Business Driven Data Communications

Business Driven Data Communications Michael S. Gendron PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

CONTENTS Preface xv Acknowledgement xx Unit 1 SCT Infrastructure Components: A Technical Overview 1 Chapter 1 ICT INTRODUCTORY CONCEPTS 5 Introduction 5 Data Representation and Signal Propagation 6 Data Communications Techniques 11 Computer Network and Carrier Concepts 17 Introduction to Layering and TCP/IP 19 Regulations, Standards, and TCP/IP 19 Wired Media and Network Typologies 24 Wired Media 24 Typologies 25 Switching Hierarchies 27 Phone System and Circuit Switching 27 Data Networks and Packet Switching 28 Addressing 30 TCP/IP Layers, Protocols, and Communication 30 Layer 5 (Application Layer) 30 Layer 4 (Transport Layer) 31 Layer 3 (Internet Layer) 32 Layer 2 (Data Link Layer) 32 Layer 1 (Physical Layer) 32 TCP/IP-OSI Architecture and How It Works 34 Indirect Communication 35 Chapter Summary 38 Vignette Wrap Up 38 End of Chapter Questions/Assurance oflearning 39 Case Exercises 39 Key Words and Concepts 39 References 40 Chapter 2 BUILDING THE LOCAL AREA NETWORK USING ETHERNET 41 Introduction 41 Types of Ethernet Equipment and Media 42 Media 43 Adapter Cards: Motherboard Interfaces 43 Hubs, Repeaters, and Bridges 43 Bridges and Switches 44 Switch Characteristics 44 vii

viii Contents Ethernet: The Technical Details of Its Evolution 48 Multiple Users and the Network 50 Physical Layer and Propagation 51 The Data Link Layer and Frames 52 Ethernet Summary 53 Wireless Technologies 54 Frequency Spectrum 54 Large-Scale Wireless Technologies 55 LAN-Based Wireless 56 802.11 and Ethernet 57 IEEE 802.11 Wireless Access: The Technical Details 58 Personal Area Network: Short-Range Wireless 63 Building a LAN 64 LAN Wiring 64 Joe Smith's Home LAN 74 Chapter Summary 75 Vignette Wrap Up 76 End of Chapter Questions/Assurance of Learning 76 Case Exercises 77 Key Words and Concepts 77 References 77 Chapter 3 EXTENDING THE LAN THROUGH WAN CONNECTIONS 78 Introduction 78 LAN vs. WAN Pricing 78 Types of Connections 79 Points of Presence 79 PSDN 80 PCVandSVC 81 Pricing WAN and PSDN Connections 82 WAN Technologies 84 Frame Relay 84 ATM 88 General Packet Radio Service (GPRS) 92 WiMAX 93 Multiprotocol Label Switching (MPLS) 96 Metro Ethernet 97 Virtual Private Networks 98 VPN Types 98 VPNs IPsec and TLS/SSL 100 Chapter Summary 102 Vignette Wrap Up 102 End of Chapter Questions/Assurance of Learning 102 Case Exercises 102 Key Words and Concepts 103 References 103

Contents ix Chapter 4 WRAPPING UP SERVICE, USER, AND ENTERPRISE COMPONENTS 104 Introduction 105 PC Hardware 105 Factor Form 105 PC Options 105 Processor Speed 106 Summary of PC Selection 107 Thin Clients 107 Service Components 107 Printing Services 108 Inter/lntra-Office Communications 109 SAN and NAS 111 Webserver 112 E-Mail Server 113 Application Servers 114 Database Servers 115 Application and Desktop Virtualization 116 Benefits 116 Security and Policy Services 118 Summary of Service Components 119 User Components 119 The Desktop 119 PC 120 Thin Client 120 Desktop Optical Devices 121 Printers 121 Image Scanners 124 Multifunction Devices 125 Desktop Productivity Software 125 Specialized Applications 125 Enterprise-Wide Components 125 Benefits of an Enterprise-Wide Component 127 Chapter Summary 127 Vignette Wrap Up 128 End of Chapter Questions/Assurance of Learning 129 Case Exercises 129 Key Words and Concepts 130 Unit 1 Summary 131 Unit 2 Additional ICT Concepts 133 Chapter 5 OBTAINING SERVICES THROUGH CLOUD COMPUTING 135 Introduction 136 What Is Cloud Computing? 136 Attributes of Cloud Computing 139 Examples of Cloud-Computing Vendors 141

