IT Infrastructure and. Platforms. Chapter by Prentice Hall

Transcription

1 Chapter 6 IT Infrastructure and Platforms by Prentice Hall

2 OBJECTIVES Define IT infrastructure and describe the components and levels of IT infrastructure Identify and describe the stages of IT infrastructure evolution Identify and describe the technology drivers of IT infrastructure evolution by Prentice Hall

3 OBJECTIVES (Continued) Assess contemporary computer hardware platform trends Assess contemporary software platform trends Evaluate the challenges of managing IT infrastructure and management solutions by Prentice Hall

4 Chapter 6 IT Infrastructure and Platforms Hong Kong s New World Telecommunications Case Challenge: fragmented, high-cost IT infrastructure slowed down market and customer response times Solutions: integrated storage area network to enable the flow of information among different types and brands of computer servers Reduce number of servers from 107 to 70 Illustrates the importance of IT infrastructure for achieving business objectives by Prentice Hall

5 IT INFRASTRUCTURE Defining IT Infrastructure Includes hardware, software, and services A set of physical devices and software applications that are required to operate the entire enterprise Your firm is largely dependent on its infrastructure for delivering services to customers, employees, and suppliers. You can think of infrastructure as digital plumbing, but its much more than that! by Prentice Hall

6 IT INFRASTRUCTURE The Connection between the Firm, IT Infrastructure, and Business Capabilities Figure by Prentice Hall

7 IT INFRASTRUCTURE Levels of IT Infrastructure Three major levels of infrastructure: Public Enterprise Business unit by Prentice Hall

8 IT INFRASTRUCTURE Levels of IT Infrastructure Figure by Prentice Hall

9 IT INFRASTRUCTURE Evolution of IT Infrastructure: Electronic accounting machine era: ( ) General-purpose mainframe and minicomputer era: (1959 to present) Personal computer era: (1981 to present) Client/server era: (1983 to present) Enterprise internet computing era: (1992 to present) by Prentice Hall

10 IT INFRASTRUCTURE Eras in IT Infrastructure Evolution Figure by Prentice Hall

11 IT INFRASTRUCTURE A Multitiered Client/Server Network (N-tier) Figure by Prentice Hall

12 IT INFRASTRUCTURE Technology Drivers of Infrastructure Evolution Moore s law and microprocessing power The law of mass digital storage Metcalfe s law and network economics Declining communications costs and the Internet Standards and network effects by Prentice Hall

13 IT INFRASTRUCTURE Moore s Law and Microprocessor Performance Figure by Prentice Hall

14 IT INFRASTRUCTURE Falling Cost of Chips Figure by Prentice Hall

15 IT INFRASTRUCTURE Examples of Nanotubes Figure by Prentice Hall

16 IT INFRASTRUCTURE The Capacity of Hard Disk Drives Grows Exponentially, Source: Authors. Figure by Prentice Hall

17 IT INFRASTRUCTURE The Cost of Storing Data Declines Exponentially, Source: Exponential Growth an Illusion?: Response to Ilkka Tuomi, by Ray Kurzweil, KurzweilAl.net, September 23, Used with permission. Figure by Prentice Hall

18 IT INFRASTRUCTURE Exponential Declines in Internet Communications Costs Source: Authors. Figure by Prentice Hall

19 INFRASTRUCTURE COMPONENTS Seven Key Infrastructure Components Computer Hardware Platforms Operating System Platforms Enterprise Software Applications Data Management and Storage by Prentice Hall

20 INFRASTRUCTURE COMPONENTS Seven Key Infrastructure Components (Continued) Networking/Telecommunications Platforms Internet Platforms Consulting and System Integration Services by Prentice Hall

21 INFRASTRUCTURE COMPONENTS The IT Infrastructure Ecosystem Figure by Prentice Hall

22 INFRASTRUCTURE COMPONENTS Computer Hardware Platforms $110 billion annually spent in the United States Dominance of Intel, AMD, and IBM 32-bit processor chips at the client level Server market increasingly dominated by inexpensive generic processors from the same manufacturers by Prentice Hall

23 INFRASTRUCTURE COMPONENTS Computer Hardware Platforms (Continued) Strong server market growth for 64 bit generic processors from AMD, Intel and IBM Blade servers replace box servers Mainframes continue as a presence working as very large servers by Prentice Hall

