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Cloud Services Brokerage What It Is and Why It Matters

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Information technology, or IT, services are migrating to the cloud. Current research has found 35% of such services are delivered by the cloud to some degree, and the number is only growing. The importance of cloud computing has led to the formation of many new industries that it is important to understand, such as cloud services brokerage. Here you shall find an explanation of what it is, why it matters, and three examples of influential cloud services brokerage companies.

What Is A Cloud Service Broker?

Simply put, cloud services brokers act as an intermediary between cloud service providers and their consumers, assuring that public and private cloud platforms operate cohesively. This also allows for central management of those services. Companies claiming to offer these services should possess certain capabilities as a result, which follows below:

  • Intermediation: This involves increasing the value of cloud services offered by a separate provider. They do this by adding valuable apps and services, such as migration services.
  • Aggregation: This service binds together multiple services and ensures that they will operate together successfully and securely.
  • Arbitrage: This is a cost saving technique in which consumers are provided with a list of similar providers and services to allow for the selection of the best option for them at the lowest price.

Although this description might seem well-defined and absolute, that impression is mistaken. Each company has their own methods and values, which in turn influence the growth and direction of this industry.

Why It Matters

All fields related to cloud communications and services are growing at an astounding rate, and cloud brokerage services are no exception. In the United States alone, the field is growing 55.3% every year and is expected to be worth two billion by 2018.

Some of the Major Providers of Cloud Services Brokerage

  1. Appirio: This company offers integration services for such platforms as the Google Apps and Salesforce.com.
  2. AWS Marketplace This company is an offshoot of Amazon, and that company’s involvement here should elicit little surprise.
  3. CloudMore: CloudMore claims to have over 1000 provider partners, making their reach extend to over 100,000 consumers.

The way this industry progresses over the next few years will likely prove interesting. At least after reading this explanation, you will know which direction to watch.

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