Welcome!

Microservices Expo Authors: Liz McMillan, Flint Brenton, Elizabeth White, Yeshim Deniz, Pat Romanski

Related Topics: @CloudExpo, Java IoT, Microsoft Cloud, Containers Expo Blog, Agile Computing, Cloud Security, @DXWorldExpo, SDN Journal

@CloudExpo: Article

Cloud Business Models of the (Near) Future

Evolving Cloud Broker Models

The cloud is often touted as the answer to all our problems. It offers countless possibilities, from increased agility and reduced costs for enterprises, to a revenue lifeline for service providers as they take their first steps toward becoming a cloud broker. The cloud broker model can give service providers the chance to avoid commoditization by repackaging their own offerings together with cloud services and selling these to customers.

But cloud brokers beware. There's a risk of being a jack of all trades and master of none. It's crucial to ensure that a cloud offering is designed to meet the needs of a specific market. For example, enterprises and small/medium sized businesses (SMBs) will hardly subscribe to all cloud services from a single provider. So which approach is best for which target market?

Serving the needs of SMBs
For telcos with access to a large number of customers in the SMB space, the Software-as-a-Service (SaaS) broker is the best way to go. This allows telcos to leverage their broad customer access and sell SaaS applications to SMBs in addition to their carrier portfolio. SMBs will not only expect consolidated provisioning and billing but also an aggregation of services and federation of data across multiple SaaS applications provided by the broker.

CloudItalia, a company combining telecommunication and cloud computing services specifically dedicated to small and medium enterprises in Italy, as an example, is offering a core set of services that are vertically focused and aimed specifically at the SMB customer segment. This approach is all about providing pre-packaged services that, as much as possible, are a `no brainer' for SMBs to work with. MashApp tools are critical here. They provide the capability to build services by creating mash-ups of the business applications SMBs are most likely to require such as Saleforce.com. Together with orchestration tools this allows users to build the exact services they require. Because the cloud service provision component is based on the company's existing telecom business with its own network, this gives CloudItalia's customers particular benefits.

Forrester's Forrsights survey data showed that at the end 2012, on average nine different SaaS applications were used at the same time in a single business. This will increase to 13 by the end of 2013. This requires a higher automation of billing and integration among all SaaS applications used, including a flexible subscription approach for individual employees. All of these challenges are potential value propositions for future SaaS brokers.

The enterprise approach
Enterprises seriously moving to cloud infrastructure require a mixture of multiple cloud infrastructure services, very likely from multiple providers. Systems integrators (SIs) and dedicated cloud infrastructure providers will get the most out of becoming Infrastructure-as-a-Service (IaaS) brokers. Providing dynamic sourcing across public, virtual private and private clouds, this broker model leverages temporary spare capacity on-premise and combines it with spot price offerings of virtual private or public cloud providers. Cloud infrastructure offerings vary by reliability, price, local presence of data centers, legal compliance, performance and many other characteristics. SIs can retain or establish customer relationship with these enterprise buyers by offering the full portfolio of their own cloud services and reselling public cloud IaaS from others. Infrastructure broker services add a unique value and make the multi-provider portfolio consumable.

According to Forrester's Forrsights Hardware Survey, nine percent of all enterprises today use a hybrid cloud infrastructure, mixing a private cloud with an external cloud provider. This number is expected to increase to 26 percent by 2015, and Forrsights data indicates that half of that group will be using sophisticated cloud management such as policy-driven provisioning. This group will drive the adoption of infrastructure broker services in the future.

A unified future
It is possible that a single company might deliver multiple cloud broker models, as a ‘unified cloud broker.' A sophisticated business process-driven provisioning framework, which supports the dynamic sourcing of both infrastructure and SaaS applications, would obviously provide a huge synergy for providers looking forward to a unified cloud broker. Technology vendors and their ecosystem of partners are getting ready to deliver this spectrum. However, it takes a cloud provider at least a year to merge discrete broker services into a unified cloud broker business model and technology stack. This is one reason that we are yet to see any unified cloud broker offerings on the market. But watch this space, it won't be long. At that time, the cloud's countless possibilities will be much more of a reality.

More Stories By Matt Davies

Matt Davies is senior director of product marketing at Cordys, the enterprise cloud platform. He is involved in all areas of product messaging, technical positioning, communication both internal and external regarding Cordys products, and helping shape where the Cordys strategy goes next. He is on Twitter @mattdavies_uk.

@MicroservicesExpo Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Don’t go chasing waterfall … development, that is. According to a recent post by Madison Moore on Medium featuring insights from several software delivery industry leaders, waterfall is – while still popular – not the best way to win in the marketplace. With methodologies like Agile, DevOps and Continuous Delivery becoming ever more prominent over the past 15 years or so, waterfall is old news. Or, is it? Moore cites a recent study by Gartner: “According to Gartner’s IT Key Metrics Data report, ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Docker is sweeping across startups and enterprises alike, changing the way we build and ship applications. It's the most prominent and widely known software container platform, and it's particularly useful for eliminating common challenges when collaborating on code (like the "it works on my machine" phenomenon that most devs know all too well). With Docker, you can run and manage apps side-by-side - in isolated containers - resulting in better compute density. It's something that many developer...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Microservices being modular these are faster to change and enables an evolutionary architecture where systems can change, as the business needs change. Microservices can scale elastically and by being service oriented can enable APIs natively. Microservices also reduce implementation and release cycle time and enables continuous delivery. This paper provides a logical overview of the Mi...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
"This all sounds great. But it's just not realistic." This is what a group of five senior IT executives told me during a workshop I held not long ago. We were working through an exercise on the organizational characteristics necessary to successfully execute a digital transformation, and the group was doing their ‘readout.' The executives loved everything we discussed and agreed that if such an environment existed, it would make transformation much easier. They just didn't believe it was reali...