Cloud Sourcing Models Dictate Sourcing Strategy

Anxious to take advantage of the rapid growth rates associated with cloud services, technology services vendors have developed a host of new solutions. These include pure infrastructure-as-a-service (IaaS) solutions, managed or enterprise cloud offerings, and private cloud offerings, and they bring new, higher levels of diversity and innovation to the managed services and hosting markets. To evaluate cloud services, sourcing and vendor management (SVM) professionals need to observe the distinctions between pure IaaS, dedicated server hosting, managed virtual hosting, managed cloud hosting, and hosted private clouds and consider the implications of future sourcing models that will include several or all of these offerings. This report highlights key distinctions in these offerings and explores how they affect key sourcing considerations such as pricing models, service-level agreements (SLAs), and regulations.