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BMIS 33126 Management Information Systems

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BMIS 33126 Management Information Systems

Chapter 5: IT Infrastructure and Emerging Technologies

1. What are the components of IT infrastructure?


List and describe the components of IT infrastructure that firms need to manage.
IT infrastructure includes hardware, software, and services:
 Computing platforms: Includes mainframes, midrange computers, desktop and laptop
computers, and mobile handheld devices—anything that connects employees,
customers, and suppliers into a coherent digital environment.
 Telecommunications services: Data, voice, and video connectivity among employees,
customers, and suppliers.
 Data management: Store, manage, and analyze data.
 Application software: Includes enterprise resource planning, customer relationship
management, supply chain management, and knowledge management systems.
 Physical facilities management: Develop and manage the physical installations for
computing, telecommunications, and data management.
 IT management: Planning and developing the infrastructure, coordinate IT services
among business units, managing accounting for IT expenditures, and provide project
management.
 IT standards: Policies that determine which information technology will be used, when,
and how.
 IT education: Employee training in system use and management training for IT
investments.
 IT research and development: Research future IT projects and investments that can
help the firm differentiate itself from competitors.

2. List the essential characteristics of cloud computing.

Cloud computing consists of 5 essential characteristics as defined by the U.S. National Institute
of Standards and Technology. These are on-demand self-service (the ability to obtain
computing capabilities automatically), ubiquitous network access (accessibility using standard
devices), location-independent resource pooling (computing resources are pooled to serve
multiple users regardless of location), rapid elasticity (the ability to quickly increase or
decrease resources to meet user demand), and measured service (charges are based on amount
of resources consumed, not a flat fee).

3. What are the advantages and disadvantages of cloud computing?

Cloud computing is the idea of making computing resources available based on what a user
really needs instead of what they might need.

The advantages include:


 Not dependent on physical location of either resources or users.
 Users access computing resources on their own not necessarily dependent on IT staff.
 Based on standard network and Internet devices.
BMIS 33126 Management Information Systems

 Resources serve multiple users with computing virtually assigned according to need.
 Resources are increased or decreased according to demand.
 Charges are based on the amount of resources actually used.
 Large investments in IT infrastructure are not necessarily needed or investments are
significantly reduced.
 Firms can shift additional processing requirements to cloud computing during peak
business periods.
 It allows a more flexible IT infrastructure.

The disadvantages include:


 Responsibility for data storage and control is transferred away from the organization to a
third party.
 Security risks and chances of data compromises are increased.
 Risk diminishing system reliability.
 Increase dependency on a third party making everything work.
 Huge investments in proprietary systems supporting unique business processes may be at
risk.

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