Utility computing is a term companies such as IBM, HP and Sun are overhyping right now and it is defined as the 'provision of IT-based functionality on demand'. In many of the articles written on the subject, users can't help but be confused as to the difference between utility computing and previous, failed attempts to reduce the cost and complexity of IT.
Sun’s President Jonathan Schwartz explains on his blog that “many suppliers in the technology industry have relied on mass inefficiencies to drive short-term profits—why bother delivering a computing service if you can custom-build a grid for each customer and sell 10X the infrastructure? To us, that sounds like betting against the network—a bad move for any market.” But, later explains to ZD Net’s Dan Farber that more than 99 percent of Sun’s business is exactly what he just condemned.
Sun belief is that there is a utility-like view of computing emerging that will drive a kind of generic use of computing capacity. Mr. Schwartz points to Google as a generic search utility, eBay as an auction utility.
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