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Abstract

Since the late 1990s, the IT industry witnessed the growth of a new concept - ''utility computing''. The core idea of this concept was to transform computing power and peripherals into utility like water and electricity so as to enable businesses to convert their fixed costs on IT infrastructure into variable costs. Under this concept, businesses could hire computing software and services as and when required rather than outrightly purchasing those resources. Sensing a huge opportunity, International Business Machines (IBM) came up with its own version of utility computing named ''on-demand computing'' and in late 2002, IBM announced that it had committed $10 billion for this project. This case enables the reader to understand the conceptual framework of ''utility computing'' and also highlights the competitive advantages of IBM as a forerunner in this new revolution in IT. A structured assignment ''304-242-4'' is available to accompany this case.
Location:
Other setting(s):
2004

About

Abstract

Since the late 1990s, the IT industry witnessed the growth of a new concept - ''utility computing''. The core idea of this concept was to transform computing power and peripherals into utility like water and electricity so as to enable businesses to convert their fixed costs on IT infrastructure into variable costs. Under this concept, businesses could hire computing software and services as and when required rather than outrightly purchasing those resources. Sensing a huge opportunity, International Business Machines (IBM) came up with its own version of utility computing named ''on-demand computing'' and in late 2002, IBM announced that it had committed $10 billion for this project. This case enables the reader to understand the conceptual framework of ''utility computing'' and also highlights the competitive advantages of IBM as a forerunner in this new revolution in IT. A structured assignment ''304-242-4'' is available to accompany this case.

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Location:
Other setting(s):
2004

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