Cloud Brokerage Services
The expansion of cloud computing has led to a happy democratization of IT services. Companies that could only afford basic IT can now go in for full-fledged ERP solutions. However, while the cost barrier has been broken, knowledge and skill barriers still remain. Not every small and medium business can afford to start out with staff that can guide the company to proper utilization of cloud based-services. Many busy CEOs may not even have the time to study the subject.
New capabilities in Cloud Computing have gone way beyond simple storage of data. With full-fledged applications being run over the cloud, there are complex issues of integration, security and relationship management. If the busy CEO does not have time to manage these issues, he would perhaps give up for the moment and decide to look at the issue when he can afford to hire IT staff. This is a pity. IT and the proper use of cloud computing can add wings to his business but he must put it on hold because he can’t afford the staff or invest his own time.
That is where cloud brokerage comes in. Brokerages serve as intermediaries between the cloud service provider and the end user. They help the end user overcome the complexity and get the service they need.
The cloud broker need not be a person. It could be software or suite of technologies that will aggregate the services a user needs (even with different vendors) and package them so that they get a complete package that fits business needs closely. If the company were to achieve the same result through its own manpower, it would have to fritter away precious resources. It is far more cost-effective to use the services of a broker if cloud computing needs are well-defined and do not need extensive customization.
There are three parts of the service that a broker provides:
- First, the broker would understand customer needs and research the marketplace to offer a customized solution. The broker would ensure regulatory compliance, manage security and disaster recovery and deliver a single service to the user that encompasses all of these.
- The cloud services broker would offer a single Service Level Agreement (SLA) to the customer. This would include every activity that is needed by the customer. At the back-end, the broker could have separate SLAs with his subcontractors.
- Service continuity would be the brokers’ responsibility.
Cloud brokerage becomes even more critical if you are in an industry where there are several regulatory requirements for the business to run. Using specialist brokers who understand your industry and its regulatory requirements is an industry wide best-practice.
There are three categories of cloud brokers available today: Intermediation Brokers, Aggregators and Cloud Arbitrage Services. The services they provide are described below -
- Intermediation Brokers – Such a broker starts with a basic existing service that the cloud provider is already making available. He then adds additional essential services that make the original service more robust and reliable. This creates a more stable and complete product. The additional services could be identity management, access control or security overlays. Using such a Broker is a simple and cost effective method of building robust capabilities.
- Aggregation Services – The aggregator is a cloud services broker who puts together a set of services from different vendors and builds them into a complete product. He will assure your company a specified level of performance and will put the measurement systems in place to ensure it. You pay the aggregator a single amount and he handles the accounts with the vendors he uses.
- Cloud Services Arbitrage – This is a business model where a broker purchases a large quantity of a resource at wholesale rates. They then parcel it out into smaller chunks and make it available to end users at a competitive rate.
If you are a company that is still in a rapid growth phase, using cloud brokerage would permit you to get the best of the breed cloud solutions without needing to hire a full time IT staff. Your IT solutions can grow with your company without ever becoming a non-productive drain.
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About the Guest Author:
Sanjay Srivastava has been active in computing infrastructure and has participated in major projects on cloud computing, networking, VoIP and in creation of applications running over distributed databases. Due to a military background, his focus has always been on stability and availability of infrastructure. Sanjay was the Director of Information Technology in a major enterprise and managed the transition from legacy software to fully networked operations using private cloud infrastructure. He now writes extensively on cloud computing and networking and is about to move to his farm in Central India where he plans to use cloud computing and modern technology to improve the lives of rural folk in India.
