NewsBriefs
Utility Computing Popular with Corporations
By KA Staff
Jun 24, 2007, 17:32

Utility computing is popular among U.S. enterprise decision-makers, and there is reason to believe its popularity will continue to grow, reports In-Stat. In-Stat survey results show that 27 percent of firms with 1,000 or more employees have already adopted a utility computing service. Utility (or “on-demand”) computing involves purchasing computing power or memory from a third-party provider on an as-needed basis, paying for only the resources actually consumed.

“Out of the 78 enterprise respondents who currently use an on-demand service, only two said they would not recommend them to a colleague,” says Jeff Jernigan, In-Stat analyst. “With the influence that provider reputations and peer recommendations have on the purchase of technology products and services, this data point bodes well for the future of utility computing in the enterprise market.”

In-Stat found that:

• Telcos hold a slight advantage as the on-demand provider of choice, but future market share is up for grabs.
• Of firms that do not currently contract for utility computing services, 27 percent indicate that they are “extremely” or “very” interested in exploring the benefits of utility computing within the next two years.