Chapter 3

IT Infrastructure &
Emerging Technologies
Manajemen Informasi & Komunikasi
2020
 Learning Objectives

• Define IT infrastructure and describe the stages and

technology drivers of IT infrastructure evolution
• Describe the components of IT infrastructure
• Current trends in computer hardware platform trends
• Current trends in computer software platform
• Evaluate the challenges of managing IT infrastructure and
management solutions
 Defining IT Infrastructure

• Set of physical devices and software applications that are

required to operate the entire enterprise.
• Set of firmwide services including:
– Computing platforms providing computing services
– Telecommunications services
– Data management services
– Application software services
– Physical facilities management services
– IT management, education, research & development services,
• “Service platform” perspective
– More accurate view of value of investments IT Infrastructure
Connection Between the Firm, IT Infrastructure, And
Business Capabilities

The services a firm is capable of providing to its customers, suppliers, and employees are a
direct function of its IT infrastructure. Ideally, this infrastructure should support the firm’s
business and information systems strategy. New information technologies have a powerful
impact on business and IT strategies as well as the services that can be provided to customers.
 Evolution of IT infrastructure

• General-purpose mainframe and minicomputer era (1959

to present)
– 1959: IBM first mainframes introduced
– 1965: Less expensive DEC minicomputers introduced
• Personal computer era (1981 to present)
– 1981: Introduction of IBM PC (Personal Computer)
– 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-tier)
– Various types of servers (network, application, Web) IT
Infrastructure
 A Multitiered (N-tier) Client/Server Network

In a multitiered client/server network, client requests for service are

handled by different levels of servers.
- A web server will serve a webpage to a client in response to a
request for service
- Application server software handles all application operations
between a user and an organization’s back-end business systems.
 Evolution of IT infrastructure (cont.)

• Enterprise computing era (1992 to present)

– Move toward integrating disparate networks, applications using
Transmission Control Protocol/Internet Protocol (TCP/IP) networking
standard and enterprise applications

• Cloud and mobile computing (2000 to present)

– Cloud computing: refers to a model of computing that provides access
to a shared pool of computing resources (computers, storage,
applications, and services) over the network (internet)
– Cloud computing is now the fastest growing form of computing
Stages in IT Infrastructure Evolution
 Technology Drivers of Infrastructure
Evolution
• Moore’s Law and Miroprocessing Power
– The power of microprocessors doubles every 18 months
– Computing power doubles every 18 months
– The price of computing falls by half every 18 months
– Nanotechnology:
• Shrink the size of transistors down to the width of several atoms
• Law of Mass Digital Storage
– The amount of digital information is roughly doubling every year
– But the cost of storage has decreased exponentially
 Moore’s Law and Microprocessor Performance

- This figure illustrates the

relationship between
number of transistors on a
microprocessor and millions
of instructions per second
(MIPS), a common measure
of processor power.
- Packing more than 5 billion
transistors into a tiny
microprocessor has
exponentially increased
processing power. Processing
power has increased to more
than 250,000 MIPS (about
2.6 billion instructions per
second). Source: Authors’
estimate
 Falling Cost of Chips

This figure shows the exponential decline in the cost of transistors and rise in computing power
 Technology Drivers of Infrastructure
Evolution (cont.)
• Metcalfe’s Law and Network Economics
– The value of a network grows exponentially as a function of the
number of network members
– As network members increase, the value of the entire system grows
exponentially and continues to grow

• Declining Communication Costs and the Internet

– There are more than 3.5 billion people worldwide have Internet
access.
– As communication costs fall toward a very small number and approach
zero, utilization of communication and computing facilities explodes
 Technology Drivers of Infrastructure
Evolution (cont.)
• Standards and Network Effects
– Today’s enterprise infrastructure and Internet computing would be
impossible—both now and in the future—without agreements among
manufacturers and widespread consumer acceptance of technology
standards.
– Technology standards:
• Specifications that establish the compatibility of products and the
ability to communicate in a network
– Technology standards unleash powerful economies of scale and result
in price declines as manufacturers focus on the products built to a
single standard
Some Important Standards in Computing
 IT Infrastructure Component

• IT Infrastructure has seven major components

– Computer hardware platforms
– Operating system platforms
– Enterprise software applications
– Data management and storage
– Networking/telecommunications platforms
– Internet platforms
– Consulting system integration services
 The IT Infrastructure Ecosystem

These components must be coordinated to provide the firm with a coherent IT infrastructure.
 Computer Hardware Platforms

• Client machines
– Desktop PCs, laptops
– Mobile computing: smartphones, tablets
• Servers
– Blade servers: ultrathin computers stored in racks
• Mainframes:
– Used to reliably and securely handle huge volumes of transactions, for
analyzing very large quantities of data, and for handling large
workloads in cloud computing centers.
– Top firms: IBM, HP, Dell, Sun Microsystems
 Operating System Platforms

• Operating systems: Tell computers what to do, when to do it,

and how
– Server level: 65% run Unix or Linux; 35% run Windows
– Client level:
• 81% run Microsoft Windows (Windows 8, Windows 7, etc.)
• Mobile/multitouch (Android, iOS)
• Google’s Chrome OS provides a lightweight operating system for
cloud computing using a web-connected computer.
– Programs are not stored on the user’s computer but are used
over the Internet and accessed through the Chrome web
browser.
 Data Management and Storage

• Enterprise database management software is responsible for

organizing and managing the firm’s data so that they can be
efficiently accessed and used
• Database software
– IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server
Enterprise), MySQL
• Physical data storage:
– EMC Corporation (large-scale systems), Seagate, Western Digital
• Storage Area Networks (SANs):
– Connect multiple storage devices on dedicated network
 Networking/Telecommunications
Platforms
• Combination of telephone services, cell phone connectivity,
computers and peripheral devices, handheld PDAs, and
wireless services
• Telecommunication Platform
– Typically provided by telecommunications/telephone services
companies that offer voice and data connectivity, wide area
networking, wireless services, and Internet access
• Vendor: AT&T and Verizon
• Network Operating Systems:
– Windows Server, Linux, Unix
• Network Hardware Providers:
– Cisco, Alcatel-Lucent, Juniper Networks
 Internet Platforms
• Hardware, software, management services to support a
company website (including Web hosting services, routers,
and cabling or wireless equipment)
• A web hosting service maintains a large web server, or series
of servers, and provides fee-paying subscribers with space to
maintain their websites.
• Internet hardware server market: IBM, Dell, Sun (Oracle), HP
• Web development tools/suites: Microsoft (Visual Studio and
.NET), Oracle-Sun (Java), Adobe (Creative Suites)
 Consulting and System Integration
Services
• Even large firms do not have resources (staff, skills, budget,
experience) for full range of support for new, complex
infrastructure
• Implementing a new infrastructure requires significant
changes in business processes and procedures, training and
education, and software integration.
• Leading consulting firms: Accenture, IBM Global Business
Services, HP, Infosys, and Wipro Technologies
• Software integration  ensuring new infrastructure works
with legacy systems
– Legacy systems  generally older Transaction Processing Systems
(TPS) created for mainframe computers that continue to be used to
avoid the high cost of replacing or redesigning them
 Current Trends in Computer Hardware
Platforms
• The Emerging Mobile Digital Platform
– Smartphones (iPhone, Android, and Blackberry)
• Data transmission, Web surfing, e-mail, and IM
– Netbooks:
• Small, lightweight notebooks optimized for wireless
communication, internet access, and core tasks
– Tablet Computers (iPad)
– Digital e-book readers (Kindle and Nook)
– Wearable devices (smart watches, smart glasses, smart ID badges, and
Activity Trackers)
 Current Trends in Computer Hardware
Platforms (cont.)
• Consumerization of IT and BYOD
– BYOD (Bring Your Own Device)
• Allowing employees to use personal mobile devices in workplace
– Consumerization of IT
• New Information Technology that first emerges in consumer
markets first and spreads to business organizations
• Forces businesses and IT departments to rethink how IT
equipment and services are acquired and managed
 Current Trends in Computer Hardware
Platforms (cont.)
• Quantum computing
– It is an emerging technology with the potential to dramatically boost
computer processing power to find answers to problems that would
take conventional computers many years to solve. (Dramatic increases
in computing speed)
– Uses the principles of quantum physics to represent and perform
operations on data
 Current Trends in Computer Hardware
Platforms (cont.)
• Virtualization
– It is the process of presenting a set of computing resources (such as
computing power or data storage) so that they can all be accessed in
ways that are not restricted by physical configuration or geographic
location.
– It enables a single physical resource (such as a server or a storage
device) to appear to the user as multiple logical resources (i.e., run
multiple instances of OS)
– Virtualization also enables multiple physical resources to appear as a
single logical resource, as in Software-defined Storage (SDS), which
separates the software for managing data storage from storage
hardware.
 Current Trends in Computer Hardware
Platforms (cont.)
• Cloud computing
– The essential characteristics of Cloud Computing:
• On-demand self-service  Consumers can obtain computing
capabilities as needed automatically on their own.
• Ubiquitous network access  Cloud resources can be accessed
using standard network and Internet devices, including mobile
platforms.
• Location-independent resource pooling  Computing resources
are pooled to serve multiple users, with different virtual
resources dynamically assigned according to user demand.
– The user generally does not know where the computing resources
are located.
• Rapid elasticity  Computing resources can be rapidly
provisioned, increased, or decreased to meet changing user
demand.
• Measured service  Charges for cloud resources are based on
amount of resources actually used.
 Cloud Computing Platform

In cloud computing, hardware and software capabilities are a pool of virtualized resources
provided over a network, often the Internet. Businesses and employees have access to
applications and IT infrastructure anywhere, at any time, and on any device.
 Current Trends in Computer Hardware
Platforms (cont.)

