Management Information Systems: Chapter 5 IT Infrastructure and Emerging Technologies

5) Place the following eras of IT infrastructure evolution in order, from earliest to most recent: 1. Cloud Computing Era; 2. Client/Server; 3. Enterprise Era; 4. Personal Computer; 5. Mainframe and Minicomputer. A) 5, 2, 3, 4, 1 B) 5, 4, 2, 3, 1 C) 4, 5, 2, 3, 1 D) 5, 4, 2, 1, 3 E) 4, 5, 3, 2, 1

B) 5, 4, 2, 3, 1

38) Which of the following is the most popular mobile operating system? A) Linux B) Android C) Chrome OS D) iOS E) Unix

B) Android

12) ________ uses individual atoms and molecules to create computer chips and other devices. A) Virtualization B) Nanotechnology C) Quantum computing D) A minicomputer E) On-demand computing

B) Nanotechnology

48) At what percent of capacity do most servers operate? A) 100% B) 80-90% C) Approximately 70 percent D) 40-50% E) 15-20%

E) 15-20%

53) Which of the following is one of the characteristics of cloud computing, as defined by the not U.S. National Institute of Standards and Technology? A) Ubiquitous network access B) Location-independent resource pooling C) On-demand self service D) Measured service E) Reduced elasticity

E) Reduced elasticity

6) The introduction of the minicomputer: A) allowed computers to be customized to the specific needs of departments or business units. B) strengthened centralized computing. C) offered new, powerful machines at higher prices than mainframes. D) represented the rise of Microsoft. E) was dominated by IBM

A) allowed computers to be customized to the specific needs of departments or business units.

73) Sets of loosely coupled software components that exchange information with each other using standard web communication standards and languages are referred to as: A) web services. B) EAI software. C) SOA. D) SOAP. E) SaaS.

A) web services.

10) Today's computer transistors are roughly equivalent in size to: A) the width of a fingernail. B) a human hair. C) a virus. D) several atoms. E) a grain of sand.

C) a virus.

69) Linux is: A) primarily concerned with the tasks of end users. B) designed for specific machines and specific microprocessors. C) an example of open-source software. D) especially useful for processing numeric data. E) poorly suited to power fast computers.

C) an example of open-source software.

72) A software program with a graphical user interface for displaying web pages and for accessing the web and other Internet resources is called a web: A) service. B) client. C) browser. D) app. E) beacon.

C) browser.

28) Which of the following is a multitasking, multiuser, operating system developed by Bell Laboratories that operates on a wide variety of computing platforms? A) Unix B) Linux C) OS X D) COBOL E) DOS

A) Unix

3) Specifications that establish the compatibility of products and the ability to communicate in a network are called: A) network standards. B) telecommunications standards. C) technology standards. D) Internet standards. E) compatibility standards.

C) technology standards.

32) The Windows Operating System: A) was an early PC operating system. B) is used on virtually all tablet and mobile devices today. C) is a data management application used on PCs. D) is an operating system used on most Wintel PCs throughout the world. E) is a web-based operating system for the Internet era.

D) is an operating system used on most Wintel PCs throughout the world.

7) A client computer networked to a server computer, with processing split between the two types of machines, is called a(n): A) service-oriented architecture. B) on-demand architecture. C) multi-tiered client/server architecture. D) two-tiered client/server architecture. E) divided architecture.

D) two-tiered client/server architecture.

1) Which type of infrastructure service stores and manages corporate data and provides capabilities for analyzing the data? A) Networking B) Telephone C) VOIP D) Telecommunications E) Data management

E) Data management

26) List and describe four services that comprise IT infrastructure, beyond physical devices and software applications

• The service components of IT infrastructure include: • Telecommunications services that provide data, voice, and video connectivity. • Data management services to store, manage, and analyze data. • Application software services that provide enterprise-wide capabilities. • Physical facilities management services, to develop and manage physical installations of technology. • IT standards services that establish and monitor the firm's policies. • IT education services that provide training in use of the systems. - IT research and development services that research potential projects, products, and investments.

