Has the Time Come for Cloud Brokers?

As the cloud industry begins to enter the mainstream, other companies are jumping in to capture opportunities surrounding this industry. One group is the cloud brokers.

What is a cloud broker? A cloud broker plays an intermediate role in the cloud ecosystem. A Gartner report outlined three roles for cloud brokers:

1. Cloud Service Intermediation: An intermediation broker provides value added services on top of existing cloud platforms. This could include cloud identity management, customization, consulting, setup or access-management capabilities.
2. Aggregation: An aggregation broker provides the "glue" to bring together multiple services and ensure the interoperability and security of data between systems. This means that the vendor has some software that sits between you and the cloud vendors. Brokers may also perform the same functions in this market as they do in other markets by buying capacity from the cloud provider and subleasing these to you. Brokers may provide SLAs as part of this service.
3. Cloud Service Arbitrage: A cloud service arbitrage vendor provides flexibility and “opportunistic choices" by offering multiple similar services to select from often at different prices. You might also see finance or leasing companies involved in this.

The cloud industry is still new and somewhat fragmented. Cloud brokerage is even newer and the market is not well defined.

What are some things to think about when looking at a cloud broker?:

1. Do they offer SLAs? This is important if they sit between you and the provider.
2. How are they compensated? Note that some brokers may get commissions from the vendors they recommend. So ask about this.
3. How does this work? Brokers are another link in the supply chain, especially if they have software that binds cloud providers together. Also, note that this may change the security and management model. If you value the one-on-one relationship with the cloud supplier, then avoid a broker.
4. How are cloud resources allocated? You may have factors such as deadlines, budgets and turnaround time of applications that need considered. So how does a broker meet these needs?
5. Can you use a broker? Regulatory and legal pressures also mean that enterprises have to be careful about how and where their data gets processed. They are not able to fully use cloud broker services.
6. How much does it cost? Cost savings are paramount when looking at moving to cloud. Does using a broker save you money here?

Using a cloud broker can have some benefits. So take a look at cloud brokers if you are thinking about using cloud.

Rose Klimovich is a consultant and writer on technology. Formerly she was VP Product Management and Product Marketing for the colocation and interconnection products for Telx, where she led the efforts in creating the Telx strategy and developing and investing in new products and services in areas like colocation, cloud, Ethernet Exchange and Telepresence video.