Outsourcing in Cloud environment: Cloud computing offerings

Cloud computing is a subscription-based service that offers on-demand network access to a shared pool of configurable computer resources (e.g., networks, applications, servers, storage, etc.) that is usually hosted by the supplier and provided over the Internet. Such services can be rapidly provisioned and released with minimal transition services and management effort. Cloud services are outsourcing without a single dedicated data center. There are varying service models and deployment methods in cloud computing that provide a customer with different levels of control, flexibility, and management.

Cloud Computing Deployment Models

Cloud deployment models represent a specific type of cloud environment distinguished primarily by ownership, size, and access. Each deployment model has varying degrees of data security, risk, and investment.

• Private cloud or on-premises cloud. The private cloud infrastructure provides a dedicated network and equipment that are operated solely for the customer’s business and are managed internally or externally. In a private cloud arrangement, the customer maintains all components of the associated technology, which includes any servers or software required to deploy cloud resources. Private clouds give customers a greater degree of flexibility and control over data security and storage but are also more expensive given the physical space, hardware, and environmental controls required.
• Public cloud. The public cloud is made available to the general public by a supplier who owns, operates, and hosts the cloud infrastructure and offers access to users over the Internet. Because users share the public cloud, this model offers the greatest flexibility (on demand scalability) and cost savings (pay as you go model). However, the public cloud has increased security risks as customers have no visibility or control over where the infrastructure is located, and it offers limited configuration and availability variance.
• Community cloud. The community cloud infrastructure is a multi-tenant cloud service model that is shared among several organizations and is governed, managed, and secured commonly by all the participating organizations or a thirdparty managed service supplier. Community clouds are a hybrid form of private clouds built and operated specifically for a group that shares common goals. With the community cloud, the costs of deployment and access are spread over fewer users than the public cloud, but there are more users than the private cloud.
• Hybrid cloud. The hybrid cloud is composed of two or more clouds (private, public, and/or community clouds) that remain separate but are bound together, offering the advantages of multiple deployment models. A hybrid cloud increases the flexibility of cloud computing as customers can leverage suppliers in either a full or partial manner. There are, however, increased potential risks with accessing multiple cloud platforms.

Cloud Computing Service Models

There are four primary service models in cloud-based outsourcing:

• Software as a Service (SaaS) provides software applications that are hosted by a supplier and made available to customers over the Internet.
• Platform as a Service (PaaS) provides an outsourced platform that is hosted by a supplier and allows customers to develop, test, and manage web applications.
• Infrastructure as a Service (IaaS) provides virtualized computer resources (e.g., servers, storage, and networking) on a pay-per-usage basis over the Internet.
• Desktop as a Service (DaaS) provides virtual desktops that are hosted by a supplier and accessible from anywhere via the Internet.

Customers should carefully evaluate each of the following in selecting the right cloud computing service, deployment model, and supplier:

• The supplier’s security standards
• The availability and reliability of the service
• Price (i.e., whether the service will provide cost savings and whether it provides flexible, usage-based pricing)
• Data privacy (For example, does the outsourced data include personal data or competitively-sensitive data such as trade secrets)
• Service level agreement performance objectives/guarantees
• Scalability (i.e., whether the service allows the customer to easily increase or decrease usage and resources to accommodate changing business needs)
• Continuity of the service (For example, can the supplier suspend the services for non-compliance? What is the supplier’s business interruption/disaster recovery procedure?)
• Loss of control
• Supplier’s reputation and long term viability (For example, if the supplier is a start-up, the customer should evaluate whether it is well-funded, whether it has a strong vertical industry position, and whether it is innovative/proactive in updating the technology and exploring new services)
• Data location/storage concerns