IT as a Utility? Wait a Minute!
Computing as a utility? Hey, it could happen unless we rethink a current trend.The year is 2010. IBM signs a $7 billion outsourcing contract with Holdout Gear and Sprocket, taking on the companys 5,000-person IT staff. With that deal, IBM gains control of 90 percent of IT operations at Fortune 500 companies. As a result, the work force of IBM Global Services surpasses 1 million, making the IBM unit the largest employer in the world. Dont laugh. If the present trend continues, it will happen. When IBM took over J.P. Morgan Chases IT operations last month, it was just the latest in a growing string of huge outsourcing deals, of which IBM had a 50 percent market share last year, far ahead of rivals EDS and CSC, according to Gartner. IBM is working to become every businesss IT-on-demand resource. So far, IT execs are glad to give their work forces to IBM or to plug in to IBMs Linux-on-demand services and pay only for what they use.
But lets fast-forward to 2011. With a working monopoly of IT resources having been achieved, IBM begins to take its role as a provider of computing as a utility a little too seriously.