Report: Utility Computing Requires New TCO Approach
A Yankee Group study says it could be a decade before the computer industry gets the most TCO efficiency out of utility computing, which aims to respond cost-effectively in a constantly changing business environment.Enterprise IT managers are becoming more sophisticated planners and negotiators when it comes to implementing utility computing systems capable of responding in a cost-effective way to dynamic business conditions, according to a report by market research firm The Yankee Group. The report on the TCO (total cost of ownership) for utility computing says IT managers need to obtain better analytic tools to support purchasing decisions in a dynamic business environment. Since the dawn of commercial IT systems, corporate managers have always built new information-processing applications with the assumption that they will run unchanged as long as the business exists, said Andy Efstathiou, a business and IT services analyst at The Yankee Group and the reports author.
But todays IT managers must be able to plan for IT systems that can adjust to changing business conditions, Efstathiou said. This means they will have to account for changes in the "duration, volumes and prices in business processes" that are automated by IT systems, he said.