Cloud Computing: How does it differ from IT outsourcing and what are the implications for practice and research (original) (raw)

Cloud Computing and IT Infrastructure Outsourcing

International Journal of Organizational and Collective Intelligence, 2015

Cloud Computing has caught the imagination of the CIOs across the world with rapid scalability being the most important feature of Cloud Computing, with very high degree of provisioning capability from the Cloud vendors in comparison to on premise IT infrastructure. It provides for the shift of spend from capital expenditure in IT budgets to a more flexible and manageable operating expenditure for the CIOs. However, as an emergent technology, there are initial adoption level concerns that are associated with Cloud Computing in most of the companies. Infrastructure as a Service or (IaaS) adoptions have not been high especially in the large companies which continue to opt for traditional IT Infrastructure Outsourcing. This paper compares Cloud Computing (Infrastructure as a Service - IaaS) adoption, outlined through two cases of Cloud (IaaS), with traditional IT Infrastructure Outsourcing outlined through four cases studies of traditional IT Outsourcing.

From Information Systems Outsourcing to Cloud Computing

2018

We are witnessing the business prospects of cloud computing becoming apparent as many cloud computing services have been made available online. Previously, outsourcing of computing resources employs a third party to set up, develop, and maintain the infrastructure within or outside the business organization. However, nowadays many business organizations all over the world see that outsourcing their computing resources through cloud computing is a highly viable option as it saves a business organization from the complicated setup and maintenance costs of computer infrastructure. There are three generally known types cloud computing, namely public cloud, private cloud, and hybrid cloud. There also three generally service models namely software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). This chapter highlights the development of cloud computing technology, benefits and issues of outsourcing an organization’s computing resources through cl...

Cloudsourcing: Managing Cloud Adoption

Cloud computing adoption by organizations has been minor despite the initial optimism. The primary concerns obstructing adoption of cloud-based services are security, loss of control, and inadequate legislative. In a cloud-based model, information technology services are distributed and accessed over networks such as intranet or internet. Intranets are inside organizations and internet outside. The main concerns are inherently linked to employing services provided by other organizations and accessing them over internet. In such case, valuable organizational data and services are transferred to providers. The provider or other entities may compromise organizational data and services, thus posing significant security risks. By moving data and services to outside providers, organizations also loose substantial control over timely management and retention. Organizations must follow the rules set by the providers ‒ which may not be well suited for them. The providers legally distance the...

Governance Framework for Cloud Computing

GSTF INTERNATIONAL JOURNAL ON COMPUTING, 2010

In the current era of competitive business world and stringent market share and revenue sustenance challenges, organizations tend to focus more on their core competencies rather than the functional areas that support the business. However, traditionally this has not been possible in the IT management area because the technologies and their underlying infrastructures are significantly complex thus requiring dedicated and sustained in house efforts to maintain IT systems that enable core business activities. Senior executives of organisations are forced in many cases to conclude that it is too cumbersome, expensive and time consuming for them to manage internal IT infrastructures. This takes the focus away from their core revenue making activities. This scenario facilitates the need for external infrastructure hosting, external service provision and outsourcing capability. This trend resulted in evolution of IT outsourcing models. The authors attempted to analyse the option of leveraging the cloud computing model to facilitate this common scenario. This paper initially discusses the characteristics of cloud computing focusing on scalability and delivery as a service. The model is evaluated using two case scenarios, one is an enterprise client with 30,000 worldwide customers followed by a small scale subject matter expertise through small to medium enterprise (SME) organisations. The paper evaluates the findings and develops a governance framework to articulate the value proposition of cloud computing.. The model takes into consideration the financial aspects, and the behaviors and IT control structures of an IT organisation.

Cloud Services: Do Risks Outweigh Benefits?

Adoption of cloud service models by organizations has been met with significant reluctance. Cloud-based services refer to networked delivery of services within organization or from external providers. The services range from data storage, throughout communication and collaboration support tools, to complex service packages supporting business processes within organizations. The primary reluctance is toward employing services of external providers and accessing them over internet. The external provider or other entities may compromise organizational data and services, thus posing significant security risks. Transfer of data and services to external providers results in substantial loss of control over timely management and retention. Cloud adoption and utilization by organizations requires considerable assessments. We elucidate pertinent risks and benefits associated with cloud services and provide actionable knowledge for managers and information technology professionals.

