The Reality of the IT Utility: Long Journey, Partly Begun

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New research report from Saugatuck Technology reveals real-world user and vendor insights on Utility Computing planning, adoption, inhibitors, and management guidance.

Research released this week by Saugatuck Technology indicates that Utility Computing delivers a variety of tactic and strategic benefits to user enterprises, and profits to IT vendors and service providers.

But within user enterprises, the IT Utility environment – necessary for realizing full Utility Computing benefits – tends to be incompletely planned and implemented thus far, due to a lack of a comprehensive framework, scope and vision for where Utility Computing is going, as well as a variety of important technological and managerial challenges and issues that need to be overcome.

These findings are from Saugatuck’s new research report titled “The IT Utility: Journey to a Virtual Reality 2006-2010.” Published earlier today, the full report is available for purchase and download from Saugatuck’s website at

Encompassing two years of survey and interview research with more than 1,000 user executives, and briefings with dozens of IT vendors and service providers, the report yields keen insights into what the IT Utility really is for user enterprises and vendors – and why neither is going to see the greatest benefits of utility computing until the end of this decade at the earliest.

The full report includes a thorough examination of Saugatuck’s Utility Computing research and analysis, providing a detailed investigation of the six key inhibitors to user adoption of utility computing – and how each can be overcome. The report also presents Saugatuck guidance to users and vendors regarding how to effectively plan for, execute, manage, and optimize an IT Utility strategy.

“There was a need for comprehensive research and guidance regarding what, exactly, is the reality of Utility Computing for users and vendors, and what they need to do in order to really take advantage of what it has to offer,” stated Saugatuck Vice President Charlie Burns, co-author of the report. “Saugatuck has the unique combination of user and vendor research, perspective and subject matter expertise, to bring the reality to light, and to provide actionable insights and guidance on this very strategic matter.”

“This report can be used as a guide – as a strategic and tactical roadmap – through Utility Computing for users and vendors alike,” added co-author Bruce Guptill, Saugatuck’s managing director or research services. “We provide insight and analysis as to the adoption, usage, and especially the key inhibitors to the deployment of an IT utility environment within user enterprises – and how to manage through those inhibitors.”

Key insights in the report include the following:

  • Saugatuck Strategic Planning Positions (SPPs) regarding user and vendor issues and activities through 2010
  • An examination of six key technological and managerial Inhibitors to Utility Computing
  • Guidance for overcoming these inhibitors, and for planning and managing to optimize Utility Computing benefits

About the Research

The analysis, insight and guidance in this report are based on more than two years of survey and interview research by Saugatuck Technology, including input from several surveys that totaled more than 1,000 user IT and business executives, and briefings with more than two dozen IT vendors and services providers - including (but not limited to): Cassett, Computer Associates, Egenera, IBM, Microsoft, SAVVIS, Symantec, Unisys, Vericenter and VMware. All research was performed by Saugatuck Technology consultants, and funded solely by Saugatuck Technology. Details regarding this research and summary findings can be found by visiting Saugatuck's web site at

About Saugatuck Technology

Saugatuck Technology Inc. provides research-based consulting and subscription research services to senior executives, information technology vendors, and investors, combining strategy development, business planning, and market intelligence with first-hand research of executive technology buyer trends. Founded in 1999, Saugatuck is headquartered in Westport, Connecticut (USA).


Chris MacGregor, Saugatuck Technology



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