A Quick Start to Understanding the Benefits and Drawbacks of Utility and Grid Computing.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c30432) has announced the addition of On-Demand: Customer Requirements For Utility Computing to their offering.

This primary research describes technical and business requirements for companies that use the emerging technologies of Utility and Grid Computing. Requirements were derived from 30 in-depth interviews with enterprise IT executives, IT architects and data center managers; 26 of the companies had more than US $1 billion in annual revenues.

The report identifies:

- Market drivers - Obstacles - Value propositions - Pains - Gaps in existing technology

The biggest pains for these IT executives were data center management and cost containment. Business agility and cost savings are their key value propositions. Half of the respondents changed their data center business model or IT operations after adopting Utility technologies.

The chief gaps between desire and reality are in data center management software and tools to optimize applications for Utility Computing. The three key technologies required for Utility Computing are virtualization, provisioning and management. The research identifies why IBM and Hewlett-Packard are most frequently named as the strongest vendors for Utility Computing.

The research also identifies key characteristics of early adopters of Utility Computing and 10 recommendations about how vendors can win more of their business.

The report will jump-start both vendor and enterprise efforts to come up to speed quickly on the advantages and pitfalls of Utility and Grid Computing. It is useful for technical specialists, business analysts and product marketers.

Topics Covered
1. Executive Summary
2. About this Report: Methodology and Respondent Profile
3. What Is Utility Computing?
4. Utilization Drives Economics
5. Three Key Utility Technologies
6. High-Level Findings
7. What's Difficult in Data Centers Today
8. Business and Technical Requirements
9. Barriers to UC adoption
10. Value Propositions that Ring True with Enterprise Users
11. How Data Centers Implement Utility Technology
12. What Makes a Viable UC vendor
13. The Economics of Utility Technology
- A Cautionary Tale
14. Issues in Utility technology Implementation
15. Market Segmentation
16. Gap Analysis: What's Still Missing?
17. Early Adopters Tell Vendors What to Fix
18. How Utility Technology Will Evolve
Appendix A
Appendix B
Appendix C
List of Figures

Summary

This research probes early adopters of Utility and Grid Computing technologies on their technical and business requirements for adopting this technology. The report also clarifies the continuing confusion over the term Utility Computing, which is commonly applied to both a technology and to a business model.

The report also describes the subtle interplay between business model and technology for Grid Computing and for two models for Utility Computing, Public and Private Utilities.

The report is based on 30 interviews with enterprise IT executives, IT architects and data center managers; 26 of the companies interviewed had more than $1 billion in annual revenues. Interviews were conducted during 2004 and the first three months of 2005; the report is based primarily on 2005 data. The report also includes Vendor Profiles of technology suppliers in this sector.

Respondents identified data center management as the biggest pain in doing their jobs, with cost containment second. Their chief technology requirements are optimizing operations and the technical challenges of 'always on' operation. Cost containment, business agility, and regulatory compliance are their biggest business requirements.

Business agility and cost savings are their key value propositions, and some companies are using Public Utilities (outside service providers) to scale costs up and back based on business need.

The report identifies three key Utility technologies: Virtualization, Provisioning, and Management. All three technologies are evolving, and no vendor dominates any category. Two vendors were most frequently named as the strongest vendors for Utility Computing, and respondents also stated a clear preference for large, stable vendors. Nonetheless, they are willing to use a smaller vendor if the technology is needed.

Very few early adopters are charging for Utility Computing services provided within their own companies, and only a few plan to do so in the future. Internal payments are primarily charge-backs of IT costs. The research identifies five different methods of payment for companies providing Utility services to other companies. Half of the respondents changed their data center business model or IT operations after adopting Utility technologies.

The research identifies technology gaps--in which user requirements outpace vendor products-- in the areas of management software and tools to optimize applications for Utility Computing. Software licensing practices also need to be adjusted for Utility Computing. The research also identifies key characteristics of early adopters of Utility Computing as a tool for vendors to target their sales efforts.

Finally, the research identifies 10 recommendations from early adopters to vendors about how to win more of their business.

Companies Mentioned

Vendors: ActiveGrid, Agiliti, Azul Systems, Cassatt, Egenera, Enigmatec, IBM, Metilinx, Qlusters, Sychron, EDS, Hewlett-Packard, IBM, Intel, Metilinx, Meiosys, Marsys, Network Appliance, Qlusters, Savvis, Simdesk, Speedera/Akamai, Sun Microsystems, 3PAR, TopSpin/Cisco, Veritas/Symantec, VMware/EMC, Voltair. End Users: Adaptec, Advance Systems, ADP, Amerada Hess, Avaya, Bear Stearns, British Columbia Cancer Agency, Cisco, Citigroup, CNF, Corrections Corp., Deloitte Touche Tomatsu, Deluxe Media Management, Deutsche Bank, GenWorth, GlaxoSmithKline, Intel, InterDigital Communications, JPMorgan Chase, Lockheed Martin, Merrill Lynch, Pratt & Whitney, Prudential Insurance, Threshold Digital Research Labs, UBS, USA Today, Wachovia Bank, Welch's Food

For more information visit http://www.researchandmarkets.com/reports/c30432