Cloud Brokers EXECUTIVE OVERVIEW MAKING ITAAS A PRACTICAL REALITY?

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1 Cloud Brokers MAKING ITAAS A PRACTICAL REALITY? This report examines what a cloud broker is, its components and functions, its role(s), its audience and how it supports the delivery of ITaaS by turning technology into service delivery. KEY FINDINGS If cloud is the on-demand version of computing, brokering is the on-demand version of IT procurement. A cloud broker is one capability of a cloud management platform (CMP). CMP suppliers are in a tricky position: They must preserve the agility and self-service model that led the business to adopt the cloud in the first place, while at the same time allowing IT to retain control. Cloud brokers business model is similar to those of traditional distributors, VARs and SIs but in the cloud world they must respond more quickly and be able to scale. Brokering is not about price, per se it s about matching workloads to the cloud to find the best performance match for those workloads. The trust that comes with branded technology is less important than getting the experience right. This market is not terribly meaningful from a revenue point of view today; however, it is very meaningful from a leadership perspective. OCT 2014

2 451 RESEARCH REPORT SNAPSHOT TITLE Cloud Brokers ANALYST RELEASE DATE October 2014 LENGTH William Fellows Research Vice President - CloudScape 30 pages ABOUT THIS REPORT As enterprise cloud adoption increases, IT departments must begin thinking more like businesses and striving to transform themselves from cost centers into IT as a service (ITaaS)-delivery organizations. Brokering is the on-demand version of IT procurement; cloud brokers can help customers use multiple cloud providers and give them freedom of choice in which service is used for what workloads. Eighteen months after our initial surveillance of the embryonic cloud broker market, it seems everyone wants in on the cloud broker game in one capacity or another. This report examines what a cloud broker is, its components and functions, its role(s), its audience and how it supports the delivery of ITaaS by turning technology into service delivery. We chart the cloud broker market, highlight firms that supply technology components and/or provide service delivery that support ITaaS, and scrutinize the diverse range of business models in play or being tested. We also identify technical, organizational and business challenges that remain unsolved or unresolvable.

3 Template TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY INTRODUCTION KEY FINDINGS METHODOLOGY SECTION 2: WHAT IS A CLOUD BROKER? WHAT IS ITAAS? WHY ARE BROKERS NEEDED? Figure 1: Best Execution Venue for Workloads by Cloud Type WHY BECOME A CLOUD BROKER? Figure 2: Entities Involved in Broker and Traditional IT Procurement 8 SECTION 3: HOW DOES IT WORK? CLOUD BROKERS BROKERING THE SELFIE APPROACH DISTRIBUTORS-TURNED-BROKERS CLOUD EXCHANGES AND BROKER-DEALERS CLOUD MARKETPLACES INTEGRATORS Figure 3: The Cloud Broker Market Landscape SECTION 4: BROKER-ENABLING TECHNOLOGIES REQUIRED TOOLS AND FUNCTIONS Figure 4: Broker-Enabled Technology Market Landscape CLOUD BROKER AS PART OF A CLOUD MANAGEMENT PLATFORM Figure 5: Common Service Offerings of CMPs 16 SECTION 5: GETTING INVOLVED CONSIDERATIONS WHEN BECOMING OR USING AN EXTERNAL BROKER SERVICE CONSIDERATIONS WHEN BECOMING AN INTERNAL BROKER

4 451 RESEARCH 5.3 THE ENTERPRISE ITAAS MATURITY MODEL Consumerization and Shadow IT Does the Organization s ITaaS Maturity Match the Technology Offered? 20 Figure 6: The Enterprise ITaaS Maturity Model Where To Start 21 SECTION 6: USE CASES AND ECONOMICS CAPGEMINI T-SYSTEMS VODAFONE ENTERPRISE PERSPECTIVE SECTION 7: MARKET OVERVIEW THE MARKET FOR CLOUD BROKER SERVICE PROVIDERS THE MARKET FOR CLOUD BROKER-ENABLING TECHNOLOGIES SECTION 8: CLOUD BROKERS: CONCLUSIONS AND RECOMMENDATIONS RECOMMENDATIONS FOR VENDORS RECOMMENDATIONS FOR SERVICE PROVIDERS RECOMMENDATIONS FOR ENTERPRISES RECOMMENDATIONS FOR INVESTORS INDEX OF COMPANIES 31

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