Spending of $1 billion in 2003 is expected to double this year and to increase to about $4.6 billion in 2007, IDC said in a conference call Tuesday.
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IBM, Sun Microsystems and Hewlett-Packard are hard at work, increasing the automation of their gear so that a collection of servers, storage and networking gear will automatically reconfigure themselves to adjust to changing work loads or equipment failure. Related software is emerging from companies such as EMC, Computer Associates International and Microsoft. Even Intel is getting into the act,to make it easier for one processor to handle multiple tasks simultaneously.
Signing up a customer for utility computing technology will mean some "lock-in for hardware" that will make it easier for computing companies to protect their existing customers from switching, Melenovsky said. In addition, utility computing products will be a good foundation for selling higher-level automation and management products, he said.