Inside and Out
Inside and Out"The most common model is that a business unit has a service it wants to deploy, it calculates the amount of infrastructure that it needs to achieve the level of service that it needs, and the IT department inherits that and winds up with a hodgepodge that later needs a consolidation project," said David Nelson-Gal, Suns vice president of N1 and availability products, in Santa Clara, Calif. "Businesses need to evolve to the point that the IT department delivers service levels and charges back to the business units for capital based on service delivery." Dave Roberts, Inkra Networks Corp.s co-founder and vice president of strategy, in Fremont, Calif., boiled down the utility concept in similar terms: "You take virtualization [technology], add on-demand [manageability], add charging [business infrastructure], and thats utility," Roberts said. Enterprise buyers are driven by the economics, not the technology, of utility computing. Utility approaches "will fuel the growth of scalable services," said eWEEK Corporate Partner Michael Skaff, manager of IT for digital media network builder AdSpace Networks Inc., in Burlingame, Calif. "Resources that were previously locked up elsewhere can be redirected, and companies will be able to further specialize in their core competencies and purchase peripheral functionality as a service."
Many IT buyers believe that utility computing implies an outsource relationship with a computing service provider. However, the utility model can be equally well applied to owned IT assets.