Sun Signs ACS As Utility-Computing Customer - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Sun Signs ACS As Utility-Computing Customer

The agreement will let the systems integrator offer IT services to its customers on a pay-per-use basis.

Sun Microsystems on Wednesday signed Affiliated Computer Services Inc. as a customer of its N1 utility-computing technology. ACS, a provider of outsourcing and systems-integration services, will pay for Sun hardware and software based upon usage, an arrangement that will let ACS offer its own customers IT services on a pay-per-use basis.

ACS's move to a utility-computing model will help the service provider purchase IT resources more efficiently and guarantee cost reductions to ACS's customers over time, says Bill Mooz, Sun's senior director for utility computing. Although ACS's recent customer wins include the Texas Health and Human Services Commission and Royal & SunAlliance USA, the company didn't make clear which customers, if any, would be switching to a utility-computing model. Neither Sun nor ACS disclosed how much ACS is paying for Sun's hardware, software, and services.

ACS, which had fiscal 2003 revenue of $3.79 billion, is also notable for the fierce competition it gave rival EDS a year ago for a more than $7 billion outsourcing contract from Procter & Gamble Co. ACS pulled out of the bidding, saying at the time that the contract wasn't worth the financial and operational risks.

In June, ACS and Sun teamed to deliver human-resources software as part of ACS's Global HR Solutions business. One of the business' most prominent clients is Motorola Inc., which signed a 10-year outsourcing contract with ACS for HR systems, software, and services. Global HR Solutions uses a Web-based application called Employee Self-Service Network that's based on the Sun One Application Server.

Although Sun trails Hewlett-Packard and IBM in terms of offering utility-computing products and services, the relationship with ACS will help Sun learn not just about the technology required to deliver IT as a utility, but also how to make the model attractive to customers, says Meta Group VP Corey Ferengul. Sun's N1 utility-computing strategy has been missing certain elements until now, including the ability to virtualize server resources and tightly integrate systems management and monitoring. ACS and its customers will offer a learning experience for Sun.

Sun's deal with ACS is typical of most utility-computing contracts over the next year or so, Ferengul says. "It will be 2005 before you see an enterprise actually take the dive into utility computing."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll