capacity on demand

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capacity on demand

Refers to paying for extra processing power as needed. High-end servers may be designed with additional processors that normally remain unused. When customers activate these standby CPUs to handle a larger workload, they pay the vendor for the added processing power. IBM popularized capacity-on-demand (CoD) on its mainframes and then extended it to its iSeries and pSeries (AS/400 and RS/6000). See capacity planning.

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