In IBM’s view, the business and technology industries are entering a new era called “on-demand.” In this era, companies will have to respond rapidly to customers’ demands, market opportunities and external threats. To do that, Mr. Palmisano said it will require technology that is based on open standards, can easily be integrated, and can identify and fix problems itself. According to the executive, this new model will save companies money and will reduce the complexity of systems.
Adds News.com on IBM’s USD 10 billion investment being made into on-demand computing: “[Palmisano] described a future in which huge computer networks are made up of powerful, self-repairing machines. Ultimately, IBM foresees that the combination of these networks and other advances such as grid computing will allow businesses to buy computing power on demand, similar to the way electricity is purchased….In IBM’s vision, on-demand networks will rapidly adjust to spikes in usage or to disasters such as fires or floods to keep businesses up and running. They will use standards to maintain interoperability between different varieties of hardware and software, and they will offer customers more flexibility in payment and in choosing services rendered. Companies in such an environment, Palmisano said, could contract with an outside partner and, say, pay by the month for a financial accounting system rather than maintaining it in-house. IBM says that by adopting the on-demand concept, customers could save money and gain competitive advantage by gaining access to more responsive computing capabilities.”