Unit 5 - IT Infrastructure

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UNIT5 : IT INFRASTRUCTURE

Information Systems for Managers

MBA(Tech), Trim VIII (2008-09)

Prepared by : Kedar Subramanian

InformationSystemsforManagers

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FIVESTAGESINTHEEVOLUTIONOF

IT INFRASTRUCTURE

1. Electronic accounting machine era (1930-1950):The use

of large, cumbersome machines with hardwired software for

sorting, adding, and reporting data.

2. General-Purpose Mainframe and minicomputer era

(1959-present): Mainframes were the first powerful computers that could

provide time sharing, multi tasking, and virtual memory, and

became powerful enough to support thousands of remote

terminals.

The mainframe era was a period of highly centralizedcomputing controlled by programmers and system

operators.

Minicomputers, powerful yet less expensive computers,

allowed decentralized computing customizable to individual

departments or business units.

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IT INFRASTRUCTURE

3. Personal computer era (1981-

present): The appearance of the

IBM PC in 1981 is usually

considered the beginning of the PC

era because this machine was the

first to be widely adopted by

American businesses.

95 percent of today's 1 billion

computers are Wintel PCs, using

Windows software and Intel

microprocessors.

PCs were standalone systems until

PC operating system software in the

1990s made it possible to link them

into networks.3


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IT INFRASTRUCTURE

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4. Client server era (1983-present):In client/server

computing, desktop or laptop computers called clients are

networked to server computers that provide the clients with

services and capabilities.

Computer processing work is split between these two types ofmachines.

The client is the user point of entry, whereas the server

typically processes and stores shared data, serves up Web

pages, or manages network activities.

The term server refers to both the software application and thephysical computer on which the network software runs.

The server could be a mainframe, but today server computers

typically are more powerful versions of personal computers.


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IT INFRASTRUCTURE

In two-tiered client/server architecture, a client computer is

networked to a server with processing split between the two.

In multi-tiered (N-tier) client/server architecture, the work of

the entire network is balanced over several different levels of

servers.

Distributing work across a number of smaller inexpensive

machines cost much less than minicomputers or mainframes.

In a multi-tiered client/server network, client requests for

service are handled by different levels of servers.

5. Enterprise Internet (1992-present) :The Internetnetworking technology TCP/IP suite enables enterprises to

link disparate devices and local area networks (LANs) into

single enterprise-wide networks.

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IT INFRASTRUCTURE

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MOORE'SLAWANDMICROPROCESSINGPOWER

(WRTIT INFRASTRUCTUREINDUSTRY)

Microprocessing power, in Million Instructions Per Second

(MIPS) doubles every 18 months by packing more transistors

in tiny microprocessor.

The price of computing simultaneously halves every 18

months : Packing more transistors into less space has drivendown transistor cost dramatically as well as the cost of the

products in which they are used.

An Intel processor today can contain as many as 1 billion

transistors, run at 3.2 GHz and higher, deliver over 10,000

MIPS, and can be manufactured in high volumes withtransistors that cost less than 1/10,000th of a cent.

Thats a little less than the cost of one printed character in this

book.7


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THELAWOFMASSDIGITALSTORAGE(WRT

IT INFRASTRUCTUREINDUSTRY)

This law sees that while the amount of digital information

produced worldwide doubles every year, the cost of storing

digital information is falling at an exponential rate.

From 1980 to 1990, hard disk drive capacities for PCs grew at

the rate of 25 % annual compound growth, but after 1990,growth accelerated to more than 65 % each year.

Simultaneously the cost of storing a kilobyte of data in a

magnetic storage device has fallen exponentially, doubling the

amount of digital storage for each dollar expended every 15

months on average.

