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April 2013, Volume 2, Number 4

The benefits of insourcing data center operations

Outsourcing may be in, and insourcing may be out, but before pushing data center operations entirely to the cloud, consider the parallels in other industries. Boeing's newest passenger plane, the 787 Dreamliner, has been in the news for equipment failures. Batteries catching fire, electrical problems and fuel leaks are among the problems that have grounded the planes, on top of the serious delivery delays that customers -- the airlines -- have experienced. Many analysts have blamed the extensive outsourcing. As much as 70% of the design and assembly was outsourced, unintentionally driving knowledge and profits to the suppliers and away from Boeing. The result is a product that is billions of dollars over budget, late, malfunctioning and grounded by the Federal Aviation Administration. Other companies are doing exactly the opposite with operations, bringing design and manufacturing back in-house and back into the United States from China. GE is building appliances again in its long-shuttered facilities in Kentucky. Its water ...

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