Information technology is undergoing a relentless shift from an asset that companies not only own service that they purchase from utilities. Three technological advances allow this change: virtualization, grid computing and Web services. Virtualization removes the differences between proprietary computing platforms that developed applications to be run on an operating system used elsewhere. Grid computing enables a large number of hardware components, such as Se … Read more »

Information technology is undergoing a relentless shift from an asset that companies not only own service that they purchase from utilities. Three technological advances allow this change: virtualization, grid computing and Web services. Virtualization removes the differences between proprietary computing platforms that developed applications to be run on an operating system used elsewhere. Grid computing enables a large number of hardware components, such as servers or disk that actually act as a single unit, pooling and sharing of capabilities it automatically to different jobs. Standardize Web services, the interfaces between the applications to them, assembled in modules and can be disassembled easily. The resulting industry is probably three main components. Large companies that maintain core computing resources in central plants and distribute them to end users is – in the middle of the IT companies will be yourself. The manufacturers of computers, storage devices, networking equipment, operating and utility software and applications – serving the utilities will be a variety of suppliers. And finally, large network operators will keep the ultra-high capacity data communication lines needed for the system to work. IT is a shift from in-house capital asset to a central supply services are strategic and operational assumptions to overthrow, to alter industrial economics, upset markets and pose major challenges for any users and suppliers.
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from
Nicholas G. Carr
Source: MIT Sloan Management Review
9 sides.
Release date: 01 April, 2005. Prod #: SMR172-PDF-ENG
End of Corporate Computing HBR case solution