Utility Computing

UtilityComputing refers to the supply and consumption of computing resources on a "PayAsYouGo" basis, similar to utilities such as electricity and water.

There has been a renewed interest in outsourcing IT services to ApplicationServiceProvider (or ASP, see

• http://www.webopedia.com/TERM/A/Application_Service_Provider.html).

This is prompted by:

• cost of in-house IT and insufficient perceived value
• concern about the frequent software update cycles and impact to company processes
• advances in EnterpriseApplicationIntegration capabilities in tools

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The author of DoesItMatter blogged about UtilityComputing in his July 2006 entry titled "The Third Age of IT".

SAAS, software as a service, is gaining popularity, according to IDC analyst in a conference reported within article titled "SAAS returns" at

• http://smeit.com.sg/PrinterFriendly.aspx?articleid=3924&pubid=3&issueid=93 ( BrokenLink )

The article also registered objections by some people against excessive claims made by vendors.