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STANDARDS& LAWSWRT

IT INFRASTRUCTUREINDUSTRY

Metcalf's Law and Network Economics:In 1970, Metcalfe's

Law described the value of a network grows exponentially

with each increase in membership to the network. Demand for information technology has been driven by the

social and business value of digital networks, which rapidly

multiply the number of actual and potential links among

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STANDARDS& LAWSWRT

IT INFRASTRUCTUREINDUSTRY

Declining Communications Costs and the Internet:The

rapid decline of communication costs and the exponential

growth in size of the Internet are transforming IT

infrastructure. The cost per kilobit of Internet access has fallen

exponentially since 1995.

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 as

manufacturers focus on products built to a certain standard.

Some of the important standards that have shaped IT

infrastructure include ASCII, UNIX, TCP/IP, Ethernet, the

IBM/Microsoft/Intel Personal Computer, and the World Wide

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SEVENMAJORCOMPONENTSOF

IT INFRASTRUCTURE

1. Computer hardware platforms include client machines

and server machines, as well as modern mainframes

produced by IBM.

Blade servers are ultrathin servers, intended for a

single dedicated application, and are mounted inspace-saving racks.

2. Operating system platforms include platforms for client

computers, dominated by Windows operating systems,

and servers, dominated by the various forms of the

UNIX operating system or Linux.Operating systems are software that manage the

resources and activities of the computer and act as an

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IT INFRASTRUCTURE

3. Enterprise and other software applications include SAP,

Oracle, and PeopleSoft, and middleware software that are

used to link a firm's existing application systems.

4. Data management and storage is handled by database

management software and storage devices includetraditional storage methods, such as disk arrays and tape

libraries, and newer network-based storage technologies

such as storage area networks (SANs).

SANs connect multiple storage devices on dedicated high-

speed networks.

5. Networking and telecommunications platforms include

Windows server operating systems, Novell, Linux, and

UNIX.

Nearly all LAN and many wide area networks (WANs) use

the TCP/IP standards for networking.12


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6. Internet platforms overlap with, and must relate to, the firm's

general networking infrastructure and hardware and

software platforms.

o Internet-related infrastructure includes the hardware,

software and services to maintain corporate Web sites,intranets, and extranets, including Web hosting services and

Web software application development tools.

o A Web hosting service maintains a large Web server, or

series of servers, and provides fee-paying subscribers with

space to maintain their Web sites.7. Consulting and system integration services are relied on for

integrating a firm's legacy systems with new technology and

infrastructure & providing expertise in implementing new

infrastructure along with changes in business processes,

training & software integration.

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IT INFRASTRUCTURE COMPONENTS&

RESPECTIVEVENDORS

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CONTEMPORARYHARDWAREPLATFORMTRENDS

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While the cost of computing has fallen, IT infrastructure

expenditures have grown due to the rising cost of computing

services, software, and the increase in intensity and

sophistication of computing.

Telecommunications and computing platforms haveconverged: at the client level, with the merging of PDAs and

cell phones, and at the server and network level, with the rise

of Internet telephony.

Grid computing: This utilizes the idle computational

resources of separate, geographically remote computers to

create a single virtual supercomputer.

In this process, a server computer breaks data and

applications into discrete chunks that are parceled out to the

grid's machines. Grid computing offers increased cost

savings, computational speed and agility.


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EMERGINGCOMPUTINGMODELS

On-demand computing :This refers to firms off-loading peak

demand for computing power to remote, large-scale data

processing centers.

This allows firms to reduce their investment in IT infrastructure

by investing in only as much computing power as needed onaverage and paying for additional power on an as-needed

basis.

This arrangement offers firms much greater agility and

flexibility in their infrastructure.

Edge computing: This is a multi-tier, load-balancing schemefor Web-based applications in which parts of the Web site

content and processing are performed by smaller, less

expensive servers located near the computer.16

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EMERGINGCOMPUTINGMODELS..

In an edge computing platform client requests are initially

processed by the edge servers, which may deliver static

presentation content, reusable code, while database and

business logic components are delivered by the enterprise

servers.

Edge computing involves the use of the Internet to balance

the processing load of enterprise platforms across the client

and edge computing platform.

