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Utility Computing - Evolving concept, not a market yet

Courtesy of Jeff Nolan, I saw this 451 Group report on the state of utility computing. They talked to some early adopter user companies and a number of vendors in the space - IBM, EDS, Savvis and others. Extracts from their summary:

"Agility is a common word among early adopters. Often, the initial conversation about the use of grids is focused on resource reallocation, lowering costs and total cost of ownership, but when grids have been in use for some time, the conversation is increasingly rooted in the ability to better and more quickly respond to customer and internal requirements, address strategic business opportunities, do new things and improve time to market", but with the following caution.

"Adoption is minimal. Utility computing is not just around the corner, despite what vendors may suggest. Processing cycles and data access are not as fungible as electricity, and despite all the hype, it will take a lot of time and effort to turn everything into a service."

And even when they do, the pricing and delivery track record will need to be more attractive as I wrote in Utility Computing: wish it was so easy.

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