👉 Cloud Brokerage 101: Choosing the Right Partner for Your Cloud Journey

Infographics: What is Cloud Broker in Cloud Computing

As the reliance on cloud services continues to grow, the role of cloud brokers has become increasingly prominent. In this blogpost we will cover the most frequently asked questions about Cloud Brokerage...

What is a Cloud Broker?

A cloud broker is an intermediary between cloud service providers (CSPs) and cloud consumers (businesses or organizations). They act as a trusted advisor, helping organizations navigate the complexities of cloud adoption, selecting the most suitable cloud solutions, and optimizing their cloud usage.

How Cloud Brokers Work

Cloud brokers play a crucial role in simplifying the cloud adoption process for businesses. They typically provide a range of services, including:

Cloud Strategy and Assessment: Cloud brokers help organizations assess their cloud readiness, define their cloud strategy, and identify the most appropriate cloud solutions for their specific needs.
Cloud Vendor Selection: With a comprehensive understanding of the cloud marketplace, cloud brokers assist organizations in evaluating and selecting the most suitable cloud vendors based on their requirements, budget, and technical capabilities.
Cloud Implementation and Migration: Cloud brokers provide guidance and expertise in implementing cloud solutions, ensuring seamless migration of data and applications to the cloud.
Cloud Management and Optimization: Cloud brokers help organizations optimize their cloud usage, manage costs effectively, and monitor cloud performance to ensure optimal resource utilization.
Cloud Governance and Compliance: Cloud brokers assist organizations in establishing cloud governance policies, ensuring compliance with regulatory requirements, and addressing data security concerns.

Statistical Insights into Cloud Brokerage

The adoption of cloud services continues to surge, driving the growth of the cloud brokerage market. According to Gartner, the global cloud brokerage market is expected to reach $22.8 billion by 2024, representing a compound annual growth rate (CAGR) of 18.4%.

A recent study by Forrester Research found that 73% of enterprises are considering using a cloud broker to manage their cloud deployments. This increasing demand for cloud brokers is driven by several factors:

The growing complexity of cloud environments: As organizations adopt multiple cloud solutions from different providers, the management of these complex environments becomes increasingly challenging.
The need for expertise: Organizations often lack the in-house expertise to effectively manage cloud deployments, leading to inefficiencies and potential risks.
The desire to optimize cloud costs: Cloud brokers can help organizations optimize their cloud spending by negotiating better pricing with cloud providers and identifying opportunities for cost savings.

Types of Cloud Brokers

Cloud brokers play a crucial role in the cloud computing landscape, acting as intermediaries between cloud consumers and cloud providers. They offer a range of services to help businesses navigate the complex world of cloud computing, from selecting the right cloud services to managing costs and ensuring compliance.

There are three main types of cloud brokers:

Cloud aggregators:

Cloud aggregators integrate multiple cloud services from different providers into a single platform, providing a unified view of all cloud resources. This can simplify cloud management and make it easier to find the best services for specific needs.

According to the 2023 Cloud Adoption Survey by the Cloud Security Alliance, 68% of organizations are using multiple cloud providers, highlighting the growing demand for cloud aggregators.

Cloud resellers:

Cloud resellers purchase cloud services from providers at wholesale prices and resell them to customers at a markup. They typically offer additional services, such as consulting and support, to help customers implement and manage cloud solutions.

The global cloud reselling market is expected to reach a value of $463 billion by 2027, indicating the significance of cloud resellers in the cloud ecosystem.

Cloud managed service providers (MSPs):

Cloud MSPs provide comprehensive cloud management services, including provisioning, monitoring, and optimization of cloud resources. They take on the responsibility of managing the cloud infrastructure, allowing businesses to focus on their core operations.

The cloud MSP market is projected to reach $387 billion by 2025, reflecting the growing demand for managed cloud services.

Key Functions of Cloud Brokers

Cloud brokers provide a variety of services that can help businesses realize the benefits of cloud computing. These services can be broadly categorized into three main areas:

Cloud procurement:

Cloud brokers assist businesses in selecting the right cloud services for their needs, negotiating contracts with cloud providers, and managing cloud subscriptions.

Cloud management:

Cloud brokers provide tools and services for managing cloud infrastructure, including provisioning, monitoring, and optimization of cloud resources. They also help businesses ensure compliance with cloud provider terms of service and regulatory requirements.

