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The IT department is dead, author argues

New Nicholas Carr book predicts utility computing will replace internal IT shops
By Carolyn Duffy Marsan , Network World , 01/07/2008

The IT department is dead, and it is a shift to utility computing that will kill this corporate career path. So predicts Nicholas Carr in his new book, The Big Switch: Rewiring the World from Edison to Google.

Carr is best known for a provocative Harvard Business Review article entitled "Does IT Matter?" Published in 2003, the article asserted that IT investments didn't provide companies with strategic advantages because when one company adopted a new technology, its competitors did the same.

The Harvard Business Review article made Carr the sworn enemy of hardware and software vendors including Microsoft, Intel and HP, as well as of CIOs and other IT professionals.

With his new book, Carr is likely to engender even more wrath among CIOs and other IT pros.

"In the long run, the IT department is unlikely to survive, at least not in its familiar form," Carr writes. "It will have little left to do once the bulk of business computing shifts out of private data centers and into the cloud. Business units and even individual employees will be able to control the processing of information directly, without the need for legions of technical people."

Carr's rationale is that utility computing companies will replace corporate IT departments much as electric utilities replaced company-run power plants in the early 1900s.

Carr explains that factory owners originally operated their own power plants. But as electric utilities became more reliable and offered better economies of scale, companies stopped running their own electric generators and instead outsourced that critical function to electric utilities.

Carr predicts that the same shift will happen with utility computing. He admits that utility computing companies need to make improvements in security, reliability and efficiency. But he argues that the Internet, combined with computer hardware and software that has become commoditized, will enable the utility computing model to replace today’s client/server model.

"It has always been understood that, in theory, computing power, like electric power, could be provided over a grid from large-scale utilities — and that such centralized dynamos would be able to operate much more efficiently and flexibly than scattered, private data centers," Carr writes.

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Comments (83)
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I think Carr's understandingBy Anonymous on January 24, 2008, 8:59 pmI think Carr's understanding of data security is "cloud"y at best.

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It all started with a dream of using a wireless mouseBy Anonymous on January 18, 2008, 4:48 pmMe thinks poor Nicholas Carr made a request for a wireless mouse 7 yrs ago and the mean ole IT department at his company turned him down on account of budget constraints...

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UnionizeBy Lax Coach on January 16, 2008, 11:27 amAsk the union worker on the car assembly lines how well the Union protects them in the face of industry shifts. The key is to enhance your skills so that regardless...

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Unionize now!!! IT workers union for our protection.By Anonymous on January 14, 2008, 1:07 pmThe IT executives and wall street get rich, the IT workers get screwed. Same old story. The only way to correct this travesty is to from worker/labor unions. It...

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Flawed analogyBy Anonymous on January 13, 2008, 11:22 amAnalogies can illuminate or mislead, depending on whether they are "apt" or bogus. Comparing electrical power to IT is ridiculous. Electrical power in the US...

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