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IT Infrastructure and Emerging Technologies

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DREAMWORKS ANIMATION TURNS TO TECHNOLOGY FOR PRODUCTION SUPPORT


DreamWorks Animation has an enviable track record in producing successful high-quality computer-generated animated films. But is also has a series of formidable competitors and a finicky mass audience to please. It was not as profitable as it could be. DreamWorks decided to outclass its competitors by investing heavily in computer hardware and software that increased animation quality and enabled it to produce animated films more rapidly. This case highlights the critical role that hardware and software investments can play in improving business performance and achieving strategic advantages by using information technology to create differentiated products more rapidly than your competitors.

DREAMWORKS ANIMATION TURNS TO TECHNOLOGY FOR PRODUCTION SUPPORT


Dreamworks used HP utility computing services for about four years. The companys demand for computing resources is cyclical and tied to events such as tight production deadlines for new films. Rather than purchase additional infrastructure to handle this peak load, Dreamworks rents this capacity when it needs it from HP.

Management Information Systems


Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Defining IT infrastructure:

Set of physical devices and software required to operate 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, standards, education, research and development services

Service platform perspective more accurate view of value of investments

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Chapter 5 IT Infrastructure and Emerging Technologies

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 firms 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.

Figure 5-1

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Evolution of IT infrastructure (cont.)

Enterprise Internet computing era: 1992 to present


Move toward integrating disparate networks, applications using Internet standards and enterprise applications

Cloud Computing: 2000 to present


Refers to a model of computing where firms and individuals obtain computing power and software applications over the Internet Fastest growing form of computing

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Eras in IT Infrastructure Evolution

Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.

Figure 5-2A

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

A Multitiered Client/Server Network (N-Tier) (N-

In a multitiered client/server network, client requests for service are handled by different levels of servers.

Figure 5-3

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Technology drivers of infrastructure evolution


Moores law and microprocessing power

Computing power doubles every 18 months Nanotechnology: May shrink size of transistors to width of several atoms Contrary factors: Heat dissipation needs, power consumption concerns
Law of Mass Digital Storage

The amount of data being stored each year doubles

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Moores Law and Microprocessor Performance

Packing more transistors into a tiny microprocessor has exponentially increased processing power.
Source: 2004 Intel Corporation; updated by the authors.

Figure 5-4

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Falling Cost of Chips

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 with transistors that cost less than 1/10,000th of a cent. Thats a little less than the cost of one printed character in this book.

Figure 5-5

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

The Capacity of Hard Drives Grows Exponentially 1980-2007 1980-

From 1980 to 1990, hard disk drive capacities for PCs grew at the rate of 25 percent annual compound growth, but after 1990, growth accelerated to more than 65 percent each year.

Figure 5-7

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

The Cost of Storing Data Declines Exponentially 1950-2010 1950-

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.

Figure 5-8

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Technology drivers of infrastructure evolution (cont.)


Metcalfes Law and network economics

Value or power of a network grows exponentially as a function of the number of network members As network members increase, more people want to use it (demand for network access increases)

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Declining communication costs and the Internet


An estimated 1.5 billion people worldwide have Internet access As communication costs fall toward a very small number and approach 0, utilization of communication and computing facilities explodes

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Exponential Declines in Internet Communication Costs

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 2 cents.

Figure 5-9

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Chapter 5 IT Infrastructure and Emerging Technologies

IT Infrastructure

Technology drivers of infrastructure evolution (cont.)


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 the products built to a single standard

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Chapter 5 IT Infrastructure and Emerging Technologies

Infrastructure Components

IT Infrastructure has 7 main components


Computer hardware platforms Operating system platforms Enterprise software applications Data management and storage Networking/telecommunications platforms Internet platforms Consulting system integration services

INFRASTRUCTURE COMPONENTS

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


THE INTEGRATION OF COMPUTING AND TELECOMMUNICATIONS PLATFORMS Were no longer content to view data in a plain text format on paper. We want graphics, video, and audio to enhance our communications. We dont want four or five different computing devices to do so, but everything all rolled into one package. GRID COMPUTING if you could combine all the idle time of hundreds or thousands of computers into a continuous, connected computing capacity to capture, process, manage, store, and retrieve data? You wouldnt have to purchase mammoth, super computers to realize this capability and capacity. You just have to turn to grid computing. It allows companies to save money on hardware and software, and increase computing and processing speeds to make the company more agile.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


