Skip to main content

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.

Popular posts from this blog

Connected Vehicles to Reach 1.05B by 2035

Every executive who has approved a connected product roadmap has made a quiet assumption: the network underneath it will still be there. That assumption is about to be tested at a scale the automotive industry has never faced. The global connected vehicle installed base is heading toward a billion units, and the cellular technology most of those vehicles depend on is scheduled to begin its retirement before the end of the decade. For automakers, fleet operators, insurers, and the telecom carriers that serve them, the question is whether the recurring revenue those services promise can survive a connectivity layer with a shorter life than the vehicle carrying it. How Scale Meets an Expiry Date Omdia research forecasts that the global connected vehicle installed base will surpass 1.05 billion units by 2035, up from 473.7 million in 2025. Few installed bases of any kind more than double in a decade, and this one signals that connectivity is moving from premium differentiator to baseline e...