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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.

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a jamcracker white paper

A JAMCRACKER WHITE PAPER

Cloud Services Brokerages - Enabling

Service Providers to Drive New Revenue

Streams and Increase Market Share

cloud services brokerage enablement the cloud

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

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.

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.

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.”

Copyright © 1999-2015 Jamcracker, Inc.

cloud services brokerage big opportunity

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.”

Copyright © 1999-2015 Jamcracker, Inc.

in addition to driving new revenue streams

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

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.

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.”

Copyright © 1999-2015 Jamcracker, Inc.

jamcracker services delivery network jamcracker

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, 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: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.

Copyright © 1999-2015 Jamcracker, Inc.

jamcracker value to service providers

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.