24 INFRASTRUCTURE COMPONENTS Operating System Platforms $100 billion annually spent in the United States Continued dominance of Microsoft OS in the client (95%) and handheld market (45%) Growing dominance of Linux (UNIX) in the corporate server market (85%) Windows 2002 and 2003 Server remains strong in smaller enterprises and workgroup networks by Prentice Hall

25 INFRASTRUCTURE COMPONENTS Enterprise Software Applications $165 billion annually spent in the United States for basic enterprise software infrastructure SAP, Oracle, PeopleSoft (now Oracle), and Siebel dominate this market. Middleware firms like BEA and JD Edwards serve smaller firms, and work also in the Web services space by Prentice Hall

26 INFRASTRUCTURE COMPONENTS Enterprise Software Applications (Continued) The enterprise market is consolidating around a few huge firms that have gained significant market share such as SAP and Oracle. Microsoft is expanding into smaller firm enterprise systems where it can build on its Windows server-installed base by Prentice Hall

27 INFRASTRUCTURE COMPONENTS Data Management and Storage $70 billion annually spent in the United States. Oracle and IBM continue to dominate the database software market. Microsoft (SQL Server) and Sybase tend to serve smaller firms. Open source Linux MySQL now supported by HP and most consulting firms as an inexpensive, powerful database used mostly in small to midsize firms by Prentice Hall

28 INFRASTRUCTURE COMPONENTS Data Management and Storage (Continued) $35 billion annually spent in the United States for physical hard disk storage The hard disk market is consolidating around a few huge firms like EMC and smaller PC hard disk firms like Seagate, Maxtor, and Western Digital by Prentice Hall

29 INFRASTRUCTURE COMPONENTS Networking/Telecommunications Platforms $150 billion annually spent on networking and telecommunications hardware $700 billion annually spent on telecommunications services, e.g. phone and Internet connectivity Local area networking still dominated by Microsoft Server (about 75%) but strong growth of Linux challenges this dominance by Prentice Hall

30 INFRASTRUCTURE COMPONENTS Networking/Telecommunications Platform (Continued) Enterprise networking almost entirely Linux or UNIX Cisco, Lucent, Nortel, and Juniper Networks continue to dominate networking hardware. The telecommunications services market is highly dynamic with MCI, AT&T, and Sprint providing most trunk line services for both phone and Internet. Growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony by Prentice Hall

31 INFRASTRUCTURE COMPONENTS Internet Platforms $32 billion annually spent on Internet infrastructure in the United States Internet hardware server market concentrated in Dell, HP, and IBM Prices falling rapidly by up to 50% in a single year for low-power servers by Prentice Hall

32 INFRASTRUCTURE COMPONENTS Internet Platforms (Continued) Open-source Apache remains the dominant Web server software, followed by Microsoft s IIS server. Sun s Java grows as the most widely used tool for interactive Web applications. Microsoft and Sun settle a long-standing law suit and agree to support a common Java by Prentice Hall

33 INFRASTRUCTURE COMPONENTS Consulting and System Integration Services Most firms today, even large firms, cannot develop their systems without significant outside help. $130 billion annually spent on computer system design, and related business services like business process redesign in the United States About 85% of business consulting in the United States involves IT business consulting by Prentice Hall

34 INFRASTRUCTURE COMPONENTS Consulting and System Integration Services (Continued) Integration services involves integrating data, and applications in a firm. Connecting new applications and systems to legacy systems IBM has transformed itself into a systems integration firm with IBM Global Services, the largest system integration firm by Prentice Hall

35 CONTEMPORARY HARDWARE PLATFORM TRENDS The Integration of Computing and Telecommunications Platforms Increasingly computing takes place over the network. Client level: integration of cell phones and PDAs (Example: Palm Treo) Television, video, and radio move toward digital production by Prentice Hall

36 CONTEMPORARY HARDWARE PLATFORM TRENDS The Integration of Computing and Telecommunications Platforms (Continued) Server level: The integration of voice telephone and the Internet bring together two historically separate and distinct global networks. The network in many respects is the source of computing power by Prentice Hall

37 CONTEMPORARY HARDWARE PLATFORM TRENDS Grid Computing: Involves connecting geographically remote computers into a single network capable of working in parallel on business problems that require short-term access to large computational capacity Rather than purchase huge mainframes or super computers, firms can chain together thousands of smaller desktop clients into a single computing grid by Prentice Hall

