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Chapter 3 • Enterprise Systems Architecture 81

Cisco, for example, is one vendor who is taking steps to stay ahead of the curve and has intro-
duced a product line that meets the requirements for a virtualized data center. Their Nexus product
line is a data center solution, which provides the capability to combine both network and storage
traffic over a single connection, reducing the need for multiple connections per server. The Nexus
platform is a 10-gigabit platform scalable in the future to 100 gigabits. It is also capable of providing
in-service upgrades which allow for the network to stay up while the network switch is upgraded
to fix bugs or add features. As more systems are virtualized and storage network becomes more
prominent, the need for higher bandwidth becomes critical. The Nexus platform is clearly built for
these requirements and the future. ERP systems of the future can utilize this type of platform to
provide users a richer experience while reducing costs through virtualization on the back end.
The initial costs of this type of network device will be high, but the long-term benefits should help
offset the cost.

BENEFITS AND DRAWBACKS Benefits of cloud computing:
•Pay for subscription, not for licenses and upgrades
•Reduced capital and operating expenditures for IT equipment and support personnel
•Accessed from everywhere, as long as you have an Internet connection
•No need to install anything on the user’s computer
•Dynamic scalability available on demand
•No maintenance fees for software or hardware
•Promotes green computing environment as servers in cloud run on clean energy
•Guaranteed reliability.
• Drawbacks to cloud computing:
•Data security
•Vulnerability
•Possible conflict of interest, if the company who stores your applications decides to create
a similar application to what you created on their servers
•Not suited for all highly competitive industries like biotech where intellectual property
cannot be protected easily

IMPLICATIONS FOR MANAGEMENT
Managers implementing ERP systems should remember the following advisories.
Enterprise architecture is an important technology for the long-term functioning of the
organization. It provides the information system foundation on which all the employees and
other stakeholders of the company will depend for critical information and for the decision-
making process. Enterprise architecture identifies the main components and how these compo-
nents interact and function together to achieve defined business objectives. It is also important
to remember that the enterprise components extend beyond technology into organizational
culture and business processes. Enterprise architecture is supposed to communicate, inspire,
and lead the company to design good systems that produce quality information for critical
business decisions.
ERP architecture decisions are complex because their impact goes beyond systems and
technology to people, organizational policy, and business processes. Management, therefore,
must not leave these decisions for the IT department, and instead work together with IT staff
in selecting the architecture. Management involvement must also be at both the functional