Having started life as a cloud services broker, an aggregator of cloud services, a couple of years ago Jamcracker morphed into helping others – telcos, service providers and most recently enterprises – become CSBs through its Services Delivery Network solution. “Back in the early days, we were doing this directly, selling services to businesses of all sizes… [but] as time went on, we started having very large organizations, telcos, and more recently IT distributors… telling us they want to do what you’re doing, but under our own brand,” said Steve Crawford, VP of Marketing and Business Development.
He said they’re seeing a groundswell of interest from large enterprise and government IT organizations interested in learning about how they can become Internal CSBs, where the IT department is aggregating the delivery and life-cycle management of public and private SaaS and IaaS cloud services for their internal users. “CSB presents service providers, distributors, technology OEMs, and enterprise/government IT organizations with a major opportunity to improve delivery of services to their users and customers.”
According to MarketsandMarkets, the Cloud Services Brokerage market is forecast to grow at a compound annual growth rate of 46.2% from $1.57 billion this year to $10.5 billion by 2018. During the same period, Cloud Brokerage Enablement will grow even faster – 55.3% CAGR – from $225.42 million to $2.03 billion. The enablement segment refers to integration platforms, which aggregate, customize, and/or integrate cloud offerings on a single platform, enabling other players to become cloud brokers, said the research company. Additionally, this segment has been further divided by type: Internal Cloud Brokerage Enablement and External Cloud Brokerage Enablement, which is again split among telecom service providers, system integrators and ISVs, resellers and distributors, hosting and cloud providers.
Gartner is even more bullish about the CSB opportunity, said Crawford. They believe it will be a central focus for cloud computing in 2013 and will be a $100 billion market by 2015.
In Jamcracker’s own research, the third annual cloud adoption and usage survey, 2012 was a year that experienced significant expansion of the CSB model among traditional and emerging segments; including telcos, IT distributors, ISV ecosystems, and enterprise/government IT organizations. External CSB marketplace operators experienced significant growth as they expanded their focus beyond market trials and ramped up their cloud services sales and marketing activities, and on average more than doubled their year-over-year growth.
The largest portion of CSB sales, 27%, was messaging applications, followed by collaboration applications at 22% and business applications at 18%. The remaining portion of sales is accounted for by infrastructure, backup and storage, security, and other miscellaneous applications. Messaging and collaboration applications continue to comprise nearly 50% of sales, symptomatic of the “bring your own device” and mobile workforce phenomena.
In March Cisco’s Pat Adamiak, Senior Director, Cloud Solutions Marketing, said the world of many clouds is creating a huge business opportunity for Service Providers – namely to connect multiple clouds for richer, aggregated services, assured experiences and consistent customer care. He said there is substantial interest from cloud service providers in pursuing Cloud Brokerage offerings, primarily because it increases the relevance of the cloud provider by providing an easy place for customers to buy a range of cloud services, and it provides an incremental revenue stream opportunity for the provider by acting as a channel for additional cloud services.
Crawford said the cloud services market has tended to be driven by end users looking for solutions not readily available from IT. “IT either needs to figure this out, or get out of the way!”