Beyond today’s Cloud to Outsourcing 3.0

Today’s public Cloud services will combine with on-premise virtual private Clouds to deliver business services in the form of ‘Outsourcing 3.0’, according to IT industry analysts.

IDC research director for Cloud technologies and services, Chris Morris, says the move of infrastructure to Cloud providers is allowing them to begin to dictate standards and prices.

“We will see a lot of churn in the software market, which will become a challenge for CIOs who are developing an expectation of continuous churn,” Morris says.

“The Cloud by 2015 will be ‘Outsourcing 3.0’ where organisations will consume many ‘messy’ services and putting all that together will be a big challenge for CIOs.”

Morris says that in two to three years the industry will stop talking about ‘Cloud’ as it will just be a given.

“It will just be the way things are delivered,” he says.

“Service sourcing and management becomes a key element of the CIO capability.”

The view from internal IT is increasingly about virtual private Clouds, which Morris says have become the ‘pin-up girl’ for 2011.

“We are well down the track from 2010 with virtual private Clouds and the market is worth about $500 million in the Asia-Pacic region this year,” he says.

Rise of community Clouds

Alongside regular public and private Cloud developments the concept of ‘community Clouds’ is beginning to emerge whereby suppliers will target Cloud services for specific verticals such as government, education and  nancial services.

Ovum research director, Kevin Noonan, says much of the discussion around Cloud relates to overseas public Clouds but there is increasing interest in so-called community Clouds, which are specialised on-shore services.

“In 2011 concerns around data sovereignty, security, contracts and SLAs can be met,” he says.

According to Noonan,a community Cloud is like shared services and the notion of ‘just trust us’ doesn’t work with government departments, some of which remain concerned about whether data leaves their state borders.

In June, HP announced its government secure Cloud services targeted at state and federal government agencies, which is an example of the emergence of community Clouds. Noonan says CIOs still need to treat public and private or community Clouds as separate cases.

“Community Clouds will start to develop signi cantly and the reason is they provide a way for sharing private Clouds to gain the savings of pooling while still retaining the independence of particular organisations,” he says.

“HP, Macquarie Telecom and even Telstra are starting to look at distinct private Clouds as part of their offerings or groups of organisations to start selling community Clouds.”

Noonan says a community Cloud can be de ned as a group of private Clouds coming together and the very large government departments are already doing it.

“Education is another area,” he says.

“It applies to like-minded groups that aren’t necessarily competitive.”

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