Corporate computing predicted to shift to centralised utilities


Corporate computing predicted to shift to centralised utilities

Antony Savvas

The end of corporate computing is nigh, according to a leading IT academic.

Nicholas Carr, the former Harvard Business Review editor, who penned a well publicised IT Doesn't Matter article, is now predicting The End of Corporate Computing.

The latest article appears in the spring issue of the MIT Sloan Management Review, and predicts that companies will stop running their own IT environments and instead tap into the resources of large-scale centralised computing utilities.

"Information technology is undergoing an inexorable shift towards being a service that users purchase from utility providers," Carr said.

"IT's shift from an in-house capital asset to a centralised utility service will overturn strategic and operating assumptions, alter industrial economics, upset markets and pose daunting challenges to every user and vendor," said Carr.

IBM is already heavily promoting its offsite supercomputing facilities to organisations that need a processing capacity boost for demanding projects, and Sun Microsystems is trying to offer a users a similar service with its grid computing model.

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