Blue Ocean Strategy Case Study

Utility Computing: IBM On-demand

OR

Abstract:
Since the late 1990s, the IT industry witnessed the growth of a new concept – 'utility computing'. The core idea of this concept was to transform computing power and peripherals into utility like water and electricity so as to enable businesses to convert their fixed costs on IT infrastructure into variable costs. Under this concept, businesses could hire computing software and services as and when required rather than outrightly purchasing those resources. Sensing a huge opportunity, International Business Machines (IBM) came up with its own version of utility computing named 'on-demand computing' and in late 2002, IBM announced that it had committed $10 billion for this project.

Pedagogical Objectives:

• To discuss the conceptual framework of 'utility computing'
• To discuss the competitive advantages of IBM as a forerunner in this new IT revolution

Keywords : Utility computing; International Business Machines (IBM); On-demand computing; Grid computing; Autonomic computing; Innovation Management Case Study; Metered service model of computing; Outsourcing in IT utilities; Microsoft dynamic systems; IBM global services; Tivoli software; IBM i-series; Open standards in computing; Linux; Sun Microsystems N1 data platform; HP utility data centre

Contents: : 
TASK-SHARING
PRICING
HYPE
STANDARDS
Auto-fix defective PTFs
ChipkillMemory, dynamic bit steering
Service director
PerformanceManagement
Tagged storage
RAID
Concurrentmaintenance