63) What are the drawbacks of cloud computing? Do you think these ever outweigh the benefits, and if so, in what cases?

1. placing data storage and control in another firm's hands. 2. security risks in having critical systems and data entrusted to a firm that does business with other firms. 3. loss of business capability if cloud infrastructures malfunction. 4. dependence on cloud computing provider and switching costs. The disadvantages of cloud computing outweigh the advantages, except if any data lost is irreplaceable or creates harm to others. For example, a database of financial information should remain the responsibility of the original firm so that they can be held accountable.

13) ________ states that the value or power of a network grows exponentially as a function of the number of network members. A) Metcalfe's Law B) Moore's Law C) Law of scalability D) Law of outsourcing E) Law of networks

A) Metcalfe's Law

50) Which of the following types of computing involves purchasing computing power from a remote provider and paying only for the computing power used? A) On-demand B) Grid C) Edge D) Autonomic E) Quantum

A) On-demand

2) Which of the following is not an IT infrastructure service component? A) Operating system software B) Computing platforms to provide a coherent digital environment C) Physical facilities management to manage the facilities housing physical components D) IT management services to plan and develop the infrastructure and provide project management E) IT education services that provide training to employees

A) Operating system software

34) Which of the following is an example of a legacy system? A) Transaction processing system running on a mainframe B) Scalable grid computing system C) Web services running on a cloud computing platform D) MDM software E) Quantum computing system

A) Transaction processing system running on a mainframe

64) What are the essential characteristics of cloud computing?

As defined by the U.S. National Institute of Standards and Technology, cloud computing is characterized by on-demand self-service, ubiquitous network access, locationindependent resource pooling, rapid elasticity, and measured service. On-demand self-service means that consumers can use server time and network storage as they need it on their own. Ubiquitous network refers to the ability to access cloud resources across all devices and platforms, including mobile. Location independent resource pooling describes the ability to allocate resources to any part of the world without a dip in service quality. Rapid elasticity is the capacity for resources to be increased or decreased as needed to meet demand. Lastly, measured service refers to the payment technique whereby users are charged based on the resources they use, as opposed to monthly or yearly rates.

54) Which of the following is not an example of the consumerization of IT? A) Google Apps B) Dropbox C) Facebook D) Gmail E) Amazon Web Services

E) Amazon Web Services

31) Which of the following is a leading networking hardware provider? A) Dell B) Intel C) Seagate D) IBM E) Cisco

E) Cisco

68) Which of the following is not one of the current software platform trends? A) Web services and service-oriented architecture B) Open-source software C) HTML5 D) Software outsourcing E) Multicore processors

E) Multicore processors

36) All of the following are typically factors in a firm's decision to engage consulting and system integration services except : A) the firm does not have the staff necessary to deploy and maintain the firm's IT infrastructure. B) the firm's staff do not have the skills necessary to deploy and maintain the firm's IT infrastructure. C) The firm does not have the budget to deploy and maintain a firm's IT infrastructure. D) The firm's staff does not have the necessary experience to deploy and maintain the firm's IT infrastructure. E) The firm's staff knows more about the firm's IT infrastructure than service providers.

E) The firm's staff knows more about the firm's IT infrastructure than service providers.

91) Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology implementations? A) Supply and demand B) Return on investment C) Breakeven point D) Cost-benefit analysis E) Total cost of ownership

E) Total cost of ownership

35) Which of the following is not a part of the IT infrastructure ecosystem found in firms? A) Consultant and system integrators B) Internet platforms C) Operating system platforms D) Enterprise software applications E) Virtual reality systems

E) Virtual reality systems

77) ________ are created by combining and customizing components from different online software applications. A) Apps B) Web browsers C) SaaS D) Web services E) Web mashups

E) Web mashups

14) Which of the following factors does not help explain why computing resources today are even more available than in previous decades? A) Network economics B) Law of mass digital storage C) Moore's law D) Declining communications costs and the Internet E) Widespread rejection of technology standards

E) Widespread rejection of technology standards

80) ________ provides a standard format for data exchange, enabling web services to pass data from one process to another. A) HTML B) HTML5 C) Java D) Chrome OS E) XML

E) XML

9) Interpretations of Moore's law assert that: A) computing power will eventually level off. B) transistors decrease in size 50% every two years. C) data storage costs decrease by 50% every 18 months. D) PCs decrease in market share by 9% every 5 years. E) computing power doubles every 18 months.

E) computing power doubles every 18 months.

61) Distinguish between cloud computing, green computing, and quantum computing.

In cloud computing, technology services are provided over a network, primarily the Internet. These may be infrastructure services, such as storage or networking, or platform services, such as IBM's application development and test service, or software services, such as salesforce.com. Green computing refers to practices and technologies for designing computer equipment to minimize impact on the environment. Quantum computing refers to emerging technology that uses the principles of quantum physics to dramatically boost computer processing power.

100) What are the components that must be considered in a TCO analysis?

TCO cost components include hardware acquisition, which includes the purchase price of computer hardware equipment, including computers, terminals, storage, and printers; software acquisition, which includes the purchase or license of software for each user; installation, which includes the cost to install computers and software; training, which includes the cost to provide training to information systems specialists and end users; support, which includes the cost to provide ongoing technical support; maintenance, which includes the cost to upgrade hardware and software; infrastructure, which includes the cost to acquire, maintain, and support related infrastructure, such as networks and specialized equipment; downtown, which includes the cost of lost productivity if hardware or software failures cost the system to be unavailable; and space and energy, such as real estate and utility costs.

25) Exponential growth in the number of transistors and the power of processors is expected to decrease in the foreseeable future. TRUE / FALSE

TRUE

83) Whereas HTML is limited to describing how data should be presented in the form of Web pages, XML can perform presentation, communication, and data storage tasks. TRUE / FALSE

TRUE

84) Hypertext markup language specifies how text, graphics, video, and sound are placed on a webpage. TRUE / FALSE

TRUE

85) A service-oriented architecture is set of self-contained services that communicate with each other to create a working software application. TRUE / FALSE

TRUE

86) Today, many business firms continue to operate legacy systems because they meet a business need and would be costly to replace. TRUE / FALSE

TRUE

62) An ad-hoc group of oceanographers needs to set up a system to analyze massive amounts of data on ocean temperatures. The technology and hardware for gathering the data and transmitting the data to a central computer is in place. What additional hardware might they need? What techniques might they use to make their research more efficient and lower costs?

To store their data they may want to use a SAN. To process their data, they will need a supercomputer. To lower costs, they could look at on-demand computing as well as virtualization and implementing multicore processors.

65) What is virtualization and how and why is it used?

Virtualization is the process of presenting a set of computing resources (such as computing power or data storage) so that they can all be accessed in ways that are not restricted by physical configuration or geographic location. Virtualization enables a single physical resource (such as a server or a storage device) to appear to the user as multiple logical resources. For example, a server or mainframe can be configured to run many instances of an operating system (or different operating systems) so that it acts like many different machines. Each virtual server "looks" like a real physical server to software programs, and multiple virtual servers can run in parallel on a single machine. Server virtualization is a common method of reducing technology costs by providing the ability to host multiple systems on a single physical machine. Most servers run at just 15 to 20 percent of capacity, and virtualization can boost utilization server utilization rates to 70 percent or higher. Higher utilization rates translate into fewer computers required to process the same amount of work, reduced data center space to house machines, and lower energy usage. Virtualization also facilitates centralization and consolidation of hardware administration. Virtualization also enables multiple physical resources (such as storage devices or servers) to appear as a single logical resource, as in software-defined storage (SDS), which separates the software for managing data storage from storage hardware. Using software, firms can pool and arrange multiple storage infrastructure resources and efficiently allocate them to meet specific application needs. SDS enables firms to replace expensive storage hardware with lower-cost commodity hardware and cloud storage hardware. There is less underwork over-utilization of storage resources.

