Week 3

ITM 100 Fall 2018
Class 3
IT Infrastructure
adapted from
Kenneth C. Laudon, Jane P. Laudon, (2017), Management Information Systems: Managing the Digital Firm,
Fifteenth Edition
From Last Week
 Information Technology and business processes
 Types of Information Systems
Transaction processing systems
Systems for Business Intelligence
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Executive Support Systems (ESS)
 Enterprise Applications
SCM, CRM, ERP, KMS
Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 2
IT Infrastructure
 Set of physical devices and software required to operate an enterprise
 Set of firm-wide services including:

Computing platforms providing computing services
Physical facilities management services
IT management, education, and other services
 “Service platform” perspective

More accurate view of value of investments
Internet value?
Connection Between the Firm, IT Infrastructure, and Business Capabilities
Evolution of IT Infrastructure
2000 to
present
1992 to
present
1983 to
present Cloud and mobile
Enterprise computing
1981 to computing
present Client/server
1959 to Personal
present computer
General-purpose
mainframe and
minicomputer
Stages in IT Infrastructure Evolution
A Multitiered (N-Tier) Client/Server Network
Stages in IT Infrastructure Evolution (Cont.)
https://www.youtube.com/watch?v=jOhbTAU4OPI
Technology Drivers of Infrastructure Evolution
 Moore’s law and microprocessing power
Computing power doubles every 2 years
 Law of Mass Digital Storage

The amount of data being stored each year doubles
 Metcalfe’s Law and network economics
Why people want more computing and storage power?
Value or power of a network grows exponentially as a function of the
number of network members.
Moore’s Law and Microprocessor Performance
The Amount of Storage Per Dollar Rises Exponentially
1950–2016
Technology Drivers of Infrastructure Evolution (Cont.)
 Declining communication costs and the Internet
Exponential growth in size of the Internet
https://www.youtube.com/watch?v=gsNaR6FRuO0
 Standards and network effects
Technology standards
 Specifications that establish the compatibility of products and the
ability to communicate in a network
 Unleash powerful economies of scale and result in price declines
Exponential Declines in Internet Communications Costs
Important Standards in Computing
The IT Infrastructure Ecosystem
Computer Components
Consider the following ad:
Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems
Computer Components
 What does all this jargon mean?
Intel® Core™ 2 Duo (2.66GHz/1066Mhz
FSB/6MB cache)
4GB Shared Dual Channel DDR2 at 800 MHz
500 GB SATA Hard Drive at 5400RPM
15.6” High Definition (1080p) LED Backlit
LCD Display (1366 x 768)
8X Slot Load DL DVD+/- RW Drive
14.8”W X 1.2”H X10.1” D, 5.6 lbs.
Computer Components (continued)
 512 MB ATI Mobility Radeon Graphics
 85 WHr Lithium Ion Battery
 (2) USB 2.0, HDMI, 15-Pin VGA, Ethernet 10/100/1000 IEEE 1394
Firewire, Express Card, Audio line-in, line-out, mic-in
Be patient!
 Microsoft® Windows 7® Professional If you don't
 Microsoft® Office Home and Student 2007 know now, you
should know
 36-Month subscription to McAfee Security Center Anti-virus shortly
Sizes in Perspective
Admiral Grace Murray Hopper’s Illustration
A coil of wire nearly 1,000 feet long
 Distance traveled by an electron along the wire
in the space of a microsecond
A short piece of wire
 In the space of a nanosecond
A bag containing grains of pepper
 In the space of a picosecond
Powers of 10 for time, powers of 2 for storage
What is a Hertz?
Intel Processor
speed 2.66 GHz
SDRAM To which do these
apply?
size 4GB
speed 800 MHz Bigger is better
Faster is better
Smaller is better
Computer Hardware Platforms
 Client machines
Desktop PCs, laptops
Mobile computing: smartphones, tablets
Desktop chips vs. mobile chips
In 2016, firms spent $669 billion on computer hardware
 Mainframes
IBM mainframe
Digital work horse for banking and telecommunications networks
30 billion transactions per day / 80% of corporate data
Software Categories
Application software
Software written to address specific needs—to solve problems in the real
world
System software
Software that manages a computer system at a fundamental level
Can you name examples of each?
Roles of an Operating System
 Operating system
 System software that
Manages computer resources, such as memory and input/output
devices
Provides an interface through which a human can interact with the
computer
Allows an application program to interact with these other system
resources
What operating
systems have
you used?
 The various roles of an operating system generally revolve around the
idea of “sharing nicely”
 An operating system manages resources, and these resources are often
shared in one way or another among programs that want to use them
Resource Management
Multiprogramming
The technique of keeping multiple programs that compete for access to
the CPU in main memory at the same time so that they can execute
Memory management
The process of keeping track of what programs are in memory and where
in memory they reside
Resource Management
Process
A program in execution
Process management
The act of carefully tracking the progress of a process and all of its
intermediate states
CPU scheduling
Determining which process in memory is executed by the CPU at any
given point
Batch Processing
The first operating system was a human operator, who organized various jobs from
multiple users into batches of jobs that needed the same resources
Timesharing
Timesharing system
A system that allows multiple users to interact with a computer at the
same time
Virtual machine
The illusion created by a time-sharing system that each user has his/her
own machine
As computer speed increased, the human

operator became the bottleneck
Other Factors
Real-time System
A system in which response time is crucial given the nature of the
application
Response time
The time delay between receiving a stimulus and producing a response
Device driver
A small program that “knows” the way a particular device expects to
receive and deliver information
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
Oracle
 Middleware providers
IBM
Oracle
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
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
Next Session….
Foundation of BI: Databases and Information Management
36
Consulting and System Integration Services
 Even large firms do not have resources for 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
 https://www.payscale.com/gigzig.aspx
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
Management Issues
• Dealing with platform and infrastructure change
• Management and governance
• Making wise infrastructure investments
Dealing with Platform and Infrastructure Change
 As firms shrink or grow, IT needs to be flexible and scalable
 Scalability
Ability to expand to serve 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 required
Management and Governance
 Who controls IT infrastructure?
 How should IT department be organized?

Centralized
 Central IT department makes decisions
Decentralized
 Business unit IT departments make own decisions
 How are costs allocated between divisions, departments?

Making Wise 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 account 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

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Week 3

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ITM 100 Fall 2018

 Set of firm-wide services including:

 “Service platform” perspective

 Law of Mass Digital Storage

Powers of 10 for time, powers of 2 for storage

Can you name examples of each?

As computer speed increased, the human

Foundation of BI: Databases and Information Management

• Management and governance

• Making wise infrastructure investments

 For mobile computing and cloud computing

 How should IT department be organized?

 How are costs allocated between divisions, departments?

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