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MARKET RESEARCH VALIDATES VERITAS' UTILITY COMPUTING STRATEGY

VERITAS Software Corp, a leading storage software provider, announced independent research by Dynamic Markets has revealed that a growing number of organizations are deploying service level agreements (SLAs) between their IT departments and lines of business. SLAs represent a tangible means of defining IT services versus business needs and are a significant milestone towards building the infrastructure required for utility computing. VERITAS provides a building block approach to utility computing with integrated software solutions that enable an IT infrastructure that is aligned with the changing demands of business requirements. By evolving to a utility computing model using VERITAS' building block approach, customers can optimize their existing IT infrastructure to meet SLAs while lowering the cost of operation and management.

According to the survey of over 1000 data center managers and functional heads, 59 percent of organizations have introduced SLAs, presumably in an effort to drive efficiencies and reduce costs, indicating IT departments are striving for transparency by aligning themselves with business requirements. In the organizations where SLAs are employed, they typically cover an agreed service level for processing performance (37 percent), system availability as a percentage of uptime (35 percent) and restoration times following an outage (29 percent). However, almost two-fifths (39 percent) of organizations admit to not having SLAs to cover any of these key performance areas.


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If one premise of SLAs is to introduce transparency with a view to allowing efficiencies and resource prioritization, then there is some indication that organizations are making headway. A third (34 percent) of non-IT functional heads, who have a chargeback system in place to allocate IT costs to individual departments, use their SLA reports to improve department operations to make them more efficient, and 28 percent work with their IT department to find ways in which to lower costs. However, 39 percent either do not use the IT reports provided or are unsure how the information is used. The research indicates a reason for this could be a lack of buy in from those the SLAs are aimed to serve. In a quarter of cases, line of business heads are not involved in defining SLAs affecting their department, and a further 19 percent report having minimal input in their definition.

"Service level agreements, when implemented and managed correctly, provide an effective route towards allowing lines of business to determine their own IT requirements, helping to make IT accountable and transparent," said Mark Bregman, executive vice president of product operations for VERITAS Software. "While service level agreements are not yet the norm in all organizations, this research indicates that a significant proportion of businesses understand the fundamentals of the utility computing model and are putting the processes in place that will ultimately transform IT from a cost center to a value center. VERITAS is committed to working with customers to develop, deploy and refine service level agreements to best fit their unique needs, by providing a building block approach with software that overcomes the inherent complexities of the typical heterogeneous IT infrastructure."

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