IBM SA gave details on Friday of its worldwide initiative, called computing on demand, and explained the tie-in of this direction with its well-publicised e-business plans.
Country GM Mark Harris explains that IBM is taking the strategic position that companies will in future buy computing power as and when needed, and receive monthly statements for it. IBM`s $10 billion investment in research and development and a consulting practice in this area is testimony to this conviction.
As regards an e-business application of this vision, Harris says the natural evolution of information and communications technology (ICT) started with Web-based information access, then moved to online transacting, then into integrated networks (with key suppliers, partners and customers).
It will finally involve on-demand e-business, he says. This stage will involve online transactions (business-to-business or business-to-consumer) driven by a shared grid of computing power outside the company`s premises.
"E-business on demand drives business success in an increasingly competitive environment," Harris says. "Technology is now so standard and intelligent that on-demand business is eminently possible - companies can react with speed, resilience and flexibility to any customer demand, market opportunity or external threat."
In part business model, in part technology framework, on-demand computing provides a cost-effective, resilient, focused and responsive approach to a dynamic and competitive environment, the company believes.
The on-demand model promises to bring companies a step closer to the ideal of sticking to one`s knitting. Harris says companies dare not be distracted by anything outside their core function.
At the same time ICT supports business-critical functions, and this makes a computing seat outside the company an attractive option.
However, on-demand computing is still in its infancy, Harris admits. But IBM provides a clear evolutionary path. "First, companies must simplify their technology by building a unified network," he says. "This will entail rationalising and integrating all (disparate) technology systems. The next step, still intra-company, is virtualisation - software will see all the organisation`s servers as one server and reallocate workloads to under-utilised servers.
"Step three is extra-company. Related companies (eg, two research institutions) link data centres and networks into a giant computing grid from which participants can access information and computing power on demand. An example is the breast cancer grid shared by American university hospitals."
Harris says the fourth stage is utility computing, with any kind of company able to buy computing power from a supplier on a pay-per-use basis.
IBM`s vision of the future focuses on computing as a commodity, like electricity, incorporating standards and a services culture in the industry, rather than disparate systems.
The company is also adding to its consulting services a practice for assessing customers` present capabilities and future needs. But it will have to convince customers to adopt its particular technology versus similar constructs from the likes of Hewlett-Packard or Sun Microsystems.
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