GIS, Virtualization, and Environmental Uncertainty – Part I

Changes in

international business since the past few decades have brought

greater internationalization and integration. The term globalization

captured these changes with considerable impact in increased cross-

border movements of goods, services, capital, technology, and people.

Based on global integration and local responsiveness dimensions, four

forms of organizations are used to manage international business:

global, international, multidomestic, and transnational


This post

focuses on Global Corporations (GCs). GCs prefer to market a

standardized product worldwide for economical reasons while moving

concentration of production, marketing, research and development

activities to a few favorable locations. The issues around the

expansion of business to a global level relate to the external

environment of the organization as well as its internal environment.

The management of external

environmental uncertainty is critical for the success of global

corporations. The major sources of uncertainty in the external

environment are the number of different forces that firms have to

manage, the degree to which the external environment is changing, the

resources available in the environment, and business continuity

management of Global Information Systems (GIS).

GIS drive the information

society and enables knowledge workers to connect and communicate in

ways that drastically change their work. Four main factors that

generally influence decisions each organization make in designing and

pursuing its GIS are: (a) interoperability, (b) total cost of

ownership, (c) security, and (d) transparency and public right to



earthquakes in Haiti and Chile, the violent European windstorm

Xynthia, or hurricane Katrina in New Orleans

(U.S.) are

reminders to business and IT managers that preparedness to protect

critical information systems and data against natural and man-made

disasters, swift response, and quick recovery are necessary tools to

assure business continuity.

Business continuity planning is

about having plans and procedures in place to recover key business

processes after a disaster. Participants in a recent business

continuity management survey perceived failure of computer hardware

or software and data loss as the highest risk to business disruption,

with 21% of the executives stating that natural disasters such as

storms, floods, and earthquakes were of particular concern. Disasters

are not just restricted to fire, flood, and other causes of property

damage; they can equally result from more mundane problems such as

labor strikes, hardware, or software malfunctions.


business impact analysis, redundancy, and offsite data centers are

various approaches to ensure business continuity. Virtualization (or

virtual machine technology) refers to a framework or methodology of

dividing the resources of a computer into multiple execution

environments, by applying one or more concepts or technologies such

as hardware and software partitioning, time-sharing, partial or

complete machine simulation, emulation, quality of service, and many


As companies

exploit the growing possibilities of international business,

technology leaders must build consensus for an organizational

structure that enables the expansion of information systems. The

purpose of the posts of this thread is to evaluate the expansion from

the perspective of a Chief Information Officer and discuss the issues

within the expansion scenario as they relate to environmental

uncertainty, business continuity, and virtualization considerations.

Global Corporations and Global Information


Information Systems (IS) organization refers to the

combination of technologies, processes, people, and promotion

mechanisms to improve the performance and effectiveness of the

organization. IS affects nearly all aspects of human endeavor and

also assists in the management and operations of various types of


Since the

1960s, managing and operating IS to improve organizational

performance and effectiveness has been a field of practice. Firstly

known as business data processing and later as management information systems, the field

is currently referred to as information technology (IT). Ongoing

innovations in IS and the growing worldwide competition add

difficulties and uncertainties to corporate environments. Global

information systems attract attention from both practitioners and

scholars as it is a critical enabler of competitive advantage for

international businesses.

Operational priorities of GCs requires innovative

capabilities and creates new requirements on the IS function of GCs.

Prior research categorized the requirements of GCs into four areas:

(a) decreasing the cost structure, (b) increasing innovation, (c)

leveraging information assets, and (d) becoming more



systems are fundamental to effective global operations because it

enables coalitions and provides a coordination mechanism for

geographically dispersed activities. Information systems are

disruptive phenomena for global corporations because of its

capacities of changing the competitive landscape and enabling new

organizational structures, products, processes, and ways of


The nature and function of GIS should concur with

the operational shifts of GCs which are highlighted above. The strategic use of global information systems

(GIS) depends on the ability of corporate managers to appreciate the

IT business value and use it as a competitive tool. GIS

organizations must provide resources to lead and support IT-enabled

business transformation initiatives by simplifying global operations,

automating the streamlined processes, and relocating some business

processes to lower cost locations. The increased focus on innovation

in the business, for example, required GIS organizations to increase

productivity, effectiveness of their research and development

capabilities. The focus on agility and innovation created new demands

on GIS organizations to provide rapid solutions to information

management frameworks essentials to ensure intelligent and informed

business decision making.


The idea of virtualization is

to partition a physical computer into several logical zones. Each of

these partitions can run a different operating system and function as

if it was a completely separate machine. Virtual machine technology,

or virtualization, refers to a framework or methodology of dividing

the resources of a computer into multiple execution environments, by

applying one or more concepts or technologies such as hardware and

software partitioning, time-sharing, partial or complete machine

simulation, emulation, quality of service, and many others.

