Get on the Grid: Utility Computing
P.J. Jakovljevic - March 31, 2005

Utility Computing

Traditional enterprise software product licensing is being replaced with more creative hosted or managed "software as service" models. The latest business model is utility computing and associated pricing. Sometimes referred to as "grid" computing, this on-demand model is a trend that has captured the attention of technology heavyweights including IBM, Hewlett Packard (HP), Oracle, and Sun Microsystems. Functioning on concepts similar to common electric and water bills, utility computing allows customers to purchase processing power and software access as needed and to pay based on how much and how often the software is used. This emerging model may even be attractive to large organizations, given that almost all of the initial hosted applications have targeted small and medium businesses (SMB)...