|By Jason Bloomberg||
|November 15, 2012 08:00 AM EST||
Since ZapThink wrote our ZapFlash on Cloud Brokerages in April 2011, the Cloud Brokerage marketplace has exploded. Or at the very least, the noise level involving such Brokerages has reached a fever pitch, which the vendors in the space want you to think is the sound of an exploding market anyway. Regardless of your level of cynicism, however, there’s no question that Cloud Brokerages are a hot topic. But as with so many new markets, confusion reigns—in large part because such Brokerages come in so many different flavors. That being said, this market also suffers from rampant Cloudwashing, which refers to vendors (and service providers) who stick the “Cloud” label on existing offerings to take advantage of the Cloud hype. Let’s see if we can separate the steak from the sizzle and delineate how Cloud Brokerages are actually supposed to work.
Gartner: Cloudwashing Facilitator
For better or worse, many people turn to Gartner when they have questions about nascent IT markets. Gartner, however, is a vendor-driven market research firm, rather than a purveyor of vendor-independent best practices. Their research on Cloud Brokerages is a case in point. Gartner defines a Cloud Service Brokerage (CSB) as being composed of three core roles: aggregation, integration, and customization. They point out that the role of Aggregation Broker aligns with the traditional distributor role; the Integration Broker corresponds to the system integrator (SI); and the Customization Broker similarly aligns with the independent software vendor (ISV).
What’s wrong with this picture is that distributors, SIs, and in particular ISVs pay most of Gartner’s bills. So when they conduct their research, they talk to their customers and find out what kinds of CSBs they’re offering. And what do those customers say? I’m a distributor, but now I’m a Cloud Aggregation Broker! I’m an SI, but now I’m a Cloud Integration Broker! And most tellingly: I’m a software vendor, but now I’m a Cloud Customization Broker! It doesn’t really matter if any of these players have something that actually works, or even if it does, it may have little or nothing to do with the Cloud, and there’s no guarantee that any enterprise buyer will actually want what they’re peddling. But hey, it’s an emerging market, so what do you expect?
Contrast Gartner’s list of CSB roles with those from the US Department of Commerce’s National Institute for Standards and Technology (NIST). According to NIST’s Cloud Conceptual Reference Diagram, CSBs have three core capabilities: aggregation, arbitrage, and intermediation. Yes, NIST and Gartner both agree on the importance of aggregation, but that’s where the meeting of minds diverges. NIST calls for arbitrage (support for dynamic pricing in a Cloud services marketplace), but arbitrage isn’t on Gartner’s list. Why not? Perhaps because Gartner didn’t have any Cloud arbitrage vendors to interview when they did their research? Your guess is as good as ours.
As for intermediation, NIST has something quite different in mind from Cloud integration. When a Brokerage intermediates between Cloud customers and Cloud Service Providers (CSPs), the Brokerage provides a range of business-related capabilities, including assurance, consolidated invoicing, and SLA management, independent of whether the Brokerage is also providing integration capabilities between Cloud customers and CSPs. True, CSBs may end up offering integration as well, but more likely as an advanced capability that will become a reality down the road a few years. So why has Gartner included it and not intermediation? Because of the SIs, as well as the B2B integration vendors who have all Cloudwashed their offerings into Cloud Integration Brokerages.
The Two Cloud Brokerage Lifecycles
Instead of taking a vendor-centric perspective on CSBs, let’s think about how people might actually use them. There are two basic types of users for a CSB: the CSP who wishes to make its offering available in the Brokerage, and the Cloud customer who is looking for services from a CSP and is calling upon the CSB to help in some fashion. We expect such customers to be large enterprises who have several departments or divisions who wish to access Cloud services. For such organizations, the Brokerage serves to present a single face to the CSPs while supporting each department’s individual requirements for Cloud services.
To understand the role of the CSB, let’s start with the lifecycle from the CSP’s perspective:
Registration – The CSP must register with the Brokerage in order to begin the enrollment process.
Certification/Assessment – The CSB will assess the candidate CSPs and certify the ones that qualify to join the Brokerage.
Enrollment – The CSP follows the Brokerage’s process for making its services available via the Brokerage.
Negotiation – Once a customer selects the CSP through the Brokerage, the parties must negotiate a business arrangement. The Brokerage may act as an intermediary or simply hand off the negotiation to the two parties.
Provisioning – The Brokerage may assist the CSP in provisioning Cloud resources for the customer.
Management – Management comes in two flavors: business management, where the Brokerage handles invoicing, payments, and other business interactions on behalf of the parties; and technical management, where the Brokerage assists in SLA monitoring and other technical management tasks.
Assurance – The Brokerage may provide auditing and other assurance activities on behalf of customers to insure CSPs are in compliance with required regulations and other policies.
Integration – In some cases the Brokerage may act as an integration hub between CSPs and customers.
