Высшая школа экономики


Reading 3.1. Read the text



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3. Reading

3.1. Read the text

The Liquefaction of Hardware

Imagine a personal computer that has two souls. One moment it is your work ma-

chine, complete with a set of corporate applications and tight security settings. 

Then it becomes an entertainment centre, allowing you to watch any video and 

download any program.

Thanks to a process called “virtualisation”, such computers are now being 

created. Ever more processing power and clever software are allowing devices of 

all kinds to separate from their hardware vessels and move to new homes. If this 

process continues as some expect, it will change computing radically. And more 

than one IT company will have to rethink how it does business.

Virtualisation dates back to the age of mainframe computers. To make better 

use of them they were sometimes split into smaller “virtual machines”, each of 

which could run its own operating system and application. 

The success of server virtualisation has inspired IT firms and their customers 

to do the same thing with other types of hardware, such as devices to store data. 

Software now pools their capacity and allocates “virtual disks” as needed. Even 




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large files can take only seconds to upload if they already exist somewhere on one 



of these firms’ disks.

The virtualisation of PCs is now under way. Many company computers can al-

ready work with applications that run on a central server. But start-ups are pushing 

the concept further. Desktone offers virtual desktops as an online service. NCom-

puting, a maker of computer terminals, virtualises PCs so they can be shared by 

up to 30 users. It has already sold more than 2.5m devices, mostly to developing 

countries and schools. And technology from MokaFive can send an entire virtual 

machine — complete with operating systems, applications and data — over the 

network and install it on any PC. Eventually people may no longer need to carry 

laptops at all. Virtual computers, including data and applications, will follow them 

everywhere.

In the long run, smartphones and other mobile devices may also become shells 

to be filled as needed. Open Kernel Labs already lets smartphones run applica-

tions, multimedia and radio functions on a single processor, cutting manufactur-

ing costs. Software from Citrix turns the iPad, Apple’s tablet computer, into a ter-

minal for applications that run in a corporate data centre.

There is certainly no lack of demand in virtualization. Virtualisation lowers 

costs by enabling firms to make better use of their servers and buy fewer new ones. 

The technology also allows PCs to be maintained remotely, which is much cheap-

er. But improved reliability and security are even more of an attraction. Users, for 

instance, can relaunch their virtual machine should a computer virus infect it. And 

it can be shut down if a laptop is lost or stolen.

Yet the technology also has to overcome a few hurdles. The virtualisation of 

servers is well understood, but for PCs and mobile devices the technique has yet 

to mature. In the longer run institutional barriers will prove more of a problem. 

Virtualising IT systems is only the first step to automating the management. This 

is seen as a threat to existing workers and makes many IT departments hesitant to 

embrace the technology.

Still, analysts believe virtualisation will win out. Its impact will be felt through 

the industry. The technology not only makes IT systems more flexible, but allows 

firms to switch vendors more easily — which will weigh on the vendors’ profits. 



3. Reading

17

Moreover, virtualisation makes it much easier to add new servers or storage de-



vices. Alternatively, firms can simply rent extra capacity from operators of what are 

called “computing clouds”, such as Amazon Web Services. That outfit has built a 

network of data centres in which virtual machines and disks can be launched in 

seconds. As a result, IT systems will increasingly no longer be a capital expense, 

but an operational cost, like electricity.

Yet the most noticeable change for computer users will be that more employ-

ees will be allowed to bring their own PC or smartphone to work. Companies can 

install a secure virtual heart on private machines, doing away with the need for a 

separate corporate device. A “bring your own computer” or “BYOC” movement 

has already emerged in America. Companies pay their employees a stipend, which 

they can use to buy any PC they want — even an Apple Mac.

Such innovations may help to ease growing tensions between workers and IT 

departments. New privacy regulations and rampant cybercrime are pushing firms 

to tighten control of company PCs and smartphones. At the same time more and 

more “digital natives” enter the workforce. They have grown up with the free-

wheeling Internet and do not suffer boring black corporate laptops gladly. Giving 

workers more freedom while helping firms keep control may prove to be the big-

gest benefit of virtualisation.



Adapted from the 

“Economist”, 18th November 2010



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