A brief and sharp explanation of the Cloud Service Brokerage concept. Starts with general cloud introduction explaining why brokers/aggregators/intermediaries might be needed. The second part explains the most important concepts of cloud service brokerage. And in the end the portfolio management matrix is proposed as an assessment tool.

1. Zoetermeer, March 31st, 2011 Brokers in the cloud Cloud service Brokerage Explained Oleksandr varlamov public

2. Cloud computing Introduction Diversity and Complexity Cloud service brokerage Concept explained Classification and portfolio matrix public / Cloud Service Brokerage

4. Innovation does not always mean “new” It can mean “well-repackaged” as well / Cloud Service Brokerage public Cloud computing is not much different from grid computing or utility computing which both have been here for decades After the infrastructure and technology became sufficiently mature we have got a new buzz-word, and the concept has received much more attention Utility Computing is the packaging of computing resources (such as computation, storage and services) as a metered service similar to a traditional public utility (such as electricity, water, natural gas, or telephone network)

5. Cloud computing definition / Cloud Service Brokerage public Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like electricity. It is a natural evolution of the widespread adoption of virtualization, service-oriented architecture, and utility computing. - From Wikipedia

6. Features of cloud computing / Cloud Service Brokerage public The main features of cloud computing that induce the popularity of the technology include: Agility and flexibility (Rapid provisioning/ Time to market) Device and location independence Rapid scalability Easy metering Pay-per-use From Capex to Opex

7. Clouds compared to traditional IT public / Cloud Service Brokerage Source: Amazon Web Services

8. Optimal Clouds workload patterns / Cloud Service Brokerage public Not every workload is equally suitable for the Cloud. Systems with the workload patterns shown on the figure are more likely to increase efficiency or flexibility when making use of Cloud technologies. Source: Microsoft (2010)

9. What analysts say “Cloud computing revenue will soar faster than expected and will exceed $150 billion within five years” Gartner “Spending on IT cloud services will triple in the next 5 years, reaching $42 billion and capturing 25% of IT spending growth in 2012” IDC “By 2011 the volume of cloud computing market opportunity would amount to $160bn, including $95bn in business and productivity apps (email, office, CRM, etc.) and $65bn in online advertising.” Merrill Lynch public / Cloud Service Brokerage

10. Cloud market forecast 2020 public / Cloud Service Brokerage

11. Cloud computing Introduction Diversity and Complexity Cloud service brokerage Concept explained Classification and portfolio matrix public / Cloud Service Brokerage

13. Examples:

14. ITSM: ServiceNow.com

15. User mail: Gmail, hotmail, yahoo

17. Examples:

18. SalesForce.com

19. Amazon E2C

20. Microsoft Azure

22. Examples:

23. Amazon Web Services

24. GoGrid

26. To make even more complex – different Cloud deployment models / Cloud Service Brokerage public Private Cloud The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise. Public Cloud The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. Hybrid Cloud The cloud infrastructure is a composition of more clouds (private or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting).

27. Cloud computing Introduction Diversity and Complexity Cloud service brokerage Concept explained Classification and portfolio matrix public / Cloud Service Brokerage

29. The cloud broker creates the layer of abstraction between the end-consumer and providers, so that the consumer can see one cohesive view of all of the servicespublic / Cloud Service Brokerage

30. Cloud service broker concept / Cloud Service Brokerage public Cloud Services Service Consumer SaaS SMB, Enterprise, End-Consumer or Reseller Cloud Service Broker PaaS IaaS

31. Cloud service brokerage origins / Cloud Service Brokerage public The concept was introduced by Gartner in 2009 Gartner claims that through 2015 cloud service brokers will be the largest revenue growth opportunity. A Cloud Service Broker: a value added player on top of cloud providers; would handle behind-the-scenes tasks, add value and reduce risk; would become your service level agreement model for the cloud.

32. why a cloud service broker makes sense / Cloud Service Brokerage public Intermediaries exist in consumer relationships with technology. Intermediaries will be necessary as enterprises procure cloud services. Many industries use brokerages every day in financial services, travel and other verticals. Brokers act on behalf of the consumer, in this case the IT buyer. Bottom line: Cloud brokers can bring the same diversity of added value as other intermediaries in traditional business Source: ZDNet – “Ready for a cloud computing brokerage?”

33. Likely candidates for a csb role / Cloud Service Brokerage public The most likely candidates to play a role of cloud service broker are trusted partners with proven track of records, such as: Systems Integrators Telecom Carriers Outsourcers Source: Gartner, 2009

35. Many cloud service providers reserve the right to change all, or part of, the agreement once it is signed; the level of commitment they make is often much lower than that of more traditional IT contracts.

36. Cloud contracts are typically priced as subscription or "pay as you go" service agreements — offering customers limited protection on renewal and little guarantee that the terms will either remain the same or improve.public / Cloud Service Brokerage Source: Gartner (2011) - Four Risky Issues When Contracting for Cloud Services

37. Cloud computing Introduction Diversity and Complexity Cloud service brokerage Concept explained Classification and portfolio matrix public / Cloud Service Brokerage

38. Two classification dimensions / Cloud Service Brokerage public The value added by cloud service brokers can be classified on two independent dimensions: Types of Cloud Service Brokerage (horizontal division) Cloud service components (vertical division)

40. Layers of service provided by csb / Cloud Service Brokerage public Vertical division of cloud service components: Financial & Legal Assessing pricing models of cloud providers Assuring compliancy with local law and policies Billing settlement metering & chargeback Operational & Service Provision Management Service level agreements Helpdesk / ticketing / problems etc. Service and User Provisioning Technical Single sign-on to multiple cloud providers Authentication, Authorization & Access Control Data exchange between clouds and with on-premise IT infrastructure

41. Cloud broker portfolio matrix You can use this matrix to define what value can be added or concerns can be removed by partnering with a cloud service broker As a broker you can use this matrix to assess the completeness of your portfolio public / Cloud Service Brokerage

42. Example filled matrix public / Cloud Service Brokerage

43. More information Original Gartner’s idea about CSB (search their site for more) http://www.gartner.com/it/page.jsp?id=1064712 The cloud computing quotes (CxO & Analyst corners) http://www.infosysblogs.com/cloudcomputing/2009/08/the_cloud_computing_quotes.html http://www.techno-pulse.com/2011/02/memorable-cloud-computing-quotes.html The Cloud Computing definition and classification by NIST http://www.nist.gov/itl/cloud/index.cfm public / Cloud Service Brokerage

44. about Oleksandr varlamov As an IT management consultant Oleksandr is constantly staying on the edge of new trends and developments in the world of IT management and business technologies. His broad experience in analytics, research, outsourcing, IT service management, innovation, information and knowledge management allow Oleksandr to get a comprehensive understanding of the latest trends and propose new ideas in fields like cloud computing or social media. http://nl.linkedin.com/in/varlamov Getronics Consulting Employing over 1400 professionals, we design, build and implement solutions in the field of innovative Information and Communication Technology, Project and Program Management, Governance and Compliance, Service Strategy and Transformation and Enterprise Architecture. We are also one of the biggest ICT educational institutes in The Netherlands. www.getronicsconsulting.com public / Cloud Service Brokerage

45. Oleksandr varlamov Oleksandr.varlamov@getronics.com public