Cloud Services Brokerage Market Size- KBV Research

Posted by KBV Research on March 27th, 2019

What is Cloud Service Brokerage?

Cloud Service Brokerage involves a broker, an entity who is responsible for managing the use, performance, and delivery of cloud services and negotiates the relationships between cloud providers and cloud consumers.

Cloud services are the IT services that are provisioned and accessed from a cloud computing provider. It is an umbrella concept which integrates the delivery and service models of cloud computing and its related solutions. These services are delivered over the internet and can be accessed across the globe from internet availability. Cloud services deliver numerous IT services hosted in-house. These include provisioning an application/database server from the cloud, switching in-house storage/backup with cloud storage and gaining access to software and applications directly from a web browser without any pre-installation.

Why do organizations need Cloud Service Brokerage and how do they benefit from it?

The IT architectures of organizations are increasingly becoming diverse and it is important to not remain confined within a single service provider’s approach as it could hamper the options or the way of interoperability. Adopting a cloud service brokerage platform, based on open Application Programming Interfaces (APIs), improves flexibility and facilitates the accumulation of a variety of cloud services.

An experienced cloud service broker can help organizations to leverage the collective skills, certifications, and experiences that the broker’s team has established through working across numerous applications, infrastructures, and tools. This has proven to be a major benefit to conveniently improve security as this vast technical expertise can easily detect diverse security risks and immediately remediate problems. Since a cloud broker aggregates services from various sources, it makes substantial investments in different forms to enable data migration and interoperability from the wide variety of platforms and services.

Where do we see Cloud service brokerage?

• Banking, financial services and insurance (BFSI)

Cloud computing is a one-stop solution for the problems arising from the different kinds of information. In the case of the BFSI sector, cloud computing has eased out many things such as interoperability, secure storage, 24×7 uptime, etc. The advancements in the IT sector have paved ways for several remarkable changes in the ways of handling information. Rather than implementing traditional ways of storing information in, several novel techniques like big data, machine learning & Artificial Intelligence, and IoT was considered to store and operate the information directly through the internet.

• Telecom & IT

Cloud Service Brokerage mechanisms allow the elastic and efficient use, across multiple cloud platforms,of cloud resources. They make it possible for cloud services providers to exploit increasing competitionin the cloud service provider market space in cost-effective manners. Cloud computing solutions areavailable only on a specific cloud provider platform, which optimizes the use of cloud resources. On theother hand, the optimized multi-site cloud brokerage processes allow economic consumption of cloudresources.

That being said, cloud-based, real-time multimedia telecommunications services and enhanced QoS assurance mechanisms for multi-site cloud brokers need to be in place to meet QoS requirements. Furthermore, the surging demand for Cloud Services Brokerage from the telecom and IT industry to deliver data harmonization and agility, swift request-driven provisioning, predictive analytics and reduction of the total cost of ownership of IT infrastructure is going to push the demand for these services over the period of time.

Types of Platform in Cloud Service Brokerage

• Internal Brokerage Enablement

Internal brokerage element delivers a cohesive multi-cloud/SaaS governance, compliance, security, support, and license management, spend management and overall utilization experience to employees. It offers centralized resources to the public as well as private cloud services’ users. The internal cloud service brokerage provides similar functionality features as those of external CSB offers, along with being able to arrange for an extra layer of depth and understanding in the precise cloud services that business requires.

• External Brokerage Enablement

The external brokerage enablement segment offers the supporting telecommunications providers, distributors, and value-added resellers, and cloud providers with multi-tenant cloud delivery and management platform, supporting the delivery of various services, channel support, and administrative activities. The enablement platform also incorporates various cloud service offerings on a single platform. This segment will probably emerge in the near future owing to various business advantages and opportunities that it provides to technology and service providers.

Types of Services offered by Cloud Services Brokerage

• Governance & Control

A broker belonging to cloud service brokerage platform focuses to deliver efficient governance services. This is specifically crucial in highly regulated industries like healthcare and financial services, in which protection of consumer data is of prime importance. The broker here ensures that the provider of cloud services treats the data in harmony with regulations and policies, and also ensures that security practices are followed. The governance and control service will ease the acceptance of cloud in industries who rigorously need to protect their data.

• Integration, Sourcing, & Procurement

A highly qualified cloud service integrator combines services from a range of cloud providers into a new network business process. The value proposition of the cloud integrator is that it generates automated cloud-based workflows that the customer would otherwise have to integrate. Integrators add value to improve performance and reduce business risk by automating workflows across hybrid environments through a single orchestration. Once the migration is complete, the integrator can provide the organization with continued support if necessary.

To Conclude

Cloud Service Brokerage provides process, technology, and expertise to operate IT as an industry. It performs three primary roles, aggregation brokerage, customization brokerage, and integration brokerage. Increasing cloud computing services adoption and rapidly increasing hybrid and multi-cloud environment adoption are boosting demand for cloud service brokerage.

With the rapidly increasing adoption of multi-cloud platforms, numerous choices are being offered to companies. Progressively, companies rely on external expertise to select the best cloud solutions to ensure consistent performance and security as well as business agility. In the years to come, this is expected to boost demand for cloud service brokerage. In addition, business processes are constantly evolving to meet consumer demands with the transforming technology landscape. To conclude, it has been estimated that on a global level, the Cloud Service Brokerage Market is very likely to grow at a CAGR of 16.4% over the coming years.