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Why Perfect Commerce is mothballing its data center

Web site’s shift to utility computing means less IT equipment, staff
By Carolyn Duffy Marsan , Network World , 01/28/2008
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Perfect Commerce, a Web-based sourcing and procurement service, is replacing its data center and related IT staff with a utility computing service from Savvis. The move is the latest example of a company choosing a utility service provider instead of internal IT department resources.

The shift to utility computing is controversial, provoking an outcry from IT professionals who fear the move will limit their career opportunities. Proponents of internal IT departments say outsourcing IT infrastructure will result in lower quality services and could put information security at risk.

This controversy is epitomized in the reaction to Nicholas Carr’s new book, The Big Switch: Rewiring the World from Edison to Google. The book (read our review  and reader comments) asserts utility computing will replace internal IT facilities in staff in most corporations.

Perfect Commerce says the utility computing model allows it to grow its Web site as needed while reaping significant savings. Perfect Commerce is replacing its own IT infrastructure with one operated by Savvis.

"We’ll probably save around 25% for the people who run the data center," says Del Putnam, vice president of technology at Perfect Commerce. "We’re spending money on things that are really strategic to us -- such as adding new features to our site -- versus adding another hard drive or another block of memory."

Perfect Commerce will announce Monday that it has signed a three-year, $5 million contract to outsource its IT infrastructure with Savvis. Perfect Commerce is buying fully managed and virtualized network, hosting, compute and managed security services.

Based in Hampton, Va., Perfect Commerce provides sourcing and procurement services to multinationals such as IBM, John Deere, Hitachi and Lexmark. The Web site has 200,000 users and 11,500 suppliers in a variety of industries.

Perfect Commerce’s software-as-a-service application will be hosted at Savvis' data center in Atlanta, with disaster-recovery services at a data center near Washington, D.C.

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