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Online File W8.1 Google and Company: Advertisement and Search Engine Wars - page 20 / 20





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Part 4: Other EC Models and Applications

Online File W8.8 (continued)

Utility Computing

According to Bill Gates, utility computing, also known as on-demand computing as service-oriented-architecture, is computing that is as available, reliable, and secure as electricity, water services, and telephony (CNET News.com Staff 2002). The vision behind utility computing is to have computing resources flow like electricity on demand from virtual utilities around the globe—always on and highly available, secure, efficiently metered, priced on a pay-as-you-use basis, dynamically scaled, self-healing, and easy to manage.

An example of using utility computing in EC is the case of Mobile Travel Guide, which rates over 25,000 restaurants and hotels in the United States and publishes travel guides for various regions. To accommodate the ever-increasing traffic of Web servers that are looking for its ratings, the company is using IBM’s on-demand hosting services. With this service, the com- pany not only solved all its capacity problems but also increased security at a 30 percent cost reduction compared to having its own servers.

Grid Computing

Conventional networks, including the Internet, provide communication among devices. The same networks can be used to support the concept of grid computing, in which the unused processing cycles of all computers in a given network can be harnessed to create powerful computing capabilities. Grid computing coordinates the use of a large number of servers and storage, acting as one computer. Thus, problems of spikes in demand are solved without the cost of maintaining reserve capacity (see oracle.com/grid).

Grid computing is already in limited use, and many of the current grid applications are in areas that formerly would have required supercomputers. An example of using grid computing in EC is the case of J.P. Morgan Chase Investment Bank supporting electronic trading in real time using the computing power of thousands of employees (see Hamblen 2004).


CNET News.com Staff. “Gates Memo: ‘We Can and Must Do Better.’ CNETNews.com, January 17, 2002. news.com.com/2009–1001–817210.html (accessed January 2008). Fenn, J., and A. Linden. “Wearing It Out: The Growth of the Wireless Wearable World.” Gartner Group, April 17, 2001.

Hamblen, M. “J.P. Morgan Harnesses Power with Grid Computing System.” Computer orld, March 15, 2004. Rogers, G. S., and J. S. Edwards. Introduction to Wireless Technology. Upper Saddle River, NJ: Prentice Hall, 2003.

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