Should You Outsource Your Company's Technology Infrastructure?

Cloud-based is a popular term today. Many companies and IT professionals tout the benefits of going to a cloud-based system for your business -- lower start up costs, more security, less IT expenses...the list goes on.

But, cloud-based servers are not the best solution for all businesses. Outsourcing your infrastructure can create some operational issues and may even cost your company more in the long run! So where do you begin?

The primary considerations on outsourcing have not changed: Does it make business sense? What are the expenses/benefits?  In making these type of decisions, your company must examine the total cost of ownership for both on-site and cloud-based systems. With these comparisons in hand, as well as a good understanding of your business operations and challenges, your staff can make an informed, educated decision. 

When considering cloud-based versus on-site infrastructure, costs (mainly start up costs) typically favor cloud-based. But there are other factors to consider when looking at the total cost of ownership:

  • Capital Costs versus Operating Expenses- Most businesses do not view or manage capital expenditures the same as operating expenses.  Purchasing and installing on-site servers, etc. typically fall under a capital expense, while maintenance is operating. Cloud-based services are usually set up as a monthly billed amount and fall under operating.
  • Ongoing Expenses - With on-site equipment, you will have to factor in maintenance, technician time and other ongoing services. Much of these costs are included in the cloud-based monthly fees.
  • Indirect Business Expenses - Consider issues such as employee downtime, increased business agility, etc. 


OIS provides software systems for accounting and for managing your business documents that work well regardless of your infrastructure. Learn more about selecting the best infrastructure for your business with this in-depth Rackspace Case Study.