Utility Computing versus Cloud Computing

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Overview of Cloud Computing System


Business communication infrastructures and environments are undergoing continuous changes as technologies advances. The changeover of technologies affects the business models as well as the underlying architecture of how we develop, deploy, run and deliver applications. The shift of information technology has raised innovative computing ideas such as cloud computing and utility computing. These two computing ideas have similarities as well as differences. Let’s see what they actually refer to.


Utility computing

Utility computing refers to the process of delivering the computing services via an on-demand, pay-per-use billing method. This is a kind of business model and the operator himself owns, operates, manages and monitors the computing infrastructures and resources. These services are accessed by the clients in a on a rental or metered basis as and when required.

The utility computing often needs a cloud-like infrastructure; hence it prefers a business model which is based on computing services. In short, the utility computing is the one that offers the computing resources to clients from a service provider and allows you paying your bill like the one you d for electric services.

Utility computing offers a lot benefits and a major one among them is the better economics. The fact is that the huge corporate data centres are not utilizing in an optimized way. They are often underutilized by keeping resources such as servers idle in most of the time. This is because of over provisioning, that is, purchasing more hardware than an average requirement to handle peaks, unexpected future loads, and to prepare for unanticipated surges in demand. The utility computing provides enhanced flexibility and cost-efficiency for businesses since it allows the companies to pay only for what they need.


Cloud Computing

Since “Cloud” is a broader concept it is hard to define it in a precise manner. Cloud computing is a more wider and popular computing technology. Cloud computing is based on the underlying architecture in which the services are designed. Cloud computing technique can be applied to both the internal corporate data centres and the utility computing. The internal clouds are sometimes referred to as ‘grid computing’.

Cloud technology has made a huge revolution in the telecommunication field. The emergence of Cloud computing has benefited the IT operations, application developers and business people in a considerable way. Cloud computing has a vital role developing, deploying, and running applications that scale easily, perform efficiently, and fails rarely. The dynamic scalability and reliability features of cloud computing benefits the business computing and communication sectors.

The middle-ware and application platforms of cloud computing infrastructures should possess characteristics such as Multi-tenancy, SLA (Service Level Agreements)-driven, Self-healing, Service-oriented, Virtualized, Linearly Scalable, Data management, etc.


What we infer from the above information is that, even though utility computing and cloud computing has some similarities, they have crucial and considerable differences between them. The utility computing mainly relies upon the business model in which the application infrastructure resources are provided where as the cloud computing relates to the way applications are designed, developed, deployed, and run in a virtualized environment. It also deals with the sharing of resources, boosting the capacity to scale dynamically and self-heal.


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