Identifying Benefits and risks associated with utilizing cloud computing

Cloud computing is an emerging computing model where IT and computing operations are delivered as services in highly scalable and cost effective manner. Recently, embarking this new model in business has become popular. Companies in diverse sectors intend to leverage cloud computing architecture, platforms and applications in order to gain higher competitive advantages. Likewise other models, cloud computing brought advantages to attract business but meanwhile fostering cloud has led to some risks, which can cause major impacts if business does not plan for mitigation. This paper surveys the advantages of cloud computing and in contrast the risks associated using them. Finally we conclude that a well-defined risk management program that focused on cloud computing is an essential part of gaining value from benefits of cloud computing.

Emerging Trends of Outsourcing Business to Cloud Computing Services: A Perspective Study

Developments in service oriented architecture (SOA) have taken us near to the once fictional dream of forming and running an online business, such commercial activity in which most or all of its commercial roles are outsourced to online services. The novel concept of cloud computing gives a understanding of SOA in which Information Technology assets are provided as services that are extra flexible, inexpensive and striking to commercial activities. In this paper, we concisely study developments in concept of cloud computing, and debate the advantages of using cloud services for commercial activities and trade-offs that they have to consider. Further we presented a layered architecture for online business, and then we presented a conceptual architecture for complete online business working atmosphere. Moreover, we discuss the prospects and research experiments that are ahead of us in realizing the technical components of this conceptual architecture. We conclude by giving the outlook and impact of cloud services on both large and small businesses.

A Vendor Perspective on Issues with Security, Governance and Risk for Cloud Computing

2013

The topic of Cloud Computing has gained in prominence in recent years. Our motivation to study this topic is inspired by observing many differences in opinion on aspects of Cloud Computing. We have a particular interest in exploring the drivers and barriers for Cloud adoption within organisations. This resulted in a vendor perspective research project with seven multinationals. In this paper, we present the findings of one section of this research, i.e. how companies identify what security considerations are required, what governance issues exist and what are the risks involved. The findings from this research show that much work remains to be done to facilitate SLA’s. New standardised SLA models are needed and this is a significant barrier to wider adoption of Cloud Computing. Educational requirements of the security issues and risks to data are also highlighted. It is important to understand that there are limits to the delivery of online services and 100% availability is often no...

Heading for the Clouds?" Implications for Cloud Computing Adopters

2012

Cloud computing projects have many implications, including issues such as security, compliance, funding, cohesion with existing systems, operational resource requirements, and number of employees involved. In order to gain a better understanding of why businesses are interested in adopting cloud services in spite of these potential difficulties, we interviewed senior IT personnel at five different organizations about their processes related to "cloud" decisions, their thoughts before and during the process, and the outcome of their endeavor. Our results provide insights from their perspectives into the similarities and differences among the organizations and the implications of "going into the cloud". We conclude with a list of recommended questions and areas to consider for use by other organizations looking into adopting cloud services. The ultimate goal is to help businesses considering a cloud computing project by providing advice from other organizations based on their experience.

A Business Analysis of Cloud Computing: Data Security and Contract Lock-in Issues

—The widespread adoption of cloud computing services has a wide range of sourcing issues that companies must take into consideration when they standardize and automate their IT service delivery. In this respect, our paper identifies risks and opportunities of cloud computing which affect organisations' cloud adoption decisions. The research method used is based on a quantitative online survey questionnaire of 114 UK business respondents including IT professionals, managers, and decision-makers. The study results show that despite the business benefits for moving IT service consumption and delivery from on-premise to the cloud environment, the following risks are exacerbated: security, data privacy and contract lock-in. The outcome of the survey suggests that related concerns can be strategically mitigated. This can be done by negotiating cloud contracts to be more closely aligned to address business specific security and lock-in risks in cloud-based sourcing. Based on the outcome, the paper provides guidance to support the decision-making process on investment into cloud computing implementation to meet the organisations' business objectives with related concerns.