Utility storage is a type of storage that is accessed remotely from a cloud storage service provider through pay-as-you-go or on-demand billing method.
Utility storage is a cloud Infrastructure as a Service (IaaS) solution that provides storage space that users can access over the Internet. It can also be hosted on a remote cloud server or storage area network (SAN). Utility storage is also known as cloud storage and is often interrelated with storage virtualization, but it differs in that storage virtualization is the actual process by which utility storage service is enabled.
Utility storage is also known as cloud storage.
Techopedia explains Utility Storage
Utility storage is a metered disk storage space that enables end users and organizations to source small to large storage space as and when required. Utility storage works by storage virtualization, a process by which a physical or cloud server allocates virtual storage space within the main physical storage system for all new users.
Because it is implemented on a virtualization layer, utility storage is elastic in nature and can be extended easily on run time, usually without much human intervention. As a result, users are not limited by storage capacity. Amazon Simple Storage Service (S3) is a popular example of utility storage in which users access the remote cloud storage through vendor API and an online management console.