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I believe the author has a good analogy using electrical generation and distribution but he applied it to the wrong layer of IT. The data center and network are analogous to a utility and can benefit from standards and economies of scale. For example for the Widget Manufacturing Company, electricity is the utility, but the value of the company is the design, build, and support of widgets. Using my analogy that would be the application layer. The real question is where one draws the line between utility and value add applications of that utility? That is, where do the "tools" fit into the picture? For IT, the question is where does the middleware fit into the picture?
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