Cloud Computing - A new name to 'Outsourcing'

I had been troubled by a question – Why cloud computing is suddenly getting so much of importance?

Technologies which form the building blocks of cloud computing existed for quiet some time now. Even cloud as a concept has been there for couple of years. Then why suddenly there is so much of hype? Today every IT organization is talking about cloud. Every IT service provider wants to embrace cloud mania and become a cloud service provider.

I feel that there definitely has to be something more than technology. One of my friend said that it is because of cost saving. I do agree that there could be significant cost savings but that would have always been there. If cost of components used for setting up an IT infrastructure or provisioning IT services has come down; it has come down for both the customer as well as service provider. So I do not agree that the sudden shift to cloud computing is because of the cost saving.

The cloud computing is gaining all the attention post the recent economic recession. Then, what could be the reason other than cost savings? If you have notices the economic and political scenario during and post recession, there has been huge hue and cry against off-shoring and outsourcing. Number of countries or states across Europe and America has taken up steps to come up with a legislation to ban the same. The focus on cloud has gained since then.

The answer to all these comes to my mind in form of a question – Is cloud computing another way of outsourcing that could be used to bypass the political or legislative stance of various governments?

Cloud computing is meant for real time provisioning of a cloud service to a customer without having the customer own the specific costs and risks. The customer is not aware of where the infrastructure is based. This fact further strengthens my belief.

Key ITIL Processes For Cloud Computing: Service Provider Perspective (External Facing) - Supplier Management

ITIL and Cloud Computing Series - Part 12

As Cloud Computing is all about real time provisioning, the supplier management becomes a very critical process for a cloud service provider. This is not only in terms of getting a good deal or price from their supplier but also in terms of having an excellent relationship so that they can fall back on their supplier as and when needed.

Key ITIL Processes For Cloud Computing: Service Provider Perspective (External Facing) - Financial Management

ITIL and Cloud Computing Series - Part 11

From the service provider, Customers needs information related to the details of their utilization for which the service provider has billed them and would also prefer to get information that could help them in billing their internal customers. Thus, Service provider need to have a well defined and implemented process for Financial Management, supported by a good tool.

Key ITIL Processes For Cloud Computing: Service Provider Perspective (External Facing) - Service Catalog Management

ITIL and Cloud Computing Series - Part 10

Entire service offering along with the relevant details for the offered services is part of a service catalog. Entire business of a cloud service provider would depend on their service catalog. Thus, it is one of the key processes.

Key ITIL Processes For Cloud Computing: Service Provider Perspective (External Facing) - Service Portfolio Management

ITIL and Cloud Computing Series - Part 9

Management of service portfolio has becomes very important in cloud computing. Number of cloud service providers are there in the market. Every one would always want to be a first to provide a new service. Thus, the entire process right from identifying the market feasibility of a service to deciding on the actual deployment of that service has to be very efficient. This is where service portfolio management becomes very important.