Public Cloud Outsourcing

Although cloud computing is a new computing paradigm, outsourcing information technology services is not. The steps that organizations take remain basically the same for public clouds as with other, more traditional, information technology services, and existing guidelines for outsourcing generally apply as well. What does change with public cloud computing, however,is the potential for increased complexity and difficulty in providing adequate oversight to maintain accountability and control over deployed applications and systems throughout their life cycle. This can be especially daunting when non-negotiable SLAs are involved, since responsibilities normally held by the organization are given over to the cloud provider with little recourse for the organization to address problems and resolve issues, which may arise, to its satisfaction.

Reaching agreement on the terms of service of a negotiated SLA for public cloud services can be a complicated process fraught with technical and legal issues. Migrating organizational data and functions into the cloud is accompanied by a host of security and privacy issues to be addressed, many of which concern the adequacy of the cloud provider’s technical controls for an organization’s needs. Service arrangements defined in the terms of service must also meet existing privacy policies for information protection, dissemination and disclosure. Each cloud provider and service arrangement has distinct costs and risks associated with it. A decision based on any one issue can have major implications for the organization in other areas.

Considering the growing number of cloud providers and range of services offered, organizations must exercise due diligence when moving functions to the cloud. Decision making about new services and service arrangements entails striking a balance between benefits in cost and productivity versus drawbacks in risk and liability.

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