UtilityComputing refers to the supply and consumption of computing resources on a "Pa''''''yAsYouGo" basis, similar to utilities such as electricity and water.

There has been a renewed interest in outsourcing IT services to ApplicationServiceProvider (or ASP, see 
*** http://www.webopedia.com/TERM/A/Application_Service_Provider.html). 
This is prompted by:
* cost of in-house IT and insufficient perceived value
* concern about the frequent software update cycles and impact to company processes
* advances in EnterpriseApplicationIntegration capabilities in tools

----
The author of DoesItMatter blogged about UtilityComputing in his July 2006 entry titled "The Third Age of IT".

SAAS, software as a service, is gaining popularity, according to IDC analyst in a conference reported within article titled "SAAS returns" at 
*** http://smeit.com.sg/PrinterFriendly.aspx?articleid=3924&pubid=3&issueid=93 ( BrokenLink )

The article also registered objections by some people against excessive claims made by vendors.