Developing in the Cloud 144 Private vs. Public Cloud 144 Service Types in the Cloud 146 Cloud Development: Microsoft Azure and Sopima 148 Business Considerations of Cloud-Based Applications and Services 152 On-Prem ises or the Cloud? 153 Capital vs. Operational Expenditures and the Cloud 154 Cloud Computing and Its Impact on the Organization 154 Making a Business Case for Cloud Computing 157 Chapter Summary 158 Vignette Wrap Up 158 End of Chapter Questions/Assurance of Learning 158 Case Exercises 158 Key Words and Concepts 159 References 159 Chapter 6 SECURITY 160 Introduction 161 Types of Attacks and Threats 162 System-Fault-Risk Framework 162 Types of Attacks 163 Methods of Delivery 169 Stopping Cyber Attacks 170 Planning and Policies 170 Access Control 170 Encryption 171 SSL/TLS 172 Client Host Solutions 174 Network Solutions 175 Educating the User 179 Chapter Summary 180 Vignette Wrap Up 181 End of Chapter Questions/Assurance of Learning 181 Case Exercises 181 Key Words and Concepts 181 References 182 Unit 2 Summary 183 Unit 3 Understanding the Business of Infrastructure Design 185 Chapter 7 INFRASTRUCTURE AND THE ENTERPRISE 186 Definition of Technology Infrastructure 186 Information Technology Infrastructure and Strategy 188 Strategic Management and Infrastructure Decisions 189

Introduction to Business and Technology Strategy 189 Two Approaches to Strategic Initiatives: Industry-Wide and Focused 191 Cost Leadership and Differentiation 192 Technology Infrastructure, Information Systems, and Planning 195 Organizational Views 195 The Effect of External Forces on Infrastructure 200 Technology Infrastructure Project Planning 201 Value-Driven Business Modeling 202 An Overview of the Business-Driven Infrastructure Design (BDID) Methodology 202 Chapter Summary 205 Vignette Wrap Up 206 End of Chapter Questions/Assurance of Learning 206 Case Exercises 206 Key Words and Concepts 206 References 207 Chapter 8 BUSINESS PROCESSES 208 Introduction 208 Why Is ICT Implemented? 209 Process Change 209 Process View of the Organization 211 ICT Impact on Economic Outcomes 212 Information and Communication Technology Use 213 Processes in an Organizational Context 214 Existing Infrastructure versus New Infrastructure 214 Organizational Types and Their Processes 215 Defining a Business Process 221 Process Objectives and Attributes 227 Infrastructure Implementation and the Value Chain 228 Always Keep the Customer in Mind 229 What Is a Process? A Summary 229 Enablers of Process Change 230 Innovation vs. Improvement 230 Organizational Enablers 231 ICT as an Enabler 233 Summary of Major Organizational Enablers 236 Chapter Summary 236 Vignette Wrap Up 237 End of Chapter Questions/Assurance of Learning 238 Case Exercises 238 Key Words and Concepts 238 References 238

Chapter 9 ASSESSING THE BUSINESS VALUE OF ICT RESOURCE INVESTMENTS 240 Introduction 240 Types of IT Project Measurement 241 Defining Payoff 242 Introductory Theories 242 Technology Justification Models 247 Balanced Scorecard (BSC) 258 An Overview of the BSC Process 258 Chapter Summary 262 Vignette Wrap Up 263 End of Chapter Questions/Assurance of Learning 264 Case Exercises 264 Key Words and Concepts 264 References 265 Unit 3 Summary 266 Unit 4 Steps to the Strategic Alignment of ICT 269 Chapter 10 ANALYZING THE ORGANIZATION AND ITS ENVIRONMENT 275 Strategic Alignment of IT (SAIT) 275 SAIT: Whose Job Is It? 275 SAIT: What Is It Really? 277 Achieving SAIT 278 Value Search Models: Analyzing the Organization 278 Organizational Value Propositions 278 Low Cost, Internal Efficiency, and Enhancing Quality Strategies 279 Product Differentiation Strategies 295 Gap Analysis 301 Val IT Framework 304 Chapter Summary 311 Vignette Wrap Up 311 End of Chapter Questions/Assurance oflearning 311 Case Exercises 312 Key Words and Concepts 312 References 312 Chapter 11 DESIGNING ICT: DOCUMENTING PROCESS AND TECHNOLOGY RECOMMENDATIONS 314 The Total Diagram Set 314 Business Process Modeling 315 Business Process Modeling Notation and Diagrams 318 Using TSI to Introduce Modeling 329 Systems Analysis and the Use of Data Flow Diagrams 337

Contents xiii ICT Technical Frameworks and Models 338 Functionality List 339 ICT Hierarchy 340 Estimating Bandwidth Needs 344 Creating High-Level ICT Design Chapter Summary 360 Vignette Wrap Up 361 Documents 350 End of Chapter Questions/Assurance of Learning 361 Case Exercises 361 Key Words and Concepts 361 References 362 Additional Readings 313 Chapter 12 SUMMARIZING THE BUSINESS-DRIVEN INFRASTRUCTURE DESIGN CYCLE: ANALYSIS, DESIGN, IMPLEMENTATION, AND POST-IMPLEMENTATION 363 The Business-Driven Infrastructure Design Cycle 363 The Business-Driven Infrastructure Design Team 365 Analysis Phase 366 Design Phase 370 Implementation Phase 374 Post-Implementation Phase 377 Chapter Summary 380 Vignette Wrap Up 380 End of Chapter Questions/Assurance of Learning 381 Case Exercises 381 Key Words and Concepts 381 References 381 Unit 4 Summary 382 Glossary 383 Index 391