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Are Businesses Ready For Utility Computing?

Utility computing is here, a revolution in business computing, it is the power of technology that changes the way businesses think about computing.

Significantly advanced technology has enabled Cloud and the concept of utility computing. Utility Computing requires new thinking, the type of thinking which over the centuries has aided and improved all industries. Utility computing can be likened to the computer equivalent of the industrial revolution – a revolution that was dramatically accelerated through economic growth and sufficiency by the advent of resources provided by the utility companies. The utility companies allowed industries to focus on manufacturing products and goods rather than managing the power sources.

Today computers are a resource, to be turned on and off with businesses paying for what is needed, when it’s needed. Much like the industrial factories being able to focus on manufacturing, businesses today can focus on delivering a service or creating a product rather than managing and continuously over investing in their IT provisioning.

The essence of cloud computing is for the utility cloud to align to expenditure and requirement; it scales and flexes from one user to tens of thousands of users. It does not suffer performance problems based on age, it does not need large cyclic capital investment based upon predictions of size and market. It allows customers to be served faster and empowers employees with the latest in technology and it is this that increases customer relations, logistics and finance.

Thus far it is the smaller companies which have the greatest adoption of utility computing, and it is those who are starting up who are seizing the moment. The reason for this could be that information technology can be extremely costly, software licenses, capital and of course, a team to oversee this.

The economic recession of 2008 has also greatly increased the number of  businesses adopting utility computing, due to the elimination of investments. Cloud services are now very much seen as the normal way to conduct online business; their simplicity and value for money make this a sounds and easy investment.

Today, the advantages of utility computing are seen by all sizes of business and the key to its success is the agility of cloud computing. In the 1990’s it would take companies around two months to commission a server, whereas now with the opportunity of using a cloud you can obtain a new server in just 30 seconds, this allows innovation and growth at a much faster pace.

In 2014 we are seeing a market consolidation of cloud providers and the online price wars are beginning to heat up, the potential savings for businesses choosing to use cloud computing are likely to be significant.

Companies are moving forward with cloud deployments at a rapid rate according to a Microsoft commissioned study conducted by 451 Research LLC. The new study showed that more than 45 percent of organizations surveyed are beyond the pilot phase, and 32 percent now possess a formal cloud computing plan as part of their overall IT and business strategy. The study also highlights that on-premises private cloud adoption accounted for 26 percent of on-premises infrastructure spending in 2013, and hosted private cloud is expected to experience the highest rate of growth for off-premises infrastructure in the next 24 months!

Perhaps it’s time you reviewed your business’ readiness for utility computing!

Martin Bradburn
Chief Executive Officer


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