Cloud Services Brokerages - Enabling Service Providers to Drive New Revenue Streams and Increase Market Share

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A JAMCRACKER WHITE PAPER
Cloud Services Brokerages - Enabling Service Providers to Drive New Revenue Streams and Increase Market Share
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Cloud Services Brokerage Enablement The cloud
market is growing at a rate of 30 annually and
is expected to reach 130 billion. Analysts
predict that service providers are well
positioned to be the leading point of
distribution for cloud services in light of the
scale of their operations and their capacity to
offer end-to-end lifecycle management for IaaS,
SaaS and PaaS over secure managed networks.
Delivering cloud services has emerged as one of
the most important opportunities of the decade
for service providers. To retain existing
customers, grow market share and maintain
existing profit margins on core services
service providers need an edge on their
competition and to increase agility in
addressing emerging market opportunities. In
what is often considered their core business,
service providers are facing new competition from
companies that are
According to Darryl Plummer, Chief Analyst at
Gartner
offering a range of value-added services to
small, medium and large enterprises. For most
providers, it's no longer a question of if but
rather how they make that transition from a
traditional telecommunications provider to a
'technology services' company.
The future of cloud computing will be
permeated with the notion of brokers negotiating
relationships between providers of cloud
services and the service customers.
But with many different clouds serving many
different needs, implementing a cloud services
delivery infrastructure around a few offerings
today raises the risk of managing services
stovepipes tomorrow. And given not all services
they may want to sell can reside in their own
data centers, service providers must also
contend with how they can deliver externally
provided services, along with their own, in a
manner that provides a seamless user and
lifecycle management experience for their
customers.
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Cloud Services Brokerage Big Opportunity for
Service Providers The cloud is not a single
entity, but rather many disconnected islands of
application and infrastructure services that
each has their own unique authentication and
authorization, provisioning, administration,
licensing, billing and support characteristics.
This presents a significant challenge and barrier
to adoption for businesses who want to consume
multiple cloud services from multiple cloud
providers. But this fragmented user experience
presents an excellent opportunity for service
providers to add value by becoming cloud
aggregators, or what is increasingly referred to
as a Cloud Services Brokerage. According to
Darryl Plummer, Chief Analyst at Gartner The
future of cloud computing will be permeated with
the notion of brokers negotiating relationships
between providers of cloud services and the
service customers. Applying the Cloud Services
Brokerage (CSB) model is a way for service
providers to leverage their networks and data
centers to provide an interconnected cloud
computing grid that combines best-of- breed
cloud services delivery with carrier-class
quality of service and enterprise-grade security.
This will enable them to deliver IaaS, SaaS and
PaaS clouds from third-party providers as well as
from their own data centers providing a single
point of purchasing, billing, support, access
control and services lifecycle management for
their customers. Jamcracker the Cloud Services
Brokerage Enabler
According to recent analysis from Gartner, the
CSB market will be worth hundreds of billions of
dollars within a few short years CSBs will
represent the single-largest category of growth
in cloud computing, the CSB vendor landscape
will have grown from dozens to hundreds of
providers.
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In addition to driving new revenue streams, the
Cloud Services Brokerage model provides a means
for service providers to reduce customer churn
and increase competitive differentiation with
their existing core service offerings, such as
broadband. Telstra, as one example, has seen very
positive trends from its experience with
T-Suite, their own branded Cloud Services
Brokerage marketplace (powered by Jamcracker).
According to Kate McKenzie, chief marketing
officer at Telstra "T-Suite customers are 65
percent less likely to churn broadband services
than broadband only customers." "22 percent of
T-Suite customers without a Telstra broadband
service take up a Telstra broadband service
within 12 months." "Over half of T-Suite
customers also bought multiple applications. The
CSB model provides an architectural, business
and IT operations model for enabling, delivering
and managing different cloud services within a
federated and consistent provisioning, billing,
security, administration and support framework.
For service providers, it will enable them to
unify the delivery of cloud services to drive
new sources of revenue and differentiate their
networks as a true cloud computing platform. The
stakes have never been higher.
Turning Theory into Practice The Jamcracker
Solution
According to Kate McKenzie, CMO of Telstra
Naturally, service providers are asking how to
implement the Cloud Services Brokerage (CSB)
model in a manner that reduces time-to-market,
maximizes their revenue potential and
competitive differentiation, integrates
externally and internally hosted services into a
unified offering for their customers, while
providing a future-proof means to expand and grow
as the cloud services market evolves.
T-Suite customers are 65 percent less likely to
churn broadband services than broadband only
customers."
Jamcracker provides a CSB solution that
aggregates and delivers cloud services through a
global ecosystem of service providers and cloud
providers called the Jamcracker Services
Delivery Network (JSDN). Jamcracker's cloud
services aggregation and delivery platform
enables service providers to bundle and
distribute a broad array of third-party cloud
services along with their own core and partners
offerings, providing a unified cloud delivery
and usage experience for their customers, whether
selling direct or through their channel partners.
"22 percent of T-Suite customers without a
Telstra broadband service take up a Telstra
broadband service within 12 months."
"Over half of T-Suite customers also bought
multiple applications.
Service providers can launch their own branded
CSB quickly and cost-effectively by leveraging
Jamcrackers platform as well as a catalog of
pre-integrated cloud services partners, most of
which include pre-negotiated wholesale
discounts. These offerings include messaging,
collaboration, security, data continuity, mobile
and business productivity solutions from Mozy,
Kaseya, Microsoft, McAfee, WebEx, BlackBerry and
dozens of other cloud providers.
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Jamcracker Services Delivery Network Jamcracker's
Services Delivery Network (JSDN) enables many
different types of cloud service offerings and
deployment options to be delivered with a single
point of provisioning, access, security, billing,
administration and support. The JSDN is powered
by a highly scalable and distributed
architecture with technology, operations,
support infrastructure, market knowledge and
services delivery business processes established
over a decade of definition, development and
refinement.