38 CONTEMPORARY HARDWARE PLATFORM TRENDS Grid Computing (Continued) Most computers in the world are loafing, and at night they are sleeping. It is estimated that from 25% - 50% of the computing power in the United States is unused. Grid computing saves infrastructure spending, increases speed of computing, and increases the agility of firms. Examples: Royal Dutch/Shell Group and the National Digital Mammography Archive by Prentice Hall

39 CONTEMPORARY HARDWARE PLATFORM TRENDS On-Demand (Utility) Computing: Firms off-loading peak demand for computing power to remote, large-scale data processing centers Developed by IBM, SUN, and HP Firms pay only for the computing power they use, as with an electrical utility by Prentice Hall

40 CONTEMPORARY HARDWARE PLATFORM TRENDS On-Demand (Utility) Computing: (Continued) Excellent for firms with spiked demand curves caused by seasonal variations in consumer demand, e.g. holiday shopping Example: Harry and David use IBM s On-Demand computing Saves firms from purchasing excessive levels of infrastructure by Prentice Hall

41 CONTEMPORARY HARDWARE PLATFORM TRENDS Autonomic Computing: Computer systems (both hardware and software) have become so complex that the cost of managing them has risen. Thirty to fifty percent of a company s IT budget is spent preventing or recovering from system crashes. Operator error is the most common cause of crashes by Prentice Hall

42 CONTEMPORARY HARDWARE PLATFORM TRENDS Autonomic computing is an industry-wide effort to develop systems that can: Configure, optimize, and tune themselves Heal themselves when broken Protect themselves from outside intruders and self-destruction Example: Windows XP and Max X OS automatically download patches and updates by Prentice Hall

43 CONTEMPORARY HARDWARE PLATFORM TRENDS Edge Computing: Edge computing is a multitier, load-balancing scheme for Web-based applications. Processing load is distributed closer to the user and handled by lower-cost servers. Lowers cost of hardware by Prentice Hall

44 CONTEMPORARY HARDWARE PLATFORM TRENDS Edge Computing: (Continued) Increases service levels Provides firm greater flexibility in responding to service requests Seasonal spikes in demand can be off-loaded to other edge servers by Prentice Hall

45 CONTEMPORARY HARDWARE PLATFORM TRENDS Edge Computing Platform Figure by Prentice Hall

46 CONTEMPORARY SOFTWARE PLATFORM TRENDS The four major themes in contemporary software platform evolution: Linux and open-source software Java Web services and service-oriented architecture Software outsourcing by Prentice Hall

47 CONTEMPORARY SOFTWARE PLATFORM TRENDS The Rise of Linux and Open-Source Software Open-source software is free and can be modified by users. Developed and maintained by a worldwide network of programmers and designers under the management of user communities by Prentice Hall

48 CONTEMPORARY SOFTWARE PLATFORM TRENDS The Rise of Linux and Open-Source Software (Continued) Linux is the most widely used open-source software program. Linux is an operating system derived from Unix. Mozilla Firefox browser and Thunderbird mail clients are the most widely used open-source applications. Others include MySQL. IBM, HP, Intel, Dell, and Sun have adopted and support Linux. Linux is a major alternative to Windows server and even client operating systems by Prentice Hall

49 CONTEMPORARY SOFTWARE PLATFORM TRENDS Java Is Everywhere Java: An operating system Independent, processorindependent, object-oriented programming language Applications written in Java can run on any hardware for which a Java virtual machine has been defined. Java is embedded in PDAs, cell phones, and browsers. Java is a leading interactive programming environment for the Web by Prentice Hall

50 CONTEMPORARY SOFTWARE PLATFORM TRENDS Software for Enterprise Integration: One of the most important software trends of the last decade is the growth of enterprise in a box or the purchase of enterprise-wide software systems by firms. Rather than build all their own software on a custom basis, large firms increasingly purchase enterprise applications prewritten by specialized software firms like SAP, Oracle, PeopleSoft, and others by Prentice Hall

51 CONTEMPORARY SOFTWARE PLATFORM TRENDS Software for Enterprise Integration: (Continued) The goal is to achieve an integrated firm-wide information environment, reduce cost, increase reliability, and to adopt business best practices which are captured by the software. Enterprise software firms achieve economies of scale by selling the same software to hundreds of firms. Today's enterprise systems are capable of integrating older legacy applications with newer Web-based applications by Prentice Hall

