Virtualization
Utilization
Companies that use their own private data centers have low utilization rates because they have to plan for server usage spikes. When hardware sits idle, it has a negative effect on the environment. Private servers have a utilization rate of 5% to 10%. Public cloud servers, in contrast, have a utilization rate of 60% to 70%. They use fewer machines to get the same capacity, one of the many benefits of cloud computing.