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Utility computing: hype versus reality

Katy Ring and Marc Jacobson
Wednesday 18 December 2002 12:00
Utility computing promises costs savings greater flexibility for enterprises that want to adjust their IT infrastructure "on the fly". Sounds too good to be true. Ovum analysts Katy Ring and Marc Jacobson look behind the hype.

The marketing machine behind IBM's 'e-business on demand' campaign has driven a huge amount of interest in the utility computing concept. Globally, xSPs are scrambling to piece together a strategy. This delivery and pricing model is substantially over-hyped. More importantly, utility offerings are at the volume end of the market and should be avoided by the premium-end providers that are driving its very adoption.

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