Defining utility and cloud computing, the future via the Third Pipe

We like to throw the terms SAS and cloud computing around often on this blog. For good reason, these are the technologies that will define how the connected world will work and interact going forward. Here’s one related term we have unintentionally overlooked: utility computing. Confused yet? Here’s an excerpt from a great piece on the subject that may help clear things up:

What is Utility Computing?

While utility computing often requires a cloud-like infrastructure, its focus is on the business model on which providing the computing services are based. Simply put, a utility computing service is one in which customers receive computing resources from a service provider (hardware and/or software) and “pay by the drink,” much as you do for your electric service at home – an analogy that Nicholas Carr discusses extensively in “The Big Switch.”

What is Cloud Computing?

Cloud computing is a broader concept than utility computing and relates to the underlying architecture in which the services are designed. It may be applied equally to utility services and internal corporate data centers, as George Gilder reported in a story for Wired Magazine titled The Information Factories. Wall Street firms have been implementing internal clouds for years. They call it “grid computing,” but the concepts are the same. (from GigaOm)

I won’t go so far as to claim that the Third Pipe team agrees 100% with the ideas presented. We do however find the entire article a worthy read.

[Dog here. Couldn't agree more. For industry IT types the distinction is critical to how they keep systems running. But from the average compute user I don't think they will know or care. Their view will be somewhat more simplistic.]