Understanding Cloud Services Brokerage

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Definition

• “Cloud services brokerage (CSB) is an IT role and business model in which a company or other entity adds value to one or more (public or private) cloud services on behalf of one or more consumers of that service via three primary roles including aggregation, integration and customization brokerage” - (Gartner)

• “Cloud Service Broker offers intermediation, monitoring, transformation/portability, governance, provisioning and integration services and negotiate relationships between various cloud providers and consumers” - (National Institute of Standards and Technology)

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Business Model (Forrester) @abelgomezr

Capabilities

• Intermediation: this type of broker provides value added services on top of existing cloud platforms, such as identity or access management capabilities.

• Aggregation: similar to a system integrator, it packages services from multiple cloud providers and ensures the interoperability and security of data between systems.

• Arbitrage: it provides flexibility and “informed decissions” by offering multiple similar services to select from.

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Capabilities - Intermediation

• Ensuring efficient business operations through standardised lower business operation costs, an agile workforce and improving business productivity.

• Establishing an efficient IT operation that improves standardisation and interoperability with easier system and network management

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Source: cso.com.au

Capabilities - Aggregation

• Improving the organisations ability to address critical enterprise-wide issues like security and enables transformation.

• Supporting the business to achieve maximum return on investment in technology whilst reducing the complexity of existing environments.

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Source: cso.com.au

Capabilities - Arbitrage

• Providing the business with the flexibility to build, buy, or out-source its desired technology outcomes whilst understanding the overall risk in new investments and their cost of ownership.

• Evolution of a capability aligned with the core principles of enterprise architecture. Cloud brokerage is the next evolution of enterprise architecture.

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Source: cso.com.au

Internal CSB

• IT organizations that want to provide internal self-service Cloud Catalogs with a unified security, compliance, license management, support, and user experience for their employees or affiliated members.

– Enterprise and government IT organizations unifying

services delivery and lifecycle management for their employees

– Associations or other communities of interest (e.g., healthcare), providing services to affiliated members

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External CSB

• Focused on monetizing cloud services delivery by aggregating and selling from their own private-branded Cloud Marketplaces. Extension of the existing business: – Service providers – Telcos & MVNO – Distributors – Financial services organizations – Technology OEMs – System integrators – Vertical / other marketplaces

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CSB Business Model (Jamcracker) @abelgomezr

CSB Business Model (AppDirect) @abelgomezr

CSB Business Model (Parallels) @abelgomezr

Operations

• Platform: CSB workflow automation, catalog management, billing, authentication, and access control

• Cloud services: Integration with externally and internally hosted cloud services

• Operation and support: Billing, end-user support, marketplace operations

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Enablement Companies @abelgomezr

Future

• MarketsandMarkets expects the Cloud Brokerage Enablement market to grow from $225.42 million in 2013 to $2.03 billion by 2018, at a CAGR of 55.3%.

• In terms of the global Cloud Services Brokerage market, the forecast is to grow from $1.57 billion in 2013 to $10.5 billion by 2018.

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CSB Enablement Market

CSB Market

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Thank you!

@abelgomezr