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Why Cloud Brokerage Hasn't Gained Much Adoption

Cloud service brokerage market development is still in the early stages. A recent survey of enterprise cloud adopters showed a near even three-way split between adopting, considering or not planning to adopt brokerage services, according to the latest market study by Technology Business Research (TBR).

TBR believes that as things stand today in the marketplace, there is a global lack of education pertaining to the solutions available and benefits or outcomes of cloud computing brokerage adoption by forward-looking IT organizations.

Moreover, as vendors are still making decisions regarding their participation within the cloud brokerage market, TBR anticipates it will be a few years before the brokerage concept reaches mainstream status within the typical IT organization globally.

"It seems enterprises are adopting brokerage services mostly to have a third-party perform their cloud integration and management tasks, either because they want their IT departments to focus on higher-level, business outcome driving tasks or they recognize they cannot or do not want to manage cloud sprawl," said Cassandra Mooshian, Cloud Analyst at TBR.

TBR says that it is interesting though, that the majority of those who adopt cloud brokerage do not do so such that they can free up resources to adopt more cloud solutions.

Rather, most survey respondents say they're adopting brokerage to optimize their current cloud solutions, which is not necessarily good news for traditional cloud vendors.

TBR surveyed 318 end users of cloud services (private, public, hybrid and/or professional services) at enterprises across North America, Europe and Asia to provide insight into adoption, perceptions and future trends in the cloud brokerage market.

The survey found cloud computing brokerage is not as likely to drive additional cloud sales as originally anticipated, creating a challenge for cloud brokers to overcome.

IBM is the clear market leader for enterprise cloud brokerage adoption, with an adoption rate that is more than double that of any other cloud broker, according to the report.

IBM is perceived as best meeting customer demands for brokerage services and has adequately built its brokerage portfolio and messaging such that customers are educated around what IBM has to offer and confident it can deliver on its messaging.

Furthermore, IBM and Capgemini, two systems integrators (SIs) with rooted consulting and systems integration (C&SI) capabilities, top vendor adoption lists, while niche cloud services providers and brokers are beginning to gain traction as the next level of brokerage services become more sought after.

Aside from IBM and some smaller vendors, many vendors have not delivered to the extent they message their portfolios, while others have not adequately promoted their brokerage capabilities, making it more difficult for customers to make informed decisions.

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