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ENTERPRISECOMPUTINGPLATFORM

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CLOUDCOMPUTING29thMarch2009

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SOFTWAREPLATFORMTRENDSAND

EMERGINGTECHNOLOGIES

The five major themes in contemporary software platform are

as follows :

Linux and open-source software

Java

Enterprise software

Web services and service-oriented architecture

Software outsourcing

Open-source software : It is software produced by a

community of several hundred thousands of programmers

around the world, and is available free of charge to bemodified by users, with minimal restrictions.

The premise that open-source software is superior to

commercial software is based on the ability of thousands of

programmers modifying and improving the software at a much

faster rate.

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THEME1 : LINUXANDOPEN-SOURCE

SOFTWARE

In return for their work, programmers receive prestige and

access to a network of other programmers, and additional for-

pay work opportunities.

The process of improving open source software is monitored

by self-organized, professional programming communities.

Thousands of open-source programs, ranging from operating

systems to office suites, are available from hundreds of Web

sites.

Linux is an operating system related to Unix, is one of the

most well-known open-source software, and is the world'sfastest growing client and server operating system, along with

related Linux applications.

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THEME1 : LINUXANDOPEN-SOURCE

SOFTWARE& THEME2 : JAVA

The rise of open-source software, particularly Linux and the

applications it supports, has profound implications for

corporate software platforms: cost reduction, reliability and

resilience, and integration.

This is because Linux works on all the major hardware

platforms from mainframes to servers to clients.

Because of its reliability, low cost, and integration features,

Linux has the potential to break Microsoft's monopoly of the

desktop.

Java is an operating system-independent, object-orientedprogramming language, has become the leading

programming environment for the Web, and its use has

migrated into cellular phones, cars, music players, and more.22

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THEME2 : JAVA

For each of the computing environments in which Java is

used, Sun has created a Java Virtual Machine (JVM) that

interprets Java programming code for that machine.

In this manner, the code is written once and can be used on

any machine for which there exists a JVM.

A Macintosh PC, an IBM PC running Windows, a Sun server

running Unix, and even a smart cellular phone or personal

digital assistant can share the same Java application.

Java is typically used to create small Web programs called

applets, but is also a very robust language designed to handletext, data, graphics, sound, and video.

Java enables PC users to manipulate data on networked

systems using Web browsers, reducing the need to write

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THEME3 : ENTERPRISESOFTWARE

A Web browser is an easy-to-use software tool with a

graphical user interface for displaying Web pages and for

accessing the Web and other Internet resources.

Software for enterprise integration is one of the most urgent

software priorities today for U.S. firms who need to integrate

existing legacy software with newer technology.

Replacing isolated systems that cannot communicate with

enterprise software is one solution; however, many companies

cannot simply discard legacy applications.

Some integration can be achieved by middleware - softwarethat creates an interface or bridge between two different

systems.

Firms increasingly purchase enterprise application integration

(EAI) software that enables multiple systems to exchange

data through a single software hub.

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THEME3 : ENTERPRISESOFTWARE - EAI

EAI software - Figure (a) uses special middleware that creates

a common platform with which all applications can freely

communicate with each other.

EAI requires much less programming than traditional point-to-

point integration - Figure (b).

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THEME4 : WEBSERVICESAND

SERVICE-ORIENTEDARCHITECTURE(SOA)

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These are loosely coupled software components that use Web

communication standards, can exchange information between

different systems regardless of operating system of

programming language. Web services technology is founded

on Extensible Markup Language (XML).

XML was developed as a more powerful markup language

than Hypertext Markup Language (HTML), a page description

language specifying how content appears on Web pages.

By marking data with XML tags, computers can interpret,

manipulate, and exchange data from different systems.

Web services communicate through XML messages over

standard Web protocols which are a set of rules for structuring

messages that enables applications to pass data and

instructions to one another.


