Utility computing: Difference between revisions

Revision as of 14:52, 19 July 2006

Revision as of 14:53, 19 July 2006

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This is different with the conventional computing model in that customers do not have to invest in owning (peak need) resources anymore, but only are billed for the actual use of resources. As the utility computing provider can spread the customers' variance in resource needs, the utilization of the resources can be optimized.

This is comparable to contractsthe withuse theof electricity or gas company, hence the name utility computing.

As the Utility Computing service is based on usage, computing resources are metered and the user charged on that basis. Utility computing is sometimes also called '''On Demand Computing'''.