure and Emerging Technologies Challenges of Managing IT Infrastructure Making wise infrastructure investments – Amount to spend on IT is complex question Rent vs. buy, cloud computing Outsourcing – Total cost of ownership (TCO) model Analyzes direct and indirect costs Hardware, software account for only about 20% of TCO Other costs: Installation, training, support, maintenance, infrastructure, downtime, space, and energy 5.21 – Copyright © 2016 Pearson Education, Inc.

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