What happens to an IT department when it has no Hardware or Software to manage?
This topic is controversial as IT professions try to protect their roles, however in the end, business logic must prevail as alternatives are placed on the boardroom table for supply of virtual and mobile business solutions to their workforce.
As more applications are being provided via web browsers and a larger workforce become mobile, the requirement to have hardware, software and support costs within a business will be re-evaluated.

“Carr's rationale is that utility computing companies will replace corporate IT departments much as electric utilities replaced company-run power plants in the early 1900s.
Carr explains that factory owners originally operated their own power plants. But as electric utilities became more reliable and offered better economies of scale, companies stopped running their own electric generators and instead outsourced that critical function to electric utilities.
Carr predicts that the same shift will happen with utility computing. He admits that utility computing companies need to make improvements in security, reliability and efficiency. But he argues that the Internet, combined with computer hardware and software that has become commoditized, will enable the utility computing model to replace today's client/server model.” Reference full article http://www.computerworld.com.au/index.php/id;2133752228
This new book by Carr supports the Thomas Freedman international best seller “The World is Flat” taking the next phase of utility services being supplied from internet providers.

We can see this “utility outsourcing” occurring around IT business over the last 12 months as companies integrate these technologies and cost savings.
Examples of this in use right now include

  • Virtual backup and storage options (internet based)
  • Virtual servers (functionality)
  • Virtual hosting (Web sites and shopping carts)
  • Web browser based CRM (salesforce.com)
  • SOS (Software as a service – reduce capital expense)
  • Services (Nearshore helpdesk services)
  • Internet Virtual Server (hardware and software – refer below)

In the constant drive to reduce operating costs and provide a better level of service for clients IT companies are flattening their business model to leverage these opportunities.

One company Bedouin Networks now provides the software and hardware for business supplying the “virtual server full connectivity” as your internet based data centre. Just imaging linking your offices (Mobile or fixed) into a centralised internet data and application room. Reference http://www.bedouinnetworks.com/ . No capital expense but a monthly subscription giving you access to a Microsoft Windows network with VMWare Virtual Infrastructure for 3 virtual servers.

When you add the Nearshore IT helpdesk support http://nearshore.greymouse.com.au/Solutions/HelpDesk-Services it becomes a full solution for businesses. Just imagine no hardware, software, a nearshore support service giving you a full virtual support function permitting a "completely mobile business".

The amount of services available for businesses are evolving quickly with switched-on businesses identifying these opportunities and taking action today.

I am excited to watch this develop over the next 6 – 12 months.

Regards,

Kelvin Davis