According to new independent research commissioned by Rackspace Managed Hosting Europe, only 3% of companies questioned said they were currently using utility computing.
The survey of 200 IT Decision-maker in the UK with a minimum of 100 employees also found that only 8% are planning on using it in the next 12 months and 16 % preparing to do so in the next three years.
Rackspace says that these figures highlight how computing on demand continues to remain in its infancy with the potential benefits yet to be realised. However 71% of respondents recognised that utility computing does provide a business with more flexibility, 54% saw scalability as a perceived benefit and another 54% also recognised the cost savings it can bring.
Dominic Monkhouse, managing director Rackspace Managed Hosting Europe, commented: "The utility computing model has been much discussed over the last 24 months as it is obvious that it offers a whole range of benefits for users. However, most services have still not been clearly defined or packaged and this is preventing businesses from being able to take up the service. The results highlight that although companies are realising the benefits few are ready - or able - to take the plunge.
"If utility computing is to succeed across the board, it must go hand in hand with quality service and support. Rackspace has already built a number of unique shared systems to enable customers to benefit from a shared, pay as you go approach and we are now working diligently to apply the utility model to individual services where it makes sense. We are continually testing new ways to apply the utility concept to our business model.