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Outsourcing and the utility model
June 11, 2005
I was technorati-ing roughtype.com earlier today (doesn't quite have the ring of googling, does it?) when I happened on a month-old post from Doc Searls, the "former radio personality," as his bio puts it, and current Internet personality. He describes a web survey showing that respondents rate the top advantage of open source as "reduced dependence on software vendors." In passing, Searls says this finding contradicts my argument that (his words) "IT is a 'utility' ripe for outsourcing entirely to vendors."
But Searls is confusing utility supply with outsourcing. It's a common and understandable mistake, given how many vendors have wrapped their outsourcing services in the "utility computing" model, but it's unfortunate nonetheless. It's true that some forms of outsourcing, such as application h.
The attraction of open source is... If the main benefit of open source is that it frees you from the costs and frustrations of dealing with vendors, the main benefit of shifting to a utility model is that it frees you from In a true utility model, decisions about components shift from the end users to the utility. The utility takes responsibility for buying, owning, integrating and maintaining the assets - as well as all the vendor reltionships that those jobs entails. If open source is attractive because it reduces a firm's dependency on software vendors, then the utility model is ...
The analogy to electric utilities is pertinent here.
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