97) What is scalability?

Why is it essential to the success of the modern business firm? Answer: Scalability is the ability of the computer, product, or system to expand to survey larger numbers of users without breaking down. It is important because as firms grow, they can quickly outgrow their infrastructure. As firms shrink, they can get stuck with excessive infrastructure purchased in better times. Any modern company must be able to make plans for the future, even though that future may be different than what was expected. Computer equipment is expensive, though dropping in price, and budgets must be planned to allow for new purchases, upgrades, and training. It is generally assumed that a successful company will need more computer capacity for more people as it follows a path to continued success.

15) Client/server computing is a primary example of decentralized processing. TRUE / FALSE

TRUE

17) A web server is responsible for locating and managing stored webpages. TRUE / FALSE

TRUE

19) An application server may reside on the same computer as a web server or on its own dedicated computer. TRUE / FALSE

TRUE

20) Enterprise infrastructure requires software that can link disparate applications and enable data to flow freely among different parts of the business. TRUE / FALSE

TRUE

22) In financial services firms, investments in IT infrastructure represent more than half of all capital invested. TRUE / FALSE

TRUE

74) Which of the following is the foundation technology for web services? A) XML B) HTML C) SOAP D) UDDI E) SCSI

A) XML

87) Identify and describe five or more of the current trends in contemporary software platforms.

1. Growing use of Linux and open-source software-Open-source software is produced and maintained by a global community of programmers and is 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. 2. HTML5-This is the next evolution of HTML which simplifies embedding multimedia, rich media, and animation in the browser. 3. Cloud-based services-In cloud-based services and software, users rent applications or storage space from online providers rather than running these applications or themselves or using local storage. 4. Web services and service-oriented architecture-Web services are loosely coupled software components based on open web standards that are not product-specific and can work with any application software and operating system. They can be used as components of Web-based applications linking the systems of two different organizations or to link disparate systems of a single company. 5. Software outsourcing-Companies are purchasing their new software applications from outside sources, including application software packages, by outsourcing custom application development to an external vendor (that may be offshore), or by renting software services from an application service provider. 6. Cloud-based services-Companies are leasing infrastructure, hardware, and software from vendors, paying on a subscription or per-transaction basis. 7. Mashups and apps-Mashups are programs created by combining two or more existing Internet applications. Apps are small programs developed for mobiles and handhelds, turning them into more robust computing tools

90) Hardware and software acquisition costs account for about ________ percent of TCO. A) 20 B) 40 C) 50 D) 75 E) 90

A) 20

11) Which of the following became the standard PC in the Personal Computer Era? A) Wintel PC B) DOS PC C) MITS PC D) Altair E) Apple II

A) Wintel PC

71) Running a Java program on a computer requires: A) a Java Virtual Machine to be installed on that computer. B) a Java Virtual Machine to be installed on the server hosting the Java applet. C) a miniature program to be downloaded to the user's computer. D) no specialized software, as Java is platform-independent. E) the Mozilla Firefox browser and no other browsers.

A) a Java Virtual Machine to be installed on that computer.

37) The marketplace for computer hardware: A) has become increasingly concentrated in top firms. B) has expanded to include a wide variety of start-up and mobile-computing firms. C) has moved significantly to Asian firms. D) has been decimated by mobile and cloud computing. E) has begun moving away from blade servers

A) has become increasingly concentrated in top firms.

33) Infrastructure-as-a-Service (IaaS): A) is one type of cloud computing service where users pay only for the computing capacity they actually use. B) is a cloud-based service which provides software applications to users on demand. C) is a cloud-based service that provides a platform for software development. D) provides users with a service-oriented architecture for their systems. E) provides cloud users with ubiquitous networking environment

A) is one type of cloud computing service where users pay only for the computing capacity they actually use.

