In-house or outsourced cloud – Which is best for you and your company?

We previously went over exactly what Cloud Computing is here, so now how do you know what kind of cloud is right for you and your organization?

Outsourced Cloud Advantages:

  1. Cost: paying a small monthly fee can be a lot more economical then handing over thousands of dollars up front, and it will also allow you to take advantage of the newest technology without constantly investing in new infrastructure or added cost of personnel to maintain it.
  2. Security: Many are under the impression that cloud security is lacking, but do you have the level of security that Google, Amazon and other cloud providers do? I doubt it. These companies are forever increasing their security, so why not take advantage of that? Yes, it does mean that your data will be in the hands of another company, but is your data ever really just yours anyway? Companies are already relying on others like Microsoft to keep data safe, so why not trust it to another established and trusted company.
  3. Reliability: outsourcing your cloud can provide you with the highest amount of up time possible. Cloud providers have tons of resources so you don’t have to worry about a failover system for your cloud environment, that’s their responsibility, and they have experts for just that.
  4. Power/staffing/Infrastructure: Outsourcing power/cooling costs is a no brainer. Power outages and high monthly power/cooling costs won’t be something you will have to worry about anymore. Are you continuously training or hiring new staff in order to support new technology? Why not have those that built the cloud infrastructure run it for you? By outsourcing your cloud you won’t have to worry about the staffing costs, power costs, or the cost of the new infrastructure, that will all be taken care of by your provider.

In-House Cloud Advantages:

  1. Cost: If you are looking to deploy a cloud permanently in an enterprise space, investing in your own infrastructure is a large up-front investment, but may be the way for you to go. You would be responsible for staffing your own department to develop/maintain your cloud, as well as any/all future costs of keeping your infrastructure up to date. However, by implementing your cloud in house, you would be able to save on those monthly outsourcing fees, as well as any additional users you might have to add along the way.  
  2. Security: You and only you are responsible for your data. This can be a good thing or a bad thing. You must have a team dedicated to managing your cloud security, your network, your firewalls, and managing the resources that your virtual machines are sitting on. As far as security is concerned, since you control every aspect of it,  you will be able to know who has access to those resources because it’s your company.
  3. Control: If you want full control on every aspect of your cloud, like how it can be used, how quickly and how much it can be expanded, how its deployed, how its managed, how many users, how you manage these users etc. etc. then an in-house cloud is for you. You have some say in these areas if your cloud is outsourced but obviously not complete and total control.
  4. True Flexibility: Not every business is the same, so not every cloud will fit your specific needs. With an in-house cloud solution you can do whatever you need to do, to perfectly fit your business and its unique structure and needs.

It all boils down to one thing; can your IT department handle an in house cloud? Do you have the staff? Is the staff capable? Do you have the up-front capital ? If not, outsourcing is the perfect option, and as we move further into this cloud adapted world, outsourcing will become more customizable, flexible, compliant and secure.

So now that you know which cloud is right for your business, how do you make your case to the CEO?

Check out this article to help plead your case and as always if you have any questions at all please feel free to email me at

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