For most clients, the biggest advantage of utility computing is convenience. The client doesn't have to buy all the hardware, software and licenses needed to do business. Instead, the client relies on another party to provide these services. The burden of maintaining and administering the system falls to the utility computing company, allowing the client to concentrate on other tasks.

Closely related to convenience is compatibility. In a large company with many departments, problems can arise with computing software. Each department might depend on different software suites. The files used by employees in one part of a company might be incompatible with the software used by employees in another part. Utility computing gives companies the option to subscribe to a single service and use the same suite of software throughout the entire client organization.

Learn more: cloud SLA.

Cost can be either an advantage or disadvantage, depending on how the provider structures fees. Using a utility computing company for services can be less expensive than running computer operations in-house. As long as the utility computing company offers the client the services it needs to do business, there's no need for the client to look elsewhere. Most of the cost for maintenance becomes the responsibility of the provider, not the client. The client can choose to rely on simplified hardware, which is less expensive and can be easier to maintain.

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