Cloud vs. Utility Computing
Utility computing refers to the ability to meter the offered services and charge customers for exact usage. It is interesting to note that the term originates from public utility services such as electricity.
Utility computing is very often connected to cloud computing as it is one of the options for its accounting. As explained in Cloud computing infrastructure, Utility computing is a good choice for less resource demanding applications where peak usage is expected to be sporadic and rare.
Still, Utility computing does not require Cloud computing and it can be done in any server environment. Also, it is unreasonable to meter smaller usage and economically inefficient when applied on a smaller scale. That is why it is most often applied on cloud hosting where large resources are being managed.