With the traditional hosting model, businesses have needed one dedicated server per each application. Each of these servers runs the application on top of an operating system, but only utilizes around 10% of its capacity on average – wasting countless resources and dollars. Now, virtualization and virtual hosting allows those applications to be consolidated onto one server built specifically for virtualization. Within each box run multiple virtual servers, each with its own operating system, CPU, memory, and storage. A virtualized hosting environment allows a few machines to do what previously would have required several dozen.

Also commonly referred to as grid computing, utility computing is a way to provide technology where consumers access server capacity across a grid and pay on a fixed fee, monthly basis. Under this model, computing technologies are provided in the same way that electricity, water, and other utilities are provided.

Software-as-a-Service (SaaS) is a managed service that enables worldwide, anytime access to a hosted application from any computer with internet access. SaaS applications are generally available through subscription or membership, and allow businesses the benefits of traditional hosting minus costs and capital expenditures. Popular SaaS platforms are Salesforce.com, Gmail and other Google Apps, and Wordpress.

Hardware-as-a-Service (HaaS) is a managed service that provides hardware to customers usually on a monthly licensing agreement without their having to purchase it. The advantage here is that most small to medium businesses undergo significant financial strain for capital expenditures to purchase their own hardware. HaaS allows businesses to use the most current hardware for one monthly cost and no capital expenditures.

X as a Service (XaaS) represents your ability to buy anything as a service today. Software, Hardware, Platform, Infrastructure, Technology, and more are all available as-a-Service.