System Integration Morphs To Cloud Service Integration

June 19, 2016 / G C Network / Comments Off

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Cloud Computing as a Strategic Asset

By G C Network | April 30, 2009

For some reason, this week seems to have more in it than most. While the steady stream of briefing request seem to be increasing, the post briefing discussions also seem…

Vivek Kundra: “Engage the American People in their Daily Digital Lives”

By G C Network | April 25, 2009

Today I attended a very impressive talk by the Federal CIO, Mr. Vivek Kundra at a Northern Virginia Technology Council Public Policy event. His open and “matter of fact” approach…

McKinsey vs. Booz Allen Hamilton !

By G C Network | April 21, 2009

A community skirmish reminiscent of the recent “manifestogate” has apparently erupted around the McKinsey & Co. report “Clearing the air on cloud computing“. Booz Allen Hamilton Principals Mike Cameron and…

Oracle Buys Sun!!

By G C Network | April 20, 2009

Swooping in from nowhere, Oracle buys Sun for $7.4B!! “This morning, the companies announced that they’d struck a deal worth $7.4 billion or $5.6 billion net of Sun’s cash and…

Aneesh Chopra Nominated For Federal CTO

By G C Network | April 20, 2009

Although Aneesh Chopra is a new name for most, he is well know in Virginia as Governor Tim Kaine’s Secretary of Technology. For the Commonwealth, he was charged with leading…

Could Cloud Computing Cost More?

By G C Network | April 16, 2009

In a recent conference, analyst William Forrest says that large companies could end up paying more than twice as much by using cloud based services. According to a Forbes.com report,…

Cisco’s Cloud Computing Strategy

By G C Network | April 10, 2009

A couple of weeks ago, Krishna Sankar provided a glimpse into Cisco’s cloud computing strategy in a presentation titled “A Hitchhiker’s Guide to the Inter-Cloud” . The presentation outlined the…

NCOIC and Cloud Computing: An Update

By G C Network | April 8, 2009

As the NCOIC gets it’s arms around this new paradigm, the Cloud Computing Working Group has focused on establishing a roadmap for providing value to the industry. Using the established…

SUN-IBM Talks Breakdown

By G C Network | April 6, 2009

As reported in multiple sources today, including Reuters, Sun has apparently rejected a purchase offer by IBM. “Shares of Sun Microsystems Inc tumbled 22.5 percent after it rejected a $7…

Former DoT CIO on Cloud Computing

By G C Network | April 3, 2009

Last month, former Transportation Department CIO Dan Mintz offered his views on cloud computing to Eric Chabrow, Managing Editor of Government Information Security. According to Mr. Mintz, there is currently…

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Cloud Service Brokerage is changing from an industry footnote toward becoming a major system integration play. This role has now become a crucial component of a cloud computing transition because they help organizations aggregate multiple cloud services, integrate services with in-house applications, and customize these services to better meet customer needs. CSBs also help by consulting and recommending the best fit cloud services according to business requirements and goals. Cloud brokers may also be granted rights to negotiate with different service providers on behalf of their customers. This transformation is driven by the rapid rise of cloud computing, which has risen from under $6B in 2008 to a point where the market is expected to almost reach $160B in 2020. The global Cloud Service Brokerage Market itself is expected to grow from $5.24 Billion in 2015 to $19.16 Billion by 2020.

Since CSBs merge the functions of reseller, systems integrator and independent software vendor (ISVs) into a convenient service delivery model, they deliver solutions by aggregating cloud services sourced from multiple cloud service providers. They can also customize those services to meet unique business requirements. Although CSBs often deliver transactional cloud services, their real value lies in the unique ongoing operational support they provide. Unlike financial or real estate brokers that typically end their customer relationship after the sale, CSBs:

Enable cloud service arbitrage based on cost, performance or operational need;
Help companies migrate operations to the cloud and assist with staff augmentation and training;
Provide cloud service auditing and SLA monitoring services;
Help in focusing and managing organizational cloud service demand;
Provided toolsets to assist in the migration and integration of enterprise applications; and
Help in change management and the selection and integration of other managed services.

By automating and operationalizing the governance of cloud services, CSBs can efficiently multi-source services and augment them with third party metering and monitoring. Using CSBs, organizations also accelerate their transition to hybrid IT models. This marketplace is typically segmented type of services: cloud brokerage and cloud brokerage enablement, wherein cloud brokerage enablement is further segmented into internal and external brokers. When used internally, cloud enablement platforms helps enterprises adopt the new hybrid IT and multi-sourced operating model. By building organic expertise, companies can personalize IT service consumption and unify
IT service delivery through the use of a corporate self-service store, a dynamic service marketplace, and continuous delivery. This centralized, supply chain approach unifies the order, execution, and management of multi-sourced solutions across legacy and cloud resources, by centrally delegating and tracking execution.

Another important management capability they deliver is performance auditing. Cloud Service Provider (CSP) price/performance has been shown to vary as much as 1000 percent depending on time and location. High levels of variability have also been seen within the same CSP processing the exact same job. This also means that the cost for an enterprise to processing the exact same job in the cloud could vary by this much as well.

Changes in instance types, pricing, performance over time and availability of services by location highlights the inadequacy of traditional benchmarking philosophies and processes. The use of “performance quotas” by service providers may also lead to operational cost increases. This generally happens if a customer meets a CSP-determined management quota and the performance of relevant instance is reduced. Active metering and monitoring by a CSB can help companies detect and avoid this hidden cost.

As the cloud service brokers market matures, they are destined to replace the traditional system integrator. Maturation of technologies and CSB offerings will also make this service a “must-have” for the foreseeable future.

(This post was brought to you by IBM Global Technology Services. For more content like this, visit Point B and Beyond.)