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THEME4 : WEBSERVICESAND

SERVICE-ORIENTEDARCHITECTURE(SOA)

Using these protocols, a software application can connect

freely to other applications without custom programming for

each different application with which it wants to communicate.

The collection of Web services used to build a firm's software

systems constitutes a Service-oriented architecture (SOA).

SOA is an entirely new way of developing software for a firm.

In the past, separate applications were written for different

divisions and tasks and could not communicate with each

other.

In an SOA environment, a single application can be used and

reused as a "service" that can be used by other services. For

example, an "invoice service" can be written by a firm to

calculate the invoice information and reports and build and

integrate the program using Web services. 27

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DOLLARRENTA CARUSINGWEBSERVICESTO

CONNECTWITHOTHERCOMPANYSYSTEMS

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THEME5 : SOFTWAREDEVELOPMENT

OPTIONS

Although traditionally businesses developed unique software

themselves, today most new software is purchased from

external sources.

There are three external sources for software:

Commercial software packages

Software services from an application service provider (ASP)

Outsourcing application development to an outside software firm.

Option A) Commercial software package is a prewritten set of

software programs for certain functions, eliminating the need

for a firm to write its own software program.

Enterprise systems are so complex that few corporations have

the expertise to develop these in house and instead rely on

enterprise software packages from vendors such as SAP and

PeopleSoft. 29

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OPTIONS..

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Option B) An application service provider (ASP) is a business

that delivers and manages applications and computer

services from remote computer centers to multiple users using

the Internet or a private network.

The software is paid on a per-user, subscription, or per-

transaction basis.

Renting enterprise software avoids the expense and difficulty

of installing, operating, and maintaining the hardware and

software needed for complex systems.

Large and medium-sized businesses are using ASPs forenterprise systems, sales force automation, or financial

management, and small businesses are using them for

functions such as invoicing, tax calculations, electronic

calendars, and accounting


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OPTIONS..

Application service providers also enable small and medium-

sized companies to use applications that they otherwise could

not afford.

Application service providers also enable small and medium-

sized companies to use applications that they otherwise could

not afford.

Option C) In outsourcing, a firm contracts custom software

development or maintenance to outside firms, frequently firms

operating in low-wage areas of the world.

With the growing sophistication and experience of offshorefirms, more and more new-program development is

outsourced.

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MANAGEMENTCHALLENGESIN

MANAGINGIT INFRASTRUCTURE

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Dealing with scalability and infrastructure change:

How can a firm remain flexible when most of the investments

in IT infrastructure are fixed cost purchases and licenses?

How well does the infrastructure scale? Scalability refers to

the ability of a computer, product, or system to expand toserve a large number of users without breaking down.

Management and governance: Who will control and manage

the firm's IT infrastructure and information systems groups?

Making wise infrastructure investments: IT infrastructure is a

major investment for the firm, and spending too little, or toomuch, on purchased and rented components and software

can have strong consequences for a firm.


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MANAGEMENTDILEMMA: IT

INFRASTRUCTURESPENDJUSTIFICATION

1. Market demand for (and satisfaction with) the firm's services

to customers, suppliers, and employees.

2. The firm's business strategy

3. The firm's IT strategy, infrastructure, and cost

4. Assessment of the firm's current information technology5. Services of competitor firms

6. Competitor firm IT infrastructure investments and returns on

investments

The total cost of ownership (TCO) model can be used to

analyze direct and indirect costs of implementing specific

technology.

Costs include hardware and software acquisition, installation

and training, support and maintenance, infrastructure,

downtime, and costs of space and energy.

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USINGDATABASESTOIMPROVEBUSINESS

PERFORMANCEANDDECISION-MAKING

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Businesses use their databases to :

Keep track of basic transactions

Provide information that will help the company run the

business more efficiently

Help managers and employees make better decisions In a large company, special capabilities and tools are required

for analyzing vast quantities of data and for accessing data

from multiple systems, such as:

Data warehouse: a database that stores current and historical

data from core operational transactional systems for use inmanagement analysis, but this data cannot be altered.


