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232 Part Two Information Technology Infrastructure

• Define and describe open source software and 5. What are the challenges of managing IT
Linux and explain their business benefits. infrastructure and management solutions?
• Define Java and HTML5 and explain why they • Name and describe the management
are important. challenges posed by IT infrastructure.
• Define and describe Web services and the role • Explain how using a competitive forces model
played by XML. and calculating the TCO of technology assets
• Name and describe the three external sources help firms make good infrastructure
for software. investments.
• Define and describe software mashups and
apps.

Discussion Questions

1. Why is selecting computer hardware and software What management, organization, and technology
for the organization an important management factors should be considered when making this
decision? What management, organization, and decision?
technology issues should be considered when 3. What are the advantages and disadvantages of
selecting computer hardware and software? cloud computing?
2. Should organizations use software service provid-
ers for all their software needs? Why or why not?

Hands-On MIS Projects

The projects in this section give you hands-on experience in developing solutions for managing IT
infrastructures and IT outsourcing, using spreadsheet software to evaluate alternative desktop systems, and
using Web research to budget for a sales conference.

Management Decision Problems

1. The University of Pittsburgh Medical Center (UPMC) relies on information systems to operate 19 hospitals, a
network of other care sites, and international and commercial ventures. Demand for additional servers and
storage technology was growing by 20 percent each year. UPMC was setting up a separate server for every
application, and its servers and other computers were running a number of different operating systems,
including several versions of Unix and Windows. UPMC had to manage technologies from many different
vendors, including Hewlett-Packard (HP), Sun Microsystems, Microsoft, and IBM. Assess the impact of this
situation on business performance. What factors and management decisions must be considered when
developing a solution to this problem?
2. Qantas Airways, Australia’s leading airline, faces cost pressures from high fuel prices and lower levels of
global airline traffic. To remain competitive, the airline must find ways to keep costs low while providing a
high level of customer service. Qantas had a 30-year-old data center. Management had to decide whether to
replace its IT infrastructure with newer technology or outsource it. What factors should be considered by
Qantas management when deciding whether to outsource? If Qantas decides to outsource, list and describe
points that should be addressed in a service level agreement.

Improving Decision Making: Using a Spreadsheet to Evaluate Hardware
and Software Options

Software skills: Spreadsheet formulas
Business skills: Technology pricing
In this exercise, you will use spreadsheet software to calculate the cost of desktop systems, printers, and
software.

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