UC: A Hard Sell

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	Research-based Market Strategy Consulting

Utility Computing: A Hard Sell

Document:                        SSR-141a
Date of Publication:           July 31, 2003
Number of Pages:             29
Lead Author(s):                 Mike West, Bruce Guptill
Contributing Author(s):       M. Isaac, M. Koenig, B. McNee
Price:                               $495.00 USD

Report Overview:

PowerPoint-based presentation highlighting research results from a web-based survey of more than 100 senior IT executives (user and vendor) focused on buyer demand for utility computing and pay-as-you go IT services. The objectives of the study included:

Determine how familiar users and vendors were with the tem compared to other technical terms
Gain insight into the interplay between Utility Computing and other key IT trends such as Web Services and BPO
Understand how quickly Utility Computing will be adopted over the course of the next five to ten years
Establish the motivators and inhibitors of Utility Computing
Compare the responses of IT User and IT Vendors with regard the above objectives.

Research Summary:

	Vendors are trying to sell something (Utility Computing) - but users do not know what it is.
	Vendors are convinced of a clear connection between Web Services, Utility Computing and Business Process Outsourcing. Buyers are less sure.
	Vendors and Users disagree about when pay-as-you-go will be a common IT business practice.
	Vendors are misjudging the importance to Users of several key Utility Computing motivators. Vendors believe the most important motivator driving Users to adopt Utility computing is reducing capital expenditures. User, however, are much more concerned about reducing current operating costs.
	Vendors are underestimating the importance to Users of several key potential inhibitors to Utility Computing - most notably security issues, uncertain ROI and a lack of ability to customize to specific User requirements.

Tables/Figures/Graphs:

PowerPoint presentation of study results, including more than 30 charts and tables highlighting survey research findings.

Press Release and Related Research

Utility Computing Survey: Vendor's Don't "Get" User Needs