Welcome!

@CloudExpo Authors: Elizabeth White, William Schmarzo, Donald Meyer, Pat Romanski, Karyn Jeffery

Related Topics: @CloudExpo

@CloudExpo: Article

Cloudsourcing vs Outsourcing

Cloud - the third generation of outsourcing

Second Generation Outsourcing

Outsourcing is more and more viewed by the enterprises as a transformational  activity, where by

  • Enterprises Utilizes Out Sourcing to enhance or refine the business capability
  • The Vendor/Supplier of out sourcing is viewed as a partner in transformation
  • It is more about inter dependence than dependence with a single vendor

Second-generation outsourcing is designed to facilitate customer intimacy and product leadership for an organization. This occurs through a transformation of IT architectures; alignment of IT with the business; and the optimization of business processes to take advantage of the new capabilities provided. These in turn lead to increased shareholder value. Second-generation outsourcing shifts the relationship between outsourcer and outsourcee from trusted supplier to vital business partner.

Cloud Sourcing
Cloudsourcing refers to sourcing complete solutions to run your business from the public cloud. The solution provider that offers Cloudsourcing products or services is called "Cloudsourcer". The Cloudsourcer typically provides solutions that knits together cloud applications, cloud platforms and cloud  infrastructure.

Cloud Sourcing Bettering Out Sourcing
The below table gives  a list of areas where the cloud sourcing significantly  out weights benefits of second generation out sourcing, which the enterprises can consider for their future business goals.

Category

Second Generation

Out Sourcing

Cloud Sourcing

Comments

Upgrades , Patches and maintenance of existing software stack

POOR

GOOD

In traditional out sourcing, data centers exist inside premise and take significant time in upgrading larger work like database upgrades or operating system upgrades. These even disrupt the business capability needs

Quick Procurement of Services

FAIR

GOOD

The multi vendor model of the second generation out sourcing also brought in challenges for consistent discovery, request and provisioning of  services, however the basic  Cloud tenant enables a catalogue of services.

Retention of Key Subject Matter Expertise

FAIR

GOOD

Most out sourcing models  retain the key IT staff with the Subject Matter expertise, however  as the work is shifted  to the vendor data centers  this  retention of key employees has been affected, Cloud sourcing ensures that the key staff is available for the interface with cloud provider.

Vendor Lock In Avoidance

FAIR

GOOD

Most of the projects are built using the Vendor proprietary features  and hence the out sourcing model had to continue with vendor lock in, SaaS  cloud sourcing  makes the vendor product mapping  irrelevant and gives flexibility to the enterprise

Legal and Data Proximity Compliance

GOOD

POOR

In out sourcing model  the organization has complete control of data and cloud sourcing at this time is dependent on cloud provider's data centers.

Legacy Modernization, Consolidation of Redundant applications

POOR

FAIR

In the out sourcing model,  merging existing systems or de-commission redundant systems is possible but it is mostly a manual and time consuming process, resulting in them getting postponed many a times. However Cloud Sourcing  makes the physical blue print of the application  transparent and hence redundant applications automatically  cost less  to the organization as their usage is likely to be less.

Federal, state and international legal compliance

FAIR

GOOD

In the out sourcing model, compliance projects are generally a urgent patch work to get it done before the dead line expires,  In the SaaS model the product Vendors ensures compliance.

Thought Leadership in the Domain

FAIR

GOOD

Out sourcing model while supports the thought leadership from the Supplier, but it is limited to current business process flow of the out sourcing enterprise.  However in Cloud Sourcing the multi tenant design ensures that best of thought leadership  from various players in the particular domain  is provided through a SaaS platform.

Minor Enhancements, ability to do quick fixes of the applications

GOOD

POOR

In the out sourcing model the contracts can be done in such a way to do a fixed capacity of work for minor enhancements, SaaS software is generally static over a period of time and  depends on upgrades from the cloud provider

As per the over all analysis, Cloud Sourcing  provides more benefits that traditional second generation that is in place and is worth considering for the enterprises.

More Stories By Srinivasan Sundara Rajan

Srinivasan is passionate about ownership and driving things on his own, with his breadth and depth on Enterprise Technology he could run any aspect of IT Industry and make it a success.

He is a seasoned Enterprise IT Expert, mainly in the areas of Solution, Integration and Architecture, across Structured, Unstructured data sources, especially in manufacturing domain.

He currently works as Technology Head For GAVS Technologies.

@CloudExpo Stories
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...