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Utility computing: way out there?

10 February 2006  

A survey of 34 major US enterprises by analyst group IDC found that most are sceptical about the notion of utility or 'on-demand' computing.

Most computer system suppliers think that 'utility computing', in which businesses tap into a shared IT resource much like accessing an electricity grid, is the future for information technology. But the message is not yet getting much traction with customers.

A survey of 34 major US enterprises by analyst group IDC found that most are sceptical about the notion of utility or 'on-demand' computing. IDC duly concluded that it will be at least 2008 before spending on the new service model rises significantly.

Among the concerns cited: escalating costs, security breaches and single vendor lock-in. These issues, says IDC, will lead companies to demand shorter contracts - and clear evidence of potential cost savings - before signing them. Many of these worries, however, apply to the more ambitious notion of 'grid computing', rather than the simpler in-house implementations of utility computing, which involve implementing technologies such as virtualisation and distributed computing on a company's existing infrastructure. IDC found less resistance to the idea of an internal 'private utility'.

IBM, Hewlett-Packard, Sun and Unisys are among those advocating the use of utility computing. IBM, now aggressively marketing the concept, is seen by most customers as the likely leader.

To download a report on utility computing, visit the reports section of www.infoconomy.com.


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