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Utility Computing is a business model whereby a service provider makes available computer resources to their clients and charges them for the usage rather than the hardware. Like you pay the Gas company or the Electric company for its service based on usage, computing resources are metered and the user charged on that basis. A related term is "On-Demand" Computing.
// The following definition by Edward Tsang & Andrew Miles is given on UtilityComputing.com[http://www.UtilityComputing.com].
'''What is Utility Computing?
'''
Utility Computing is a concept that has both a long term and an immediate definition:
In the long term, it refers to the fact that a ubiquitous IT infrastructure will deliver all our computing needs – be they for business or entertainment. We would own far less computing assets than we do now but would instead pay for access to services delivered by "utility computing." People and companies will pay for what they use and no more. Just like electricity, computing will have become a Utility.
The ramifications for business are enormous. Legacy technology issues will be a thing of the past and the ability to swiftly up or downscale to meet demand will have a revolutionary affect on companies and the way in which they formulate strategy.
The concept will also be applied to individual users of computing, where they no longer need to buy their own computers and do regular upgrades, but instead are offered packages like they choose their satellite television services today.
At present, the infrastructure required to deliver that reality are beginning to be put into place. IBM has been working on the idea for some time, but the major technology vendors are now all jostling for position. At this early stage, their offerings may be seen as IT outsourcing, where large corporations allow dedicated service providers to take care of all their IT needs.
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