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The utility business model and the future of computing services

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1 Author(s)
Rappa, M.A. ; North Carolina State University, Box 7229, Raleigh, 27695, USA

The utility business model is shaped by a number of characteristics that are typical in public services: users consider the service a necessity, high reliability of service is critical, the ability to fully utilize capacity is limited, and services are scalable and benefit from economies of scale. This paper examines the utility business model and its future role in the provision of computing services.

Note: The Institute of Electrical and Electronics Engineers, Incorporated is distributing this Article with permission of the International Business Machines Corporation (IBM) who is the exclusive owner. The recipient of this Article may not assign, sublicense, lease, rent or otherwise transfer, reproduce, prepare derivative works, publicly display or perform, or distribute the Article.  

Published in:

IBM Systems Journal  (Volume:43 ,  Issue: 1 )

Date of Publication:

2004

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