Support – The CSP must support the customer, and the CSB may act as an intermediary for such support.
Deprovisioning – If the customer wishes to discontinue a relationship, the Brokerage may assist with deprovisioning. This step may include delivering data to the customer, confirming customer data no longer reside in the Cloud environment, and wrapping up the business relationship. If the relationship between CSP and customer went south, the CSB may even be called upon to provide litigation support.
Now, let’s take a look at the CSB lifecycle from the Cloud customer’s perspective:
Research – The CSB must provide information to potential customers so that they can make informed decisions about Cloud options available to them through the Brokerage.
Qualification – The customer enters its criteria for Cloud services into the Brokerage, and the Brokerage should only show CSPs and individual Cloud services that meet the customer’s requirements.
Assessment – The CSB may assess the customer’s business or technical environment in order to gauge suitability for particular services available through the Brokerage.
Selection – The customer selects services through the Brokerage.
Negotiation – The Brokerage supports the ability for customers and CSPs to negotiate business terms, either by facilitating direct communication or via automated intermediation, which would typically include arbitrage capabilities.
Acceptance – The customer is able to accept the business terms it selects via the Brokerage.
Onboarding – The Brokerage supports the customer’s efforts to provision Cloud resources, either by facilitating direct interactions between customer and CSP or via an automated onboarding capability.
Management – Management appears on both the CSP and customer lifecycles because it always involves managing the relationships between the two (both business and technical).
Assurance – Assurance also involves both customer and CSP. The Brokerage may take a limited or active role. The CSB will interface with the organization’s Information Assurance organization, but the CSB’s involvement doesn’t absolve the CSP or the Cloud customer from performing their due diligence in meeting their respective security and compliance objectives.
Integration – When the Brokerage acts as an integration hub.
Failover – Many customers will use the Brokerage to handle switching from one CSP to another. Such failover may occur as the result of a technical problem (e.g., a denial of service attack brings down the primary CSP) or a business problem (the primary CSP no longer offers the best deal, or in the extreme case, the CSP goes out of business).
Offboarding – The Brokerage may also handle wrapping up business loose ends should the customer cancel its relationship with a CSP.
The ZapThink Take
The point to listing so many steps on the two CSB lifecycles isn’t to propose a final definition of such lifecycles, of course – the market is far too young for that. If anything, they are wish lists for what we might want Cloud Brokerages to do for us, based not on Brokerage-related products and services on the market today, but rather on what people expect Cloud Brokerages to do. But as with any technical capability, what you want it to do depends upon the core business problems you’re looking to solve. In the case of Cloud Brokerages, there remains a rather diverse set of potential business drivers that is leading the marketplace to grow in a complex, messy fashion.
Not only will individual organizations’ requirements for Brokerages differ, ZapThink is also seeing divergence of requirements among industries. In particular, the US Federal Government is very interested in Cloud Brokerages, with Requests for Information from the General Services A (GSA) as well as the Defense Information Systems Agency (DISA). In both cases, one of the Government’s key requirements is to support fair competition among CSPs – contrary to private sector customers, who couldn’t care less about such competition, except insofar as it leads to lower prices in the marketplace.
In some ways, the Government is like any other large enterprise. It has hundreds of agencies, each of which may have dozens of individual programs, all clamoring for Cloud services. They are looking to Brokerages to support the ability for such programs to select the best CSP offering for their needs, while providing the best overall value to the Government as a whole. On the other hand, in its role of promoting the general welfare of the people of the US, it is uniquely qualified to foster competition among CSPs and Cloud vendors, leading to better quality and lower prices for everyone.
Image credit: Karen and Brad Emerson
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
Jul. 23, 2016 05:00 PM EDT Reads: 923
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Jul. 23, 2016 04:00 PM EDT Reads: 2,289
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Jul. 23, 2016 04:00 PM EDT Reads: 1,963
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Jul. 23, 2016 03:45 PM EDT Reads: 1,488
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jul. 23, 2016 03:30 PM EDT Reads: 1,828
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 23, 2016 03:15 PM EDT Reads: 768
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 23, 2016 03:00 PM EDT Reads: 1,643
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Jul. 23, 2016 02:30 PM EDT Reads: 1,696
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 23, 2016 02:15 PM EDT Reads: 616
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 23, 2016 01:00 PM EDT Reads: 814
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Jul. 23, 2016 12:00 PM EDT Reads: 1,119
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 23, 2016 12:00 PM EDT Reads: 830
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Jul. 23, 2016 11:00 AM EDT Reads: 1,139
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 23, 2016 11:00 AM EDT Reads: 1,815
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Jul. 23, 2016 10:45 AM EDT Reads: 1,965
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,918
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,039
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 23, 2016 09:45 AM EDT Reads: 963
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 23, 2016 09:45 AM EDT Reads: 1,732
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 23, 2016 09:15 AM EDT Reads: 1,024