5. Are You Really Prepared for Hybrid IT?
Cloud Provider 1
Cloud Provider 2
Public Cloud
e.g., Sales Cloud Provider 3
Automation
e.g., VMI/
E-commerce
e.g., Contact Cloud Provider 4
Verification
Your IT Organization
e.g., HR
Who will manage this?
You manage this
Can you manage this?
Traditional
On-Premises Private Cloud
6. Key Issues
1. What is cloud services brokerage, and what is
its role in cloud computing?
2. When should companies use cloud services
brokerage?
3. Which providers will succeed in cloud services
brokerages?
7. All Consumed Cloud Must Be Managed
Questions
Public Cloud • Be a brokerage
Required Skills
• Provisioning • Customization
• Billing • Management
• Support • Backups
• APIs • Security
• Migration • DR
• Integration • etc.
Questions
• Do you want to do these tasks?
• If so, do you have the right skills?
• If not, who can you trust to do them?
Private Cloud
8. Definition: Cloud Services Brokerage
Aggregation
Brokerage Distributor
*
100%
75%
50% Customization
Definition: Brokerage
25%
CSB is composed of three
primary roles in which an ISV*
intermediary adds value to
one or more cloud services
on behalf of consumers of Providers of CSB compete
those services. on the relative strengths of
Integration the three CSB roles
Brokerage
System You • Are a brokerage
Integrator* • Enable brokerage
Either • Leverage brokerage
* = Alignment with traditional IT services terminology
9. Aggregation Brokerage
• Definition
- Delivering two or more (can be many) services
to service consumers, or other service providers
• Characteristics
- Deliver cloud in scale to many customers
- No net new services functionality, per se
- No integration or customization of services
- Many-to-one or one-to-many services delivery Example Providers
• Capabilities IT Distributors, Resellers, etc.
• Ingram Micro
- Ability to support large-scale cloud provisioning • Insight
- Normalized discovery, access, billing, support • Parallels
- Centralized management, SLAs, security, etc. • Synnex
• Tech Data
• Typical Scenarios CSB Enablers
- IT distribution • Avnet
• e.g., distributors, resellers and VARs doing cloud provisioning • AppDirect
• FullArmor
- App Stores, marketplaces • Jamcracker
• e.g., telcos, cloud providers, companies provisioning cloud • Verecloud
See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509
10. Integration Brokerage
• Definition
- Making independent designed services work
together as a combined outcome for consumers
• Characteristics
- Can be IT stack or data/process integration
- Substantial new value through integrated result
- One-to-many, many-to-one, many-to-many
- Increasingly implemented via some form of iPaaS
• Capabilities Example Providers
- Messaging, adapters, translation, orchestration Evolving B2B/EC Providers
- Community management (think: LinkedIn for e-commerce) • Edicom
• GXS
- Governance (e.g., policy and API management)
• HubSpan
- Shared services (e.g., management and security) • IBM (Sterling Commerce)
• Typical Scenarios • Liaison Technologies
- Cloud-to-cloud integration • SAP (Crossgate)
iPaaS Providers Offering IB
• e.g., synchronizing contacts between Gmail, salesforce.com • Dell (Boomi)
- Cloud to on-premises integration • IBM (Cast Iron)
• e.g., synchronizing order-to-cash between NetSuite, Quickbooks • Informatica
• Jitterbit
- Traditional supply chain integration • Pervasive
• e.g., for large communities of suppliers, customers, 3PLs, etc.
See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509
11. Customization Brokerage
• Definition
- Altering or adding to the capabilities of a service
to change or improve its function
• Characteristics
- Net new functionality via new, modified services
- Original cloud services can be modified, enhanced
- One-to-many or many-to-one service delivery
• Capabilities
- Modifications (services combined, enhanced, etc.) Example Providers
- Implementation (of new services, applications, BPS Providers
• BlinkHR
processes, user interfaces, master data, etc.)
