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IBM on track with on-demand acquisition
Think Dynamics, think of future computing

By John G Spooner

Published: Wednesday 14 May 2003

IBM has acquired software developer Think Dynamics to move its on-demand computing strategy ahead more quickly, Big Blue has said.

Think Dynamics' software helps companies control their computing resources by automatically managing assets such as data storage or servers - a task IBM calls dynamic provisioning. The software does so by automatically reallocating computing resources on the fly to meet spikes in demand or to react to failures.

The acquisition of the Toronto company for an undisclosed sum adds another element to IBM's on-demand computing strategy, a relatively new, broad-based effort by the company to create IT systems that help manage and heal themselves. The initiative is also designed to let companies tap computing resources more easily, drawing on them the same way they would electricity. This approach allows for variability in consumption, coupled with monthly payments only for the amount of resources consumed.

"We've done a lot of work on provisioning over time on mainframes but we realised we needed to bring that kind of dynamic provisioning to multiple systems and to the world of multiple operating systems," said Irving Wladawsky-Berger, general manager of IBM's on-demand initiative. With its goal of bringing on-demand products to market as quickly as possible, IBM decided to look outside for the capability and the deal was struck. It may make similar acquisitions in the future, Wladawsky-Berger said.

IBM, which has launched a number of new products and services under the on-demand banner in the last six months, has pledged to spend $10bn on the effort over a number of years.

Think Dynamics will become part of IBM's Software Group. IBM is expected to launch new Tivoli brand products based on the Think Dynamics software. The software will also be used by IBM's Systems Group and its Global Services division.

The software uses a set of predetermined policies to monitor computer resources, then adjusts for changes in demand or failures by reallocating other software, servers or storage systems. It can work with a number of different operating systems, including Unix, Linux and Windows, and can be built into new networks or added to existing ones, IBM said.

"You could imagine how this kind of capability would be critical for an organization that's trying to build out an infrastructure," said Jeff Smith, IBM's vice president of on-demand efforts for Tivoli software. "It will be a part our commercial software portfolio."

Aside from creating new software products, the tech giant envisions a job for Think Dynamics within IBM Global Services. The IBM division will use the software to help customers build on-demand computer systems. IBM will either help those customers build their own networks or work with them and host the computing resources.

IBM has struck on-demand outsourcing deals valued at several billion dollars in recent months, including a $5bn, seven-year deal with JP Morgan Chase.

The IBM on-demand plan is one example of the so-called utility computing trend that is sweeping the industry. In a broad sense, utility computing ultimately aims to allow companies to pay for computing capacity as they use it, the way they pay for electricity or water today. But in the shorter term, utility computing often relates to the ability to fire up a server's unused processors as needed or tap into an IBM data centre to accommodate spikes in demand—efforts that the new acquisition will likely aid IBM in delivering.

IBM isn't alone in offering dynamic provisioning software and services. Rivals Sun Microsystems and Hewlett-Packard offer similar services.

John G Spooner writes for CNET News.com.