On-demand computing (ODC)

Ciaran Burke

Page written by AI. Reviewed by Ciaran Burke on February 20, 2024.


On-demand computing (ODC), also known as utility computing or pay-as-you-go computing, is a cloud computing model in which computing resources are provided and accessed dynamically over the internet on an as-needed basis.

What is on-demand computing?

On-demand computing allows organisations to access and use computing resources quickly and efficiently without the need for significant upfront investment in hardware or infrastructure. Resources are allocated dynamically based on demand, allowing users to scale up or down to meet changing workload requirements.

On-demand computing follows a pay-as-you-go pricing model, where users are billed based on their actual usage of computing resources. This eliminates the need for upfront capital investment in hardware or long-term contracts and provides cost transparency and predictability for organisations.

Furthermore, on-demand computing leverages the internet to deliver computing resources to users anywhere in the world with an internet connection. This enables organisations to access and use computing resources from multiple geographic locations, improving accessibility, collaboration, and scalability.

Lastly, on-demand computing providers often offer a wide range of managed services, including infrastructure management, security, compliance, monitoring, and support. These services help organisations offload operational tasks, reduce complexity, and focus on core business activities.

Example of on-demand computing

Let’s say a small software development startup, “Tech Innovations Inc.,” needs computing resources to deploy and test their new application. Instead of purchasing and maintaining physical servers, they decide to use on-demand computing services from a cloud provider.

Using on-demand computing, Tech Innovations Inc. can quickly provide virtual servers, storage, and networking resources through the cloud provider’s self-service portal. They choose the specific resources they need and configure them to meet the requirements of their application.

Tech Innovations Inc. only pays for the computing resources they use, on an hourly or per-minute basis, without any long-term commitments or upfront costs. This pay-as-you-go pricing model allows them to minimise expenses and optimise their resources.

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