Alias: On-Demand Computing
September 4, 2006
Seeing into the Future
"If computers of the kind I have advocated become the computers of the future, then computing may someday be organized as a public utility just as the telephone system is a public utility... The computer utility could become the basis of a new and important industry."
John McCarthy, MIT Centennial in 1961
Utility Computing is a business model whereby computer resources are provided on an on-demand and pay-per-use basis. This is different from the conventional computing model in that customers do not have to invest in owning (peak need) resources anymore, but are billed only 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 the use of electricity, gas, and most other utilities, hence the name utility computing.
Utility Computing On-Line Magazine