A brand new theory in the world of information technology is the hypothesis of ‘utility computing’. To put it in common terms it is paying only for only the IT infrastructure and services that you use, akin to things which are basic for life, like water, telephone, electricity, etc.

Several proponents of this concept have already christened it as ‘The fifth utility’ to sum up the new and radical idea that customers use the computing abilities they need and pay for what they use. This is more commonly known as ‘utility computing’ and is already making rounds in the technology circles. There are obvious advantages from this new concept for end-users, enterprises.

Consumers: The end-user can get easy and quick access to technology without sparing a thought about investing in hardware, bandwidth etc because they know that they will have to pay only for what they use. It is like going to a petrol bunk and using the machine but paying only for the fuel.

Enterprises: Businesses have the great advantage of saving on IT infrastructure, desktop computers, software licenses and hiring manpower to maintain them. These will be the headache of the IT service aka ‘utility computing’ provider. Some enterprises can even create their own ‘computer divisions’ to take care of allocating and distributing computing abilities to employees. This way the company will not have any computer which is going unused and thus wasting investment of enterprise.

There are a host of uses for this new concept of utility computing. Some of them are mentioned below:
1.Fluctuating rates of IT infrastructure depending on the competition and market demand.
2.Easy to maintain inventory even at the final moment.
3.Can be used to decide calendar of events for new projects, manage work-flow, training etc.

This concept helps giving your employees access to all the software without actually buying a license. The service provider will invest on the software license and provide your employees what they need. This can get your company work done faster and at a lot cheaper price. With such easy access to computing you can add lot more applications and service offerings to your portfolio.

Employing the concept of ‘utility computing’ organizations can conserve enormous amounts of money. It is estimated that nearly 50 percent of a company’s IT expenditure can be saved over five years. And this will actually increase efficiency, prevent additional investments, cut down manpower expenditure, and use of IT infrastructure will be accounted for.

Read About : Disadvantages of Utility Computing



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