Buzz
Weren't computers designed to make our professional lives easier? In the early days of personal computers, advertisements suggested that users could accomplish a full day's work in just a few hours with a single device. Many envisioned a paperless office with computer filing systems and email resolving communication problems.
For numerous businesses, the reality of computers is far more complex. It's challenging to predict where issues might arise. Additionally, rapid advancements in hardware and software, driven by a competitive tech industry, make choosing the right computer platform, operating system, and software suite a tough decision, especially when establishing a network of machines.
Although computers make individual tasks more manageable, maintaining and repairing them can be quite challenging. Countless businesses invest millions of dollars in IT support to ensure their systems and applications run smoothly. Even something as simple as installing a new application on a network can trigger unforeseen issues.
To address these challenges, some executives are turning to external solutions. One such option is utility computing, a business model where a company outsources part or all of its IT needs to another service provider. This support encompasses not just technical guidance, but also resources like computer processing power and data storage.
What's the scoop on utility computing? Continue reading to learn more.
Why is this business model called utility computing? It's because it mirrors how public utilities, like the electric company, operate. Customers pay metered fees for services such as water or electricity. Similarly, in a utility computing setup, customers pay another company for access to resources like processing power.
The Fundamentals of Utility Computing
The concept behind utility computing is straightforward: One company pays another for computing services. These services could include hardware leasing, data storage, use of specific applications, or processing power access, depending on the client's needs and what the utility provider offers.
Many utility computing companies offer bundled or package deals that can include all of the following:
- Computer hardware, including servers, CPUs, monitors, input devices, and network cables.
- Internet connectivity, including Web servers and browsing software.
- Software applications that cover a wide range of computer programs, from word processors to e-mail clients, project-specific tools, and more. Experts refer to this category as "Software as a Service" (SaaS).
- Access to supercomputer processing power. Certain companies, like financial firms, may require rapid data processing, such as the real-time analysis of stock market information. While a regular computer could take hours, a supercomputer can handle the same task much more quickly.
- Utilization of a grid computing system, a network of computers running middleware software that identifies idle CPU capacity and allows applications to use that excess power for large, divisible computational tasks.
- Off-site data storage, also known as cloud storage. Businesses often store data remotely to save physical space, back up critical information, or protect data in the event of a disaster. For example, even if a company's building were destroyed by fire, its data would still be secure elsewhere.
The pricing for utility computing services varies by provider and the specific service requested. Typically, companies charge based on usage, so the more a client uses, the higher the costs. Some companies offer bundled services at discounted rates, effectively selling computing resources in bulk.
What are the advantages and drawbacks of utility computing? We will dive into that in the following section.
Providers like IBM allow clients to rent services as needed, which has led some to refer to utility computing as "on-demand computing". Some companies offer a limited set of services, while others collaborate with clients to deeply understand their needs and provide a more comprehensive, customized service.
Pros and Cons of Utility Computing
For many clients, the greatest benefit of utility computing is its convenience. Instead of purchasing all the necessary hardware, software, and licenses for their business, clients can rely on a third-party provider to supply these services. The responsibility of system maintenance and management falls on the utility computing provider, allowing the client to focus on other priorities.
A closely related advantage is compatibility. In large organizations with multiple departments, software incompatibilities can arise. Different departments may rely on various software suites, causing issues when files created in one department aren't accessible by others. Utility computing allows companies to opt for a unified service, ensuring consistency across all departments by using the same software suite throughout the entire organization.
Cost can be either a benefit or a drawback, depending on the provider's fee structure. In some cases, using a utility computing service can be more affordable than managing in-house computer operations. As long as the provider delivers the necessary services, the client doesn't need to seek alternatives. Maintenance costs are typically handled by the provider, and clients may also choose more affordable, simpler hardware that is easier to maintain.
However, there may be instances where the client's needs don't align with the services provided. For example, a small business might find it unnecessary to pay for access to costly supercomputers if those resources aren't required for their operations. In such cases, the client may opt to manage their own computing infrastructure rather than paying for services they don't need.
Another potential downside is reliability. If a utility computing provider faces financial difficulties or experiences frequent technical issues, clients could lose access to the services they're paying for. This creates significant risks for both the provider and the client. Should the provider go out of business, clients may find themselves without critical data and services, leading them to be cautious about entrusting such responsibilities to smaller, less stable companies.
Utility computing systems can become prime targets for hackers. A hacker may attempt to access services for free or pry into sensitive client data. While much of the responsibility for securing the system lies with the provider, the client also plays a role in ensuring safety. If a company fails to educate its employees on secure access protocols, it becomes easier for an intruder to exploit vulnerabilities and compromise the system.
One major hurdle for utility computing services is raising awareness among potential customers. Knowledge of utility computing is still relatively limited, making it challenging to convince clients to adopt the service when they may not even be familiar with it. Now that you've read this article, you're already ahead of most.
As utility computing providers continue to develop more advanced and all-encompassing services, more corporations may start to rely on them. It's possible that in the near future, remote data centers could handle all your computational needs, no matter where they are located.
- Amazon
- Enki
- IBM
- Joyent
- Layered Technologies
- Sun Microsystems
