The case against the computer utility

The Service Bureau Corporation, an IBM subsidiary, announced plans for a somewhat similar system, consisting of 12 inter-linked data processing centers and “more than 125 System/360's.”2General Electric, ITT, NCR, and other large concerns are also in the burgeoning teleprocessing business, or soon will be. Key Data Corporation's entry into the field has also received considerable attention and numerous other small companies are working to create a data base and attendant service offerings. The intent of this paper is to explore some of the various factors that condition the environment in which these developments are taking place. Particular emphasis is placed on those factors that may be instrumental in determining the ultimate character of the teleprocessing business now being formed.