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IBM Wants CPU Time To Be A Metered Utility

kwertii writes "IBM CEO Samuel J. Palmisano announced a sweeping new business strategy yesterday, pledging $10,000,000,000 towards redefining computing as a metered utility. Corporate customers would have on-demand access to supercomputer-level resources, and would pay only for time actually used. The $10 billion is slated for acquisitions and research to put the supporting infrastructure in place. Will this model revolutionize the way companies compute, or is this plan doomed to be another PCjr?"

15 of 511 comments (clear)

  1. In other news by Perianwyr+Stormcrow · · Score: 5, Funny

    Ballpoint pens proclaimed "the wave of the future".

    --

    What we call folk wisdom is often no more than a kind of expedient stupidity.-Edward Abbey

  2. It will be tough. by ellisDtrails · · Score: 5, Funny

    It will be tought getting quarters and dimes in the floppy slot. Or is that a cupholder?

  3. Revolutionize? by Mike+Markley · · Score: 5, Insightful

    This won't revolutionize anything... I remember this when it was called timesharing on mainframes. The revolution was moving away from that model...

    1. Re:Revolutionize? by scoove · · Score: 5, Insightful

      This won't revolutionize anything...

      No, in fact, it may be a good indication the end is near for IBM, and the past decade of "reinvention" was only an anomoly. Clayton Christensen's Innovator's Dilemna has only been delayed.

      One of the things I like about Christensen's model is that it illustrates the fallacy of product normalizing on the top 5% of customers. Lucent, Digital, Wang, Nortel, etc. all fell prey to this issue. They listened to their very best paying customers and shifted more and more of their product design to please them.

      Think about what IBM customers need supercomputer timesharing access? Probably their top 10% - or less. Can these folks already access timesharing? Certainly. So what's the hype about here?

      It'd be one thing if it was a minor effort with big PR fanfare, sending a polite message to IBM's favorite customers that they think about them frequently.

      But designating this kind of money and strategic focus? Especially when the focus appears to be a large, centralized and proprietary model (which flies in the face of low-cost, decentralized distributive models e.g. distributed.net, SETI@Home, etc.)?

      Time to prepare for the fall... hey, maybe there will be some nice Enron-quality assets at the auction.

      *scoove*

    2. Re:Revolutionize? by snookerdoodle · · Score: 5, Insightful

      I agree. This whole business is so crazy: Timesharing with Service Bureaus that are now called Application Service Providers (ASP's). IBM needs to come up with a Truly Kewl Name for it if they want it to take off.

      I guess there'll always be some tensions here that aren't really technology per se: In this case, it's in-house vs outsource.

      Joe does an analysis that shows if he outsources all of IT, it will save $X,XXX,XXX, so they do it. Joe gets promoted. Three years pass. Sam does an analysis that shows if he brings all IT functions in-house, it will save $X,XXX,XXX, so they do it and he gets promoted...

      IBM and Microsoft make money no matter what. Kinda like lawyers. Oh, I forgot they ARE lawyers.

      'Sorry for the cynicism. ;-(

      Mark

  4. Revolution.... Mosix by m0rph3us0 · · Score: 5, Interesting

    It will be a revolution until Linux becomes mainstream on the desktop and every computer on the corporate LAN is part of a cluster, when users log off the computer re-joins the cluster. Companies should look at what they already have before shelling out more money.

  5. Does he have a doctorate in Evil? by Jaguar777 · · Score: 5, Funny

    Samuel J. Palmisano announced a sweeping new business strategy yesterday, pledging $10,000,000,000

    I think Samuel has been watching Austin Powers way too much.

    --
    Maybe you should educate the morons of tomorrow so they'll stop believing the leaders of tomorrow. - Dogbert
  6. Seems kinda silly.... by ChuckMaster · · Score: 5, Funny

    ...in an age were processors are dirt cheap anymore. I mean really, if I saw a p2 400 chip and a quarter lying side-by-side on a street corner, I'd pick up the quarter.

  7. Things are a little different now. by Anonymous Coward · · Score: 5, Interesting

    See, at that time ubiquitous networking was not a way of life. Also, software engineering was not as mature as it is now WRT to virtual machines, encapsulation, OO design, etc.

    Of course, all those technologies did exist then, but they can be counted on to be everywhere now. The reason mainframe timesharing gave way to PC's is because PC's could provide a more flexible and convenient sandbox to compute in, rather than the cumbersome interface of working with the mainframe in the company basement.

    These days returning to the idea of computing power as a fluid resource is a good idea because the landscape has changed and the world might actually be better prepared to accept the tradeoffs since the tradeoffs are much less significant now.

    1. Re:Things are a little different now. by n9hmg · · Score: 5, Interesting

      I've been a hired gun for IGS (IBM Global Services, the outside contracting arm). I'm probably not in the minority here. You know how they are with hourly billing stuff. The way to get ahead in IGS is to maximize your billable hours. Your greatest hotshot project manager had the internal nickname "the assassin", because she would get into a project and halt progress while dramatically increasing billable hours, sucking all the cash she could out of the customer, who got out of the contract as soon as they could, and she'd move on to a new one. We see the same sort of short-term thinking often in business. That Cringley story a few days ago (i can't find it... /. search is broken) gave a really nice analysis.
      This kind of utility is going to allow the "service providers" to obfuscate the costs of the service, much the way fiber providers keep their "dark" lines secret, for negotiation purposes. Also, they will require some sort of compliance with their systems, allowing them to dictate what sort of software runs on their system, thus giving them the opportunity to insert inefficiencies there, too. Unless they can arrange to lock people into this model somehow, it'll never work. Nobody wants to let a vendor control both the rate and volume purchased. If they try to push customers into this model, maybe by restricting the availability of their hardware to outside customers, most will just migrate to another platform.