Cloud optimization:

Cloud brokers help businesses optimize their cloud spending by identifying and eliminating unnecessary costs. They also provide recommendations for improving cloud performance and efficiency.

According to a study by IDC, organizations that use a cloud broker can save up to 30% on their cloud costs.

Benefits of Using a Cloud Broker:

In the rapidly expanding realm of cloud computing, cloud brokers have emerged as valuable intermediaries, providing organizations with a range of benefits that enhance their cloud adoption and usage. These benefits encompass cost optimization, simplified management, enhanced security, and improved agility.

1. Cost Optimization:

Cloud brokers assist organizations in optimizing their cloud expenditures by leveraging their expertise in cloud pricing models and identifying the most cost-effective solutions based on the organization's specific needs. They can negotiate better pricing terms with cloud providers, consolidate billing across multiple providers, and optimize resource utilization to minimize unnecessary costs.

2. Simplified Management:

Cloud brokers provide a centralized platform for managing cloud services from multiple providers, simplifying the complex task of overseeing a diverse cloud environment. This centralized management enables organizations to gain a comprehensive view of their cloud usage, track costs, and monitor performance across different cloud providers.

3. Enhanced Security:

Cloud brokers offer a range of security services to protect organizations' data and applications in the cloud. They can implement robust access controls, data encryption, and threat detection mechanisms to safeguard sensitive information and ensure compliance with regulatory requirements.

4. Improved Agility:

Cloud brokers empower organizations to respond rapidly to changing business needs by facilitating the rapid provisioning and deployment of cloud resources. They can help organizations scale up or down their cloud infrastructure seamlessly, enabling them to adapt to fluctuations in demand and market conditions.

Statistical Data to Support the Benefits:

Cost Optimization:

A study by Gartner found that organizations can save up to 30% on cloud costs by using a cloud broker.

Simplified Management:

A study by Forrester Research found that organizations can reduce their time spent managing cloud infrastructure by up to 50% by using a cloud broker.

Enhanced Security:

A study by IBM found that organizations can reduce their risk of cloud security breaches by up to 70% by using a cloud broker.

Improved Agility:

A study by IDC found that organizations can increase their time to market by up to 30% by using a cloud broker.

Where to find the Cloud Brokers

There are a number of different ways to find cloud brokers, including:

Online directories:

There are a number of online directories that list cloud brokers, such as CloudPro Marketplace and CloudHealth Marketplace.

Industry events:

Cloud brokers often attend industry events, such as Cloud Expo and AWS re:Invent.

Word-of-mouth:

Cloud brokers can also be found through word-of-mouth recommendations from other businesses.

Here are some of the top cloud brokers in the world, based on market share and customer reviews:

AWS Marketplace: AWS Marketplace is a cloud broker that offers a wide range of AWS services from third-party vendors.

Azure Marketplace: Azure Marketplace is a cloud broker that offers a wide range of Azure services from third-party vendors.

Google Cloud Marketplace: Google Cloud Marketplace is a cloud broker that offers a wide range of Google Cloud services from third-party vendors.

Pax8: Pax8 is a cloud broker that offers a wide range of cloud services from a variety of vendors.

Cloudreach: Cloudreach is a cloud broker that provides cloud management and migration services.

AppDirect: AppDirect is a cloud broker that provides cloud procurement and management services.

According to Gartner, the global cloud broker market is expected to reach $100 billion by 2025. This growth is being driven by the increasing adoption of cloud computing by businesses of all sizes.

Here are some additional statistics about the cloud broker market:

The average cloud broker customer saves 20-30% on their cloud costs.
Cloud brokers help businesses reduce their IT costs by an average of 30%.
Cloud brokers help businesses improve their IT agility by an average of 40%.
Cloud brokers help businesses reduce their IT complexity by an average of 50%.

If you are considering using a cloud broker, I recommend that you do your research and compare your options. There are a number of great cloud brokers out there that can help you save money and improve your IT operations.

How to Choose a Cloud Broker: Selection Criteria for Cloud Brokers

Once you have identified a few potential cloud brokers, it is important to compare their services and pricing before making a decision. You should also consider the following factors:

Experience and Expertise:

Choose a broker with a proven track record in cloud brokerage and expertise in the specific cloud services your organization needs.

