How to Run Your Software? In-House vs. Online vs. Outsourced

Initial Costs

The initial costs of Internet-based services will typically be lower than in-house solutions because there is no software to install and no hardware to buy. This makes Internet services very attractive for businesses on a budget that want to try a solution to see if it is a good fit. Be sure to estimate the costs of each option covering at least a few years since in-house solution costs may decrease over time.

Reliability, Security and Control

MSPs and Internet Services Providers will typically have more expertise and more resources for running technology solutions because that is what they specialize in. Reliability and security are not trivial pursuits because they both require constant vigilance. However, the perceived tradeoff is that you give up some control and your data is accessible via the Internet—albeit under several layers of security.

The Type of Solution Can Make a Difference

The type of solution can also be a factor in deciding whether to run a solution in-house. For example, it can be very difficult for any firm to keep up on security and spam issues. Email and web hosting are examples where there is a significant benefit to choose an Internet Service or Managed Service Provider.

Certification for Managed Services and Internet Services

Both Managed Service Providers and Internet Services can seek certification to help show that they have adopted proper safeguards for your data. One certification is SAS 70—which stands for Statement of Auditing Standards Number 70—was developed by the American Institute of Certified Public Accountants (AICPA). SAS 70 seeks to ensure that proper controls are in place. Here is a site with more information http://www.sas70.com/

	1. In-House	2. Online / Software as a Service (SaaS)	3. Outsourced / Managed Service Provider (MSP)
General Advice	In-house can be an appropriate choice when it is cheaper or when you can't live with any loss of control. While your in-house mini data center will not be on par with a commercial data center, it can be "good enough" if you do some planning and have good access to IT help in case issues arise. One key is a to have a good backup and recovery plan and redundant hardware.	An Internet Service can be a great way to get rid of practical IT headaches like installation, server purchases and upgrades. Who wants to deal with those things if you don't need to? A key differentiator of an Internet service is anywhere and anytime access. If mobility is key and you lack the infrastructure to support it, an Internet Service is a great choice.	A Managed Service Provider can be a great way to get rid of practical IT headaches. A Managed Service Provider can be a good fit if you lack the resources for in-house IT staff but you still want someone dedicated to manage pieces of your infrastructure. Since the MSP essentially becomes a partner, it is vitally important that you get to know them well and check references.
Find More Information Use Research Helper to find related web articles	In-House "Data Center"	"Software as a Service" SaaS	"Managed Service Provider" MSP