Utility Computing

Utility computing depicts how the computing needs of users can be fulfilled. Its analogy is derived from the real world where service providers maintain and supply utility services, such as electrical power, gas, and water to consumers. Consumers in turn pay service providers based on their usage. Therefore, the underlying design of utility computing is based on a service provisioning model, where users (consumers) pay providers for using computing power only when they need to. 

The utility computing model offers a number of benefits to both service providers and users. From the provider’s perspective, actual hardware and software components are not set up or configured to satisfy a single solution or user, as in the case of traditional computing. Instead, virtualized resources are created and assigned dynamically to various users when needed. Providers can thus reallocate resources easily and quickly to users that have the highest demands.

Utility computing is a subset of cloud computing, allowing users to scale up and down based on their needs. Clients, users, or businesses acquire amenities such as data storage space, computing capabilities, applications services, virtual servers, or even hardware rentals such as CPUs, monitors, and input devices.

Figure 2: Shows how utility computing works. Credit to spiceworks.com.

Benefits of utility computing

1. Removes the complexity of IT management

Before utility computing became prominent, the older system involved IT being hooked onto the safe keeping of a large block of resources. Utility computing has been instrumental in reducing the complexity of IT architectures and their management. Signing up with a utility service provider absolves the user from the responsibility of maintaining IT resources, including hardware and software. The need for spending time and resources on the maintenance of servers gets completely eliminated with this model.

 2. Saves valuable time & resources

The growing complexities of networks are leading to the consumption of a large amount of resources and management time. The end to the increased complexity of networks will begin with utility computing. When the maintenance and management of IT architectures and servers fall into the service provider’s hands, organizations can conserve a lot of their precious time, allowing themselves to focus on addressing other pressing business concerns. Utility computing facilitates agility and integration between IT resources and enterprises.

3. Offers complete flexibility

Utility computing provides the utmost flexibility in terms of availability of resources, on-demand usage, billing methods, and ease of accessing data anytime and anywhere. Utility computing simplifies the process of handling peak needs. For instance, since you don’t own the resources or are renting them for a long time, it becomes extremely easy to change the number of services, thereby shrinking or expanding them based on changes in season, demand, audience, or new efficiencies.

4. Facilitates minimal financial layout and maximum savings

Utility computing has created a storm in the business world primarily because of its flexibility and better economics. Its pay-per-use method of billing lets organizations pays for only those computing resources that they require. This leads to maximum cost savings for organizations. From reduction in operational costs, savings on capital expenses, and doing away with the initial costs of acquiring new resources to significantly lowered IT costs, this model is a complete package deal for enterprises across business verticals.

5. Allows shorter time to market

Utility computing allows resources to be supplied in small, incremental bites as and when required by an organization. This helps organizations deliver fast and demonstrable output, with a substantial return on investment, without having to wait for the full implementation to achieve payoffs.

Comparisons Between Utility and Cloud Computing

1. Utility computing refers to the ability to charge the offered services, and charge customers for exact usage. Cloud Computing also works like utility computing, you pay only for what you use but Cloud Computing might be cheaper, as such, Cloud-based apps can be up and running in days or weeks

2. Utility computing users want to be in control of the geographical location of the services and infrastructure. In cloud computing, the provider is in complete control of cloud computing services and infrastructure.

3. Utility computing is a good choice for less resource demand. Cloud computing is a good choice for high resource demands.

4. Utility computing refers to a business model. Cloud computing refers to the underlying IT architecture.

When to use utility computing over cloud computing.

If a client has fewer computing demands they are advised to choose utility cause they will only pay for what they are using. Cloud computing works in a similar way but is more suited for clients with high computing demands.