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DBMS : WEBSERVER

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In a client/server environment, the DBMS might reside on a

special dedicated computer called a database server. Web

interfaces are easy to use and require few or no changes to

the internal database.


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DATAWAREHOUSINGTERMINOLOGIES

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Data mart : A subset of a data warehouse in which a

summarized or highly focused portion of the organization's

data is placed in a separate database for a specific population

of users.

Business intelligence (BI) tools: Data analysis tools used for

consolidating, analyzing, and accessing vast stores of data to

help in decision making, such as software for database query

and reporting, tools for multidimensional data analysis (online

analytical processing), and data mining.

The data warehouse extracts current and historical data from

multiple operational systems inside the organization. These

data are combined with data from external sources and

reorganized into a central database designed for management

reporting and analysis.


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DATAWAREHOUSINGMODEL

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DATAWAREHOUSINGTERMINOLOGIES..

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The information directory provides users with information

about the data available in the warehouse.

A series of analytical tools works with data stored in

databases to find patterns and insights for helping managers

and employees make better decisions to improve

organizational performance.

Databases can be linked to the Web by using middleware

software products, allowing users or clients to access

corporate data through a Web browser interface.

Such software might consist of an application server, a customsoftware program, or CGI (common gateway interface) scripts.


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OTHERSOFTWARETRENDS

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Ajax (Asynchronous JavaScript and XML):Ajax, and a

related set of techniques called RIA ("rich Internet

applications") use JavaScript or Macromedia Flash

programs downloaded to your client to maintain a near

continuous conversation with the server you are using.

While making the life of consumers much easier, Ajax and

RIA are even more important for another new software

development: Web-based applications.

Web-based applications:Software firms are delivering

software services over the Web to client computers andtheir customer's sites. Google's Google Apps for Your

Domain is a Web-based suite of productivity tools,

including online spreadsheet, word processing, and

calendars, aimed at small businesses.


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OTHERSOFTWARETRENDS..

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Mashups: Part of a movement called Web 2.0, and in the

spirit of musical mashups, Web mashups combine the

capabilities of two or more online applications to create a

kind of hybrid that provides more customer value than the

original sources alone.

For example, housingmaps.com can display real estate

listings in local areas from Craigslist.com overlaid on

Google Maps, with pushpins showing the location of each

listing.

The result of these techniques is that instead of the Webbeing a collection of pages, it becomes a collection of

capabilities, a platform where thousands of programmers

can create new services quickly and inexpensively.


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OTHERSOFTWARETRENDS..

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Web 2.0: This refers to "the new Web applications" like

those above and is also the name of an annual

conference.

Web 2.0 can be described also as an expression of all

the changes above, plus changes in the way people andbusiness use the Web and think about human

interaction on the Web.

These changes include seeing the Web applications as

services, not packaged software, seeing users as co-

developers, harnessing collective intelligence, andlightweight user interfaces, development models, and

business models.


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TELECOMMUNICATIONSANDNETWORKINGIN

TODAY'SBUSINESSWORLD

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There are two fundamentally different types of

telecommunications networks: telephone networks

and computer networks, which are slowly merging

into a single digital network using shared Internet

technology and equipment. Types of networks include:

Local area network (LAN): Up to 500 meters (half a

mile); an office or floor of a building

Metropolitan-area network (MAN): A city or metropolitanarea

Wide-area network (WAN): A transcontinental or global

area


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ETHERNETSTANDARD&

PHYSICALTRANSMISSIONMEDIA

Ethernet is the dominant LAN standard at the physical

network level, specifying the physical medium to carry

signals between computers; access control rules; and a

standardized frame, or set of bits used to carry data

over the system. Networks use different physical transmission media

Twisted wire: Pairs of copper wires used mostly for

analog voice signals but also sometimes for data.