55) A(n) ________ is an integrated circuit which contains two or more processors to enhance performance and reduce power consumption. A) multicore processor B) legacy processor C) scalable processor D) aggregate circuit E) green circuit

A) multicore processor

78) The practice of contracting custom software development to an outside firm is commonly referred to as: A) outsourcing. B) scaling. C) service-oriented architecture. D) application integration. E) utility computing.

A) outsourcing.

76) Prewritten, commercially available sets of software programs that eliminate the need for a firm to write its own software programs for certain functions, are referred to as: A) software packages. B) mashups. C) outsourced software. D) open-source software. E) service level agreements.

A) software packages.

79) A formal contract between customers and their service providers that outlines the specific responsibilities of the service provider and to the customer is called a(n): A) SOA. B) SLA. C) TCO. D) RFQ. E) SaaS.

B) SLA.

89) Which of the following refers to the ability of a computer, product, or system to expand to serve a larger number of users without breaking down? A) Modality B) Scalability C) Expandability D) Disintermediation E) Customizability

B) Scalability

47) Which of the following is a recent addition to the mobile digital platform? A) Quantum computing devices B) Wearable computing devices C) Cloud computing devices D) Grid computing devices E) Green computing devices

B) Wearable computing devices

8) In a multi-tiered network: A) the work of the entire network is centralized. B) the work of the entire network is balanced over several levels of servers. C) processing is split between clients and servers. D) processing is handled by multiple, geographically-remote clients. E) processing is located in the cloud.

B) the work of the entire network is balanced over several levels of servers.

29) Which of the following is the network standard for connecting desktop computers into local area networks that enabled the widespread adoption of client/server computing and local area networks and further stimulated the adoption of personal computers? A) TCP/IP B) COBOL C) Ethernet D) ASCII E) Linux

C) Ethernet

57) Which of the following involves practices and technologies to minimize the environmental effects of manufacturing and managing computing devices? A) Capacity planning B) Cloud computing C) Green computing D) Utility computing E) On-demand computing

C) Green computing

92) How would you determine the market demand for your firm's IT services? A) Perform a TCO analysis B) Benchmark your services C) Hold focus groups to assess your services D) Analyze sales returns on key investments E) Perform a stress test

C) Hold focus groups to assess your services

70) Which of the following statements about Linux is not true? A) It plays a major role in the back office running local area networks. B) It is available in free versions downloadable from the Internet. C) It has garnered 20 percent of the server operating system market. D) Linux applications are embedded in cell phones, smartphones, netbooks, and other handheld devices. E) Linux works on all the major hardware platforms.

C) It has garnered 20 percent of the server operating system market.

75) Which of the following refers to a set of self-contained services that communicate with each other to create a working software application? A) Web services B) EAI software C) SOA D) SOAP E) Prepackaged software

C) SOA

43) Which of the following is not an example of a wearable computing device? A) Smartwatch B) Smart glasses C) Smartphones D) Activity trackers E) Smart ID badges

C) Smartphones

49) Which of the following enables a single physical resource (such as a server or a storage device) to appear to the user as multiple logical resources? A) Cloud computing B) Autonomic computing C) Virtualization D) Multicore processing E) Ubiquitous computing

C) Virtualization

93) Which of the following is one of the main six factors to consider when evaluating how not much your firm should spend on IT infrastructure? A) Your firm's business strategy B) The IT investments made by competitor firms C) Market demand for your firm's services D) Your firm's organizational culture E) Information technology assessment

D) Your firm's organizational culture

66) ZipRealty, which combines Google Maps with real estate data, is an example of: A) cloud computing. B) SOA. C) a widget. D) a mashup. E) a web service.

D) a mashup.

