Nicholas Carr, author of the much-contested article “IT Doesn’t Matter“, has written a new, equally debatable article titled “The End of Corporate Computing“. In it, Carr shows the same blind spot demonstrated in his previous work by arguing that the corporate data center will be replaced entirely by utility computing providers delivering apps over the web.
Carr uses the analogy of the electric generating industry in the early 20th century. Companies initially were forced to run their own generating plant, but these were gradually replaced by centralized electric generating utilities. This centralization required the construction of the electric grid to distribute electricity, analogous to the internet of today.
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Linux’s total cost of operation (TCO) is typically 40% lower than Windows, according to an IBM-sponsored report from Robert Frances Group, publicized by IBM this week.
Linux still may be cheaper than Solaris or Windows, but the study agreed with Unilever that the price difference is not what it once was. This is partly because Linux buyers are now treating the platform like any other commercial product, and are buying the same support offerings, management tools and other facilities as they would for another operating system, Robert Frances said. The other factor is that competitors have responded to pressure from Linux by lowering their prices, according to the study.
Originally posted at The Indifference Curve.