The Many Interpretations Of Cloud Brokers

The Many Interpretations Of Cloud Brokers

Cloud Brokers

I had an interesting discussion the other day with a person who said “I don’t believe in cloud brokers.” I thought about the opening gambit for a bit wondering if in the end Cloud Brokers like the Easter Bunny and Santa Clause were open for “interpretation.”

Anyone can argue with a concept. But Cloud Brokers aren’t real? They are so “last century?” It was an interesting conversation. Cloud Broker is a term that many organizations mis-use or twist/bend to fit their product and their definition. I am a broker they loudly proclaim and then they show their product proudly labeled “Cloud Broker.” This also comes up when you play the “IT is a Commodity” game either at home or work.

Or as some pundits now proclaim IT as a Service you can consume. The reality of IT is that it has been a commodity for many years, the large outsourcing vendors have made a living taking IT services and selling them back to the business. Commodity IT services simply represent in all cases the expertise your organization doesn’t have today, that you won’t need next week. IT Services that you will need this afternoon for two hours and maybe an hour next week. You don’t want to hire someone for that 10 hour period so instead like cloud you leverage the existing Utility model for consulting. You go to XYZ Company and you rent a consultant.

The same is true in Cloud computing. What people miss is that the nature of those two hour consulting gigs is the reality of the relationship. You don’t go create a new relationship every time you want to bring on a consultant. You leverage the existing consulting partnerships you have. The same is true of the broker. Rather than having 20 distinct connections with 20 distinct Cloud Service Providers that you manage and maintain, you have one with the broker.

Now the broker is so much more than a relationship site. But in the long run it makes solid business sense to have that one place you go for cloud services. For the first part the more customer’s the broker’s collect the more bargaining power they have. All Cloud Service Providers have tiered or discounted services models. If you have a lot of customers you most likely will be able to pass along the greatest discount.

Saving 10 to 15% overall on your cloud costs would certainly justify the 1-3% fee the broker would apply to providing that service. Plus the broker could off you so much more. Shared Security services would allow the broker to notify you of any and all attacks in the system regardless of which customer was being attacked. You get more information about attacks and the broker can provide additional security services that will ensure you don’t fall prey to the attack.

Brokers can even offer a simple transaction fee model. For most customer’s you will want the flat rate from your broker, but some smaller or less active organizations could consider a 1% per transaction fee from the broker to cover the cost and services the broker provides.

I think the more interesting statement now isn’t “Cloud Brokers aren’t real,” instead it is more along the lines of consider “who is saying brokers aren’t real.” In the long run smart cloud service providers will line up to sign up with a broker. It reduces their cost of sales and gives them a consistent and larger pool of customers. But in the short run most of them don’t like the broker model. They equate it to the 1990’s when we would book travel through a broker. They don’t like the concept of IT as a Commodity today. I suspect that will change.

My answer to the question “I don’t believe in cloud brokers” was in the end what you see above and ending with the simple statement “it was long believed that human beings were not physically capable of going faster than 35 miles per hour.

By Scott Anderson

About Scott Andersen

Scott is a Principal Solutions Architect for ActioNet in the Washington DC area. Scott's focus is on building and delivering solutions for the US Federal Government. Before focusing on US Government solutions Scott worked in the commercial space. From Cloud to Cyber Physical Systems Scott is always looking over the horizon to see what is next.

View All Articles

Sorry, comments are closed for this post.

The Evolution Of The Connected Cloud

The Evolution Of The Connected Cloud

The Connected Cloud Cloud computing is interesting first, but not only, because of the prevalence of cloud projects. There are many of them launched every day. Some have lofty expectations for business benefits (cost saving of 20 percent or more) and others carry even more intriguing goals. In 2005 “the cloud” was new. Shared computing…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls…

Are You Sure You Are Ready For The Cloud? SDI

Are You Sure You Are Ready For The Cloud? SDI

Software Defined Infrastructure Well, we have come full circle with this string of subjects; about making sure you are ready for the cloud. We have talked security, storage, access, connectivity and feasibility to name a few. Now, lets discuss SDI. What is SDI? It simply stands for “Software Defined Infrastructure”. Many people have their own…

Is Windows 10 The Final Piece Of Microsoft’s Cloud Strategy?

Is Windows 10 The Final Piece Of Microsoft’s Cloud Strategy?

Windows 10 – Microsoft’s Cloud Strategy By all reports, Windows 10 is a resounding success. Microsoft reported that 14 million users downloaded the latest version of its operating system in its first 24 hours of availability. That number is ten times higher than launch-day downloads of Windows 8. Independent sources confirm that Windows 10 now…

IoT Rapid Expansion Throughout The World

IoT Rapid Expansion Throughout The World

IoT Rapid Expansion Cyber Physical Systems (CPS) are a nomenclature used to define the world beyond IoT devices. CPS includes the robotic and automation systems that interact with the IoT devices. Based on that changing landscape I have come to realize that CPS and by default IoT devices actually have three distinct concerns. The three…

‘Tis The Season To Be Deploying Sensors

‘Tis The Season To Be Deploying Sensors

Deploying Sensors Overhead the Christmas Drones are buzzing, delivering packages to the good girls and boys. Back at the main location people are analyzing the good and bad data collected over the year about each person. Data analytics that is creating a list, gathering all the data and then checking the data on that list…

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud Cloud computing is more than just another storage tier. Imagine if you’re able to scale up 10x just to handle seasonal volumes or rely on a true disaster-recovery solution without upfront capital. Although the pay-as-you-go pricing model of cloud computing makes it a noticeable expense, it’s the only solution for many…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Advertising