Atos Consulting Look Out | Utility Computing

Concept

The word ‘utility’ has being used for many years regarding the telecommunications, electricity, and gas industries. Nowadays, its use has spread to include the IT world.
In short, Utility Computing is another emerging delivery model to align technology with business requirements. It aims to do this through interoperability and cross-platform solutions, packaging computing capabilities (such as process power and storage) as a metered service similar to a traditional public utility (such as electricity or water).
This model, like other types of on-demand computing, has the advantage of a low (or no) initial hardware acquisition cost. Instead, technological resources are essentially rented.
Utility Computing also makes a massive usage of virtualization techniques to achieve the objectives of sharing resources in a cloudlike infrastructure (like Cloud Computing). However, its focus is on the business model for which the computing services are based.

Trajectory

Improved provisioning and management allows disk, server and network capacity to be added from anywhere within a data-center.
Short-term flexible contracts as opposed to long-term outsourcing contracts of three years plus.
Small- to mid-size businesses will be attracted by the access to highly sophisticated technology. Corporations will be attracted by the cost reduction in hardware, resources and licensing. Overall, lowering the total cost of ownership on the pay-as-you-go model, predictable operating costs and greater return on investment will be key drivers.
Organizations will achieve competitive advantage through higher utilization of robust IT systems and resources. And customers can renew focus on core competencies.
Applications include Web services, hosting, thin-client computing power, processing and storage capability of high-end servers for complex calculations. For example, a service provider manages a client’s Web operations, but they only pay for the processing, storage, and networking capacity needed.

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