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Chapter 5 - IT Infrastructure and Emerging Technologies (5.5 Challenges in…
Chapter 5 - IT Infrastructure and Emerging Technologies
5.5 Challenges in Managing IT Infrastructure and Management Solutions
Making Wise Infrastructure Investments
Rent-versus-buy
Cloud computing
Security requirements
Impact on business processes and workflow
Under-investment and over-investment can hamper firm performance
Outsourcing
Total Cost of Ownership (TCO) Model
Hardware, software account for only about 20% of TCO
Other costs: Installation, training, support, maintenance, infrastructure, downtime, space, and energy
Analyzes direct and indirect costs
TCO can be reduced
Use of cloud services, greater centralization and standardization of hardware and software resources
Management and Governance
How should IT department be organized?
Centralized
Central IT department makes decisions
Decentralized
Business unit IT departments make own decision
How are costs allocated between divisions, departments?
Who controls IT infrastructure?
Competitive Forces Model for IT Infrastructure Investment
Firm’s business strategy
Firm’s IT strategy, infrastructure, and cost
Market demand for firm’s services
Information technology assessment
Competitor firm services
Competitor firm IT infrastructure investments
Dealing with Platform and Infrastructure Change
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
Scalability
Ability to expand to serve larger number of users
As firms shrink or grow, IT needs to be flexible and scalable