Balancing Insourcing and Cloud

The topic of IT insourcing as a way to reel in expenses, refocus on innovation, and better align with business goals has gotten a lot of attention lately. Insourcing as a strategy has several significant business implications — from increasing profitability to recruiting new in-house IT professionals to streamline and manage an internal IT infrastructure more efficiently. While some businesses are viewing this as a way to reign in outsourcing costs, insourcing raises some interesting new opportunities for internal, private and external, public cloud integration. For example, how many data centers and application stacks are needed? Are there opportunities to consolidate, standardize, and automate?

In concert with these initiatives, private cloud solutions should be evaluated. Businesses pursuing insourcing should benchmark their internal capabilities against external, public cloud alternatives as their infrastructure evolves. Designing flexibility into their on-premise systems in ways that will afford smooth integration with public clouds in the future is important. Also, recruiting talented professionals who understand cloud technologies and are capable of sharing best practices with more seasoned IT experts is critical.

For a large enterprise, internal PaaS (aka, private PaaS) and SaaS solutions should be considered as part of an insourcing project. A suitable internal PaaS solution for the design and deployment of new applications, for instance, would help control application consistency, contain costs, and allow for easier public cloud migrations if needed.

SaaS solutions should be considered in areas not critical to the business’s core mission, such as human capital management (HCM), customer relationship management (CRM), and expense management. Finally, SaaS implementations should be designed to integrate and coexist with a company’s burgeoning private cloud as well.

We’d like to hear from you. Do you believe that private cloud deployments comprise a significant portion of insourcing efforts? How do you best design internal IT architectures that support future migrations to public cloud platforms? We look forward to your comments.
Ed Lucente Network Application and Cloud Solutions Application Sales Executive AT&T About Ed