MKT-245 Utility Computing: A Definition, A Path, and THE Challenge</b></span>

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Utility Computing: A Definition, A Path, and THE Challenge

Document:                        MKT-245
Date of Publication:           May 26, 2006
Number of Pages:             6
Lead Author(s):                 J. Cassell, C. Burns
Price:                               $195 USD

Perspective Summary:

Utility Computing is gaining customer acceptance as a result of the convergence of several factors, the most significant of which are:

	Growing emphasis for IT organizations to become more flexible and to reduce their solution deployment cycle times,
	Sustaining pressure for IT organizations to constrain or reduce costs,
	Continuing enhancements offered by traditional systems and software vendors and the Open Source community, and
	Ongoing evolution and adoption of Software as a Service (see SaaS 2.0: Seven Key Software-as-a-Service Trends RA-240, 02May06).

Utility Computing has typically been evaluated and justified in IT-centric terms, such as improved resource utilization and reduced infrastructure and/or management costs.

Typically, the initial step toward Utility Computing, i.e., sever consolidation and virtualization, yields substantial cost reductions (Utility Computing Spending Gap, RA-178, 02June05).

However, even this first step along the path toward Utility Computing requires changes to IT governance and management processes such as accounting and chargeback.

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