With Utility Computing

By Mike Stephens 

In these economic times companies are finding themselves looking for ways to decrease costs while still having a high level of computer services and the answer to that is in utility computing. That is the beauty of the Utility computing model: it accounts for your fluctuating needs and only charges you for what you need when you need it. The best analogy I know to get ones head around the concept of Utility computing is the local Utility power company method of charging for electricity that it supplies to homes and businesses. It’s a metered service that is based on the less you use in electricity each month you can end of with smaller electrical bill at the end of the month. It’s the same pay-per-use method with Utility computing the less bandwidth, hardware/software you need, the more you save on your IT cost.

Utility computing is increasing in popularity because it problem solves concerns in an all inclusive principal of a cost based principal of what a company uses is what they will be charged. All the extra fat is cut from the IT department which means lower costs equal higher profits without losing the services that companies rely on to make staff members more efficient at work.

Utility computing covers all hardware such as; servers, computers, hard drive, networking equipment, telephones and software.

Services are also covered such as data backup, internet access, exchange mail, unified messaging and many of the telecom related services you find in a traditional business phone system today.

Many of the companies today are looking for ways to cut back, trim their bottom lines and have found utility computing to be the key to lessening costs without losing control and or services. Utility computing allows companies to cut back if needed and when down the road they are ready to hire again add on more computer services because utility computing is a metered service you pay for what you use.

Today’s companies are having to downsize their staff especially their IT department and their other office staff which means they no longer need all the phones, computers, internet speed, printers, extra data cards. Calling vendors to cut the service can be costly since most companies are on a long term contract with their providers. Utility computing is a one type of computing service where all of your needs are taken care of in good times and not so good. Why own equipment that is obsolete or outdated within a few years and the software that is in need of constantly being updated almost yearly. That is an outlay of cash that just seems to be never ending. Instead Utility computing shows up with all of the equipment, up to date software, proper bandwidth, and the best part a monthly tax deductible expense based on what your organization’s actual usage are. Everything is taken care of by a professional Utility Computing company. Companies are finding that there is no real advantage to owning hardware and software to run small and mid-size companies, the costs far out way the benefits due to the fast paced increase is obsolete computing age.


Companies have seen advantages in outsourcing payroll, billing and other accounting functions now is the time to outsource their entire IT needs. Utility computing is gaining momentum in a number of industries such as finance, manufacturing, healthcare, non-profits, property management and hospitality. Outsourcing just makes financial sense since it is an ideal approach to cutting the IT budget while still receiving a high level of service.

You can find out more about Utility Computing at



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