IBM's Cloud computing

On Monday, IBM unveiled the newest part of a long-term project in Dubuque Iowa. IBM will monitor three hundred volunteer households who consume water. IBM is not building any of the hardware for this, a company, Neptune built the low-flow water monitors that all Dubuque residents are having installed in their homes. These monitors take more readings than normal, about once every fifteen minutes. What this does is it gives the homeowners valuable information about water usage or leaks.

IBM benefits from this service they are providing because they can test new cloud-computing software that crunches numbers for water and electricity consumption from a real community. Also the people who they are testing this long-term project on will give IBM feedback on the service.

This is a great idea but the way they implement this new technology is very important to how well it does on the market. IBM has a three-tiered cloud strategy. First, comes individual consumers who want to watch how much money they spend or check for leaks. Second, IBM plan to offer this service to the government; they will come out with a product soon that will let government officials look at data to see whether the policies they put in place actually work. Third, IBM wants to make a version of the software for utilities companies and larger corporations.

This project has the possibility to become a cash cow for IBM. IBM is trying to push its image as a cloud-computing leader. This new technology will be needed and will be offered by other companies and that is why IBM is trying to get a head start on it. Another reason that IBM wants to get a head start on this is because they offer an array of intangible consulting work. This new IBM cloud computing technology can give them a better image as a service provider that can produce and effect tangible change.

Although this project seems to be like a great service for people and a profitable project for IBM, I feel like it could be too much of a luxury for people to pay extra for. In this time of very high unemployment and recession people may not find this new technology a must have in their homes. IBM should keep testing this new service and release it into the market when economic times get better in the United States. Another way they can release it into the market and still find it to be profitable for them is by switching there three-tier strategy to releasing it to the government first and when economic times get better they can release it to the general public.

http://tech.fortune.cnn.com/2010/10/07/how-ibm-is-using-water-to-learn-the-cloud/#more-39297

Fayek Bseiso