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 Andersen is the managing partner and Chief Technology Officer of Creative Technology & Innovation. During his 25+ years in the technology industry Scott has followed many technology trends down the rabbit hole. From early adopter to last person selecting a technology Scott has been on all sides. Today he loves spending time on his boat, with his family and backing many Kickstarter and Indiegogo projects.

View All Articles

Sorry, comments are closed for this post.

Increasing Efficiency and Reducing Cost with Managed Printing Services

Increasing Efficiency and Reducing Cost with Managed Printing Services

Managed Printing Services This is a sponsored post written on behalf of HP MPS.  Today’s business leaders recognize the value of shared services, significantly providing a wide range of enterprises with the sophisticated tools they need to compete with big business, while additionally driving costs down. But an area often overlooked in our tech-savvy world…

Curing Cancer With Big Data

Curing Cancer With Big Data

Cancer & Big Data The fight against cancer has been going on for centuries. Many leaders have tried and failed to bring about change to cancer treatment. Richard Nixon famously declared a War on Cancer with the National Cancer Act of 1971, and while the Nixon administration certainly increased research funding, they ultimately fell short…

IoT & Predictive Analytics In Healthcare

IoT & Predictive Analytics In Healthcare

IoT & Predictive Analytics In a report by Grand View Research Inc., it’s predicted that the global Internet of Things (IoT) healthcare market will reach nearly $410 billion by 2022, with mobile penetration, software automation, and innovation medical devices promising rapid testing, greater accuracy, portability, and user-friendliness. Chronic diseases such as obesity, diabetes, heart failure,…

What Do You Do With A Drunken Sailor? Look To The Cloud

What Do You Do With A Drunken Sailor? Look To The Cloud

Saferide App Petty officer Michael Daigle of the US Navy has rolled out an app to curb drunken driving in the Navy ranks. His Saferide ride-sharing service runs on Voxox’s Cloud Phone service which costs just $15 a month and is popular among US Service members abroad, where mobile phones are not permitted for use…

Red Hat Offers Container Native Persistent Storage for Linux Containers

Red Hat Offers Container Native Persistent Storage for Linux Containers

Red Hat Offers Container Storage Latest Red Hat Gluster Storage release enables greater agility and efficiency for OpenShift developers deploying application containers in production SAN FRANCISCO – RED HAT SUMMIT – June 28, 2016 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced new storage innovations designed to enable developers to…

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…

Surprising Facts and Stats About The Big Data Industry

Surprising Facts and Stats About The Big Data Industry

Facts and Stats About The Big Data Industry If you start talking about big data to someone who is not in the industry, they immediately conjure up images of giant warehouses full of servers, staff poring over page after page of numbers and statistics, and some big brother-esque official sat in a huge government building…

Mobile Connected Technologies – The Future Of The Healthcare Industry

Mobile Connected Technologies – The Future Of The Healthcare Industry

Mobile Connected Technologies Clinics, hospitals, and other healthcare facilities are embracing new mobile technologies in order to be more efficient in their daily tasks. With faster communication and better collaboration, clinicians can spend much less time handling medical devices and more time administering care to their patients. Industry experts are stating that mobile connected technologies…

How Data Science And Machine Learning Is Enabling Cloud Threat Protection

How Data Science And Machine Learning Is Enabling Cloud Threat Protection

Data Science and Machine Learning Security breaches have been consistently rising in the past few years. Just In 2015, companies detected 38 percent more security breaches than in the previous year, according to PwC’s Global State of Information Security Survey 2016. Those breaches are a major expense — an average of $3.79 million per company,…

Low Cost Cloud Computing Gives Rise To Startups

Low Cost Cloud Computing Gives Rise To Startups

Balancing The Playing Field For Startups According to a Goldman Sachs report, cloud infrastructure and platform spending could reach $43 billion by 2018, which is up $16 billion from last year, representing a growth of around 30% from 2013 said the analyst. This phenomenal growth is laying the foundation for a new breed of startup…

10 Trending US Cities For Tech Jobs And Startups

10 Trending US Cities For Tech Jobs And Startups

10 Trending US Cities For Tech Jobs And Startups Traditionally actors headed for Hollywood while techies made a beeline for Silicon Valley. But times are changing, and with technological job opportunities expanding (Infographic), new hotspots are emerging that offer fantastic opportunities for tech jobs and startup companies in the industry. ZipRecruiter, an online recruitment and job…

Why Small Businesses Need A Business Intelligence Dashboard

Why Small Businesses Need A Business Intelligence Dashboard

The Business Intelligence Dashboard As a small business owner you would certainly know the importance of collecting and analyzing data pertaining to your business and transactions. Business Intelligence dashboards allow not only experts but you also to access information generated by analysis of data through a convenient display. Anyone in the company can have access…