4) A(n) ________ is used to communicate between a user and an organization's back-end systems. A) public server B) private server C) legacy server D) application server E) blade server

D) application server

52) Firms that allow employees to use their own devices are embracing which of the following? A) Wearable computing B) Mobile consolidation C) Cloud computing D) BYOD E) Self computing

D) BYOD

44) Which of the following is not an example of the mobile digital platform? A) Tablets B) Kindle C) Cell phones D) CRM E) Smartwatches

D) CRM

67) Which type of software is created and updated by a worldwide community of programmers and available for free? A) Software packages B) Mashups C) Outsourced D) Open source E) Closed source

D) Open source

45) All of the following are current hardware platform trends except: A) green computing. B) virtualization. C) cloud computing. D) Unix. E) quantum computing.

D) Unix.

56) SaaS refers to: A) supplying online access over networks to storage devices and storage area network technology. B) managing combinations of applications, networks, systems, storage, and security as well as providing Web site and systems performance monitoring to subscribers over the Internet. C) self-contained services that communicate with each other to create a working software application. D) easy-to-use software tools for displaying Web pages. E) hosting and managing access to software applications delivered over the Internet to clients on a subscription basis.

E) hosting and managing access to software applications delivered over the Internet to clients on a subscription basis.

30) The development of TCP/IP occurred during the ________ era. A) cloud and mobile computing B) general-purpose mainframe and minicomputer C) client/server era D) personal computer E) mainframe

E) mainframe

46) The ability to be in multiple states at once, dramatically increasing processing power, is a hallmark of: A) colocation. B) edge computing. C) grid computing. D) utility computing. E) quantum computing

E) quantum computing

51) All of the following are cloud computing services except: A) infrastructure as a service. B) platform as a service. C) software as a service. D) on-demand computing. E) virtualization as a service.

E) virtualization as a service.

16) In N-tier computing, significant parts of website content, logic, and processing are performed by a single web server. TRUE / FALSE

FALSE

18) IT infrastructure consists of only those physical computing devices and software required to operate the enterprise. TRUE / FALSE

FALSE

21) It is much harder to eliminate a cloud service than to remove functionality from a company's core internal systems. TRUE / FALSE

FALSE

23) Microsoft is no longer the market leader in client/server networking. TRUE / FALSE

FALSE

24) Mobile computing is the fastest growing form of computing. TRUE / FALSE

FALSE

39) The operating system is used to manage the software applications used in business activities. TRUE / FALSE

FALSE

40) Web hosting services maintain a series of servers and provide fee-paying subscribers with space to maintain their websites. TRUE / FALSE

FALSE

58) In green computing, reducing computer power consumption is not a top priority. TRUE / FALSE

FALSE

59) Quantum computing is implemented primarily with enterprise or ISP servers. TRUE / FALSE

FALSE

60) Quantum computing is not yet available to the general public. TRUE / FALSE

FALSE

81) Java software is designed to run only on specific microprocessors and operating systems. TRUE / FALSE

FALSE

82) Web services can exchange information between two different systems only if the operating systems and programming languages upon which the systems are based are identical. TRUE / FALSE

FALSE

96) TCO refers just to the original cost of purchased technology: both hardware and software. TRUE / FALSE

FALSE

94) The decision to purchase your own IT assets or rent them from external providers is also referred to as the rent-versus-buy decision. TRUE / FALSE

TRUE

42) Briefly explain why corporations are increasingly interested in using Unix or Linux for their operating systems.