• Cloud computing (cont.)

– Three different types of services:
• Infrastructure as a service (IaaS): Customers use processing,
storage, networking, and other computing resources from
cloud service providers to run their information systems.
• Software as a service (SaaS): Customers use software hosted
by the vendor on the vendor’s cloud infrastructure and
delivered as a service over a network.
• Platform as a service (PaaS): Customers use infrastructure and
programming tools supported by the cloud service provider to
develop their own applications.
Cloud Computing Models Compared
 Current Trends in Computer Hardware
Platforms (cont.)
• Green Computing (Green IT)
– Practices and technologies for designing, manufacturing, using,
disposing of computing and networking hardware to minimize impact
on the environment
– Reducing power consumption  a high “green” priority

• High Performance, Power-saving Processors

– Multi-core processors  An integrated circuit to which two or more
processor cores have been attached for enhanced performance,
reduced power consumption, and more efficient simultaneous
processing of multiple tasks
– Power-efficient microprocessors  are used in lightweight
smartphones and tablets, intelligent cars, and healthcare devices.
 Current Trends in Computer Software
Platforms
• Linux and Open-source Software:
– Open Source Software
• Produced by a community of programmers
• Free and modifiable by user
• Not restricted to any specific operating system or hardware
technology
• Examples: Linux OS, Apache HTTP web server, Mozilla Firefox
browser, OpenOffice
– Linux
• Open-source OS used in high-performance computing
• Linux works on all the major hardware platforms from mainframes
to servers to clients.
• Used in mobile devices, local area networks, Web servers, Android
OS
 Current Trends in Computer Software
Platforms
• Software for the Web
– Java:
• Object-oriented programming language
• Designed to run on any computer or computing device, regardless of
the specific microprocessor or operating system the device uses
– HTML/HTML5
• A page description language for specifying how text, graphics, video,
and sound are placed on a webpage and for creating dynamic links to
other webpages and object
• HTML5 is latest evolution
– Embeds media, animation
– HTML5, solves this problem by making it possible to embed
images, audio, video, and other elements directly into a
document without processor-intensive add-on
– Supports cross-platform apps, offline data storage
– Ruby and Python
 Current Trends in Computer Software
Platforms
• Web Services and Service-Oriented Architecture
– Web service  Software components that exchange information using
Web standards and languages
– XML: Extensible Markup Language
• More powerful and flexible than HTML
• Tagging selected elements allows computers to process data
automatically
– SOA
• Set of self-contained services that communicate with one another
to create a working software application
• Services reused in other combinations to assemble other
applications as needed
– Example: an “invoice service” to serve whole firm for
calculating and sending printed invoices
 Current Trends in Computer Software
Platforms
• Software Outsourcing and Cloud Services
– Software Packages and Enterprise Software
– Software outsourcing
• Contracting outside firms to develop software
– Cloud-based software services and Tools
• Software as a service (SaaS)
• Accessed with Web browser over Internet
• Service Level Agreements (SLAs): formal agreement with service
providers
 Current Trends in Computer Software
Platforms
• Software Outsourcing and Cloud Services (cont.)
– Mashups and Apps
• Mashups  Combinations of two or more online applications,
such as combining mapping software (Google Maps) with local
content
• Apps  Small pieces of software that run on the Internet, on your
computer, or on mobile device. It refer commonly to mobile
applications (iPhone, Android)
 Challenges of Managing IT Infrastructure

• 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, they will require:
• New policies and procedures for managing these new platforms
• New contractual arrangements with remote vendors to make sure
that the hardware and software for critical applications are always
available when needed and they meet corporate standards for
information security.
 Challenges of Managing IT Infrastructure

• 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
– What is the relationship between central IS management and business
unit IS management? How will infrastructure costs be allocated among
business units? Each organization will need to arrive at answers based
on its own needs.
 Challenges of Managing IT Infrastructure

• Making wise infrastructure investments

– Amount to spend on IT is complex question
• Rent vs. buy IT infrastructure
• Cloud computing?
– Security requirements
– Impact on business processes and workflow
• Outsourcing
 Challenges of Managing IT Infrastructure

• 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
Total Cost of Ownership (TCO) Cost Components
 COMPETITIVE FORCES MODEL FOR IT
INFRASTRUCTURE

There are six factors you can use to answer the question “How much should our firm spend
on IT infrastructure?
 Refference

• Kenneth C. Laudon and Jane P. Laudon. Management

Information Systems, 15th Edition