Growing Cloud Service Commoditization, Migration Beyond Single Cloud into Multi-Cloud Environments & the Need for Well-Crafted Strategies to Manage the Complexity of Multiple Clouds Drive the Significance of Cloud Services Brokerage
The
global market for Cloud Services Brokerage (CSB) is forecast to reach US$16.4
billion by 2024, driven by growing cloud service commoditization; migration
beyond single cloud into multi-cloud environments and the ensuing need for
well-crafted management of multiple clouds.
With rapid proliferation of cloud computing, basic cloud services are
becoming increasingly commoditized with every service provider offering similar
services with very little scope for differentiation. Standardization of service
delivery models, service quality, and pricing mechanisms have played key roles
in the commoditization of cloud services. Also, commoditization
of cloud services comprising SaaS, PaaS and IaaS is seen as inevitable and
supporting this school of thought is the “Bezos’ Law” which like the Moore’s
Law in electronics/computing states that price of each unit of cloud computing
power will reduce by 50% every three years. Explosion of cloud service
providers in the market are further aggravating pricing wars as a result of the
glut of services in the market. In the midst of blurring heterogeneity in cloud
services, the concept of brokers is gaining prominence. Cloud brokers are
intermediaries who use software, appliances, platforms, and technology suites
to enhance the basic commoditized service offered by cloud service providers.
Right from managing access to services, customization of services, improving
security features of services to aggregating and integrating services of
multiple cloud service providers. Demand for cloud services brokerage will grow
supported by the ability of these brokers to add value to existing commoditized
cloud services and thereby deliver new service capabilities built and delivered
on top of the former. Value additions made by cloud brokers include altering or
adding new capabilities, changing, improving and enhancing service functions,
addition of analytics to basic cloud services, aggregating two or more cloud
services from different providers and integrating them so as to enable
independent services to work together in a combined offering etc.
Another key driver of growth is the rise of multi-cloud
strategy. Defined as the use of multiple cloud services offered by
different providers, multi-clouds offer wide ranging benefits which are hard to
ignore in an era where operational cost reduction and operational
responsiveness rank supreme. These benefits include higher cost savings as it
allows companies to competitive pricing offered by different vendors in
different regions/locations; performance optimization; eliminates the risk of
vendor lock-in; flexibility to run workloads in the most appropriate
environment; higher data security and safeguard against data loss as redundancy
is a key benefit of multi-cloud; and ability to cost-effectively conform to
data residency regulations that require enterprise data to physically reside in
certain locations. For geographically diversified multinational companies,
multi-clouds allow for data backup in the cloud of service providers in a given
region and thereby cost-effectively conform to data residency regulations.
The need to streamline multiple cloud services will help drive demand
for governance
and brokering cloud services. With the number and types of clouds
increasing, there is a growing need in enterprises for a cloud team for
centralized cloud governance involving cost management, policy establishment,
cloud brokering, and managing apps movement to the cloud, among others. In
addition to managing seamless delivery of services from multiple portals,
multi-cloud ecosystem also requires close monitoring for ensuring consistent performance,
security, and control. Cloud service brokers in this regard provide
aggregation, integration, and customization of clouds in a manner that helps
address challenges of a multi-cloud environment. Benefits of engaging CSBs
include elimination of “shadow IT” since operational demands and needs of
employees are perfectly aligned with cloud resources; greater security of
company data as it moves back and forth across multiple private and public
clouds; effective negotiation of SLAs with cloud service vendors; effective
eliminate of redundancies, optimized resource utilization, and superior
management of different clouds and their differing capabilities, processes,
costs, and performance levels.
As stated by the new market research report on Cloud
Services Brokerage (CSB), the United States represents the largest market
worldwide flaunting the world’s most sophisticated cloud infrastructure.
Asia-Pacific ranks as the fastest growing market with a CAGR of 23% over the
analysis period led by the development of the enterprise sector; growing cloud
readiness of Asian economies; increased reliance of emerging Asian economies on
digitalization, the Internet and transformative enterprise technologies and
adoption as multiple clouds and serverless computing as only way forward for
efficient, rapid and cost-effective deployment of IT in a modern enterprise.
Major players in the market include Accenture Plc, Appirio, BMC
Software, Inc., Capgemini S.A, CenturyLink, Cisco, Cloudability Inc.,
CloudMore, ComputeNext, Dell Boomi, DoubleHorn, LLC, Forcepoint, IBM,
Jamcracker, Inc., Liaison Technologies, Inc., Neostratus, OpenText Corp,
RightScale, Inc., Spotinst and Veeam® Software. among others.
The research report titled “Cloud
Services Brokerage (CSB) - Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market
trends, issues, drivers, mergers, acquisitions and other strategic industry
activities of global companies. The
report provides market estimates and projections for all major geographic
markets such as the U.S., Canada, Japan, Europe, Asia-Pacific (China, South
Korea, and Rest of Asia-Pacific), and Rest of World. Product segments analyzed
in the report include Cloud Brokerage Services and Cloud Brokerage Enablement
Solutions.
Global Industry
Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.
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Good piece of work, it contains all the matters with regards to the multi cloud service and Good luck to you and your well performed job
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