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230 Part Two Information Technology Infrastructure

Review Summary

1. What is IT infrastructure and what are its components?
IT infrastructure is the shared technology resources that provide the platform for the firm’s specific
information system applications. IT infrastructure includes hardware, software, and services that are
shared across the entire firm. Major IT infrastructure components include computer hardware
platforms, operating system platforms, enterprise software platforms, networking and telecommuni-
cations platforms, database management software, Internet platforms, and consulting services and
systems integrators.

2. What are the stages and technology drivers of IT infrastructure evolution?
The five stages of IT infrastructure evolution are: the mainframe era, the personal computer era,
the client/server era, the enterprise computing era, and the cloud and mobile computing era. Moore’s
Law deals with the exponential increase in processing power and decline in the cost of computer
technology, stating that every 18 months the power of microprocessors doubles and the price of
computing falls in half. The Law of Mass Digital Storage deals with the exponential decrease in the
cost of storing data, stating that the number of kilobytes of data that can be stored on magnetic media
for $1 roughly doubles every 15 months. Metcalfe’s Law states that a network’s value to participants
grows exponentially as the network takes on more members. The rapid decline in costs of communi-
cation and growing agreement in the technology industry to use computing and communications
standards is also driving an explosion of computer use.

3. What are the current trends in computer hardware platforms?
Increasingly, computing is taking place on a mobile digital platform. Grid computing involves
connecting geographically remote computers into a single network to create a computational grid
that combines the computing power of all the computers on the network. Virtualization organizes
computing resources so that their use is not restricted by physical configuration or geographic
location. In cloud computing, firms and individuals obtain computing power and software as services
over a network, including the Internet, rather than purchasing and installing the hardware and
software on their own computers. A multicore processor is a microprocessor to which two or more
processing cores have been attached for enhanced performance. Green computing includes practices
and technologies for producing, using, and disposing of information technology hardware to minimize
negative impact on the environment. In autonomic computing, computer systems have capabilities
for automatically configuring and repairing themselves. Power-saving processors dramatically reduce
power consumption in mobile digital devices.

4. What are the current trends in software platforms?
Open source software is produced and maintained by a global community of programmers and is
often downloadable for free. Linux is a powerful, resilient open source operating system that can run
on multiple hardware platforms and is used widely to run Web servers. Java is an operating-system–
and hardware-independent programming language that is the leading interactive programming
environment for the Web. HTML5 makes it possible to embed images, audio, and video directly into
a Web document without add-on programs. Web services are loosely coupled software components
based on open Web standards that work with any application software and operating system. They
can be used as components of Web-based applications linking the systems of two different organiza-
tions or to link disparate systems of a single company. Companies are purchasing their new software
applications from outside sources, including software packages, by outsourcing custom application
development to an external vendor (that may be offshore), or by renting online software services
(SaaS). Mashups combine two different software services to create new software applications and
services. Apps are small pieces of software that run on the Internet, on a computer, or on a mobile
phone and are generally delivered over the Internet.

5. What are the challenges of managing IT infrastructure and management solutions?
Major challenges include dealing with platform and infrastructure change, infrastructure
management and governance, and making wise infrastructure investments. Solution guidelines
include using a competitive forces model to determine how much to spend on IT infrastructure and

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