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This Week in Cloud — Choosing between building internal vs. external services

philnguyen ‎04-30-2012 02:16 PM - edited ‎06-26-2015 09:35 AM

HP recently launched a video series called This Week in Cloud. Hosted by Paul Muller, Chief Software Evangelist with HP Software (@xthestreams on Twitter), the videos aim to address some of the questions you have about real-world cloud deployments.


In Episode 3 this week, Paul and Christian Verstraete, chief technologist of cloud strategy for HP, looked at building internal services vs. external services, and how businesses can approach transforming legacy applications and business processes to take advantage of a hybrid cloud deployment model.


Christian argues for using Geoffrey Moore’s core/context analysis framework to identify what applications and business data are key to achieving a sustainable differentiation in the target market, i.e. they result in premium prices or increased volume. If data or an application meets this standard, then they are classified as “core” and should be closely controlled within a private cloud environment; if it doesn’t, it is “context” and can be moved to a managed private cloud or public cloud.


But Christian also notes in the video that data should be assessed separately from applications. For instance “context” application could reside in a public cloud and refer to “core” data stored in a private cloud. What then needs to be determined are the risks of bringing that data temporarily out of private and into public.


The live chat on Twitter (#convcloud) focused on risk, security, compliance and the SLAs of cloud service vendors. Two especially relevant tweets:



“It depends on contractual arrangements. Put critical where you have top SLA use public for the rest. #convcloud



@krypt3ia That's what we've been trying to get people discussing to realize. Classify first, then figure out strategy #ConvCloud


I’m curious to hear your reaction to this approach. What usually tips the balance when deciding to build an internal service versus outsourcing to an external cloud provider? Is it mostly a question of evaluating security and compliance risks, or is business strategy taken into account?


Post your comments or any questions you have in the forum thread {How do you choose between building an internal cloud service vs. an external service?} ( 


You might also be interested in this technical white paper: Accelerate your cloud journey - HP Converged Cloud Architecture 


Watch the video here.




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Phil is the community manager for IT Experts Community.

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