Twisted wire is the oldest medium.

Coaxial cable: It is thickly insulated wire that is fasterand more interference-free than twisted wire.

Fiber-optic cable: consists of thousands of tiny clear

glass fibers along which data is sent as pulses of light.

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PHYSICALTRANSMISSIONMEDIA

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Although primarily used as high-speed network

backbone (the part of a network that handles major

traffic), fiber optic is also being installed in homes

and businesses.

Telecommunications carriers use fiber optic to buildpurely optical networks to provide high-capacity

transmission for multimedia, and other data-

intensive information services.


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WIRELESSTRANSMISSIONMEDIA

Wireless transmission uses radio frequencies or infrared

signals to transmit data wirelessly.

Microwave systems (terrestrial and satellite): It

transmits high-frequency radio signals and are used for

high-volume, long-distance, point-to-point communications.Microwaves follow a straight line, and transmission stations

or satellites are used as relay stations for long distance

signals.

Cellular telephonesuse the 800-2000 MHz radio

spectrum to communicate with radio antennas (towers)placed within adjacent areas, or cells.

Older cellular systems are analog, while contemporary

systems are digital, supporting data transmission as well as

voice transmission.

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DIGITALCELLULARSTANDARDS

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Digital cellular service uses several competing standards

that are incompatible.

Global System for Mobile Communication (GSM): It is

the standard used in Europe and much of the rest of the

world outside the United States. GSM's strength is ininternational roaming capabilities.

Code Division Multiple Access (CDMA): It is the most

widely used standard in the United States. CDMA is less

expensive and supports higher quality transmissions.

Most digital cellular systems today can transmit data atrates ranging from 9.6 to 2 Mbs. 384 Kbps is acceptable for

email but not for downloading large files or Web pages.


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WIRELESSTELE-COMM. STANDARDS

More powerful cellular networks called Third-Generation

(3G) networks have transmission speeds ranging from 384

Kbps for mobile users in, say, a car, to more than 2 Mbps

for stationary users, sufficient for rich media downloads.

Bluetooth, or IEEE 802.15, uses the 2.4-GHz band forlinking up to eight devices within a 10 meter area. Devices

can communicate to each other without direct user

intervention. Its low power requirements make Bluetooth

appropriate for battery-powered handhelds, cell phones, or

PDAs. Wi-Fi (wireless fidelity) : It is built on the IEEE 802.11 can

transmit up to 54 Mbps in the 5-GHz /2.4 GHz band in

ranges of 30-50 meters.

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WIRELESSTELE-COMMDIAGRAM

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WIRELESSTELE-COMM. STANDARDS..

Laptops equipped with network interface cards link to the

wired LAN by communicating with the access point.

The access point uses radio waves to transmit network

signals from the wired network to the client adapters, which

convert them into data that the mobile device canunderstand.

The client adapter then transmits the data from the mobile

device back to the access point, which forwards the data to

the wired network.

WiMax (Worldwide Interoperability for Microwave Access) :Is built on the IEEE 802.16 and is a new set of standards

that has an access range of up to 31 miles and data

transfer rates up to 75 Mbps, using WiMax antennas to

beam high-speed Internet connections to rooftop antennas

of homes and businesses.

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THEINTERNET

The Internet is the largest implementation of client/server

computing and internetworking, linking hundreds of

thousands of individual networks and 1 billion people

worldwide.

Individuals connect to the Internet in two ways: throughlocal Internet service providers (ISPs) and through their

business firms. The Internet is based on the TCP/IP

networking protocol suite.

Every computer is assigned a unique Internet Protocol (IP)

address, which is currently four strings of numbers rangingfrom 0 to 255, as in the address 207.46.250.119.

The Internet is based on client/server technology. Client

platforms include PCs, cell phones, PDAs, handheld

devices, and information appliances.

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INTERNETBLOCKDIAGRAM

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Documents

Unit 5 - IT Infrastructure