Content

CloudBrokerJKCloud service broker definition

Cloud service broker role & services

Cloud service broker market opportunity

Challenges cloud service broker

Examining the cloud broker market opportunity & role of IP

Cloud broker IaaS

 

In the SOA Magazine III “Cloud Computing Definition & Architecture for Cloud Service Brokers” we introduced the cloud computing definition, concepts and the idea of Cloud Service Broker. In this article we discuss the Cloud Service Brokers in details including their roles, services, market opportunity and challenges.

 

Cloud service broker definition

The paper “Defining Cloud Services Brokerage: Taking Intermediation to the Next Level” written by Daryl C. Plummer, Benoit J. Lheureux, Frances Karamouzis and published by Gartner in October 2010, defines cloud services brokerage (CSB) as "A cloud services brokerage is a business model in which a company or other entity adds value to one or more (generally public or hybrid, but possibly private) cloud services on behalf of one or more consumers of those services." The authors do not define cloud brokers in categories like the NIST definition in 2011 (Service Intermediation & Service Aggregation & Service Arbitration). Instead the paper highlights the types of CSBs by backup & recovery, integration, customer development, governance or service marketplace. In recent papers Gartner follows the NIST cloud broker categories.

Cloud service broker examples:

Category

Cloud Service Intermediation

Cloud Service Aggregation

Cloud Service Arbitration

Example

Salesforce Identity

Dell Boomi

Zimory

Cloud service broker role & services

CSB’s reduce the complexity between cloud providers and cloud consumer. In an internal private cloud scenario, the internal IT organization takes on the role of broker.

For a cloud consumer a CSB’s can handle security, governance, portability & interoperability, regional regulatory and legal issues. Also a CSB can add value adding services to a cloud solution. Therefore a CSB might increase the business continuity. On the other hands a cloud broker adds an additional single point of failure between several cloud providers and a cloud consumer. In the case the cloud consumer decides to work with several CSB’s this increases again the complexity.

Cloud service broker market opportunity

Gartner highlights the market potential of CSB. In 2010 Gartner conducted a survey, in which users plan to use CSB’s for

  • 57% backup & recovery
  • 52,8% integration
  • 48% custom development
  • 40% governance
  • 36% service marketplace

Gartner concludes “By 2015, CSBs will represent the single-largest category of growth in cloud computing, moving from a sub-$1 billion market in 2010 to a composite market counted in the hundreds of billions of dollars”. Currently SAAS and IAAS are the largest categories in cloud computing. AS the market potential is huge more and more leading cloud providers offer a complete platform. For example Salesfore.com stated with CRM services, added force a PaaS platform and offers Salesforce Identity a cloud service intermediation. When a market opportunity becomes interested and large enough these large providers like Google, Salesforce, Microsoft, IBM or Oracle will offer services. These providers do have the market power to offer complete and proprietary cloud economies.

An interesting development are the joint partnerships between leading cloud vendors. Oracle and Microsoft announced a partnership in June 2013. As part of this partnership cloud consumers and deploy Oracle databases and Oracle WebLogic middleware on the Microsoft Azure cloud. Salesforce and Oracle plan to standardize and integrate their SAAS cloud services. Salesforce CRM should be integrated with Oracle HCM and Financials. This new partnerships will reduce the need for CSBs. The cloud consumers might profit from better integrated solutions and better interoperability between cloud providers. Or in the other case these large vendors might enable cloud brokerage between their cloud solutions out of the box. Additional more and more IT companies offers Cloud Service Brokers out of the box. For example Oracle launched the Cloud Adapters like pre-build cloud service intermediation brokers between solutions like Salesfore.com, RightNow and on-premises applications like SAP R3. Eventually this integration services will also become available in the Oracle Cloud Integration Service planed for mid 2015.

Challenges cloud service broker

Potential challenges between several cloud providers might increase the overall SLA’s. For example a CSB brokers two credit check services from different cloud providers. If one provider fails, the other cloud provider might be still available. The CSB brokers of this service and the cloud consumer can still get credit check results. On the other hand if the CSB fails all cloud services are not available for the cloud consumer, therefore the CSB might be a single point of failure. The cloud consumer might decrease this risk by using several CSBs for the same cloud services. This might increase the complexity significant. Imagine the use of several CRM solutions integrated with several e-mail solutions and be synchronized and managed by several CBS.

Examining the cloud broker market opportunity & role of IP

Cloud brokers need to offer their consumer an added value. IP is the foundation for CSB. In todays model integration between systems is delivered often on a project base by a system integrator. These SI can leverage this knowledge and re-use it to build and become a CSB. Based on the Cloud Provider SIs will be supported with a marketing platform to promote the CSBs. For example Oracle gives it’s partners to promote re-usable assets like CSBs within the Cloud Marketplace.

Cloud broker IaaS

An emerging area of CBS is the brokerage of IaaS. Solutions deployed on a defined stack like Red Hat OpenStack can be shifted between private and or different public clouds. Red Hat offers a technology call Cloud Forms to manage the stack and broker the workload. Other vendors like Oracle offer similar technology e.g. Nimbula. Cloud consumers get the freedom to choose the IaaS provider.

References

Source Defining Cloud Services Brokerage: Taking Intermediation to the Next Level

Source Defining Cloud Services Brokerage: Taking Intermediation to the Next Level

Source: http://www.oracle.com/us/corporate/press/1964592

Source: http://www.oracle.com/us/corporate/press/1964798

 

Jürgen Kress

Jürgen KressAs a middleware expert Jürgen works at Oracle EMEA Alliances and Channels, responsible for Oracle's EMEA fusion middleware partner business. He is the founder of the Oracle SOA & BPM and the WebLogic Partner Communities and the global Oracle Partner Advisory Councils. With more than 5000 members from all over the world the Middleware Partner Community is the most successful and active community at Oracle. Jürgen manages the community with monthly newsletters, webcasts and conferences. He hosts his annual Fusion Middleware Partner Community Forums and the Fusion Middleware Summer Camps, where more than 200 partners get product updates, roadmap insights and hands-on trainings. Supplemented by many web 2.0 tools like twitter, discussion forums, online communities, blogs and wikis. For the SOA & Cloud Symposium by Thomas Erl, Jürgen is a member of the steering board. He is also a frequent speaker at conferences like the SOA & BPM Integration Days, JAX, UKOUG, OUGN, or OOP 

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