Cloud Computing and Electricity: Beyond the Utility Model

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Executive Summary

Businesses rely no less on electricity than on IT. Yet corporations don't need a "Chief Electricity Officer" and a staff of highly trained professionals to manage and integrate electricity into their businesses. Does the historical adoption of electricity offer a useful analogy for today's innovations in cloud computing? While the utility model offers some insights, one must go beyond this simple analogy to understand cloud computing real challenges and opportunities. Technical issues of innovation, scale, and geography will confront managers who attempt to take advantage of offsite resources. In addition, business model challenges related to complementarily, interoperability, and security will make it difficult for a stable cloud market to emerge.

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