Cloud Database Administration and The Death of Traditional Outsourcing

It is always challenging to find anything real at an event the size of Oracle OpenWorld

. 43,000 people jammed into 4 square blocks aimlessly walking from booth to booth. One has to wade through the magicians, sumo wrestlers, golf booths, jugglers and the rest of the glitz and glamor to actually find a meaningful IT discussion.

However, one thing was glaringly clear this year.

Traditional offshore IT outsourcers are scared and confused about the future of their business model. The world is changing around them and they know it.

10 years ago,Bluewolf made the strategic decision to avoid the "gold rush" as companies relocated huge IT infrastructures from their locations in the US to remote areas of India, China and Eastern Europe. The business model seemed simple. Take advantage of the best and the brightest from developing nations for a fraction of the cost. However, there was a fledgling movement taking place that posed the greatest threat to their model: the Cloud.

Bluewolf was part of that movement.

This weekAmazon Web Services (AWS) asked Bluewolf to present ourcustomer success stories at Oracle OpenWorld, over a three day period. So what does this have to do with traditional outsourcing?

Well, we got a good look at the other traditional IT outsourcing firms exhibiting, ones like Cognizant and Accenture, who each generate $5 billion+ in annual revenue.

What do traditional DBA companies know about the Cloud?

The answer is simple nothing. Waterfall methodology is at the core of every project they do. The IT outsourcing firms at OpenWorld struggled to articulate a vision for how companies can benefit from Cloud technologies. However, they all attempted to position themselves as thought leaders on the subject. How can they be leaders inCloud deployment when every dollar they generate is outside of the Cloud?

The facts are in.

There is an exploding curiosity out there around the agile deployment of infrastructure in the Cloud (Ellison himself gave AWS a big shoutout in his keynote on Sunday). Companies are realizing that the scalability and flexibility that you get when moving traditional environments whether Oracle or SQL Server or MySQL to the Cloud is the next wave of IT infrastructure trends.

Offshore IT resourcing will be over as we know it in 5 years. They are running scared as the Cloud matures, and companies embrace the economies of the Cloud, instead of the economies of cheap labor.

Written by: Michael Kirven, Bluewolf Co-Founder Cloud Database Administration and The Death of Traditional OutsourcingBy: scottlaughlin

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