Cloud Service Brokerage

A successful cloud computing strategy often involves customizing services from one or more vendors. One way to do this is through an intermediary service provider: a Cloud Services Brokerage(CSB).

CSBs will broker relationships between a service consumer and multiple cloud providers

A CSB can make it easier to consume and maintain cloud services, while reducing the cost and risk encountered when an enterprise tries to address these issues alone.

The future of cloud computing will be permeated with the notion of brokers negotiating relationships between providers of cloud services and the service customers. 

 In this context, a broker might be software, appliances, platforms or suites of technologies that enhance the base services available through the cloud. Enhancements will include managing access to these services, providing greater security or even creating completely new services." 

CSB Future:

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.

CLOUD SERVICE BROKER TYPES:

• Aggregator (a broker that takes multiple cloud services from different providers and funnels them through to clients like a channel.)

• Integrator (creates automated workflows based on cloud that the customer would otherwise have to integrate itself)

• This will be high revenue potential in this segment but with ability to perform the highly technical integrations required

• Governance (the broker ensures that the cloud service provider treats the data in accordance with regulations and policies, and that security practices are followed)

• Customizer (The Customizers will create extensions to existing cloud services in order to perform a specific function and then ensure that the extensions work properly.)

Source:

 ChannelPro-SMB, Gartner, plummer