Utility computing has an important role to play in business models. It offers a special service provider to the customer IT service as per the pay per use method. These IT services could be related to software applications, customer storage, and computing power. For any advice or question required for deployment in the business model, the service provider will offer the unit division to the company. Utility computing is thus the basic requirement of software of a business model.

  1. What is UC?
  2. UC in CC
  3. Example
  4. Advantages
  5. Disadvantages

1) What is UC? 

Utility computing basically refers to the utility computing technologies and the business models that are offered by a service provider to the IT customers. The client is charged as per their consumption. Examples of these IT services are storage, computing power, and applications.

The term utility is basically the utility services like water, telephone, electricity, and gas that are provided by any utility company. In a similar manner, the customer when receives utility computing, its computing power on the shared computer network bills is decided on the basis of the consumption which is measured.

Utility computing is similar to virtualization and the total web storage space amount with the computing power that is made available to the user is higher as compared to a single time-sharing computer. The web service is possible through a number of backend web servers. The web servers could be dedicated and used as a cluster form which is created and then gets leased to the end-user. Distributed computing is the method where a single such calculation is done on multiple web servers.

2) UC in CC 

In utility computing, there is a provider who will own the storage or power resources. The customer is charged based on how much they make use of the services. The customer is not charged each month and the services are not sold outright. Depending on the resources that are offered utility computing could also be called Infrastructure as a Service or IaaS and Hardware as a Service or HaaS.

Their function is similar to the other basic utilities. It is like you or any major company uses electricity. Both of you do not pay a flat monthly rate but pay the amount as per the electricity that you consume.

There are companies that offer a different kind of utility computing where the user will rent a cloud computer and use it in order to run the applications or an algorithm or anything that may need a lot of computing power. You pay per second or per hour and do not pay a flat fee to use the service.

Utility computing is beneficial because of its flexibility. Since you do not own the resource and are not leasing them for long it is easy to change the amount of power that you buy. You are free to grow or to shrink the service amount within a few seconds based on your business requirements.

All utility computing is not cloud computing. The utility service does not have to be hosted on the cloud. However, most of the utility computing in cloud computing which is because it makes more sense to the business model. If a company rents the physical computing and hardware from a provider then that too is utility computing. However, since most of the providers are connected through the internet it makes it easy to access and purchase the computing power from a cloud-based service provider. You do not need to return the hardware and you also worry less about your equipment.

3) Example 

The CPU time or the computation time is the resource that makes use of memory. This is not limited to the physical equipment, the network connections, and files, as well as the other resources, which are also considered to be computer resources.

The example of utility computing are:

  • CPU time
  • Hard drive space and its access time
  • Virtual and physical memory
  • Network bandwidth
  • Environment variable
  • Storage space

4) Advantages

Here are the advantages of utility computing:

  • The customer does not have to buy the software, hardware, and licenses that are required to do the business. He instead relies on a provider for these services. The client also is not burdened with administrating and maintaining the system which is taken care of by the utility computing company.
  • The company has the liberty to subscribe to a single service and use the same software suite throughout the entire organization
  • Utility computing is also compatible which is especially needed in a large company that has many departments. Each department could be using a different software suite which makes the files from one department to be incompatible with the software used by another department. Through utility computing, the single service can be used throughout and the same software suite is used across the department.

5) Disadvantages

Here are the disadvantages of utility computing:

  • The main disadvantage is the reliability. If the utility computing company undergoes any financial trouble or suffers from equipment issues then the client may be cut off from the services that they are paying for.
  • The system could also be targeted by hackers. The client needs to be dependent on the provider to keep the system safe.


Utility computing and virtualization is the same as the total web storage amount and the calculating power is available to the resources is larger than opting for one time computer sharing. Utility computing works in an easy and simple manner. The company will pay the provider for using its computing services. It could be renting out the data, storage space, hardware, and computer applications.

The client is free to pay rental depending on what he requires. The utility computing could be offered as a package or as a resource bundle. In a nutshell, understand what is utility computing. Utility computing is a model where the service provider charges its clients for memory, computing, and bandwidth based on how much the client uses. Utility computing is associated with cloud computing and various services.

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