12 Advantages of Outsource Hosting vs. In House Hosting

Often in the world of SaaS, servers and cloud, the big question a company may ask themselves is this: Do I outsource my hosting or build it myself in house?

Often times on the surface the idea of building, buying your own gear, and running it on your own may appear to be the more cost effective option. However, if you consider the big picture including the emergence of the managed cloud then outsourcing is not only more cost effective, it makes the most sense. Consider these factors when comparing outsourcing vs. building it yourself.

1. Capital Depreciation

Outsourcing is considered an OPEX. There is no hardware to have depreciated over time. When hosting internally you have expensive equipment to purchase as a CAPEX plus maintenance agreements, collocation or utility costs, and other “surprise” investments. Outsourcing presents a predictable monthly recurring expense.

2. Employee Turnover

Employee turnover can happen at any time for many reasons. If key people running your internal environment leave the company, you could be left trying to pick up and maintain critical pieces. Outsourcing removes this risk as you’re under contract with a business that provides and guarantees these services with complete documentation and continuity.

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How INetU Empowers SaaS

Much like the Cloud, the SaaS can hold a unique definition depending on who you talk to. SaaS stands for “Software as a Service” meaning software that end users leverage online through a web browser or client based application connected to a cloud-like infrastructure or Infrastructure as a Service (IaaS). A SaaS provider would typically license an application to customers as a service on demand or through a subscription based model.

Most software organizations are moving towards this model because in addition to being a standard platform it’s easier for their customers to use and buy. The end customer doesn’t need to worry about their own hardware, facilities or troubleshooting the OS as they would in an ASP type of model and instead just pays a fee to use the service.

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