Linux is an inexpensive and robust open-source relative of Unix. Unix and Linux constitute the backbone of corporate infrastructure throughout much of the world because they are scalable, reliable, and much less expensive than mainframe operating systems. They can also run on many different types of processors. The major providers of Unix operating systems are IBM, HP, and Sun with slightly different and partially incompatible versions. Although Windows continues to dominate the client marketplace, many corporations have begun to explore Linux as a low-cost desktop operating system provided by commercial vendors such as RedHat Linux and Linux-based desktop productivity suites such as Sun's StarOffice. Linux is also available in free versions downloadable from the Internet as open-source software. The rise of open-source software, particularly Linux and the applications it supports at the client and server level, has profound implications for corporate software platforms: cost, reduction, reliability and resilience, and integration, because Linux works on all the major hardware platforms from mainframes to servers to clients. Linux has the potential to break Microsoft's monopoly on the desktop. Sun's StarOffice has an inexpensive Linux-based version that competes with Microsoft's Office productivity suite.

41) Have mainframes disappeared?

Mainframes have not disappeared. They continue to be used to reliably and securely handle huge volumes of transactions, for analyzing very large quantities of data, and for handling large workloads in cloud computing centers. The mainframe is still the digital workhorse for banking and telecommunications networks that are often running software programs that are older and require a specific hardware platform. Currently, mainframes process 30 billion business transactions per day, and 80 percent of the world's corporate data also originates on the mainframe.

88) Define outsourcing and explain some of the computing tasks that are well suited to outsourcing.

Outsourcing is the shift of IT infrastructure and systems development to external vendors. This is a good option for companies without the resources or technical capability to perform certain computing tasks. Tasks well suited to outsourcing include Web site hosting, Web design, development of custom software, and software maintenance. More basic tasks such as data entry and call center operation is often outsourced as well. Outsourcing often requires firms to enter into a service level agreement (SLA) that defines the specific responsibilities of the service provider.

95) Scalability refers to the ability of a computer, product, or system to expand to serve a large number of users without breaking down. TRUE / FALSE

TRUE

27) Explain why standards are so important in information technology. What standards have been important for the growth of Internet technologies?

Standards are important because they result in different manufacturers creating products that can be used either with each other or to communicate with each other. For example, without standards, each light-bulb manufacturer would have to also create specific light-bulb sockets for use with their light bulbs. In the same way, computers and computer technology have been enabled through standards. Standards have allowed many different manufacturers to contribute to the same, standardized definitions of a technological application. For example, the ASCII data standards made it possible for computer machines from different manufacturers to exchange data, and standardized software languages have enabled programmers to write programs that can be used on different machines. The standards that have been important for the growth of the Internet include TCP/IP, as a networking standard, and WWW standards for displaying information as web pages, including HTML.

98) A small design agency you are consulting for will be creating client websites and wants to purchase a web server so they can host the sites themselves. How will you advise them on this purchase?

They need to understand total cost of ownership: the costs will go beyond the cost of the server, but they will also need to purchase the server software and any application software they will be using. They will also need someone in their IT department to manage and maintain the computers. They will also incur facilities costs for running the computer. They need to have a backup plan should the server fail. The design agency will need to add up all the potential costs and risks. Additionally, they need to prepare for their plan if they need more servers. Will they eventually have to run and maintain their own server farm? What if one of their clients' sites is more popular than anticipated and the server has difficulty handling the load? How quickly can they add servers or processing power? The company should look at colocation, Web hosting services, and ASPs to see if their needs will be better met this wa

99) You are starting a market research company with a single business partner and are planning the hardware and software needs for the two of you. Which factors should play into your decision of how much to spend on these investments?

Using the competitive forces model for IT infrastructure investment, the most relevant factors in this decision are: • The firm's business strategy. What capabilities will we want to have over the next five years? • Alignment of IT strategy. How does our IT strategy match up with the business plan? • IT assessment. What are the current technology levels for the services we are offering and our business type? We would probably not need to be at the bleeding edge, but not behind the times either. • Competitor firm services. What technology-enabled capabilities do our competitors have? We would want to match services with our competitors. • Competitor firm IT investments. How much are competitor firms investing in their technology? Because this is a startup, one other factor may not play such a large role: that of market demand for services. However, finding out the market demand for competitor's services may uncover ways that this new company could have a competitive advantage.