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MOST EUROPEAN COMPANIES HAVE NO INSIGHT INTO GRID LOAD LEVELS

Oracle Corp unveiled research that provides, for the first time, detailed insight into issues around the use of server hardware and Grid computing among European companies. Oracle commissioned the research because Grid computing has the potential to be a disruptive technology with a major impact on business, and yet very little has been done to understand companies' perceptions of it and the opportunities that surround it.

The most disturbing result from the survey was that more than 50 percent of companies have no insight into the level of load or stress on their technology infrastructure -- in other words, more than half of European companies are flying blind.

Those that do have some insight into this area indicate that one third of servers are running at or close to capacity; overall about 60 percent of server capacity is used.

The survey was conducted during August and September 2003 by QNB Intelligence, the wholly owned primary research subsidiary of Quocirca Ltd, an independent analyst company. Respondents were people in European businesses who controlled or strongly influenced the planning, investigation, selection and deployment of strategic IT technologies and solutions. 307 respondents participated across eight countries and 10 industries.

Europe's Server Infrastructure

"It is noteworthy that 30 percent -- nearly a third -- of companies simply go out and buy more hardware when a system encounters capacity problems, and yet server loading is averaging only 60 percent," said Tim Payne, Oracle senior director of Technology for EMEA. "This means that many companies are wasting money on extra server hardware when they could be sharing unused capacity to overcome their bottlenecks. This is exactly the problem that Oracle Grid Computing will address through products such as Oracle 10g. Gartner puts the EMEA server market for 2002 as 1.37 million units and $15 billion. An average 60 percent utilization means that over half a million of those servers are effectively excess capacity. If enterprise Grid computing could increase overall utilization to 90 percent, then companies across Europe would save $4.5 billion a year in reduced server shipments."

Grid Computing To The Rescue

"The survey shows that nearly half of medium and large European companies have considered Grid computing in some form or other, such as computing on demand or utility computing," said Clive Longbottom, head of research for Quocirca Ltd. "Cost is seen as the top issue with Grid, which conflicts with the understanding that Grid brings server consolidation benefits. Interestingly, threat to intellectual property comes next as a perceived issue, which puts the onus upon vendors to ensure rigorous attention to security and privacy in their implementations of Grid computing."

The survey reveals a classic early adoption attitude to Grid computing. Nearly half have considered it, and further say that the top two areas for consideration of Grid computing would be enterprise applications (such as enterprise resource planning and customer relationship management) and databases. However, 45 percent of companies feel that Grid computing will not become a mainstream commercial reality for three years or more.

"The timeframe perceptions among the companies in this survey are very interesting for Oracle," continued Payne. "With Oracle 10g already announced and due for delivery later this year, we say to the marketplace that the time to start is now, not in three years. We have already shown that we can deliver these benefits and help companies turn them into the commercial reality of improved bottom line performance."

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