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Tuesday, Jan 11 2011

Cloud Computing – Creating Enterprise IT Outsourcing Opportunities in 2011

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I found an interesting post yesterday from Colin Smith on TechRepublic on how Cloud Computing will change the role of the IT professional. He makes some valid points about the rapid shift to the cloud especially for SMB and the impact that shift will have on both the role of the IT professional and the role that IT outsourcing firms play in cloud application migration, development and management.

At Armada, we have also noticed that while there is indeed a shift in the way IT departments look based on the movement of their applications to the cloud, this is creating a real opportunity for outsourcing, even in the enterprise. Smith indicates that for smaller service providers “there are opportunities to help small businesses take advantage of cloud services and save money either through migration services or cloud service reselling.” We actually are seeing a huge demand for these types of services in all kinds of companies – not just SMB.

During the past 6 months, we have taken the approach of focusing on cloud application migration and other cloud IT services and find that our real value-add is our ability to provide the in-depth experience that companies would otherwise have to train or hire to achieve. By using an experienced professional services provider, our clients, ranging from innovative start-ups to established Fortune 500 powerhouses, are finding economies of scale through on-demand, specialized, outsourced teams. This saves them headcount and OpEx, not just the CapEx savings that cloud inherently provides.

What are your thoughts on outsourcing your cloud application migration and application development projects versus creating in-house solutions?