Lecture notes on cloud computing IV b. Tech-1 st semester prepared by


DISTINGUISHING CLOUD COMPUTING FROM OUTSOURCING



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DISTINGUISHING CLOUD COMPUTING FROM OUTSOURCING
AND PROVISION OF APPLICATION SERVICES
Cloud computing is different from traditional outsourcing and the application service provider (ASP) model in the following ways
In general, outsourcers tend to take an entire business or IT process of a customer organization and completely run the business for the benefit of the customer. Though the outsourcer may provide services similar to those by multiple customers, each outsourcing arrangement is highly negotiated, and the contract is typically lengthy and complex.
● Depending on the nature of the outsourcing, the software belongs to the customer, and software sublicense rights were transferred to the outsourcer as part of the arrangement. The customers systems are run on the customers equipment, though it is usually at an offsite location managed by the out- sourcer.
● Pricing is typically negotiated for each outsourced relationship. The outsourcer‘s ability to scale to meet customer demand is a slow, and also negotiated, process. The location of the data and processing is known, predetermined, and agreed to contractually.
● In the ASP model, the service provided is a software service. The software application may have been used previously in-house by the customer, or it maybe anew value-added offering. The ASP offering is a precursor to what is now called software as a service The transaction is negotiated, though typically it is not as complex and highly negotiated as a traditional outsourcing arrangement.

The provider owns the software and hardware, and the software is accessed over the Internet. The software tends to reside in one physical location or a group of known locations with redundant and disaster recovery backups, if any, being housed with third-party providers.
Pricing models vary by service, but tend to be negotiated. The more sophisticated ASPs have realized that the provision of software over the Internet is not the same as licensing of software, and the contracting vehicles for ASP relationships have slowly morphed from typical licensing models into services arrangements. There is no inherent ability to scale the use or availability of ASP services on demand, nor is it required.

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