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The IT Utility: Journey to a Virtual Reality, 2006 - 2010

Document:                        SSR-281
Date of Publication:           October 19, 2006
Number of Pages:             28
Lead Author(s):                 J. Cassell, C. Burns
Contributing Author(s):       B. Guptill, B. McNee
Price:                               $1,295.00 USD (Single User License)

Report Overview:  Utility Computing. On-demand Computing. Enterprise Agility. The IT Utility. Real Time Infrastructure.  Regardless of the label, the basic concept is remarkably consistent. Enterprise executives want information technology acquired, delivered, used, paid for, and managed in a manner similar to the way we use electricity, natural gas, telephone service, and other commoditized utilities.

The attraction of the IT Utility concept for users has three basic elements: 1) Savings, 2) Reliability/Availability, and 3) Agility/Flexibility.  But what is the reality of Utility Computing? Is it really a desirable place to be? And how – and when – will we get there?  Most importantly, given the real-world complexities of migrating to an IT utility infrastructure, is user interest justified?

The IT Utility: Journey to a Virtual Reality, 2006 - 2010 provides a comprehensive “reality check” for user and vendor enterprises, by examining what it really takes to implement an IT Utility environment. The report raises and answers pressing IT Utility questions and challenges for users and vendors – and provides a realistic “roadmap” for user executives to follow in their journey when planning effective, efficient utility computing for their enterprises.

To produce this report, Saugatuck Technology has incorporated data and insights from more than two years of research on the topic of the IT Utility, including leveraging survey responses from several recent research initiatives with more than 1,000 business and IT executives worldwide, as well as deep-dive interviews with more than two dozen user and vendor executives responsible for developing and implementing utility computing strategies and offerings.

Research Summary:  Saugatuck research findings in the study include the following:

Over 60 percent of large and mid-sized companies expect to, at minimum, be planning for an IT Utility deployment in 2006. By 2008, 60 percent plan to be in, at least, early deployment.
Over 65 percent of users will have virtualized the majority of their Windows and Linux servers by 2008. By 2010, over 60 percent of users will have virtualized a major portion of their entire server environment.
By the end of 2007, a majority of users will have contracted for infrastructure services on a Pay-As-You-Go (PAYG) basis.
A “Manager of Managers” – system management software capable of centralizing all management functions and repositories of status and application data for a heterogeneous environment – will be available in 2010.
A majority of IT Utility adopters will not gain the business benefits (agility, flexibility, etc.) until after 2008 when the required functionality becomes more available and mature.

Press Release / Media & BLOG Coverage

11-16-06 The IT Utility: A Vendor Reality Check (SandHill)

10-30-06 Saugatuck on Adoption of IT Utility Inside Enterprises (Sadagopan's Weblog)

10-19-06 The Reality of the IT Utility: Long Journey, Partly Begun

Executive Summary

10-19-06 The IT Utility: Journey to a Virtual Reality – Executive Summary

Read This Report To Learn:

What is the value/benefit of implementing an IT Utility infrastructure?

How are customers beginning to transition to an IT Utility infrastructure?

When will key technology functionality to support the IT Utility be available?

What are the key challenges to creating an IT Utility?  And how can these challenges best be overcome?

What is the impact of Open Source software on the IT Utility?

How are the IT Utility and Grid Computing related?

Table Of Contents:

Chapter 1: Introduction: Utility Computing - The Vision Unfolds

·        The IT Utility: Saugatuck Planning Positions (SPPs)

·        Snapshot: Today’s IT Utility Reality         

Chapter 2: IT Utility Challenges and Inhibitors

·        Challenge 1: Resource Sharing and Accounting/Chargeback

·        Challenge 2: Security

·        Challenge 3: Workload Dispatching and Control - “State Awareness”

·        Challenge 4: Workload Dispatching and Control - “Inter-workload Dependency Awareness”

·        Challenge 5: Problem Determination and Resolution

·        Challenge 6: Systems Integration

Chapter 3: The Realities of IT Utility Planning

·        Phase  1: Early Virtualization

·        Phase  II: Policy-based Computing

·        Phase III: The IT Utility

Chapter 4: The Basics of IT Utility Planning

·        Applications Impact

·        Heterogeneous Environment Impact

·        Preservation of Existing IT

·        Budgeting, Appropriation, and Vendor Disruption

·        Security and Availability

Chapter 5: Summary/Conclusion

·        Key User Recommendations

·        Key Vendor and Services Provider Recommendations

List of Figures and Sidebars:

