CIOs turn to brokerages for cloud support

Inadequate service from vendors causing CIOs to develop cloud engineering skills, or turn to outsourcing firms for infrastructure management

Tags: Cloud computingGartner IncorporationOutsourcingService level agreementUnited Arab Emirates
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CIOs turn to brokerages for cloud support Inadequate service contracts from cloud vendors are forcing CIOs to bring in external help. (Shutterstock)
By  Ben Furfie Published  July 21, 2010

Current cloud computing service contracts and ‘off-the-shelf’ solutions are forcing CIOs to either develop cloud engineering skills or seek the help of specialist VARs, Gartner has said.

Describing current service-level agreements (SLAs) as “consumer-grade”, the analyst firm said that pressures such as a need to ensure correct governance, as well as their performance and delivery, are forcing CIOs to either invest heavily in training, or turn to outsourcing companies.

Vice president and Gartner fellow, David Mitchell Smith said that these outsourcing companies – which Gartner describes as cloud service brokerages – are an evolution of value-added resellers that have diversified into offering both SMBs and enterprises cloud engineering services, such as cloud service governance and integration as a service.

“One of the primary activities of these cloud service brokerages will be that of could engineering,” said Smith. “The bottom line is that service providers deliver off-the-shelf services, but they do not take into account the specific needs of consumers, not do they recognise that their services might need to be in a composed solution with other services.

“To do cloud sourcing properly, someone must enhance, integrate or tailor the services to more specific needs. This does not mean changing what the service does in most cases. Rather, it means either enhancing or aggregating services, as well as providing more meaningful SLAs,” he added.

He added that while it may be feasible for enterprises – particularly large ones – to provide in-house cloud engineering services, Smith said that it would be the exception to the rule. “They need to ensure that there is a compelling business reason to do so. The potential benefit should outweigh the costs and risks.”

2678 days ago
Samir Pawaskar

Agree. In fact I had a posting on my blog that talked about this... http://isaisi.wordpress.com/2010/07/04/cloud-brokers-the-next-big-opportunity/

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