Forbes.com has an interesting article on the commoditization of computing. A company called Cassatt, founded by BEA Systems founder Bill Coleman, helps boosting the utilization rate of servers. Its 'Collage' software is used by Pfizer, which aims as high as 70%.
Other companies mentioned are ActiveGrid, Ingres, PI Corp, Zimbra and Lok Technology. The whole 'Cheap Revolution' is based on open-source software. Profit margins are often below 10%.
The article talks about the big waves in the computer business: mainframes, minicomputers, PCs/servers and now the cheap stuff.
Looking at it from my point of view, I would conclude that costs will go down drastically for users like Google. Enablers will benefit, as they become the new standard. They could include Amazon.com. Obviously, the future is less bright for traditional hardware and software companies.
Monday, September 11, 2006
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