• E2open
- Analytics (messages, services, processes, etc.) • eBuilder
• Typical Scenarios • psHealth
• Wipro
- New and composite applications System Integrators
• e.g., new custom reports on Force.com for salesforce.com CRM • Appirio
- Process or data enhancement • Atlantic Technologies
• Celigo
• e.g., price comparing service for "less than truckload" booking • Infosys
- Business process services • Tieto
• Configurable processes (e.g., VMI, delivered on one-to-many basis)
See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509
12. Comparing Cloud Services Brokerage to
Direct ("Internal CSB") Cloud Consumption
Strengths
• Low barrier to adoption
Direct Cloud • Direct provider relationship
Consumption, • Perception of "control"
i.e., Internal CSB Challenges
• "Take it or leave it" services
• Multiple provider complexity
• You are cloud "prime contractor"
• You must own more IT assets
Strengths
• Unified contracts, SLAs
• Value-added services
Cloud • Centralized governance
Intermediation,
Challenges
i.e., External CSB
• CSB perceived as "in the way"
• Immature, varied CSB skills
• Inconsistent governance
See "How to Determine When to Use a Cloud Services Brokerage," G00226112
13. Emergence of Internal CSB Role
Attributes of Internal CSB
• Alternative to third-party CSB role:
- You are "prime contractor"
- Think: cloud-enhanced traditional
IT multisourcing
Maximum Public Cloud • IT responsible for all CSB roles:
Internal CSB - Aggregation
Scope - Integration
- Customization
• Scope of internal CSB role:
- Minimally applies only to private
Private Cloud cloud
- Can also apply to private and
Minimum public (hybrid) cloud
Internal CSB - Can include "broker of broker"
Scope role, for cascaded brokerage
- Can optionally also include
traditional IT assets
Traditional IT
14. How the Internal CSB Role Compares to
Traditional IT Multisourcing Integrator Role
Traditional IT Service Emerging
MSI Role Attributes CSB Role
• Smaller ecosystem • Larger ecosystem
- Up to a dozen Ecosystem - Up to hundreds
• Fewer larger services • More smaller services
- More coarsely grained Granularity - More finely grained
• Fewer SLAs, T&Cs • More SLAs, T&Cs
- Fewer KPIs to track Outcome - More KPIs to track
• Fewer, static providers • More, dynamic providers
- Trust, experience lead
Dynamics - Value, innovation lead
• More centralized, simple Help Desk • More federated, complex
- Manual escalation OK - Automated escalation
• Limited use, manual Governance • More usage, automated
- Fewer policies to track - More policies to track
• More control of IT assets Control • Less control of IT assets
- Assets in one DC - Assets across cloud
See "Essential Provider Selection Criteria to Use When Outsourcing the CSB Role," G00230681
15. When to Consider Internal CSB Role
Consider internal CSB when:
• You would prefer to fund the CSB with capex versus opex.
• Being a CSB is considered a required internal core competency.
• An internal CSB will reduce your risk of consuming services.
• You have and/or desire the requisite CSB skills and technology.
• An internal CSB can meet time-to-deployment requirements quickly.
• An internal CSB better meets your internal constituents' needs.
• An internal CSB is mandated by management (e.g., for compliance).
• No viable external CSB is available for your IT project requirements.
• You have a strong desire for centralized, internal control of all IT.
• Your full project life cycle TCO will be lower via an internal CSB.
See "Predicts 2012: Cloud Services Brokerage Will Bring New Benefits and Planning Challenges," G00227370
16. When to Consider Outsourced CSB Role
Consider external CSB when:
• You would prefer to fund the CSB with opex versus capex.
• Being a CSB is not a required internal core competency.
• An external CSB will reduce your risk of consuming services.
• You lack and/or don't want the requisite CSB skills and technology.
• An external CSB can meet time-to-deployment requirements fast.
• An external CSB better meets a B2B community's needs.
• An external CSB is mandated by an external agency.
• There's a viable CSB available for your IT project requirements.
• You wish to focus more on business outcomes, not IT enablement.
• The CSB will add significant value to consumed cloud services.
See "How to Determine When to Use a Cloud Services Brokerage," G00226112
17. How Will You Navigate the CSB
Landscape?
Full-Service Provider
Cloud-Enabled BPO
Domain-Specific Provider
Cloud-Enabled IT Outsourcing
Discrete Services Provider
Cloud-Enabled System Integration
Distributor/VAR
SaaS Aggregation, Customization
Specialist
SaaS Integration and Governance (iPaaS), SaaS
Cloud-Based Technology Services (IaaS, PaaS, Security, Storage, etc.)
More Comprehensive Services
= Type of provider See "Cool Vendors in Cloud Services Brokerages, 2012," G00231938, and
"Cool Vendors in Cloud Services Brokerage Enablers, 2012," G00231937
= Type of service
See "Cool Vendors in Cloud Services Brokerage, 2011," G00212316
18. CSB Role Relevancy Varies by IT Service
Service Types Provider Types
CSB B2B Infrastructure Application IT IT BPU/
Roles E-Commerce Services Services Distribution VAR BPaaS BPO
Provisioning
Aggregation
Management
Financing
Application
Integration
Integration
Technology
Integration
Governance
Customization
Modification
Implementation
Analytics
= very important = moderately important = limited importance
See "The Role of CSB in the Cloud Services Value Chain," G00218960
19. CSB (Provider) Ecosystem: Evolving B2B/EC
Providers Doing Integration Brokerage
Aggregation Integration Example Providers*
• Amalto Technologies • GXS
• Basware • IBM (Sterling Commerce)
• Easylink International • HubSpan
• Edicom • Liaison
• Elemica • SAP (Crossgate)
• GCommerce • SPS Commerce
Essential Vendor Selection Criteria
• International B2B network, fulfillment capacity
• References for cloud/SaaS integration
Customization • Explicit SLAs plus viable DR strategy
• Federated service desk involving cloud
Ecosystem/Provider Attributes
• Mature B2B integration competency Provider Challenges
• Large B2B "partner ecosystems" • Potential disintermediation by cloud providers
• Immature governance, support
• SaaS APIs are "just another adapter" • Sufficient investment in SaaS integration
• Emerging Hybrid Cloud + EC projects • Perception as irrelevant "EDI legacy"
• Cloud "immigrants" (vs. iPaaS providers)
* Representative, not complete, list
20. Beyond the Three Primary CSB Roles:
Key Technical CSB Evaluation Criteria
x • Disaster recovery
Is CSB's RPO/RTO reconciled with all cloud providers?
