Cloud Sourcing: How to leverage the benefits of cloud technologies

2014-11-04, by Diana

Cloudsourcing as a next step in mobileAs cloud becomes a necessity, companies turn to sourcing to gain considerable advantages. A couple years ago, mobile was the biggest buzzword in the tech community. Companies have finally realized the benefits of mobile, and many have already completed their transition to mobile. Now, cloud is the next big thing on their implementation roster. (SDN – Software-Driven Networking — is likely to become the next one.) How do companies attain and leverage the benefits that cloud brings?

Evolution of Cloud Technologies

Cloud is the natural evolution of mobile. Once new devices were brought in and the mainstream mainframe changed, it was imperative to find better ways to share and create a better network. There are a number of benefits that cloud brings. Mobility is one of them. Other benefits include cost optimization, flexibility, less infrastructure, business technology modernization and service agility. In short, implementing cloud has become a necessity for companies to stay competitive.

What is Cloudsourcing?

To leverage the benefits of cloud, companies turn to cloudsourcing. What is cloudsourcing? According to Techopedia, “Cloudsourcing is a process by which specialized cloud products and services and their deployment and maintenance is outsourced to and provided by one or more cloud service providers.” Essentially, companies are able to move one or multiple IT functions into the cloud, allowing the company more flexibility with less infrastructure, faster time-to-market, and less maintenance.

Cloud sourcing changes traditional outsourcing

Cloud is one of the most important trends of 2014. Outsourcing selected processes to a cloud provider is the easiest way to gain access to cloud technologies and gain greater benefits. Since 2012, outsourcing contracts have experienced a higher demand for cloud, with as many as 1 in 4 contracts asking for cloud solutions. Cloud will continue to change the way the industry works.

According to Gartner, cloud computing is also changing traditional outsourcing processes. Instead of customization and long –winded negotiations, cloud computing and cloud IT service providers create more standardized contracts and faster agreements. Cloud technologies also allow more flexibility in software, as solutions become service-based and “asset-free”. Providers can offer software-as-a-service (SaaS). It also enables automation and easier access to information. This development saves time, but it also complicates security. For example, with more access that cloud brings, enterprises need to implement more people-centric security approaches.

Benefits of Cloud Implementation

Many businesses are not only implementing the solutions, but are finally experiencing their benefits. Companies like Boeing have decided on a hybrid solution of hosting cloud applications in house and through a third-party provider. These applications have improved productivity and efficiency and opened up the company to offer new products and services – especially in regards to cooperation with multiple manufacturers. Moreover, this solution is much better in delivering results than if Boeing had done it in-house.


Still, cloud does not replace data centers. Cloud is not an end-all solution. From a management standpoint, cloudsourcing should be viewed as another type of outsourcing. Activities that are outsourced to the cloud still need to be managed effectively to be successful. Companies need to understand what benefits cloud can bring, how to implement it and which activities should be outsourced and left to a third-party. The hybrid solution that worked for Boeing might not work as well for every business.

Read next: What to outsource for best results?

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