  8. You're all missing the point by twfry · · Score: 5, Insightful
    This is a great concept. If you guys actually read the (many) articles on Sam's speach, you'd see its nothing like timesharing either.

    The concept IBM is going for is to treat IT as another utility. Instead of some small company having to keep an expensive IT staff and maintain their own computers/network/storage, IBM says that it will do this for you. IBM will essentially replace the IT department and let some organization concentrate on running their own business.

    The cost saving of such a model (if successful) are quite substancial and will save everyone money in the end.

    I think IBM is on the right track with this and they are the only company really positioned to do so.

  9. The ghost of Thomas Watson sr??? by Pig+Hogger · · Score: 5, Interesting
    This must be a Hallowe'en story about the ghost of Thomas Watson sr....

    The last 35 years development in computers were precisely to move away from the "metered service" model which made IBM's fortune.

    On will recall that IBM's data-processing customers since the 1920's were charged by units of information stored/processed by the way of forcing customers to buy Hollerith (punch) cards solely from IBM, and run them in rented machines whose rental price was directly proportionnal to the throughtput of those (a card reader that processed 600 cards per minutes cost twice as much as one that processed 300, yet the only difference was the size of the pulley off the main motor - and you could upgrade by having an IBM tech that came and changed the pulley for a bigger one).

    So is it that the ghost of Thomas Watson sr has made a comeback to IBM's board of directors????

  10. Re:please, please by Ian+Wolf · · Score: 5, Informative

    "We view this as Palmisano's coming-out party," said Thomas Bittman, an analyst at Gartner Research. "The industry will be measuring IBM against this as a benchmark for years."

    Well, here is Gartner Group, missing the boat again. SimUtility has been doing this for years now, but because IBM is getting in to the market its news?

    Timesharing of computers is a very valid, and far from dead market for computing. There are a lot of companies that do not want to buy their own supercomputers, which will likely sit unused the majority of the time. As for the example of a car manufacturer doing testing on a new model, this already happens as do many other organizations.

    - America's Cup boat designers
    - Racing teams
    - Natural Resource Explorers
    - scientific organizations
    - and many many more

    We're not exactly talking about a new or even revived paradigm. Timesharing never died.

    --
    "The words of the prophets are written on the Slashdot walls."
  11. It's revenue silly... by Usquebaugh · · Score: 5, Interesting

    The revolution will be in revenue.

    Currently IBM big customers buy a new machine every four years or so, they pay a yearly maintenance bill. IBM has trouble predicting it's revenue quarter to quarter, in a downturn everyone stops capital expenditure and IBM mainframe sales plummet.

    Under this model everyone should pay less but they'll pay every month like clockwork.

    Computer Associates has a similar scheme for software. You rent your software on a monthly basis.

    On a technical level I'm all for it. I have a suite in my current site that is run yearly and takes for ever. Currently IBM has a big box sitting here and we just sip from it, until year end when we max it out for like two weeks. Let me rent time on a huge box and I'll be happy. Gurantee my data and response time and I'll be ecstatic.

  12. Re:Computing as a utility - will it be regulated? by wsloand · · Score: 5, Informative

    1. Transferring product from generator (IBM supercomputer) to location. If you've just used 1 month of supercomputer time to model DNA folding, how will IBM transfer that data back to you? What if the computations and use are faster than the transmission rate?

    Well, all that you would need at your location would be the equivalent of an Xterminal, and you would have all you need. Why would you need more than visualization of the data at your location? If it is a metered utility, you should be able to access it from anywhere negating the need for data transfer from their cluster of supercomputers. ...especially if its Windows run and goes down once a week, cutting into your bought utility time.

    I doubt that they would use a system that goes down. Often supercomputers are clustered and use a common set of storage space that would allow migration of users and processes between systems. There should be minimal downtime in the final system-- the equivalent of current utilities. Also, they would likely only go down when your other utilties went out (lines cut, etc).

    What if IBM becomes the only utility and charges way more than it should - there's no competition so Company A can't shop around. Along this same vien, if Company A is smart enough, they'll never enter into a utility agreement with IBM if they can generate their own computing cycles and be sure that they'll always be there, versus putting all their eggs in one basket.

    If IBM did this and was successful, I'd feel sure that Sun, MS, Intel, and maybe others (does Tera still exist?) would start their own shops as competition. And companies are already putting their eggs all in one basket, but now it's just a basket that is their IT department.

    I can't see supercomputing cycles as being something that is commodity, or for that matter, something I (or any company) needs to buy on a metered basis.

    So, as your desktop you have access to this system. Maybe you are using only 20 CPU minutes per month as a standard desktop user. Imagine a company that has 10k users that would only use 20 CPU minutes per month. I'd think it would make sense in that case. Similar systems already exist, and they're called ASP's (Application Service Providers), and they already work on a similar concept.

    The DOD and others already sell supercomputer CPU hours. I had a friend who had ~100000 CPU hours available to him on ASCI Red (for rocket and combustion fluid dynamics simulations). IBM is just formalizing it a bit more.