The idea

behind virtualization is an extension of what is found in a modern

operating system (OS). A program running, for example, on a UNIX

machine has its own virtual address space. From the program’s

perspective, it has a large chunk (4GB on a 32-bit machine) of RAM to

use. The operating system is responsible for multiplexing with other

programs. This large and contiguous space does not exist in the real

machine. Some of the space will be scattered around real memory while

the rest of it might be stored on a hard disk.

Memory is not the only resource

virtualized with a modern OS. The CPU is usually allocated to

different processes using some form of pre-emption. When a process

has used its fair share of the CPU, it is interrupted and another is

allowed to take its place. From the process perspective, it has a CPU

of its own (or more than one, as in the case with the duo core or

quad cores).

Virtualization is not a new

technology. In the 1960s, IBM developed a handful of virtual machine

systems including the CP-40, CP-67, and VM/370. In all of these

instances, a virtual machine monitor (VMM) ran between the

application and hardware layers. Through the utilization of this VMM,

multiple virtual operating systems could be created, utilized, and

shut down without interfering with other virtual machines using the

same VMM. This research placed IBM at the forefront of the

virtualization race and is acknowledged along with the research

assistance from MIT, as the foundation of modern



machines are implemented in various forms: mainframe, open source,

paravirtualization, and custom approaches to virtual machines, which

were designed over the years. Complexity in chip technology and

approaches to solving the x86 limitations of virtualization have led

to three different variants of virtual machines: (a) software virtual

machines, (b) hardware virtual machines, and (c) virtual



virtual machines manage interactions between the host operating

system and guest operating system (Microsoft Virtual Server 2005). In

the case of hardware virtual machines, virtualization technology sits

directly on host hardware (bare metal) using hypervisors, modified

code, or APIs to facilitate faster transactions with hardware devices

(VMWare ESX). EMC’s VMWare technology is the market leader in x86

virtualization technology. The VMWare solution is more costly, but it

provides a robust management console and full-virtualization support

for an array of guest operating systems including Solaris, Linux,

Windows, and DOS. In this case of

virtual OS/containers, the host

operating system is partitioned into containers or zones (Solaris

Zones, BSD Jail).

There are

several vendors in the virtualization technology and each comes with

its own features which makes it adaptable for various scenarios. Some

virtualization technologies are (a) Microsoft Virtual Server or Hyper

V; and (b) EMC’s VMWARE suite (VMWARE workstation, VMWARE server,

VMWARE ESX, and Vsphere.

Whereas the VMWARE suite is adaptable to most operating

systems including Novel and UNIX, Microsoft virtual server is


The huge number of

centralized services and processing power in data centers in GCs

headquarters are the reasons for an adequate virtualization.

Virtualization reduces the number of servers, costs in maintenance

and server management, costs in power consumption and cooling costs.


continuity and disaster recovery planning is the other main reason

why GCs are virtualizing their services. Business continuity planning

is the elaboration of plans and procedures in place to recover key

business processes following a disaster. The plans and procedures for

a business continuity planning process encompass (a) business impact

analysis, (b) backup and restoration strategy, (c) redundancy, (d)

offsite data centers, and (e) virtualization.


GIS, and Management of Environmental


Environmental uncertainty is a central issue for the

deployment of global information systems. Uncertainty refers to

events the organization cannot forecast. The major sources of

uncertainty in the environment are usually the (a) complexity and the

number of different forces an organization has to manage, (b)

dynamism or the degree to which the environment is changing, and (c)

richness or the amount of resources available in the environment. The

accurate perception of uncertainty emanating from the environment is

critical to organizational performance, organizational structure,

firm strategy, and business continuity and disaster recovery


Natural disasters

can produce both horrifying and stunning tales of human tragedy and

triumph. But after the initial dust has settled, an after shock

experience materializes as businesses struggle to resume their

operations. The Gartner Group noted that 43% of such companies were

immediately put out of business by a major loss of computer records,

and another 51% permanently closed their doors within two years

leaving a mere 6% survival rate.

Information systems are

fundamental to effective global operations because it enables

coalitions and provides a coordination mechanism for geographically

dispersed activities. From the business continuity and disaster

recovery perspectives, the strategic use of GIS depends on

a proactive business continuity planning

of IT

executives. Business Continuity Management

(BCM) programs ensure that organizations adopt best practices through

industry certification standards such as the British standard BS

25999-2: 2007. This standard specifies requirements for establishing,

implementing, operating, monitoring, reviewing, exercising,

maintaining, and improving a documented BCM system within the context

of managing an organization’s overall business



server consolidation, storage, remote access, security, and green

initiatives are among the various challenges companies face with

expansion of IS at a global level. Organizations are primarily

deploying virtualization to improve server and system utilization

rates, increase server reliability and uptime, and enhance business

continuity. I believe that successful virtualization of GIS depends

on the approaches adopted and the ability of measuring the

performance of the virtualized environment.

The purpose of the next post

(Part II) will be to explore approaches of virtualization of GIS and

identify performance measurement indicators of virtualized global