A State of Cloud #050 — Why the Industry needs Cloud Brokerage platforms

Cloud Computing is more and more becoming mature as IT delivery model. It’s helping customers to choose the best practice for their IT needs. 
One of the elements we see in this industry is developing of Multi-Cloud Strategies. Enterprises that adopt cloud use multiple cloud service vendors. Multicloud usage drives need for platforms that facilitate business processes of procurement, provisioning, monitoring, and governance.

What is a Multi-Cloud anyway?
Multi-Cloud is bundling multiple Cloud services to serve one purpose or to fulfill the need of certain department and their employees or prevent that the same employees are consuming Cloud services without informing the internal IT and Procurement department. Also known as Shadow IT.

Traditional IT Procurement & Service Delivery Model

In this overview you see that the service providers are in control of the distribution and delivery of services to end-users, ISVs, and business units. The business unit, IT End user and ISV are ordering through the internal selected and approved vendors by suggestion of the procurement department. This in contradiction of the need of the IT End user which is searching for a way or model to deploy instantly as their experience with procurement is slow and treacly before they got the needed approval. Especially when you as developer or project manager want to setup a testing set-up fast and agile.

Service Providers are being disenfranchised by cloud services. End-users now circumvent the traditional model and access services much faster through on-demand / rapid deployment nature of cloud infrastructure and software. This is causing multiple issues for companies. Not only you see that vendors seeing existing business moving towards cloud service providers. This also is creating Shadow IT.

But is Shadow IT such a thread as we all think. This is depending on what kind of organization you are or working for. A small medium enterprise which is only using on-premise IT services like (MS/Open) Exchange for internal communication and using a hosted customer relationship management (CRM) solution like Salesforce or Zoho or Dynamics is not having a real struggle with Shadow IT but more with a shifting of how-to-embrace the opportunities of an OPEX driven IT solution.

Rogue Spending on Cloud Services 
30–40% of organizations report the existence of unauthorized and uncontrolled spending on cloud services, this creates security risk and governance issues.

How prevent Shadow IT within your organization.
Cloud Brokerage enables Service Providers to evolve and adapt. Platforms like Computenext provides an automated way for external and internal IT Service Providers to deliver cloud services to their ecosystem.

In the illustration above you see that organizations which are offering a broad cloud computing selection with combination of offerings provided by vendors in a self service portal solving issues on several fronts. It’s answering the need of the internal customer as well the vendors to maintain the existing portfolio of products and services. In fact system integrators which provide such portals to their customers could win even more than only keeping existing business. They could serve the needs of their customers in providing multiple vendors in a self service portal in combination with additional services. Think about a ISP which is providing beside connectivity also Office365 and security as well the ability to provide products to enable end-point security. This will serve the customer with a one-stop-shop model as well the ability to enlarge their current supplier role.

Cloud Service Brokerage Market
The adoption of Cloud Services has created a demand in the market for platforms which assist in the aggregation, integration, and customization of cloud services. In the below illustrations you see a market analysis about the opportunity for brokerage service providers.

Growth of Cloud Brokerage Platform Adoption
Cloud brokerage Platforms are expected to form a larger part of the cloud brokerage market by 2018.

The expected Compound Annual Growth Rate (CAGR) of 55.3% for Platforms that help business transform and become Cloud Brokers.

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About the author, Marco van den Akker is Cloud Evangelist at Computenext
A State of Cloud is published every Monday. A State of Cloud is the view of the author, but feel free to comment on the topics or contribute your view on it. Please find overview of the latest posts at https://www.linkedin.com/today/author/cloudevangelist

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