EDS offers 'utility computing' service

SEATTLE: Electronic Data Systems Corp., the world's second largest computer services provider, said that it will introduce a new "pay-as-you-go" desktop computer service that helps companies cut costs.

Instead of making companies pay for software upfront, EDS said its service will allow them to make smaller payments for software applications only when and if they need them.

Salim Rahimi, a spokesman for EDS, said this will allow companies to save about 15 to 20 percent of their computing costs by adopting their new service, called myCOE for "my Consistent Office Environment".

Plano, Texas-based EDS said that it worked together with Microsoft Corp., to develop tools for deploying EDS' utility computing service.

Bill Gates, chairman of Redmond, Washington-based Microsoft, often talks about computing as a utility, where software, memory, network bandwidth and processing power can be turned on and off as needed, similar to a water faucet.

"This is the first step in that direction," EDS's Rahimi said.

Centralized computing tasks are already increasingly shifting toward a utility model, where storage, hosting and applications on computer servers are being sold as a service rather than a hardware and software package.

MyCOE, which targets desktop computing, allows companies to track what computer programs are being used for tasks such as project management and accounting, and it lets the companies adjust their spending accordingly, Rahimi said.

The service, mainly targeted at small- and medium-sized businesses, would charge companies a basic fee plus additional fees for applications. EDS is currently deploying a 7,000 - 8,000 unit myCOE system for a large enterprise.

Sun Microsystems Inc., which makes hardware and software for servers that manage computer networks, is also targeting utility-style desktop computing with its Sun Ray products, which allow desktop users to work with applications over the network.

© Reuters