52 CONTEMPORARY SOFTWARE PLATFORM TRENDS Enterprise Application Integration (EAI) Software Versus Traditional Integration EAI software (a) creates a common platform through which all applications can freely communicate with each other. EAI requires much less programming than traditional point-to-point integration (b). Figure by Prentice Hall

53 CONTEMPORARY SOFTWARE PLATFORM TRENDS Web Services and Service-Oriented Architecture Web Services: An alternative to enterprise systems is to use new Web-based standards to create a communication platform allowing older applications to communicate with newer applications. Web services refers to a set of loosely coupled software components that exchange information with each other using Web communication standards and languages by Prentice Hall

54 CONTEMPORARY SOFTWARE PLATFORM TRENDS Web Services and Service-Oriented Architecture (Continued) Web services permit computer programs to communicate with one another and share information without rewriting applications, or disturbing older legacy systems. Web services are based on XML, and standards like SOAP, WSDL, and UDDI to create this communication environment by Prentice Hall

55 CONTEMPORARY SOFTWARE PLATFORM TRENDS Service-Oriented Architecture SOA refers to the use of Web services in a firm to achieve integration among disparate applications and platforms. A firm might have applications (payroll) running on older AS400 IBM machines, IBM mainframes (customer data and inventory) and newer applications running on client/server networks by Prentice Hall

56 CONTEMPORARY SOFTWARE PLATFORM TRENDS Service-Oriented Architecture (Continued) In SOA, these applications are integrated so that information stored on various systems can be brought together and fed into newer applications running on more contemporary equipment. SOA is generally less expensive than rebuilding all the older applications and adopting a new enterprise wide system by Prentice Hall

57 CONTEMPORARY SOFTWARE PLATFORM TRENDS How Dollar Rent a Car Uses Web Services Figure by Prentice Hall

58 CONTEMPORARY SOFTWARE PLATFORM TRENDS Software Outsourcing Today large and small firms purchase most of their software from outside vendors. Three kinds of outsourcing: Purchase of software packages Using application service providers Custom outsourcing by Prentice Hall

59 CONTEMPORARY SOFTWARE PLATFORM TRENDS Purchase of Software Packages and Enterprise Software Enterprise software packages: prewritten off-the-shelf software Application Service Providers: A business that delivers and manages applications and computer services from remote computer centers to multiple users using the Internet or a private network by Prentice Hall

60 CONTEMPORARY SOFTWARE PLATFORM TRENDS Purchase of Software Packages and Enterprise Software (Continued) Application Service Providers: Rather than purchase hardware and software, firms can go onto the Internet and find providers who offer the same functionality over the entertainment, and charge on a per-user or license basis. Example: Salesforce.com provides customer relationship management and sales force management services to firms by Prentice Hall

61 CONTEMPORARY SOFTWARE PLATFORM TRENDS Software Outsourcing of Custom Applications A firm contracts custom software development or maintenance of existing legacy programs to outside firms, often in low-wage countries. Example: Dow Chemical hired IBM for $1.1 billion to create an integrated communication system for 50,000 Dow employees in 63 countries. Why would Dow not build this system itself? by Prentice Hall

62 CONTEMPORARY SOFTWARE PLATFORM TRENDS Changing Sources of Firm Software Sources: BEA National Income and Product Accounts, Forrester Research, December 2003; emarketer Inc., IT Spending 2004, and author estimates. Figure by Prentice Hall

63 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities: Because of changes in hardware and software platforms, firms face significant new opportunities to obtain hardware and software capabilities that are more reliable, less costly, and more flexible than in the past by Prentice Hall

64 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: Making wise infrastructure investments Choosing and coordinating infrastructure components Dealing with infrastructure change Management and governance by Prentice Hall

65 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Solution Guidelines: Consider your strategic situation Start out small, develop one module at a time Consider the total cost of ownership Figure 6-16, Competitive Forces Model for IT infrastructure illustrates six strategic factors you should consider when making infrastructure decisions by Prentice Hall

66 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Competitive Forces Model for IT Infrastructure Figure by Prentice Hall

67 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Starting out small: Experiment with new technologies on a smaller scale before taking up a large-scale infrastructure project by Prentice Hall

68 MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Total cost of ownership of technology assets: When calculating the costs of systems, be sure to include all the costs: Hardware acquisition Software acquisition Installation Training Support Maintenance Infrastructure requirements Downtime Space and energy by Prentice Hall