Chapter 6

IT Infrastructure and
Platforms

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Chapter 6 IT Infrastructure and Platforms

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

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Chapter 6 IT Infrastructure and Platforms

OBJECTIVES (Continued)

• Assess contemporary computer hardware

platform trends

• Assess contemporary software platform trends

• Evaluate the challenges of managing IT

infrastructure and management solutions

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Chapter 6 IT Infrastructure and Platforms

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!

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Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

The Connection between the Firm, IT Infrastructure, and

Business Capabilities

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Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Levels of IT Infrastructure

Three major levels of infrastructure:

• Public

• Enterprise

• Business unit

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Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Levels of IT Infrastructure

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Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components

• Computer Hardware Platforms

• Operating System Platforms

• Enterprise Software Applications

• Data Management and Storage

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Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components (Continued)

• Networking/Telecommunications Platforms

• Internet Platforms

• Consulting and System Integration Services

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Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

The IT Infrastructure Ecosystem

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Chapter 6 IT Infrastructure and Platforms

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

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Chapter 6 IT Infrastructure and Platforms

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

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Chapter 6 IT Infrastructure and Platforms

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
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Chapter 6 IT Infrastructure and Platforms

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?

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Chapter 6 IT Infrastructure and Platforms

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.

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Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Challenges:

• Making wise infrastructure investments

• Choosing and coordinating infrastructure

components

• Dealing with infrastructure change

• Management and governance

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Chapter 6 IT Infrastructure and Platforms

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

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Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Competitive Forces Model for IT Infrastructure

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Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Starting out small:

• Experiment with new technologies on a smaller scale

before taking up a large-scale infrastructure project.

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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
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