SMG IS 223 Lecture Notes - Lecture 6: Netflix, Blackboard Learn, Icloud
a. Has to do with hardware
2. Law of Mass Digital Storage
. The amount of data being stored each year doubles
a. With new trends, it is maybe around every 6 months
3. Metcalfe’s Law and Network Economics
. Value of power of a network grows exponentially as a function of the number of network
members, Facebook is an example
a. As network members increase, more people want to use it (demand for network access
increases)
b. Goes up as more people begin to use the service
4. Declining Communication Costs and the Internet
. An estimated 3 billion people worldwide have Internet access
a. As communication costs fall toward a very small number and approach zero, utilization
of communication and computing facilities explodes
IT Cycles and Obsolescence
1. Powerful computers enable new applications
2. New applications drive efficiencies
3. New applications often make old hardware obsolete
4. Obsolete hardware requires replacement
5. THIS IS A CONTINUOUS CYCLE
Some Drivers for Rapid Obsolescence
1. Big Data and Rapidly Increasing Storage Needs
a. Firms collect unprecedented levels of data for both business intelligence and legal
compliance
b. Unprecedented levels of data require unprecedented infrastructure capabilities
i.More storage space, powerful hardware, and database management
ii.Ever-increasing Internet bandwidth
iii.Vicious cycle: enhanced capacity drives new applications, requiring even more capacity
2. Many companies face demand fluctuations and demand fluctuations create inefficiencies
3. Increasing focus on green computing and overall energy needs of big computing centers
Layers of the Cloud
1. Packaged Software-
2. Infrastructure as a service- using an infrastructure to save your data, iCloud, seems to
be the cheapest
3. Platform as a service- you pay as you use
4. Software as a service- Google Chrome, Microsoft 365, you pay as you use, Netflix,
Blackboard Learn, Pearson, Nomadic, paying for licenses
Cost Reduction- not paying for something anymore, getting rid of a service possibly to afford a
new one
Cost Avoidance- taking on something new, additional work, budget has not increased but using
money for something new
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Document Summary
Has to do with hardware: law of mass digital storage. The amount of data being stored each year doubles. With new trends, it is maybe around every 6 months: metcalfe s law and network economics. Value of power of a network grows exponentially as a function of the number of network. As network members increase, more people want to use it (demand for network access members, facebook is an example increases) Goes up as more people begin to use the service: declining communication costs and the internet. An estimated 3 billion people worldwide have internet access. As communication costs fall toward a very small number and approach zero, utilization of communication and computing facilities explodes. It cycles and obsolescence: powerful computers enable new applications, new applications drive efficiencies, new applications often make old hardware obsolete, obsolete hardware requires replacement, this is a continuous cycle. Some drivers for rapid obsolescence: big data and rapidly increasing storage needs.