IT Infrastructure and

Emerging Technologies

Novan Dwi Cahyono – Maya Rizqiatur Rofidah

S2 Telematika ITS – Sistem dan Teknologi Informasi
Grab Service
 Grab use Amazon’s Cloud Services

• Problem: Providing a safer and more reliable

taxi service for passengers to million
customers

• Solution: Cloud-based computing service that

manage Grab’s millions of daily bookings in a
real time and allow users to track drivers and
view traffic conditions
 LEARNING OBJECTIVES
5.1 What is IT infrastructure and what are the stages
and drivers of IT infrastructure evolution?
5.2 What are the components of IT infrastructure?
5.3 What are the current trends in computer hardware
platforms?
5.4 What are the current trends in computer software
platforms?
5.5 What are the challenges of managing IT
infrastructure and management solutions?
5.1. What is IT infrastructure and
what are the stages and drivers of IT
infrastructure evolution?
• 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, education, and other services
– “Service platform” perspective
• More accurate view of value of investments
CONNECTION BETWEEN THE FIRM, IT INFRASTRUCTURE, AND BUSINESS CAPABILITIES
• Evolution of IT infrastructure
– General-purpose mainframe and minicomputer era: 1959
to present
• 1958: IBM first mainframes introduced
• 1965: Less expensive DEC minicomputers introduced
– Personal computer era: 1981 to present
• 1981: Introduction of IBM PC
• 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-tiered)
• Various types of servers (network, application, Web)
• Evolution of IT infrastructure (cont.)
– Enterprise computing era: 1992 to present
• Move toward integrating disparate networks,
applications using Internet standards and enterprise
applications
– Cloud and mobile computing: 2000 to present
• Cloud computing: computing power and software
applications supplied over the Internet or other
network
– Fastest growing form of computing
STAGES IN IT INFRASTRUCTURE EVOLUTION
STAGES IN IT INFRASTRUCTURE EVOLUTION (cont.)
A MULTITIERED CLIENT/SERVER NETWORK (N-TIER)
• Technology drivers of infrastructure evolution
– Moore’s law and microprocessing power
• Computing power doubles every 18 months
• Nanotechnology:
– Shrinks size of transistors to size comparable to size
of a virus
– Law of Mass Digital Storage
• The amount of data being stored each year
doubles
 MOORE’S LAW AND MICROPROCESSOR PERFORMANCE

Packing more than

5 billion
transistors into a
tiny
microprocessor
has exponentially
increased
processing power.
Processing power
has increased to
more than 200,000
MIPS (2.6 billion
instructions per
second).
FALLING COST OF CHIPS
 EXAMPLES OF NANOTUBES

Nanotubes are tiny

tubes about 10,000
times thinner than a
human hair. They
consist of rolled up
sheets of carbon
hexagons and have the
potential uses as
minuscule wires or in
ultrasmall electronic
devices and are very
powerful conductors of
electrical current.
 THE COST OF STORING DATA DECLINES EXPONENTIALLY 1950–2012

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.
Cloud storage services
provide 100 gigabytes
of storage for about
$1.00.
• Technology drivers of infrastructure evolution (cont.)
– Metcalfe’s 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).
• Technology drivers of infrastructure evolution (cont.)

– Declining communication costs and the Internet

• An estimated 3 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.
 EXPONENTIAL DECLINES IN INTERNET COMMUNICATIONS 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 one penny.
• 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
5.2 What are the components of IT
infrastructure?
• IT Infrastructure has seven main components
1. Computer hardware platforms
2. Operating system platforms
3. Enterprise software applications
4. Data management and storage
5. Networking/telecommunications platforms
6. Internet platforms
7. Consulting system integration services
 THE IT INFRASTRUCTURE ECOSYSTEM

There are seven

major
components that
must be
coordinated to
provide the firm
with a coherent
IT infrastructure.
Listed here are
major
technologies and
suppliers for each
component.
• Computer hardware platforms
– Client machines
• Desktop PCs, laptops
• Mobile computing: smartphones, tablets, Smartwatch
– Servers
• Blade servers: ultrathin computers stored in racks
– Mainframes:
• IBM mainframe equivalent to thousands of blade
servers
– Top chip producers: Intel, AMD
• Operating system platforms
– Operating systems
• Server level: 65% run Unix or Linux; 35% run Windows
• Client level:
– 90% run Microsoft Windows (Windows 8, Windows 7, etc.)
– Mobile/multitouch (Android, iOS)
– Cloud computing (Google’s Chrome OS)

