What is Utility Computing?

Utility computing is a provisioning model, in which a service provider owns, operates and manages the computing resources and infrastructure and providing them to the customer as needed. In simple terms, it is process of providing computing service with aid of on-demand, pay per use billing method. It is one of the popular IT service model that offers optimum flexibility to select the resources such as computation, storage, etc., when required on a rental or metered basis.
Utility computing method is based on conventional method such as telephone services, electricity and gas. The principle behind this economic model is very simple. Users are provided with access to virtually unlimited supply of computing resources over the internet which can be used whenever required.
The back end infrastructure and maintenance of the server is administered by the service provider. Utility putting solutions include virtual servers, virtual storage, virtual data backup, software and other IT solutions.

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