By Mike Maki

Utility Computing solutions,  defined by Wikipedia as “the packaging of computing resources, such as computation and storage, as a metered service similar to a physical public utility such as water or natural gas,” are becoming more popular with small and medium businesses (SMB’s).

By “renting” shared data storage, servers, firewalls, applications, and systems, SMB’s can concentrate on running their business rather than the care and feeding of the technology and problems associated with the complexities of IT. 

Advantages of a Utility Computing model include: small initial investment, a fixed cost per month that usually appears on the books as an operational expense, no onsite server or backup hardware reducing expensive office space and utility expenses.  Most important, the complexities and demands of infrastructure are managed by the service provider.  Typically, the customer realizes a reduction in IT staffing requirements and for smaller organizations often no in-house IT staff is needed.

Well developed Utility Agreements are based on a Service Level Agreement (SLA’s) that provides detail on vender performance describing critical items such as the availability of the servers and/or applications needed to run the organization.  Reputable service providers offer SLA’s that include punitive penalties for not providing service to the agreed to standard. 

The biggest IT challenge for many SMB’s is to provide an “enterprise” class of service internally. With IT budgets growing at unacceptable rates and internal response times becoming more troublesome, SMB’s are turning to Utility Computing as a prudent response to the increased complexity of the systems and processes. 

Clear North can help your organization move toward a Utility Computing model at a pace that fits your organization’s strategic direction.  Whether in small steps or in one big step, we can help design the right solution for your business.  Call your account manager today for a free consultation.