Cloud Service Brokerage - Opportunity and Benefits

Cloud service broker sits above cloud providers, add value reduce complexities and risks for cloud computing customers.

There are significant opportunities for players in cloud brokerage space today. Gartner expects the revenue from cloud services brokerage to increase from just USD 50 mn in 2010 to USD 5 bn in 2014, and will be fastest growing cloud service during this period.

Gartner report outlined three categories of cloud brokers that will enhance cloud services: 

·         Cloud Service Intermediation: An intermediation broker provides value added services on top of existing cloud platforms, such as identity or access management capabilities.

·         Aggregation: An aggregation broker provides the "glue" to bring together multiple services and ensure the interoperability and security of data between systems.

·         Cloud Service Arbitrage: A cloud service arbitrage provides flexibility and “opportunistic choices” by offering multiple similar services to select from.

Key Advantages of cloud service brokerage for enterprises, It helps in:

Cloud Service Intermediation: An intermediation broker provides value added services on top of existing cloud platforms, such as identity or access management capabilities.

Aggregation: An aggregation broker provides the "glue" to bring together multiple services and ensure the interoperability and security of data between systems.

Cloud Service Arbitrage: A cloud service arbitrage provides flexibility and “opportunistic choices” by offering multiple similar services to select from.

CSB Prediction in Expert words:

 Cloud service brokerage is the single biggest revenue-generating opportunity in cloud and its potential is far greater that cloud service.

To clarify how the cloud brokerage market can be larger than the market it is based on, Plummer offers this explanation: “Remember that the accessories markets for many other markets are larger than the primary markets,” he says. “You pay brokers for the value they generate on top of existing cloud services. That’s new value and thus greater spend.”

 The advantage to consumers – more predictable cost management. The advantage to providers – up-front payments.

Click here to know more information on how Cloud ‘Brokers’ Can Help ISVs Move to SaaS stated by Cognizant.