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Priorities for investment [Edward Tsang, Senior Strategist, Utility Computing 2003/6/24]
One of the common mistakes executives looking to pursue a growth strategy have made in recent years is - amidst one the largest technological-revolutions in history - to have over-emphasized the importance of technology. As the internet boom has passed over us, we've seen a tendency to initially view technological progress as the proverbial "silver bullet" and then - as reality fails to match hype - as anathema. Enthusiasm and available budgets fluctuate from one extreme to the other. Technology spending will only rarely increase growth. Investment must always be underpinned by genuine business innovation. Whether the market conditions are harsh or forgiving, new service or products are the only things which ever deliver genuine growth. It is this view that SAIC would claim drives their "aggregator" approach to outsourcing. Simply outsourcing the functions that your company already performs, with the aim to have them delivered cheaper is a strategy with a finite life, argues Vice President, Rhys Torrington. The essence of smart investment has always been knowing where and when to deploy new technology. Utility Computing presents companies with the opportunity to be smart about their technology investment. The next question decision-makers must ask themselves is can on demand computing really satisfy short-term pressures and simultaneously lay solid foundations for future growth?
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