Page 51 - Cloud Essentials

Reasons for Outsourcing
Outsourcing computing infrastructure needs has its advantages. Some of the
reasons that drive this outsourcing are as follows:

Cloud providers might have a lower cost per server because of their

economies of scale.
Managing an email system might not be considered a core competence,
and an external provider that focuses on this may achieve a higher

availability.
Server procurement and provisioning consumes time and thus delays
the time to market for important products.

External service providers may provide access to innovative software
solutions or platforms.
Not owning a large data center full of servers reduces capital

expenditure considerably.

Cloud Computing and Outsourcing Common Traits
Because cloud computing and outsourcing are similar, they share some

common traits. The following conveys three business reasons you should
consider when adopting either one:

Lack of internal skill set It is often wiser and cheaper over time to
leave specialized skills to certified professionals.

Provider-owned assets You pay only for the computing resources
you use instead of paying the full price for servers, storage, and
computing power. Instead of spending capital on infrastructure, you can
focus it on moving the business forward.

Vendor lock-in potential Once a contract with the supplier is in
place, it becomes difficult to switch providers.

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