• 4,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Glossary » Industry cloud strategy

Industry cloud strategy

Definition

Industry cloud strategy

An industry cloud strategy is the plan to buy cloud platforms fitted to one sector’s data model, workflows and regulator. It is a market question. A hybrid cloud strategy is a deployment question about which workloads sit where; neither implies the other.

The pitch is simple. A general platform hands you a database and a blank screen; an industry cloud arrives with the sector’s record formats, consent rules, reporting templates and audit trail already built.

Most of it arrives as Software-as-a-Service (SaaS), sometimes with a sector data model sold underneath. You are buying compliance work you would otherwise do yourself — and a switching cost you pay later.

Key takeaways

  • An industry cloud strategy decides which sector-specific platforms you buy rather than build.
  • The rulebook comes first: obligations, record formats and the filings a regulator expects.
  • It says nothing about deployment; an industry cloud can be wholly public, and a hybrid estate can be any industry.
  • The trade is faster compliance now against a harder exit and a narrower route into other markets.

How it works

An industry cloud strategy starts with the rulebook, not the technology. You list the sector obligations, the record formats regulators expect and the workflows every competitor shares, then decide which of those you will never build yourself.

SectorWhat the platform pre-buildsThe rulebook behind it
Healthcarepatient records, consent, exchange purposesTEFCA and privacy rules in the United States
Bankingledgers, know your customer files, suspicious activity reportscentral bank and anti money laundering rules
Insurancepolicy, claims and reserving data modelssolvency and conduct regulators
Public sectorcase files, retention schedules, accessibilityprocurement and national archive rules

Healthcare is the clearest case. The Office of the National Coordinator for Health Information Technology publishes the Trusted Exchange Framework and Common Agreement (TEFCA), which sets the permitted reasons for sharing patient health data.

Those purposes include treatment, payment, healthcare operations and individual access. A vendor that has not built around them is selling you a database, not a health cloud.

Build only what makes you different. Every hour spent rebuilding a filing format your regulator already specified is an hour not spent on the thing customers actually choose you for.

Configuration is where the time really goes. The platform knows the sector — it does not know your products, your legacy codes or the three exceptions your biggest client negotiated in 2019.

Check regulator coverage before the feature list. A platform built for one country’s rules may hold none of the forms you file, and finding that out after signature is the expensive way to learn it.

Ask who owns the data model. In some industry clouds the vendor owns the schema and you rent access to your own records, which matters enormously on the day you decide to leave.

Financial services has its own version. On 30 April 2020 the Federal Deposit Insurance Corporation (FDIC) issued an interagency statement noting that cloud services carry shared responsibilities between the provider and the client.

That letter applies to every FDIC-supervised institution, which is what turns a vendor’s security brochure into a bank’s examinable obligation.

Skills decide delivery. A cloud engineer who already knows the sector data model is worth more than two who do not.

Adoption is the other half. Track your digital adoption rate by workflow, because a platform fitted to your regulator still fails if nobody uses the module that produces the filing.

Examples

Four sectors where the pre-fitted platform has become the default buy. The rulebook changes from healthcare consent to banking returns, insurance solvency and customs paperwork. What never changes is that the obligations are set outside the vendor, not by it.

Healthcare in the United States. Record formats, consent and permitted exchange purposes are set outside the vendor, so hospitals buy platforms that already speak them. Building that from a blank database is a multi-year detour nobody funds twice.

Banking in Singapore and the Philippines. Core banking clouds ship with know your customer files, suspicious activity reporting and the central bank’s return formats. The regulated end of the digital economy now runs largely on these platforms.

Insurance in the United Kingdom. Policy, claims and reserving models come pre-shaped to solvency reporting. Most buyers reach them through digital transformation outsourcing rather than a direct build, because the configuration work is the hard part — not the hosting.

Logistics across the European Union. Customs declarations, driver hours and cross-border tax reporting are identical for every operator and worth nobody’s engineering time. Platforms ship them pre-built and compete on routing instead.

In each case the platform is bought for what it already knows about the sector. The buyer is paying to skip a rulebook translation, not to rent a server, and that is the whole proposition.

Related terms

FAQ

How is an industry cloud different from ordinary cloud?

An industry cloud ships with one sector’s data model, workflows and reporting already built. Ordinary cloud gives you raw capacity and expects you to build those yourself. The difference is roughly two years of compliance engineering.

Does an industry cloud strategy mean a hybrid estate?

No. The two answer different questions. An industry cloud can run wholly on public infrastructure, and a hybrid estate can serve any industry at all.

What is the main risk?

Lock-in. A platform shaped around one regulator is awkward to carry into another market, so price the exit before you sign rather than after. Ask for your data in a documented format as a contract term, not a favour.

Who should own it?

Whoever owns the sector obligations, jointly with the chief information officer. A platform choice the compliance side has not signed off is a choice that gets reversed, usually eighteen months in and at full cost.

Is it cheaper than building?

Usually at the start, rarely forever. You save the first two years of compliance engineering — and pay a subscription that scales with your success.

Compare specialist technology and transformation partners in the Outsource Accelerator directory before you commit.

Companies you might be interested in

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,700+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
4,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 4,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 4,000 firms
  • Simple
  • Transparent
Banner Image
Close