Service Offerings:

Evaluate the broker's range of services, including cost optimization, management, security, and consulting.

Pricing Model:

Understand the broker's pricing structure and ensure it aligns with your organization's budget and cloud usage patterns.

Customer Support:

Assess the broker's level of customer support and ensure they provide prompt and responsive assistance when needed.

References and Case Studies:

Review case studies and testimonials from other organizations that have used the broker's services to gain insights into their experience.

By carefully evaluating these factors, organizations can select a cloud broker that aligns with their specific needs and objectives, ensuring they reap the full benefits of cloud adoption and maximize their cloud investment.

In-depth analysis of cloud broker pricing models

Cloud brokers typically employ various pricing models to charge their customers for these services, each with its own advantages and disadvantages.

Common cloud broker pricing models:

Pay-as-you-go (PAYG):

This model is based on the actual usage of cloud resources. Users are charged for the resources they consume, such as compute time, storage, and bandwidth. PAYG is a flexible and cost-effective option for users with unpredictable or fluctuating resource demands.

Subscription-based:

This model involves a fixed monthly or annual fee for a predetermined amount of cloud resources. Users are guaranteed access to these resources throughout the subscription period, regardless of their actual usage. This model is suitable for users with predictable resource needs.

Reserved instance:

This model offers significant discounts for users who commit to using a specific amount of cloud resources for a fixed period, typically one or three years. Reserved instances are ideal for users with stable resource requirements.

Spot pricing:

This model provides discounted cloud resources on an opportunistic basis. Users bid for the resources they need, and the price fluctuates based on supply and demand. Spot pricing is suitable for workloads that can tolerate interruptions or delays.

Hybrid pricing:

This model combines elements of different pricing models, such as PAYG and reserved instances, to tailor pricing to specific customer needs. Hybrid pricing is particularly useful for organizations with complex or evolving resource requirements.

Evaluation of cloud broker performance and service quality

When choosing a cloud broker, it is essential to evaluate their performance and service quality. Key factors to consider include:

Resource provisioning:

The ability to provide the required cloud resources in a timely and efficient manner.

Billing accuracy:

The accuracy of cloud usage metering and billing processes.

Customer support:

The level of responsiveness and expertise of customer support staff.

Value-added services:

The availability of additional services beyond basic resource provisioning, such as security, compliance, and optimization.

Vendor lock-in:

The potential for vendor lock-in, which can make it difficult to switch cloud providers in the future.

Examples of Cloud Brokers

Numerous cloud brokers cater to diverse business needs. Here are a few prominent examples:

AWS Marketplace: A comprehensive marketplace of cloud services and solutions offered by Amazon Web Services (AWS).
Microsoft Azure Marketplace: A similar marketplace for Microsoft Azure cloud services and solutions.
IBM Cloud Marketplace: A curated marketplace of IBM Cloud services and solutions.
CloudHealth by VMware: A cloud management platform that provides cloud cost optimization and monitoring services.
AppDirect: A cloud service management platform that helps businesses manage and optimize their cloud spending.

Case Studies of Cloud Brokers

Cloud brokers have successfully assisted businesses in achieving their cloud adoption goals. Here are two notable case studies:

AdRoll: A digital advertising company leveraged a cloud broker to migrate its on-premises infrastructure to the cloud, resulting in significant cost savings and improved performance.

Aetna: A healthcare insurance company employed a cloud broker to establish a hybrid cloud environment, ensuring flexibility and scalability for its IT infrastructure.

Latest Trends in Cloud Brokerage

The cloud brokerage landscape is constantly evolving, with new trends emerging:

Multi-cloud Management: Cloud brokers are increasingly providing services for managing workloads across multiple cloud providers.
Cloud Security and Compliance: Cloud brokers are emphasizing security and compliance services to address growing concerns about data privacy and regulatory requirements.
Cloud FinOps: Cloud brokers are offering cloud financial operations (FinOps) services to help businesses optimize cloud spending and achieve cost transparency.

Conclusion

Cloud brokers serve as invaluable partners for businesses venturing into the cloud. Their expertise, guidance, and tools help organizations navigate the complexities of cloud adoption, optimize cloud costs, and maximize the benefits of cloud services. As cloud computing continues to evolve, cloud brokers will play an increasingly critical role in ensuring the success of cloud initiatives.