Outsourcing and managed services are terms that are used interchangeably. Cloud computing is a term that’s misused and misunderstood. Offering outsourced or managed services in the cloud is only going to result in more semantic chaos. But it may offer some business benefit too.

Outsourcing involves handing over one’s IT infrastructure, including staff, to a third-party provider to run, manage and maintain. A managed service involves contracting a third party to manage a service on your behalf, meaning you retain ownership of the resources and someone else puts in the elbow grease. There are variations and hybrids, but the main differentiator seems to be ownership.