• Management
Can your CSB manage all cloud services in one domain?
• Migration
Is there help for moving users and data to cloud apps?
• Security
Will your CSB's SSO integrate with your existing SSO?
• Transparency
Is performance, availability visible for all cloud services?
• SLAs and reporting
Are SLAs reconciled with all third-party cloud providers?
• Help desk (support)
Is first-line support, escalation credible for all services?
• Upgrades
Are rollouts smooth for services/APIs across providers?
See "Essential Provider Selection Criteria to Use When Outsourcing the CSB Role," G00230681
21. Beyond the Three Primary CSB Roles:
Key Commercial CSB Evaluation Criteria
• Experience
Does the CSB have sufficient skills and references?
• Pricing
Does the provider offer transparent, predictable pricing?
• TCO
Is the CSB's total project cost of ownership favorable?
• Risk
Is CSB, relative to others, an acceptable business risk?
• IP protection
Are rights and procedures to access your IP well-defined?
• Compliance
Can CSBs meet required industry and government
specifications?
• Indemnification
Does the provider share risk? Escalate for nonperformance?
$ • Switching costs
Are fees, development involved in changing providers?
22. CSB "Didn't Know I Needed It" Capability
No. 1: Application Governance
Application Services
Governance =
API Management +
SOA Governance
What cloud service policies are likely to be enforced?
• Security
- User/service/API authentication — Fine-grained/role authorization
• Technical SLAs
- Schema validation — service/API throughput, availability, failover
• Business SLAs
- Approve POs of more than $1,000; give "Gold" customers priority routing; archive
invoices from France; encrypt personally identifiable data
23. CSB "Didn't Know I Needed It" Capability
No. 2: Community Management
Community management
capabilities include some
combination of:
• Community master data
• Think: "Supplier/Customer MDM"
• Also for organizations, users, maps,
keys
• Campaign, portfolio management
• Community collaboration tools
• Think: "LinkedIn for E-commerce"
• Member provisioning, testing
Modern B2B projects leverage both:
• Notifications, communications
• Integration infrastructure • Community compliance
- To technically integrate data and
• Think: "Supplier Scorecarding"
processes between company's systems
• Policy management, enforcement
• Community management • Transaction and data validation
- To facilitate collaboration between people • Process visibility, analytics
involved in B2B processes
24. Recommendations
• Recognize that the "service" in CSB has both business and
technical connotations, with the emphasis on "outcome."
• Interpret the CSB role through its primary three IT services
roles: CSB aggregation, integration and customization.
• Use Gartner evaluation criteria to help determine if you
should deploy an internal CSB or use an external CSB.
• Leverage providers of CSB-enabling technology for internal
CSB roles, providers of CSB services if you are outsourcing.
• Evaluate CSB providers (or your internal CSB role) via:
1. Assessing relative strength of each of the three primary CSB roles
2. Evaluating the additional CSB technical and commercial criteria
25. Recommended Gartner Research
Cloud Services Brokerage Is Dominated by Three Primary Roles
Daryl Plummer, Benoit Lheureux, Michele Cantara (G00226509)
Cool Vendors in Cloud Services Brokerages, 2012
Tiffani Bova, Daryl Plummer and others (G00231938)
Predicts 2012: Cloud Services Brokerage Will Bring New
Benefits and Planning Challenges
Daryl Plummer, Benoit Lheureux and others (G00227370)
Essential Provider Selection Criteria to Use When Outsourcing
the CSB Role
Benoit Lheureux, Jim Longwood (G00230681)
The Role of CSB in the Cloud Services Value Chain
Benoit Lheureux, Daryl Plummer, Tiffani Bova (G00218960)
For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.
27. The changing
enterprise landscape
60% of enterprise workloads will
move to the Cloud in 5 – 7 years
Today 5 – 7 years
Traditional Private Cloud Public Cloud
www.infosys.com/cloud 26
28. A FRAGMENTED LACK OF A
CLOUD ECOSYSTEM UNIFIED ENTERPRISE VIEW
Comprehensive lifecycle
ownership.
Traditional Private Cloud
Alignment with enterprise
IT standards.
Multiple
Public Clouds
Integration with existing
enterprise IT assets.
www.infosys.com/cloud 27
29. To become a gateway to an enterprise ‘hybrid’ cloud ecosystem
Private
Cloud Services
Public Automation
Cloud
Services
Governance
Enterprise IT Services
Enterprise IT Standards
www.infosys.com/cloud 28
30. August 7 7 th
th
August St. Regis, New York
REGISTER Event
TODAY http://www.informationweek.com/events/infosyscloud
Live streaming
http://www.informationweek.com/events/infosyscloudsimulcast
www.infosys.com/cloud 29
32. Q&A
Please Submit Your Question Now
Please Complete Our Survey
Daryl Plummer, Managing VP and
Gartner Fellow
Vishnu Bhat, Vice President and Global
Head - Cloud, Infosys
33. Resources
For more information please visit:
www.cloudecosystem.com