ON-DEMAND COMPUTING (UTILITY COMPUTING) On-demand computing mirrors other utilities that provide necessary infrastructure from centralized sources. Its cheaper and helps companies reduce the total cost of ownership of IT technology. They can also take advantage of newer technologies than what they are able to buy and maintain on their own. Utility computing also gives companies a chance to expand services that perhaps they wouldnt be able to provide if they had to buy all the hardware and software.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


One way of curbing hardware proliferation and power consumption is to use virtualization to reduce the number of computers required for processing. Virtualization 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. Benefits of server virtualization include: Run more than one operating system at the same time on a single machine. Increase server utilization rates to 70 percent or higher. Reduce hardware expenditures. Higher utilization rates translate into fewer computers required to process the same amount of work. Mask server resources from server users. Reduces power expenditures. Ability to run legacy applications on older versions of an operating system on the same server as newer applications. Facilitates centralization of hardware administration.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Multicore Processors A multicore processor is an integrated circuit that contains two or more processors. This technology enables two processing engines with reduced power requirements and heat dissipation to perform tasks faster than a resource-hungry chip with a single processing core. Intel and Advanced Micro Devices (AMD) now make dual-core microprocessors and are introducing quad-core processors. Sun Microsystems sells servers using its eight-core UltraSparc T1 processor.

DEFINING IT INFRASTRUCTURE

Hardware Software Services A few of the services that may not be readily apparent are:
Telecommunications services: connecting employees, customers, and suppliers Data management services: not just storing, but managing massive amounts of corporate data and making it available to internal and external users IT education services: training employees on how to properly use the system IT research and development services: researching future IT projects and investments

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


THE INTEGRATION OF COMPUTING AND TELECOMMUNICATIONS PLATFORMS Were no longer content to view data in a plain text format on paper. We want graphics, video, and audio to enhance our communications. We dont want four or five different computing devices to do so, but everything all rolled into one package. GRID COMPUTING if you could combine all the idle time of hundreds or thousands of computers into a continuous, connected computing capacity to capture, process, manage, store, and retrieve data? You wouldnt have to purchase mammoth, super computers to realize this capability and capacity. You just have to turn to grid computing. It allows companies to save money on hardware and software, and increase computing and processing speeds to make the company more agile.

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Chapter 5 IT Infrastructure and Emerging Technologies

Contemporary Hardware Platform Trends

Grid computing

Connects geographically remote computers into a single network to combine processing power and create virtual supercomputer Provides cost savings, speed, agility
Cloud computing (utility computing)

Data permanently stored in remote servers, accessed and updated over the Internet by users Organizations using cloud computing need only pay for the computing power they actually use (on-demand or utility computing)

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


ON-DEMAND COMPUTING (UTILITY COMPUTING) On-demand computing mirrors other utilities that provide necessary infrastructure from centralized sources. Its cheaper and helps companies reduce the total cost of ownership of IT technology. They can also take advantage of newer technologies than what they are able to buy and maintain on their own. Utility computing also gives companies a chance to expand services that perhaps they wouldnt be able to provide if they had to buy all the hardware and software.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


AUTONOMIC COMPUTING AND EDGE COMPUTING As companies rely more and more on IT to meet the demands of employees, customers, suppliers, and business partners, they cant afford to have any system downtime at all. Downtime costs money. Autonomic computing is a step towards creating an IT infrastructure that is able to diagnose and fix problems with very little human intervention. Although this type of computing is still rather new, it promises to relieve the burden many companies experience in trying to maintain massive, complex IT infrastructures. EDGE COMPUTING Getting closer to the customer takes on a whole new meaning in the business of edge computing. By storing and processing some data and applications on edge computers spread around the country or world, businesses can increase the response time and reduce processing costs for the main computing platform.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


One way of curbing hardware proliferation and power consumption is to use virtualization to reduce the number of computers required for processing. Virtualization 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. Benefits of server virtualization include: Run more than one operating system at the same time on a single machine. Increase server utilization rates to 70 percent or higher. Reduce hardware expenditures. Higher utilization rates translate into fewer computers required to process the same amount of work. Mask server resources from server users. Reduces power expenditures. Ability to run legacy applications on older versions of an operating system on the same server as newer applications. Facilitates centralization of hardware administration.

HARDWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Multicore Processors A multicore processor is an integrated circuit that contains two or more processors. This technology enables two processing engines with reduced power requirements and heat dissipation to perform tasks faster than a resource-hungry chip with a single processing core. Intel and Advanced Micro Devices (AMD) now make dual-core microprocessors and are introducing quad-core processors. Sun Microsystems sells servers using its eight-core UltraSparc T1 processor.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES

There are five major themes in contemporary software platform evolution: Linux and open-source software Java Enterprise software Web services and service-oriented architecture Software outsourcing

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


THE RISE OF LINUX AND OPEN-SOURCE SOFTWARE Contemporary software platform trends include the growing use of Linux, open-source software, and Java, software for enterprise integration, and software outsourcing. Open-source software is produced and maintained by a global community of programmers and is downloadable for free. Linux is a powerful, resilient opensource operating system that can run on multiple hardware platforms and is used widely to run Web servers. IS IT TIME FOR OPEN-SOURCE? This case discusses a number of companies who have switched to the
Linux open-source operating system. Many companies have quickly adopted open-source software due to its low cost, reliability, and flexibility. However, as the case indicates the adoption of Linux also brings with it some major challenges. Before making the switch over to open-source software such as Linux, a business must do their homework in order to ensure that the software will indeed meet their business and computing requirements.

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Chapter 5 IT Infrastructure and Emerging Technologies Software Platform Trends and Emerging Technologies

Is It Time for Open-Source? Read the Interactive Session: Technology, and then discuss the following questions:

What problems do Linux and other open-source software address? How does open-source software help solve these problems? What issues and challenges do open-source software present? What can be done to address these issues? What are the business as well as the technology issues that should be addressed when deciding whether to use opensource software?

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


JAVA IS EVERYWHERE Java is a new programming language that has come on strong in the last four or five years. What makes this language so enticing is that it is operating system-independent and processor-independent. This means that you dont need to worry about compatibility between separate operating systems such as Windows, MacIntosh, or UNIX. Regardless of the hardware or software you use, this language will fit them all. Many businesses and individuals have long lamented the closed systems that caused incompatibility between different platforms. Its been nearly impossible to share data between various hardware and software platforms. Many large mainframes couldnt pass information to small PCs without special programs. Data used in smaller, individual PCs couldnt pass information to larger information systems. Java solves these problems.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Java can be used to create miniature programs called applets. Applets perform very small, specialized, one-at-a-time tasks. When a user wants to perform the task, the coding is moved from the server where its permanently stored and then executed on the client computer. When the task is completed, its deleted from the client and reverts to the server computer. In essence, you use an applet once and then literally throw it away. Using applets reduces storage needs on client computers and PCs. Again, it doesnt matter whether the client is a PC or a terminal attached to a network. In fact, Java applets are being used on handheld computers, and on many other non-computer appliances. Java also reduces the bloatware problem of huge software application programs with more functions than the average person could ever hope to use. You dont need a large application program to do a simple task.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


SOFTWARE FOR ENTERPRISE INTEGRATION Middleware: bridges the gap between separate systems and gives an organization a method of sharing information. Middleware is cheaper and easier to install than enterprise software. Enterprise application integration software (EAI): allows a company to decide which systems it wants to tie together, how it wants to do it, and then generate the necessary program code to completely integrate the pieces into a cohesive unit.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


WEB SERVICES AND SERVICE-ORIENTED ARCHITECTURE Web services refers to set of loosely coupled software components that exchange information with each other using standard Web communication standards and languages. Some of the characteristics of Web services include: They can exchange information between two different systems regardless of the operating systems or programming languages on which the systems are based. They can be fused to build open standard Web-based applications linking systems of two different organizations. They can be used to create applications that link disparate systems within a single company. They are not tied to anyone operating system or programming language. Different applications can use them to communicate with each other in a standard way without time-consuming custom coding.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


