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It also traces some of the technological advances that have occurred to bring us to this point. 2 BACK TO THE BEGINNING The high cost of early mainframe computers made them inherently large business resources. The computer (usually singular) was shared out of fiscal necessity. The technology of the time also encouraged utility-style operation. Ordinary people did not interact with computers. They prepared ‘jobs’ on punched cards, which they submitted to specialists who, in turn, queued them for execution in an order determined by the user’s importance.

With Ethernet and TCP/IP, businesses could deploy low-cost personal computers and small servers anywhere. Users were no longer dependent on a central system; they could process data even when not connected. As a result, both processing and data became distributed throughout businesses. The utility aspect of business computing was diminished further by the relative independence of many departmental and individual computers treated almost as private property by their owners. Just as Moore’s Law predicts increased processing speeds, Gilder’s Law predicts increases in network capacity.

6 Service level agreements Utility computing focuses around services and the associated service level agreements (SLAs). These are the contracts between the ITOs and the consumers of IT, the lines of business. There might be one SLA or many. In essence, each is a contract, much like that which exists between a home owner and the traditional gas, water or electricity utilities. It specifies what the consumer is to expect, in a language that they understand, the costs associated with using the service, along with any penalties that might be payable should the service not perform as expected.

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