Welcome!

@CloudExpo Authors: John Worthington, William Schmarzo, Elizabeth White, Pat Romanski, Rostyslav Demush

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

Highly passionate about utilizing Digital Technologies to enable next generation enterprise. Believes in enterprise transformation through the Natives (Cloud Native & Mobile Native).

@CloudExpo Stories
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, addressed this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of the ...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...