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Cloud Services Brokerage for Data Center Service Providers Kevin L. Jackson Vice President and General Manager, NJVC Cloud Services NJVC, LLC Proprietary Data. Do Not Distribute Presented to Gartner Data Center Conference Dec. 4, 2012

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Cloud Services Brokerage for Data Center Service Providers

Kevin L. JacksonVice President and General Manager, NJVC Cloud Services

NJVC, LLC Proprietary Data. Do Not Distribute

Presented to Gartner Data Center Conference

Dec. 4, 2012

Vice President and General Manager, NJVC Cloud Services

Chairman, Network Centric Operations Industry Consortium Cloud Computing Working Group

Blogger and Author “Cloud Musings” (http://kevinljackson.blogspot.com) “Cloud Musings on Forbes”

(http://blogs.forbes.com/kevinjackson/) Founder and editor of Government Cloud Computing on

Ulitzer electronic magazine (http://govcloud.ulitzer.com) GovCloud: Cloud Computing for the Business of

Government GovCloud II: Implementation and Cloud Brokerage 

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Kevin Jackson

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Cloud Adoption Data Center Consolidation Impact to IT Operations Cloud Services Brokerage

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Agenda

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Gartner Symposium CIO Breakfast Workshop

CIOs representing four industries Discussions centered on state of cloud in their organizations

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More and more organizations are moving to the cloud

More than one-third of all respondents had more than 25 percent of their major initiatives involve cloud computing

85% have little experience with cloud deployment

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Cloud … More than Hype

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SecurityIT Automation &

End User Self Service

Complexity of Managing Cloud

Services

Efficient & Effective

Application Development

Top four survey responses

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Key Factors Determining the Speed of Cloud Adoption

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Cloud Computing—A Disruptive Business Model

Not Business as Usual

Long Term

Contracts

Data Center Margi

ns

Threatens

traditional co-

location & hosting business

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8http://www.cio.com/article/690007/How_Cloud_Computing_Is_Changing_Data_Center_Designs_and_Costs

Disrupting the Data Center Services Business Model

Infrastructure Investment

Fixed Price Based on Volume

Commitment

Old Design Patterns

“Just in time” Capacity

Consumption Pricing

High Volume/Low Margin Mass Scale Computing

New Service Design Patterns

Old Business Model

New Business Model

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Disrupting the Hardware Supplier Marketplace

• Cost-focused • Applies pressure on vendors to accept less profit

in return for volume

Large cloud market

• Market shift from general purpose to purpose-built servers

• Growing cloud provider market, Gartner estimates ~20% market share

Rapidly growing cloud provider market

• Just-in-time hardware activation models for additional capacity

• Capacity reallocation when peak demand diminishes

Subscription based delivery of commodity infrastructure on a subscription basis

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Disrupting the System Integration Marketplace

Buyer Organization

System Integrators (3-5 year leases)

Data Center Providers (0-15

year leases)

Data Center Real Estate

Brokers

Buyer Organizations• Let and fund

contracts• Set requirements

and specifications

System Integrators• Designs & manages

building and operations of IT infrastructures

Data Center Providers• Purchases the real

estate• Builds & manages

as to multiple industry verticals

• Subcontractors to System Integrators

Data Center Real Estate Brokers (Ping, Power, Pipe) • Ping - invest in data

center real estate & co-location centers (customers ping their computers remotely)

• Power - electrical • Pipe - connection to

the Bandwidth Providers

Data Center ProvidersSystem Integrators

Cloud service providers are helping drive this shift and will account for more than one-quarter of all the U.S. data center capacity by the end of the forecast period.

IDC, 09 Oct 2012

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Cloud Is Not Easy, Ask GoDaddy

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Cloud—Changing the IT Organization

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Defining Cloud Services Brokerage (CSB)

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Why CSB Matters …

Follow the money…..

Estimated Annual IT Spend on CSB by 2014

$100 B

Source: Gartner: “Examining the Magnitude of the Cloud Services Brokerage Opportunity “

Cloud Broker Google Searches

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NJVC, LLC Proprietary Data. Do Not Distribute

Traditional Cloud Deployment

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Co-locationApp Hosting

CSP Partner(s)Business Model

Update Infrastructure

Hybrid IT Offering

CSP

CSP

CSP

Looking forward to delivering your hybrid IT offering we

discussed.

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Cloud Deployment with CSB

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Co-locationApp Hosting

CSB PartnerBusiness Model

Hybrid IT Offering

Looking forward to delivering your hybrid IT offering we

discussed.CSP

CSP

CSP

CSB

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Faster Deployment, Improved Agility Using Cloud Services Brokerage

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Co-locationApp Hosting

CSP Partner(s)Business Model

Update Infrastructure

Hybrid IT Offering

Co-locationApp Hosting

CSB PartnerBusiness Model

Hybrid IT Offering

Looking forward to delivering your hybrid IT offering we

discussed.CSP

CSP

CSP

CSB

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Cloud Services Brokerage Solution

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Ensuring Secure Cloud Brokerage …

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Reposition Your Data Center

You Are Here

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Highlight traditional customization, security and customer service strengths

Sell their capabilities as an adjunct with or alternative to commodity cloud services

Enable faster transition to mixed business models with less capital expenditures

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CSB Partnership Value

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NJVC, LLC Proprietary Data. Do Not Distribute

Secure, Unified Cloud Management and Control Services

Transform your data center TODAY

Contact Kevin Jackson by emailing [email protected] or calling

703.665.9119

Please visit http:cloudcuity.com to learn more

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