As we use the Web for more applications, the computer language is evolving to keep up with new and innovative uses. HTML has worked well for displaying text and graphics. Extensible Markup Language (XML) is designed to control data on a Web page or site and make it more manageable. XML gives us a single, human-readable syntax for serializing just about any kind of structured data including relational data in a way that lets it be manipulated and displayed using simple, ubiquitous, standardized tools. The larger implications of a standard, easily processed serial data format are hard to imagine, but they are obviously going to have a large impact on electronic commerce. And it seems clear that electronic commerce is eventually going to become synonymous with commerce in general. XML can do for data what Java has done for programs, which is to make the data both platform-independent and vendor-independent.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Four software standards and communication protocols provide easy access to data and information via Web services in the first layer: XML (eXtensible Markup Language): describes data in Web pages and databases SOAP (Simple Object Access Protocol): allows applications to pass data and applications to one another WSDL (Web Services Description Language): describes a Web service so that other applications can use it UDDI (Universal Description, Discovery, and Integration): lists Web services in a directory so it can be located

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


The second layer of Web service-oriented architecture consists of utilities that provide methods for: security, third-party billing and payment systems transporting messages and identifying available services The third layer is comprised of Web services applications themselves such as payment processing services. The distinct advantage of building Web services is their reusability. That is, you can build one Web service that can be used by many different businesses. This kind of functionality promises a whole slew of new Internet-related development companies to spring up in the next few years as this idea takes hold.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Ajax is a method of building interactive applications for the Web that process user requests immediately. Ajax combines several programming tools including JavaScript, dynamic HTML (DHTML), Extensible Markup Language (XML), cascading style sheets (CSS), the Document Object Model (DOM), and the Microsoft Object. Ajax allows content on Web pages to update immediately when a user performs an action, unlike an HTTP request, during which users must wait for a whole new page to load. Mashups is a Web page or application that integrates complementary elements from two or more sources. Mash-ups are often created by using a development approach called Ajax.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Web 2.0 (or Web 2) is the popular term for advanced Internet technology and applications including blogs, wikis, RSS, and social bookmarking. The two major components of Web 2.0 are the technological advances enabled by Ajax and other new applications such as RSS and Eclipse and the user empowerment that they support. One of the most significant differences between Web 2.0 and the traditional World Wide Web (retroactively referred to as Web 1.0) is greater collaboration among Internet users and other users, content providers, and enterprises. Web-based software and applications ability to go onto the Web and do all your writing and calculating online using free software and Web-based tools. Google Apps for Your Domain is an example of how the industry is preparing to offer online spreadsheet and word processing, along with calendar, e-mail and instant messaging capabilities to the masses.

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


SOFTWARE OUTSOURCING Three external sources for software outsourcing are: software packages from a commercial vendor software services from an application service provider outsourcing custom application development to an outside software firm Changing Sources of Software . Firms are increasingly outsourcing their software projects off-shore where they can capitalize on low-wage regions such as India, China, Eastern Europe, Africa, and Latin America. Software Packages and Enterprise Software Rather than design, write, test, and maintain legacy systems, many organizations choose to purchase software programs from other companies that specialize in certain programs

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Application Service Providers (ASPs) Midsize companies in need of sophisticated enterprise resource planning programs can rent only what they need and can afford through on-line providers. Businesses can outsource their accounting needs to a Web-based service. Another plus for using application service providers (ASP) is the fact that their services are Web-based, thus making the users files accessible from virtually any computer connected to the Internet. There is some danger to outsourcing your information resources to an ASP. Remember, all your data are stored on another companys server computers and you have little control of it. What happens if the ASP goes out of business?

SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIES


Software Outsourcing Companies are discovering that its cheaper and easier to hire third party vendors for software related tasks such as system maintenance, data management, and program development. Much as theyve outsourced mundane and repetitive tasks to mainly overseas locations, many companies are outsourcing all kinds of software related work. The Internet has made this option more viable than it ever was : The four major themes in contemporary software platform evolution Linux and open-source software; Java; Web services and service-oriented architecture; and software outsourcing; are providing companies new options in IT infrastructure technologies.

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