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

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

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 offering a range of value-added services to small, medium and Plummer, Chief Analyst at large enterprises. For most providers, it's no longer a question of if but rather how they make that transition from a traditional Gartner: 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-ofbreed 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: “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.”

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.

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.

Service providers can launch their own branded CSB quickly and cost-effectively by leveraging Jamcracker’s 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: Jamcracker’s CSB platform enables unified provisioning, billing, singlesign-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.

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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.

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Platform for Innovation: Jamcracker’s 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 Jamcracker helps organizations manage, deliver, and govern their own multi-cloud services, and broker third-party cloud services. Using Jamcracker solutions, IT organizations, service providers and distributors can now unity and optimize cloud services delivery for their employees, customers and channels.

Jamcracker provides the flexibility you need to respond to rapidly changing business requirements. The Jamcracker platform greatly reduces the complexity and cost of multi-cloud management and delivery.

Moreover, our platform automates policy compliance and governance, spend management, and operations management. For more information on Jamcracker, visit www.jamcracker.com.

Contact Jamcracker, Inc. 4677 Old Ironsides Drive Santa Clara, CA, USA 95054 Phone: +1 (408) 496-5500

Copyright © 1999-2015 Jamcracker, Inc.