The Many Interpretations Of Cloud Brokers

The Many Interpretations Of Cloud Brokers

The Many Interpretations Of Cloud BrokersToo Many Broker Choices

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

Follow Me

Scott Andersen

Director of Consulting Services at CGI
Scott is the Director of Consulting Services CGI. Scott’s role is focused on building solutions that augment and support the missions of US Federal Agencies. Scott has been an IT professional for more than 20 years. He has also worked as the Director Cloud Strategy at Lockheed Martin, Chairman IASA Board Of Education at International Association of Software Architects (IASA) and worked as the Senior Enterprise Architect at Microsoft. Scott's articles can periodically be seen on CloudTweaks as well as a number of other sites he has helped contribute to.
Follow Me

Latest posts by Scott Andersen (see all)

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Contributors

Cloud Infographic – Wearable Tech And Preventative Healthcare

Cloud Infographic – Wearable Tech And Preventative Healthcare

Wearable Tech And Preventative Healthcare There are so many exciting new opportunities available to utilize wearable technology in the future.  Areas such as nanotechnology disease monitoring, crowdfunding to wearable accessories are some excellent examples of the potential. Estimates vary, but appear to suggest that the market will produce between $14-50 Billion over the next few years. Included below

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

Aggregated News

Popular News Sources

Storage Considerations for SharePoint Backups

Storage Considerations for SharePoint Backups

Storage Considerations for SharePoint Backups Wednesday, October 29, 2014 @ 9:00 am/12:00pm ET. Backup and Restore of a SharePoint environment can be a complex endeavor as the product consists of multiple components running at various tiers, each with their own backup and restore requirements. In addition, SharePoint documents are stored as Binary Large Objects (BLOBs) in

OpenDNS Deployment Leads to Twenty-Fold Decrease in Malware Infections at Hamamatsu

OpenDNS Deployment Leads to Twenty-Fold Decrease in Malware Infections at Hamamatsu

Decreases in Malware Infections at Hamamatsu OpenDNS, a leading provider of cloud-delivered security, today announced that it has enabled Hamamatsu, a Japanese manufacturer of optical sensor technologies, to virtually eliminate malware infections across its U.S. Read the source article at Finance News About Latest Posts Follow MeScott AndersenDirector of Consulting Services at CGIScott is the Director

IBM and Microsoft – What Are They Doing With The Hybrid Cloud?

IBM and Microsoft – What Are They Doing With The Hybrid Cloud?

What Are They Doing With The Hybrid Cloud? “Microsoft is committed to helping enterprise customers realize the tremendous benefits of cloud computing across their own systems, partner clouds and Microsoft Azure,” said Scott Guthrie, executive vice president,Cloud and Enterprise, Microsoft. “With this … Read the source article at CNNMoney About Latest Posts Follow MeScott AndersenDirector of Consulting Services at