Traditional Outsourcing vs Cloud computing

Traditional Outsourcing            

Many current laws are based on models and assumptions of traditional outsourcing, as follows:

• A data controller, who has been processing data inhouse, decides to outsource some of its data processing for example, payroll processing.
• It narrows the field down to several possible data processors and, after discussions with and evaluation of the contenders, chooses and hires a processor, with whom it enters into a data processing contract. The contract contains instructions tailored to that specific processing and other contractual provisions on how the processor must process the data.
• The processor may choose to engage or commission sub-contractors, ie sub-processors, to help it perform the processing tasks entrusted to it by the controller. For that purpose, it enters into contracts with its sub-processors.
• The processor (and/or any sub-processor) has full access to the relevant data, and actively processes the data for the controller, in accordance with the controller’s instructions and contracts.

To use a food analogy, current laws assume that you either cook food yourself (process data inhouse), or hire caterers, who may then engage sub-caterers (hire processors who may use sub-processors).

Cloud computing

Cloud computing is nothing more then the ability to do computing between different machines and different locations and combine the data from one application with another. The definition PetiteCloud uses is virtual machines plus API’s. Namely using virtualization to increase the effective number of computers within an organization control (either local or in “the cloud” [aka the public cloud like AWS]). For example, our inhouse cloud consists of 3 local machines (12 instances total) and our presence in the public cloud is 3 instances on RootBSD.

The cloud was designed from the ground up to harness the Internet, virtualization, and automation to streamline IT operations. Most cloud options are self-service, so that IT administrators can easily scale resources up and down with the simple click of a button. The cloud also employs systems management and automation tools to ensure that resources are being used to their full capacity and that resources are available in case demand increases.