Big Data Technology: In-House vs Outsource

Amazon is surely the biggest rival for everyone who is in retail. Companies big or small know that if they cannot compete with Amazon in its method of dealing with inventory and storage solutions, they may as well be doomed for ever. Depending on the budget affordable, they will deploy their own team to create data centers and solutions. True, that some big companies do have their fair share of big data solutions and they may well match the retail giant in various fields. But, surely that is hardly the case for small companies working across limited domains. Hence, small companies need to think optimally, especially while distributing resources. Software-as-a-service of SaaS has already shown that new solutions can be deployed quickly instead of thinking about the infrastructure for too long. Also, storing everything internally is another maddening drive that propels many retailers and they try to follow the path of Amazon. However, there are better alternatives.

Managing the cost

While Amazon can afford it because of its stature, going in-house for everything out there is a lousy decision for retailers of all levels. If you are going to do that, you may as well need extremely competent internal teams. However, that would be self-limiting by all means since maintaining an internal team of data science PhDs will cost 150,000 dollars per employee and even with that much money spent, it is difficult to keep them since the engineers tend to prefer the big names because of the glamour. Hence, higher salaries has to be paid to keep them, which ends up draining all the money behind a wild goose chase. So, if you simply keep a high-profile team of such engineers, you end up spending 4 million dollars per year to keep them happy and working. SaaS solution, on the other hand, costs 1 million. So, creating your in-house team can weigh heavy on you if you are an SME.Big Data Technology: In-House vs Outsource

Being flexible and reachable

The market is a powerful agent in determining the kind of business that happens. The faster the product reaches from the lab to the market, the more it will be relevant to the market and the more value can you derive out of this technology. Else, what once was innovation becomes outdated since others have got wind of that and they have released the product faster than you. SaaS helps you in this regard since the internal teams often work from the scratch and hence, their systems are often unidirectional. Such is hardly the case with SaaS, since the solution is remarkably flexible and can be incorporated under many scenarios. In short, you get rid of maximum human intervention and let software do the work for you.

Innovation never stops

While in-house teams are discouraged because they are expensive and cumbersome in their process, it is true that without a team, innovation cannot happen and without innovation, SaaS will not progress as a solution, Hence, beyond its fantastically simple functioning, SaaS can help you evaluate your position in the market. So, if you tally your performance to other contenders in the market in the same business you will see where you stand right now. However, giving everything to third party means giving the complete privacy of your company to a stranger. Hence, beyond the simple interpretations of data, companies should ensure that the purchases occurring should be secured within the enterprise premise and this data should never be explicitly available. Since algorithms exist in a top-down manner so that they understand what goes beneath them and then try to present the results accordingly.  If you don’t employ people to write algorithms, at least employ them to ensure the security of the infrastructure.

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Srikanth is the Cheif editor for Techiexpert, Brings in 10+ years of experience on Emerging Technologies like IOT, Big Data, Artificial Intelligence .. He currently handles the day to day operations, involves in strategic decisions as a media partners for the technology event across globe , Srikanth can be reached at


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