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UTILITY COMPUTING SEARCHING FOR IDENTITY

Just what, exactly, is utility computing?

The basic idea is to offer software and business applications on an outsourced basis. The software and applications can be allocated in varying amounts, depending on a customer's requirements at any given time.

It would appear, then, that the definition is in the eye of the beholder.

Major systems makers like IBM, HP, Sun Microsystems and Computer Associates have launched new utility initiatives in sync with their respective strategies.

IBM started the utility stampede last year by allocating $10 billion on "utility" spending. Throughout 2003, it announced plans to rent out computing power, retool its server software and even make its own game for online enthusiasts -- all in the name of furthering its on-demand efforts.

Although it struck some big deals with on-demand customers, IBM acknowledged that explaining utility computing to potential buyers is still a challenging task.

HP announced its utility initiative with Adaptive Enterprise, which included its server, PC and printer business, but spent much of the year attempting to define it.

HP's message clearly is a work in progress, as several of the company's executives struggled at times to define it.

The concept of utility computing thus needs to evolve both for the client and the vendor. 2004 hopefully will see efforts bear fruit, making the concept comprehensible to customers.

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