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Recent Case Studies Find Value in Utility Computing
Yankee Group, The, Aug 2004, Pages: 15
Enterprises have become rightfully concerned that utility computing is hype with little substance because there have been very few referenceable implementations. This report will present four case studies of utility computing installations and analyze how and why these installations work for their owners. In writing this report we found that few vendors have= the referenceable implementations they would like the market to think exist (for example Sun and EDS were unable to provide us with reference customers for this report). However, when we did find referenceable implementations, the business value was compelling. Business value, unlike what much of the reporting and literature indicates, is not primarily derived from variable, low-cost pricing. In the cases we interviewed, business value is derived primarily from increased flexibility that allows the enterprise to very rapidly change its IT infrastructure to match a rapidly changing business.
- Rapid anticipated organizational growth over the next decade
- Large swings in processing volume during a year
- Legacy systems that are costly to maintain and need replacement
- Business-IT alignment challenges
The utility computing implementations help them to address these challenges much more effectively than previous technologies or delivery methodologies have been able to do so in the past.
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