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Pay-for-Use Pricing

One of the major short-term benefits for IT is the introduction of "pay as you go" or pay-for-use pricing of computing systems. Common elements of the better utility computing solutions include unit metrics for processing storage and bandwidth consumed above an agreed base level. These metrics form the basis of pay-for-use pricing. Remote services software monitors unit usage and communicates meter information over a secure network link to the vendor for consolidated billing. Unit usage reports deliver granular cost information that provides insight into how and when the environment is being used, what business processes it supports, and what it costs. This information helps customers to track IT costs to specific resources, and more accurately meter their own usage.

Many companies would readily opt for a monthly operational expense that actually matches their use of computer power, rather than have large up-front capital expenses and a need to keep assets on the books. The combined appeal of reducing complexity, better utilizing overbuilt infrastructures, and retaining control of IT should interest many companies in utility computing.

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