Compare and contrast IT outsourcing and cloud computing
IT outsourcing involved an organization selling its IT resources (hardware, software, and facilities) to a third-party outsourcing vendor and then leasing back IT services from the vendor for a contract period of typically between five and ten years. A variant of IT outsourcing, called cloud computing, is location-independent computing whereby shared data centers deliver hosted IT services over the Internet. An organization pursuing cloud computing signs a contract with an IT service provider to provide computing resources. When demand exceeds the provider's IT capacity, it acquires additional capacity from data centers in the "cloud" that are connected via the Internet. The advantage to the client organization is access to whatever computing power it needs, while it pays only for what it uses. Also, cloud computing contracts are flexible and relatively short term. In contrast, traditional outsourcing contracts tend to be fixed price, inflexible, and much longer term.
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