Cloud Outsourcing and Cloud Computing: The Differences, Pros and Cons, and Choosing the Right Cloud Provider

The advent of cloud outsourcing means that people and businesses can plug into various services and resources over the internet without physical infrastructure. This has led to a significant uptake in cloud technology adoption.

For example, according to the 2023 Cloud Computing Statistics By The Numbers report by Cloudwards, 97 percent of all enterprises use cloud services in some form, while 48 percent of businesses store their most important and classified data on the cloud.

The IT outsourcing market is expected to balloon to $760 billion by 2027, based on the 2022 Market Research Report by Fortune Business Insights.

With statistics like this, it is clear that cloud computing is here to stay. But for businesses that have yet to make the plunge, the idea of migrating can be daunting. In this article, you will learn what defines cloud computing and cloud outsourcing, their pros and cons, and how to choose the right cloud provider.

What is Cloud Computing?

Cloud computing is the on-demand delivery of computing services and resources over the internet, via secure online storage. These services and resources include cloud-based applications, physical and virtual servers, data storage, networking, computing, development tools, and more. The data that powers these services and resources are hosted on remote data servers, which are deployed, monitored, and maintained by cloud outsourcing providers.

Cloud computing allows multiple users, across various locations,devices, and applications, to access the same data and services all at once. Users can also collaborate on the same projects in real time, which includes online document editors such as Google Docs and Canva.

What is Cloud Outsourcing?

Cloud outsourcing is the deployment of specific functions and processes to a cloud outsourcing provider. Under this arrangement, the cloud service provider is responsible for running and maintaining the managed cloud services. Meanwhile, the customer pays an ongoing subscription fee in exchange for guaranteed availability, security, updates, and technical support.

Cloud service providers can migrate – as little, or as much of – your legacy infrastructure to the cloud without disrupting your daily business activities. The provider takes the time to assess your current infrastructure, determine your cloud strategy goals, and then carry out the migration in a manner that is fast, secure, and provides cost savings.

What are the Three Most Common Types of Cloud Computing Service Models?

Cloud computing service models come in three types: Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS). These service models are referred to as a cloud computing stack, because each one is built on top of one another.

Software-as-a-Service (SaaS) – This allows users to connect to and use cloud-based applications over the internet. Under this arrangement, the hosting, delivery, and maintenance of the software are handled by the cloud service provider. Popular examples of SaaS include the Microsoft 365 productivity tools and Amazon Web Services.

Infrastructure-as-a-Service (IaaS) – This delivers fundamental cloud computing services, such as computing power, networking, and data storage, over the internet to users on-demand. With these virtualized services, there is no need to buy, store, and maintain physical data servers and other equipment onsite. Instead, users simply rent access to the cloud infrastructure resources they need on a pay-as-you-go-basis. Popular examples of IaaS include Linode and Rackspace.

Platform-as-a-Service (PaaS) – This gives users access to a complete cloud platform, including hardware, software, and infrastructure, so that they can develop, run, and manage applications without investing in expensive, bulky, and inflexible onsite premises. Popular examples of PaaS include Microsoft Azure and Google Cloud Infrastructure.

Advantages of Cloud Service Providers

There are many advantages to adopting a cloud outsourcing strategy. It can help you reduce infrastructure costs, gain unlimited storage capacity, protect sensitive data, and stay compliant. Most importantly, cloud outsourcing is incredibly flexible, allowing you to scale in tandem with changing business requirements.

Reduce Infrastructure Costs

Cloud outsourcing removes the upfront and ongoing cost of buying, deploying, and maintaining physical IT infrastructure. It also removes the associated costs that come with physical storage such as heating, cooling, electricity, and manual labor. Through cloud migration, these tasks then fall on the responsibility of the cloud-managed service provider.

Improved Scalability and Elasticity

Cloud outsourcing allows businesses to scale, up and down, their IT resources as needed to meet changing demands.

Through cloud scalability, businesses can quickly and easily scale data storage capacity, processing power, networking capabilities, and other resources with little to no disruption. Meanwhile, cloud elasticity allows a system to automatically grow and shrink dynamically, in response to changing workload conditions. Together, these systems let a business adapt fluidly to varied and unpredictable workloads, so that available resources match demand.

Automated Data Backup, File Storage, and File Restoration

The cloud data storage providers of today make it easy to automatically store and recover data from the cloud. Unlike physical onsite hard drives and data centers, remote cloud servers are less prone to theft, fire, and other natural disasters. Most cloud data providers offer unlimited data storage capacity, no individual file size limits, automatic data backup, and even the ability to store older file versions forever.

Cloud Compliance Regulations

Cloud outsourcing providers must meet a wide range of regulations and standards. These standards apply to various aspects of cloud computing, such as data storage and data privacy through to cybersecurity. Some of the most widespread global standards include the International Organization for Standardization (ISO), General Data Protection Regulation (GDPR), and Health Insurance Portability and Accountability Act (HIPAA). By enlisting the help of a cloud outsourcing provider, the responsibility of compliance falls on the cloud provider.

Harness the Full Potential of Cloud Outsourcing

Cloud outsourcing is an effective way to help reduce operating costs, stay compliant, gain a competitive edge, and scale with changing demands. However, choosing the right cloud outsourcing provider can be a big hurdle.

That’s why it’s important to research, compare offerings, and ask a lot of questions. This way you will have a better chance of finding a provider that meets your requirements and budget. Ideally, your cloud outsourcing provider should be transparent about their experience, capabilities, and ability to help you on a personal level – and back up their claims.