Where Cloud Service Brokers Fit in the Landscape of Cloud Technology

Cloud broker services

Today, well over half of all businesses utilize the cloud for data sharing and storage. Almost an equal number plan to adopt hybrid cloud systems in the near future. Enterprises are leveraging the cloud in ever-increasing number for its ability to seamlessly share information across applications and improve the integration between company segments. The rapid growth in the cloud communications market has caused more and more enterprises to turn to cloud services brokers for help in facilitating the use and application of their cloud systems. From customization to governance and security, cloud services brokers represent a rapidly growing segment of the cloud systems market.

Over one-third of IT services are delivered by the cloud, either partially or totally. This shift to the cloud computing model has drastically reduced infrastructure expenditures on data centers. The government plans to cut its expenditures on data center infrastructure by approximately 30% by leveraging the cloud’s model instead. Instead, spending has shifted to cloud equipment, systems, and cloud brokerage service providers.

With 60% of enterprises already utilizing the public cloud, it’s not surprising to learn that the International Data Corporation (IDC) anticipates spending on the public cloud will be as high as $100 billion in 2016 alone. This represents an increase of 60% over the prior four years, from the $40 billion spending level seen in 2012. The global market for cloud equipment is predicted to reach $79.1 billion in the next two years. In the middle of this spending are the cloud consultants and cloud services brokers who help business executives better utilize the cloud model.

On average, employees use as many as 28 different applications for work. To help with the integration and facilitation of these platforms, cloud services brokers are being called on in ever-increasing number. The U.S. cloud brokerage service industry is expected to grow as much as 55.3% per year, reaching a national market value of $2 billion by 2018. Similar growth is anticipated globally, with the global cloud brokerage service market expected to exceed $10 billion by 2018.

Cloud services brokers help with the aggregation, customization, and integration of cloud systems as well as the governance and security of the systems once in place. When asked the key metrics they use to select a cloud services provider, at 43%, the majority of respondents cited reliability as their top concern. Near the bottom of the list were cost at only 27% and the ability to integrate with existing infrastructure (28%). The role of the cloud services broker is continually evolving and growing. Often recognized for their role in selecting cloud services, cloud services brokers also provide assistance with governance and security, which have become top concerns for executives and business owners.

As many as 80% of enterprises either already have a plan for governing their cloud use in place or plan to create such a policy in the near future. In the cloud-based security market, a key player in shaping the future is the increasing demand for managed security services. In 2019, the cloud-based security services market alone is expected to reach $8.71 billion. Cloud services brokers are rising to meet these demands, by helping with policies to help govern cloud services and secure access to the cloud. Gartner has predicted that by the end of this year, a quarter of businesses will use cloud services brokers to secure access to their cloud services. By utilizing cloud services brokers, enterprises can expect to reduce the cost of access by up to 30%.

The growing demand for cloud systems in day-to-day business has created an equally increasing need for cloud services brokers. Thanks to the constantly-evolving nature of technology, the requirement to stay up-to-date on cloud systems is a recurring burden. Over half of organizations have updated their cloud systems or plan to in the next year. As such, the role of the cloud services broker has risen to help guide enterprises and facilitate their use of the cloud.