TechTarget

Utility computing: hype versus reality

A pricing model where users are billed on computer usage seems attractive. But does it work in practice?

A pricing model where users are billed on computer usage seems attractive. But does it work in practice?

The marketing machine behind IBM's "e-business on demand" campaign has driven a huge amount of interest in the utility computing concept. Globally, xSPs are scrambling to piece together a strategy. This delivery and pricing model is substantially over-hyped. More importantly, utility offerings are at the volume end of the market and should be avoided by the premium-end providers that are driving its very adoption.

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This was first published in December 2002

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