• Enterprise software applications

– Enterprise application providers: SAP and Oracle
– Middleware providers: IBM, Oracle
• Data management and storage
– Database software:
• IBM (DB2), Oracle, Microsoft (SQL Server),
Sybase (Adaptive Server Enterprise),
MySQL(Owned by Oracle)
– Physical data storage:
• EMC Corp (large-scale systems), Seagate,
Western Digital
– Storage area networks (SANs):
• Connect multiple storage devices on dedicated
network
• Networking/telecommunications platforms
– Telecommunication services
• Telecommunications, cable, telephone
company charges for voice lines and Internet
access
• AT&T, Verizon
– Network operating systems:
• Windows Server, Linux, Unix
– Network hardware providers:
• Cisco, Alcatel-Lucent, \Juniper Networks
• Internet platforms
– Hardware, software, management services to
support company Web sites (including Web-
hosting services), intranets, extranets
– Internet hardware server market: IBM, Dell, Sun
(Oracle), HP
– Web development tools/suites: Microsoft (Visual
Studio and .NET), Oracle-Sun (Java), Adobe, Real
Networks
• 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
5.3. What are the current trends in
computer hardware platforms?
• The mobile digital platform
– Smartphones (iPhone, and Android)
• Data transmission, Web surfing, e-mail, and IM
– Netbooks:
• Small lightweight notebooks optimized for
wireless communication and core tasks
– Tablets (iPad)
– Digital e-book readers (Kindle)
– Wearable devices (smart watches, smart glasses,
activity tracker)
• BYOD (Bring your own device)
– Allowing employees to use personal mobile devices
in workplace
• Consumerization of IT
– New information technology 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
• Quantum computing
– Uses quantum physics to represent and operate on
data
– Dramatic increases in computing speed
• Virtualization
– Allows single physical resource to act as multiple
resources (i.e., run multiple instances of OS)
– Reduces hardware and power expenditures
– Facilitates hardware centralization
• Cloud computing
– On-demand (utility) computing services obtained
over network
• Infrastructure as a service (IaaS)
• Platform as a service (PaaS)
• Software as a service (SaaS)
– Cloud can be public or private
– Allows companies to minimize IT investments
– Drawbacks: Concerns of security, reliability
– Hybrid cloud computing model
CLOUD COMPUTING PLATFORM
 IS IT TIME FORSession:
Interactive CLOUD COMPUTING?
Organizations

• What business benefits

Read the Interactive Session do cloud
and discuss computing
the following questions services
provide? What problems do they solve?
• What are the disadvantages of cloud computing?
• How do the concepts of capacity planning, scalability,
and TCO apply to this case? Apply these concepts
both to Amazon and to subscribers of its services.
• What kinds of businesses are most likely to benefit
from using cloud computing? Why?
• Green computing (Green IT)
– Practices and technologies for manufacturing,
using, disposing of computing and networking
hardware
– Reducing power consumption a high priority
– IT responsible for 2% U.S. power demand
• High performance, power-saving processors
– Multi-core processors
– Power-efficient microprocessors
5.4. What are the current trends in
computer software platforms?
• Open-source software:
– Produced by community of programmers
– Free and modifiable by user
– Examples: Apache web server, Mozilla Firefox
browser, OpenOffice
• Linux
– Open-source OS used in high-performance
computing
– Used in mobile devices, local area networks, Web
servers, Android OS
• Software for the Web
– Java:
• Object-oriented programming language
• Operating system, processor-independent
– HTML/HTML5
• Web page description language
• HTML5 is latest evolution
– Embeds media, animation
– Supports cross-platform apps, offline data storage
– Ruby and Python
• Web Services
– Software components that exchange information
using Web standards and languages
– XML: Extensible Markup Language
• More powerful and flexible than HTML
• Tagging allows computers to process data automatically
• SOA: Service-oriented architecture
– Set of self-contained services that communicate with
one another to create a working software application
– Software developers reuse these services in other
combinations to assemble other applications as
needed
• Example: an “invoice service” to serve whole firm for
calculating and sending printed invoices
– Dollar Rent A Car
• Uses Web services to link online booking system with
Southwest Airlines’ Web site
 HOW DOLLAR RENT A CAR USES WEB SERVICES

Dollar Rent A Car uses Web services to provide a standard intermediate layer of software to “talk” to other companies’
information systems. Dollar Rent A Car can use this set of Web services to link to other companies’ information systems
without having to build a separate link to each firm’s systems.
• Software outsourcing and cloud services
– Three external sources for software:
• Software packages and enterprise software
• Software outsourcing
– Contracting outside firms to develop software
• Cloud-based software services
– Software as a service (SaaS)
– Accessed with Web browser over Internet
– Service Level Agreements (SLAs): formal agreement with
service providers
 CHANGING SOURCES OF FIRM SOFTWARE

In 2014, U.S. firms will spend more than $279 billion on software. About 35 percent of that will originate
outside the firm, either from enterprise software vendors selling firm-wide applications or individual
application service providers leasing or selling software modules. Another 4 percent ($11 billion) will
be provided by SaaS vendors as an online cloud-based service.
• Software outsourcing and cloud services (cont.)
– 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
• Refer commonly to mobile applications
– iPhone, Android
• Tie user to platform
5.5 What are the challenges of
managing IT infrastructure and
management solutions?
• 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
– Amount to spend on IT is complex question
• Rent vs. buy, cloud computing
• 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
TCO
• Competitive forces model for IT
infrastructure investment
1. Market demand for firm’s services
2. Firm’s business strategy
3. Firm’s IT strategy, infrastructure, and cost
4. Information technology assessment
5. Competitor firm services
6. Competitor firm IT infrastructure investments
 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?”
Review Summary
Review Summary
Review Summary
IT Infrastructure and Emerging Technologies

Thank you for your attention.

Any question?

Novan Dwi Cahyono – Maya Rizqiatur Rofidah

S2 Telematika ITS – Sistem dan Teknologi Informasi