Utility computing is a service provisioning model where a provider makes computing resources, infrastructure management and technical services available to customers as they need them. The provider then charges the customer for the amount of services they use rather than a flat-rate fee. Like other types of on-demand computing -- such as grid computing -- the utility model seeks to maximize efficient resource use, minimize associated costs or both.
The word utility is used to make an analogy to other services, such as electrical power, that seek to meet fluctuating customer demand and charge for the resources based on usage. This approach, sometimes known as pay-per-use or metered services, is becoming increasingly common in enterprise computing and is sometimes offered to consumers for internet service, website access, file sharing and other applications.
Another version of utility computing used in the enterprise is the shared pool utility model. With this approach, the enterprise centralizes its computing power and resources to serve a large number of users and avoid unnecessary redundancy.
Virtually any activity performed in a data center can be replicated in a utility computing offering. Services available include the following:
The term managed services is also used to describe utility computing. It is an overall term for various third-party technology and support services. The many as-a-service offerings that are available are examples of how utility computing has matured.
Reasons for using managed computing services include these seven advantages:
The flexibility and reduced overhead costs that utility computing offers are tempting. However, it is important to consider the potential risks. These include the following 11 downsides:
Learn more about utility computing and the options it provides to cost-effectively manage operations.
04 Feb 2022