Pay-As-You-Go IT Services: A Dose of Reality at UtilCompWorld
Saugatuck Technology presents keynote address and market survey results at the utility computing conference “On Demand Strategies for Business 2004,” held in New York City March 23 and 24.
Westport, CT (PRWEB) March 27, 2004–-Adding a dose of reality to
UtilCompWorld 2004 – Saugatuck Technology presented the results of a soon to be
released market survey on Pay-as-you-go (PAYG) IT services. With presentations
from senior IT executives from Guardian Life and Deutsche Bank, among others –
as well as a variety of vendor keynotes and panels – the proceedings were filled
with the promise of utility computing, and the use of technologies such as
virtualization and orchestration.
Chairing the first day of the
conference, Bill McNee, Founder and CEO of Saugatuck Technology, opened the
event by framing many of the key benefits and challenges associated with utility
computing and PAYG services. McNee then introduced Saugatuck’s groundbreaking
study focused on buyer activity and perceptions related to PAYG IT services,
which were presented in more detail later in the day by Michael Isaac, a Senior
Program Director at Saugatuck.
Among the highlights – nineteen percent
(19%) of 310 CFOs and CIOs surveyed stated that their organizations were already
using one or more PAYG IT services. Thirty seven (37%) percent expect to be
using PAYG IT services within two years. This suggests that the market for PAYG
IT services – whether IT infrastructure or application driven – will quickly
move beyond its early adopter phase.
In many ways, a key issue for users
and vendors alike is whether the infrastructure and core business applications
will evolve fast enough to support this emerging demand. A playful discussion
panel with Hal Stern, CTO of Sun Services, Philippe Lamy, Chief Technologist at
HP, Dev Mukherjee, VP Strategy at IBM and Pete Manca, Senior VP at Egenera
highlighted many of the technical challenges only now beginning to be addressed,
including issues related to virtualization.
Interestingly, Saugatuck’s
study also found that large rather than small-to-medium enterprises were leading
the charge, and in many cases with hybrid implementations that leverage the best
of both existing in-house IT services with variable PAYG services.
Unfortunately, due to the lack of clarity in the market, many senior executives
are viewing the decision to utilize PAYG IT as an all-or-nothing decision.
“Buyers are not yet thinking about a hybrid model in which external PAYG
resources seamlessly supplement in-house resources,” said Isaac. “The potential
savings are enormous, especially for situations with highly variable application
or infrastructure requirements that just aren’t justifiable using traditional
fixed-cost models.”
The formal research report, entitled “Pay-as-you-go”
IT Services: Where’s the Business Value? will be published in early April 2004
by Saugatuck Technology and research partner CFO Research Services.
About Saugatuck
The company provides research-based consulting
services that combines business planning and market assessment with first-hand
research of executive technology buyer trends. Founded in 1999, Saugatuck is
headquartered in Westport, CT (www.saugatech.com 1-203-454-3900).
For more
information about the study, or to pre-order a copy of the report, please
contact Chris MacGregor at the number listed below.
MEDIA
CONTACT:
Chris MacGregor, Saugatuck Technology
e-mail protected from spam
bots
203 454 3900, x251
# # #
Source : http://www.prweb.com/releases/2004/3/prweb114506.htm