* A utility model requires distinct "tiers" of service

By Andreas M. Antonopoulos, Network World, 08/16/05

On the road to a flexible data center, there are four major steps: consolidation, standardization, virtualization and utility (see "Four steps to utility"). Once a company has implemented virtualization, the final step is to create a utility model. Although a utility model is often seen as equivalent to an outsourced model of "metered computing," it can be a very useful model even without the outsourcing. Data center managers can use a utility model internally to deliver metered or tiered IT services to the business units. In this context, a utility model provides cost transparency and efficient allocation of IT resources.