Figure 1: User IT Utility Status: 2004 – 2010

Sidebar:  Putting a Name on It: Defining the IT Utility

Figure 2: The IT Utility Environment

Sidebar: Virtualization Popularity and a First Step

Table 1 : IT Utility Challenges & Inhibitors

Sidebar: The Relationship Between the IT Utility and “Grid” Computing

Sidebar: Software-as-a-Service in the IT Utility

Figure 3: The IT Utility Progress Timeframe

Sidebar : The Open Source Impact

Sidebar : The Manager of Managers

Figure 4: The Manager of Managers   

Sidebar: The Hosted + Hybrid Utility Reality

Related Research

08-21-07 VMware: Making x86 Server Virtualization Real (C. Burns, 3 pages, QT-373,  $$$)
08-15-07 VMware and XenSource Fuel Credibility for "Virtual" Reality (Bruce Guptill, 2 pages, RA-376)
08-08-07 IT Management Evolution Spells Vendor Opportunity (Charlie Burns, 2 pages, RA-375)
07-31-07 IT Management Evolution: All Roads Lead to Rome (C. Burns, 4 pages, STR-372, $$$)
5-29-07 Total Cost of Usage: Usage-Driven IT Cost Structures Require Usage-driven Metrics (B. Guptill, C. Burns, 4 pages, STR-351, $$$)
05-18-07 VMware Analyst Event Indicates Technology, Offering and Competitive Direction (C. Burns, B. Guptill, 4 pages, MKT-347, $$$)
02-22-07 IT Insights and Trends: On the Road to Utility Computing - How Far is Far Enough? (C. Burns, 5 pages, STR-321 $$$)
01-31-07 Virtualization Considerations: Forewarned is Forearmed (C. Burns, M. West, B. Guptill, 3 pages, STR-315, $$$)
12-19-2006 SOA, SaaS, Open Source, and Utility Computing: Managing the New IT Portfolio (C. Burns, M. West, 4 pages, STR-301 $$$)
11-08-06 Utility Computing: Immediate Benefits Kick-start User Attraction (C. Burns, B. Guptill, pages 2, RA-291)
11-07-06 Understanding and Managing the IT Utility Attraction (C. Burns, 4 pages, STR-290  $$$)
10-18-06 The IT Utility: Journey to a Virtual Reality, 2006 - 2010 (SSR-281, J. Cassell, C. Burns, B. Guptill, B. McNee, 28 pages, $$$)
10-18-06 Key Pitfalls and Challenges on the Road to the IT Utility (Guptill, Burns, 4 pages, RA-280)
09-05-06 Microsoft Vista Licensing: Reflecting Market Realities (Guptill, 2 pages, RA-269)
08-02-06 Hewlett Packard Buys Mercury Interactive (McNee, Koenig, 3 pages, RA-259)
07-26-06 Utility Computing: History Repeats Itself (Burns, 2 pages, RA-257)
07-19-06 Saugatuck Research Indicates Modest SOA Adoption (Koenig, Perrin, 2 pages, RA-256)
05-25-06 Utility Computing: A Definition, A Path, and THE Challenge (Burns, 6 pages, MKT-245 $$$)
05-17-06 Utility Computing: Key Considerations (Cassell, Burns, 2 pages, RA-243)
05-16-06 Open Source's Impact on Utility Computing (Cassell, 5 pages, MKT-242, $$$)
02-01-06 IBM CIMS Lab Acquisition Reduces Inhibitors to IT Utility Environments (Guptill, Cassell, 2 pages, RA-220)
12-22-05 HP Announces Flexible Computing Services - Back to the Future (Cassell, 1 page, RA-213)
12-15-05 The IT Utility: Key Obstacles and Inhibitors to Overcome (Cassell, 3 pages, RA-212)
11-23-05 Pay-As-You-Go: Migration to the IT Utility Confirmed by Survey Results (Koenig, Cassel, 2 pagesl, RA-209)
11-09-05 Microsoft Memos: Further SIgns of a Utility / Services Reality (Guptill, McNee, 2 pages, RA-207)
10-26-05 Utility IT Growth will Leverage Open Source-based Software (Guptill, 1 page, RA-204)
10-12-05 Microsoft Announces Licensing For Virtual Environments (Cassell, 1 page, RA-202)
10-05-05 Cisco Announces Utility Data Center Initiatives (Cassell, 1 page, RA-201)
06-30-05 Acquisitions Fill Gaps in Virtual Infrastructures: IBM buys Meiosys  (Cassell, 1 page, RA-185)
06-02-05  Utility Computing Spending Gap (Cassell, McNee, 1 page, RA-178)
07-22-04 The IT Utility: The Future of the Data Center 2004-2010 (SSR-150,  21 pages,  $$$
04-20-04 Pay-As-You-Go IT Services: Where's the Business Value? (SSR-148, 54 pages, $$$)
12-10-03  "Pay As You Go" IT Services and the Information Utility (West, 5 pages, FR-145) 
12-08-03  The On Demand Hierarchy Addresses Market Confusion (Isaac, 5 pages, FR-144)
07-31-03 Utility Computing: A Hard Sell (SSR-141a, 29 pages, $$$)
06-26-03  Utility Computing Requires Rethinking of Value Disciplines (Isaac, 5 pages, FR-141)
 
Cloud Infrastructure
Monetizing the Cloud
SaaS Scenarios Thru 2014
Enterprise Social Computing
Great Expectations
An ISV Cookbook
Open Source Changes
SMBs and SaaS Adoption
Saas Ready – Drill Down
Saas - Ready, or Not
Faces of Virtualization
Open Source SW
SaaS 2.0: Tipping Point
C-Team: Growth
SOA Reality Check
The IT Utility
SaaS 2.0
Outsourcing Transfd
The IT Utility
Pay-as-you-go IT
UC: A Hard Sell

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