On-Demand Computing Takes Shape

This approach of pay-per-use computing is becoming increasingly common in the corporate world. It is finding its way into the world of business and consumer applications at a rapid pace.
By: Appshosting
 
Aug. 13, 2007 - PRLog -- If you are looking to cut operational costs for your company, you may be interested in On-Demand or Utility Computing.

Utility Computing sees computing as the fifth utility after electricity, gas, water, and telecommunication. Also known as Utility or Grid Computing, it is a way to make computing resources available on an as-needed basis. Customers are charged only for actual usage.

As an example, businesses may run ERP systems that are idle much of the time with the exception of the month-end processing cycle. Why pay for the extra computing capacity the whole month when you only need it at the end of the month?  With on-demand computing, the same processing could easily be done at a fraction of the cost.

This approach of pay-per-use computing is becoming increasingly common in the corporate world. It is finding its way into consumer markets such as wireless internet service, web site access, file sharing. And why not, when it reduces management overhead and infrastructure/support costs?

By centralizing computing resources and slashing wasted computing resources, managed services vendors such as AppsHosting (http://www.appshosting.com), Oracle & Peoplesoft ERP Managed Hosting Specialists, are offering grid computing and managed application hosting services to business customers who are eager to realize the benefits of lower TCO.

The grid computing model popped up during the tough economic times that followed the massive boom in IT during Y2K and dotcom bubble, which left excess capacity in companies, without an effective way to harness it. According to a (2006) case study by the 451 Group, grid computing has now 'burst on stage'.

To witness the proliferation of Utility Computing, one need only take a look at the offerings of major hardware and software vendors. Most of the larger vendors offer some type of grid solution in their portfolio.  IBM calls it Utility Computing, Oracle refers to it as On-Demand Computing, HP calls it the Adaptive Enterprise Initiative, while Sun Microsystems refers to it as Grid Computing.

In grid computing, all networked computers act as a single "virtual" computer.  Specialized software and hardware are used to identify available computer resources and allocate tasks accordingly.  Each resource works independently, each executing a request or making requests to others.

Software as a service (SAAS) is a similar concept, where users are charged according to usage. Users typically pay for CPU time on an as-needed basis, and negotiate prices depending on availability of resources.

Be sure to keep an eye out for this kind type of utility computing at work as well as at home in the near future.

Website: www.appshosting.com
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