mp3 / md740 strategy & information systems sept. 15, 2004 computing hardware – moore's...
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MP3 / MD740Strategy & Information Systems
Sept. 15, 2004Computing Hardware – Moore's Law, Hardware
Markets, and Computing EvolutionNetwork Effects, Standards, and Competition:
The Microprocessor Market, Operating Systems and Computer Hardware Markets
Topics Covered
• Components of an Information System– Changing IS landscape & managerial implications
• Hardware– Moore’s Law & the Evolution of Computing Competition
• Network Externalities– Defined, Strategic Importance, Examples
• The Microprocessor Market– Intel vs. the Competition
• Operating Systems & Hardware Markets– Competition Among Operating Systems and Computing
Platforms– The Linux Challenge
FoxMeyer
Massive System Projects
Regulation & Deregulation
Globalization
The Internet
Skills Crunch
Mergers & Acquisitions
Technical Advances
5 Components of an IS
Data
Procedures
Software
Hardware
People
InformationSystems
InformationSystems
Types of Computers(the distinction is blurring)
• Personal / Microcomputers– single-user, usually single processor, compact– desktop, laptop, palmtop, PDA, specialized
• Mid-range Systems (Servers)– may have more than one microprocessor, typically
multi-user & focused on a functional area or task (marketing, plant management, web server).
– Vintage midranges (proprietary OS): IBM AS/400, DEC VAX
– Servers (UNIX/Win): Intel-based, Dell, HP, IBM, Sun
Types of Computers (cont.)
• Mainframes (IBM)– large, expensive computer, supports multiple user groups,
terminals, run several applications at once.– costly: support staff, air conditioning, software– secure: centralized programs & data are relatively easy to
backup, maintain, upgrade, and monitor
• Super Computers (NEC, IBM, Hitachi, HP, Intel, Cray)– massively parallel and/or clustered– used to solve problems requiring long, difficult calculations
(e.g.airline scheduling, advanced modeling - biotech, weather, risk management)
– evolution to grid computing…
Network Externalities(a.k.a. Network Effects, Metcalfe’s Law)
• A product or service becomes more valuable as its installed base expands• Why do consumers care about installed base?
– Exchange opportunities– Stability– Extrinsic, complementary benefits
More Exchange Opportunities
More Members
Why are Markets for Network Goods Different?
• Market competition occurs very early and is particularly fierce
• Markets are ‘tippy’ and subject to bandwagons
• Markets exhibit monopolistic tendencies
• The ‘best’ technology or highest quality product doesn’t always win
SoftwareOperating Systems
control hardware and provide an environment in which applications execute
Application Programsend-user program that performs a specific function
Individual examples: word processor, spreadsheet. Collections of apps: Office (suite), SAP R/3 (ERP)
Appletssmall application programs which execute within a
larger environment (e.g. Java applets within browser)
operating system
applications
Competition in the OS Space
PersonalComputersWindows XP
Apple
Mutli-UserSystemsWindows 2000Windows Server2003
Unix (Sun, IBM, HP / Compaq)Linux
ConsumerDevicesWindows MobileUltimate TVXboxTablet PCWindows XP Media Center Edition
Palm (handheld)Liberate (set top)Sony
Microsoft
Competition
The Microsoft Stimulus Package
• Microsoft will return $9 billion to individual investors that hold the stock (excluding all the institutions & funds).
• The Bush child tax credit returned $14 billion.
• Bill Gates has pledged all $3.4 billion to his charitable foundation.
Comments from Windows Source Code
private\genx\shell\inc\prsht.w:// we are such morons. Wiz97 underwent a redesign between IE4 and IE5
private\shell\ext\ftp\ftpdrop.cpp:// We have to do this only because Exchange is a moron.
private\shell\shdoc401\unicpp\desktop.cpp: // We are morons. We changed the IDeskTray interface between IE4
private\shell\browseui\itbar.cpp:// should be fixed in the apps themselves. Morons! .