Click here to close now.




















Welcome!

API Journal Authors: Elizabeth White, Carmen Gonzalez, Liz McMillan, AppDynamics Blog, Vormetric Blog

Blog Feed Post

Cloud Brokerage and the Future of the IT Utility

Abstract:  Cloud Brokerage is an emerging trend in the broader cloud computing industry.  Opinions differ widely about what it means to be a broker and the significance brokers will have on the future of the industry as a whole.    The reality is that the brokerage model signals the real potential to commoditize the compute utility, which will climax with the genesis of compute as a tradable commodity like soybeans, oil or minerals.  In this four part series we will take a deep dive into the concept of cloud brokerage and connect the dots between the key trends and market demands that will shape a force few in the industry see coming and fewer still are prepared to accept.

Part I:  The Analysts Weigh In

The National Institute of Standards and Technology (NIST) has established a working paper on the subject of cloud brokerage, signaling the importance of a movement that is taking shape inside the cloud computing industry as a whole.

The NIST working document describes the Cloud Brokerage success criteria as follows:

cloud-user wishes to carry out an action on cloud-provider-1 using a federated interface, with no direct knowledge of cloud-provider-1 commands or interfaces. A cloud-management-broker offers the cloud-user a federated interface to multiple cloud-providers through a human user interface, an application programming interface or both.  The cloud-user selects desired cloud-provider-1 resources, action and action parameters using the cloud-management-broker interface.  The cloud-management-broker collects and marshals the selected action and parameters from the cloud-user‘s selection and issues the desired command to cloud-provider-1 using cloud-provider-1 native interface.

The idea of cloud brokerage warranted enough noise to be covered in detail within the analyst community in 2011.   However, depending with whom you subscribe, cloud brokerage has very different meanings.  While there has been definite progress on the behalf of the analyst community, I think the potential for what this model could mean for the cloud computing market goes much deeper.

To be clear, I believe the role of what I am calling the “infrastructure broker” will be the most significant movement in the computing industry since the advent of virtualization and cloud.

Before I get into the immense complexities of that statement, let’s take a look a few perspectives from key industry analysts:

Gartner:

According to Gartner research expert Benoit Lheureux, the role of the Cloud Service Broker (CSB) is to “aggregate and add value to cloud services by providing a single point of entry to different types of cloud services.”   Gartner goes on to illustrate some key defining characteristics of a cloud broker.  According to Gartner, a CSB is a CSB if they genuinely perform:

  • Aggregation across VARS and IT Distributors
  • Integration with Systems Integrators
  • Customization for SI’s and Professional Services organizations

Gartner’s definition of Cloud Brokerage is by far the lightest among the analysts.  If you believe Lheureux, Cloud Brokerage is really just the modernization of the IT channel.

451 Group:

451 generally consider the category of CSB a part of broader market called cloud on-ramps.   In addition to providing some sort of provisioning technology, CSBs differ “in that they provide a value-added economic function, which matches workloads to the best execution venues.”

While I think 451 only provides cursory attention to cloud brokerage as a concept, the are at least more directionally correct in the sense that they see Brokerage providing a level of sophistication that is unique in the delivery of cloud services – namely the concept of ‘workload matching’.

Forrester:

I think Forrester has done the best job among the research outfits when it comes to taking a seriously deep look at the CSB market definition.   Forrester sees the CSBCloud Value Propositionsplaying a pivotal role in the future of the entire industry.   Analyst Stefan Reid’s taxonomy picture does a fantastic job of identifying the interaction of different players.

According to Forrester, “the simple broker model gains value only by comparing similar cloud provider options and using dynamic provisioning based on the actual spot prices of these resources.”  This sounds similar to 451 and Gartner in direction and tone.

But Forrester goes on to elaborate on what they see the as the evolution of the brokerage model.  “The full broker [model] goes far beyond [the simple broker].  It uses “cloud bursting” to provide IT users with higher value for a lower price.”  Cloud Bursting, Forrester explains, “is the dynamic relocation of workloads from private environments to cloud providers and vice versa.”   I’ll admit a slight sigh when I hear the cloud ‘bursting’ term (again), but I think Forrester has a great grasp on the technical role of the broker.

Gartner sees brokering as little more than modern distribution.   451 sees the concept as something they instinctually must cover but the details are hazy.   Forrester has obviously put the most thought into their analysis.  But the consistent underlying theme within these analysts is that brokerage insinuates a model whereby vendors inserting themselves and their technology between supplier and consumer to provide a layer of transactional value.

The debate and discussion goes much deeper than this and the potential for the cloud broker is much more profound.

In Part II of this post we will take a closer look at the role of the intermediary and who is likely to take up this position in the market.

 

 


Read the original blog entry...

More Stories By John Cowan

John Cowan is co-founder and CEO of 6fusion. John is credited as 6fusion's business model visionary, bridging concepts and services behind cloud computing to the IT Service channel. In 2008, he along with his 6fusion collaborators successfully launched the industry's first single unit of meausurement for x86 computing, known as the Workload Allocation Cube (WAC). John is a 12 year veteran of business and product development within the IT and Telecommunications sectors and a graduate of Queen's University at Kingston.

@ThingsExpo Stories
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...