The Cloud, As Seen in 2002 update from September 2008

At the IMN show, IBM's Bob Hinckley articulated the company's vision for "utility computing," envisioning a future in which packaged information technology services will be metered and delivered to customers much like electricity, gas and water. "One of the things that will drive demand will be the migration of IT services to this type of utility model," said Hinckley. "Only recently have we had the solid, industrial-strength base technology that will make this work. It is the enterprise customers that we believe will validate this model."

In touting a utility model, IBM seems to be projecting a future in which managed services can be commoditized - at least by IBM, which may possess the financial heft and operational scope to deliver such packaged services to customers.

At least one large competitor is treading more cautiously. "I don't think I see the market focused as fast on utility computing," said Mark McKenna, the general manager of solutions at Hewlett Packard. "We really believe in (the future of utility computing) at HP. "But to me, we're still in the black and white days of TV," McKenna added. "I think there's a lot of maturity we're yet to see in this market. The ASP industry is a step toward utility computing. It will eventually get to the point where you will connect and have IT delivered. The utility model is a megatrend. Will utility computing get us out of this recession? No. Will utility computing be a major trend 10 years from now? Absolutely."