Management Information System (MIS) Practice Exam

Under what model do organizations "rent" resources such as processing and data storage from an external provider?

1. Cluster computing

2. Grid computing

3. Utility computing

4. Parallel computing

The correct answer is: Utility computing

Utility computing is an IT model that enables organizations to "rent" resources, such as processing power and data storage, from external providers. This model allows businesses to use computing resources as a service instead of investing in physical infrastructure. Essentially, it operates on a pay-as-you-go basis, where organizations can scale their resource usage to meet their needs dynamically. This model is particularly advantageous because it provides flexibility, cost savings, and efficiency. Companies can access large amounts of computing power and storage without the burden of maintaining hardware and infrastructure, which can be expensive and complex. By using utility computing, organizations can focus more on their core business functions rather than IT management. The other models listed, such as cluster computing and grid computing, typically refer to specific configurations and uses of computing resources, often within an organization's own environment. Parallel computing focuses on executing multiple calculations simultaneously to increase processing speed but does not imply renting resources from an external provider. Thus, these do not encapsulate the concept of renting resources as effectively as utility computing does.