study the utility computing suppliers are going through five stages to build their utility
infrastructure: (1) concentration of resources, (2) consolidation of assets, including
infrastructure facilities, (3) virtualization of services, (4) automation of processes, and
(5) extension of services and solutions. Firms move from one stage to the next, with
each stage firmly established before going to the next [6].
The leading companies in the utility paradigm recently are in late stage 3 or stage
4; they make available a wide range of automation processes and business operations
deployment based on virtualized computing resources and services. Sun with its N1
architecture, Grid compute utility and StorEdge services provide virtualization of data
center resources, dynamic allocation of IT applications, automation of installation,
configuration, accounting and reporting on per-service basis deployment. HP
Adaptive Enterprise is the HP shift to utility computing development. The HP strategy
is to deliver virtualization technology and utility computing services at different
product levels: individual or element-based virtualization, integrated virtualization,
and metered, managed and instant capacity operations. While the diversity of utility
like options is substantial and HP is acting as a typical IT utility provider, there are
some strategic HP advances in servers, storage, imaging and printing services. In
2006, HP won two multiyear $440M utility computing contracts from the United
States Federal Government. Based on its worldwide communication network,
specialized services and cross-platform expertise, HP deploys adaptive infrastructure
using HP Integrity and HP ProLiant servers, and delivers software solutions for
automated server provisioning, configuration, patch and IT asset management. HP
discontinued its Utility Data Center (UDC) monolith initiative advancing more
flexible and granular utility computing services such as imaging and printing
operations, server and storage virtualization and automated provisioning on modular
platforms to target larger costumers’ groups and variety of business expectations.
IBM On Demand strategy is the company’s complex utility computing model,
which incorporates infrastructure virtualization and management technologies,
application hosting services and business process operations. IBM has proved its
leading expertise in this realm with many successful utility projects from modular
business specific applications to the most comprehensive IT solution to American
Express announced in late 2002. “Today American Express is placing itself at the
forefront of a new computer services paradigm,” said Doug Elix, IBM senior vice
president and group executive, IBM Global Services. “The utility computing service
delivery model American Express is adopting will give it the flexibility to draw on all
the computing resources, skills and technologies required to support future growth.”
The agreement saves American Express hundreds of millions of dollars in information
technology costs, and having IBM’s resources on demand provides AmEx with the
flexibility to adjust rapidly to changing business needs.
The pragmatism that drives most organizations as consumers into utility model is
not only immediate cost savings, but also how IT is structured and managed,
accounted for, and used to enable businesses to improve their efficiency and
effectiveness. In today’s world, IT differentiation in products or services is unlikely to
be achieved; therefore more executives are looking to business process innovation as
a key competitive advantage. Virtually all businesses could take advantage and
building out a company-specific platform by employing best pieces of proved utility
computing options in different timeframe [10]. The timeframe IDC envisages
regarding the major steps customers would advance when they incorporate utility
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