• This cloud services enablement, delivery and
  management foundation incorporates technology,
  operations and market experience that allows
  service providers to leverage the following
  benefits
• Unified Services Delivery Jamcrackers CSB
  platform enables unified provisioning, billing,
  single- sign-on, user management, support and
  usage for third-party services available through
• Jamcracker's existing and new wholesale
  agreements, but also for service providers own
  core services or partners offerings. This
  allows providers to create bundles to maximize
  up-sell and cross-sell potential.
• Wholesale Services Catalog Jamcracker has
  established distribution agreements and developed
  service adapters for a wide array of IT,
  security, communication, collaboration and
  business application cloud providers. This
  enables service providers to rapidly get to
  market with a core set of well-recognized cloud
  services offerings.
• Platform for Innovation Jamcrackers solution
  provides service providers with tremendous
  flexibility to experiment with new cloud service
  offerings, service bundles and to respond rapidly
  to changing market opportunities.

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• Jamcracker Value to Service Providers
• Increased Customer Retention and Margin
  Protection
• Increase retention by bundling value-add cloud
  services with core services to retain most
  valuable customers.
• Targeted Up-sell and Cross-sell Potential
• Real-time data and feedback from customers'
  behavior and preferences can be used to enable
  personalization, up-sell, cross-sell and other
  marketing activities.
• Greater brand exposure to all end-users.
• Faster Time-to-Revenue
• Speed up time-to-revenue by providing a
  ready-made catalog of services for delivery to
  customers that includes popular SaaS, PaaS and
  IaaS offerings.
• Increased / New Revenues Streams
• Rapidly source services, create targeted bundle
  offerings, enable new distribution channels, and
  quickly respond to the changing market and
  customer demand for cloud services.
• Reduced Operational Costs
• Automates tasks and streamlines processes
  including role-based access control, user
  provisioning and administration, granular access
  control and authorization policy enforcement, as
  well as automated billing and settlement.
• About Jamcracker