BPO and Cloud Computing
PROJ-410-20319
05/24/2015
Betty Schobey
BPO and Cloud Computing

Purpose
The purpose of this document is to provide relevant data to help quickly and succinctly with the decision and thought making for the outsourcing process and to help investigate the likelihood of a corporate process outsourcing project that would move the data center to the cloud. Cooling for the data center has become more expensive and more servers and disks will need to be implemented. The research below will show how outsourcing could effectively free up internal resources that could be put in to effective use for other purposes and by delegating responsibilities to external company we rid ourselves of roles that are challenging to handle and control while still receiving their benefits. With the rising cost of hardware and software the research provided will show how we can effectively save costs and offer a barrier principal reserve to businesses that could be leveraged in a way that best helps the organization. The development potential for the business is extremely encouraging, which means that more information will need to be housed, which will result in more being spent on the data center as whole. This document will show how outsourcing will help increase and garner access to additional markets, by taking the point of production or service delivery closer to their end users Current Situation
The current situation as it stands is shows the company had enjoyed high overall growth until fierce competition flattened sales and decreased profits sharply two years ago. Since then, corporate cost and overhead reduction efforts were widespread. Cooling for the data center has gone up as more and more servers and disks were installed. This cost, along with the electricity cost to run all of the devices in the data center, has Bob Smith, our CEO, worried that the cost of doing business is getting out of control. The cost of running a data center 24/7 is becoming rather large, and this is another issue that Bob Smith is concerned about at the moment. Also, the company has been in the midst of a corporate overhead reduction program. As part of this program, Bob had been assigned the task of reviewing opportunities in outside sourcing for data center services. He was expecting a report on this issue at the next executive meeting in three days.

Outsourcing/In-house
With what we know about how our overhead cost, the cost of the data center as a whole and with the thought of the company expanding these are the areas necessary to effectively outsource with also keeping the necessary components in-house for the company to still be viable and ran as we know it with minimal interruption.

Outsourcing
Keeping the Data Center cool
The cost of supplying electricity for the Data Center
The rising hardware cost to operate and maintain the Data Center
The rising software cost to operate and maintain the Data Center
The cost and time management to operate the Data Center 24/7
The cost of storing data
The cost of implementing a cloud base solution
The one central area of the companies growing cost can be contributed to the Data Center location. This is an area that we should consider outsourcing and here is why. By outsourcing our Data Center we would be:
1. By detaching our organization’s corporate HQs and the data center we would be removing the risk of a single event such as a utility shutdown or a natural disaster knocking out both facilities.
Risk:
The distance between the locations must also take into consideration the latency tolerance of the equipment that is operating in both locations.
Solution:
Many organizations today are alleviating that risk by implementing data center hubs at co-location facilities in key areas so that outsourced data center operators offer high-quality inventory.

2. Electricity is one of the leading cost in a data center. Large-scale data center operators normally consume 100 to 200 watts