Date post: | 03-Dec-2014 |
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Cloud Services Brokerage Demystified
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Topics
• Cloud Services Brokerage– Emergence– Business Challenges– Definition in the context of business processes & integration
• Benefits of using a Cloud Services Broker• Factors to consider about whether to seek a Cloud
Services Broker• Transformation and evolution of IT roles• Sample business case(s)• Keys for success
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Emergence of Clouds Services Brokerage - Integration Types
• Types of integration – On-premise to on-premise
• Intra-enterprise• Application-to-Application (A2A)
– Business-to-Business (B2B)• Inter-enterprise• E-commerce• EDI/VAN• MFT
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Emergence of Cloud Services Brokerage
• Emerging cloud based services– Breakdown of integrated systems (SAP/Oracle) now Software as a Service– Data as a Service – Every company will encounter multiple third-party cloud services:
• SalesForce.com• SugarCRM• Concur• Kronos• StrikeIron• MercuryGate• NetSuite
• Integration needs to solve for– Published API’s that are complex– On-premise to cloud & cloud to on-premise– Cloud to Cloud – Cloud Services Brokerages to Cloud Services Brokerages
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Business Challenges - Increasing Complexity and Risk
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• Acceptance of cloud applications, iPaaS, SaaS, DaaS
• How to implement & maintain control over data without disruption?
• Cannot keep up with pace of change and still respond to business needs
• How to overcome barriers to adoption?
• Growing & changing number of data sources, formats, points
• How to govern data integrity & quality? Growing
Number & Diversity of
Connections
• Need to identify, categorize, and segment key information
• How to consume, harmonize, manage, leverage, enrich and integrate?
Big Data Looming
Emerging
Cloud-Based Systems
Developing Standards
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Emergence - Cloud-Based Data Centric Services
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Application Centric Cloud Services
• Insulated from complexity to keep the business model intact
• Very focused and optimized in a specific business process or “use case”
• Leverage and scale is “the” key to sustainability and business health
Users of Cloud Services
• Dynamic needs across a wide range of applications and services
• Growing variation and volume of data needed to drive the business
• Regulatory Compliance necessitates a somewhat reactive posture
Cloud Brokerages
• Bridge the needs of Users and Application centric Cloud Services
• Business model is built on embracing and managing complexity, providing a simplified interface to both Users and Cloud Service Providers
Customer
”Big Data”Cost Controls
InnovationCompliance
Time to Market
USERS CLOUD BROKERAGE
WorkflowRules Engine
Infrastructure & Data Centric Services
SFA
CRM
Other
HR
Semantic Integration
Data Translation & Harmonization
Co
mp
lexity Bu
ffer
Co
mp
lexity Bu
ffer
CLOUD APPLICATIONS
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Definition of Cloud Services Brokerage
• Normalizes and simplifies consumption by consolidating multiple third party services into one – Brokering connections to these clouds and helping customers
leverage these services.– Includes the bundling of services/connections to other clouds,
data enrichment and value-add for integrated business processing. – Gartner
– Provides value by aggregating, normalizing, customizing and enhancing information
– Helps avoid a new point-to-point connection problem by being a ‘hub’
• Needs to be ‘data aware’ and an expert in data integration and data management
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Definition Cloud Services Brokerage
• Buffers customers from technical details of interacting with these clouds– Integration skills, platform, tools– Provides managed services – Customers call upon services as needed
for updates and new projects
• Sometimes called: – Cloud Integration Brokerage– Integration Platform as a service (iPaaS)– Enterprise Application Integration (EAI) in
the cloud– Service Oriented Architecture (SOA) in
the cloud– Enterprise Service Bus (ESB) in the
Cloud– Integration in the cloud
Experts (Services)
Integration Tools
Platform
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Cloud Services Brokerage – Professional Services
• Management consulting– Process optimization– Project planning– Domain expertise & specialization
• Solution architecture • Service aggregation & centralized governance• Customization & implementation (SDLC)
– Cloud Services Brokerage– On-going managed services & operations support
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Cloud Services Brokerage Platform & Tools
• Data management– Data quality– Data integrity– Data enrichment
• Data transformation• Any-to-Any data integration• Secure data transactions
– Connections– Data In transit– Data at rest– Encryption– Tokenization
• Extended visibility and activity monitoring
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Factors to Consider in Seeking Outside Help
• Capabilities for cloud integration– Quickly establishing and maintaining
connections, services & API’s– Increasing number of disparate
systems and business relationships– Increasing variety of data– Handling the hybrid of fixed internal &
external systems integration needs– Sharing information between clouds– Ability to synchronize data across
cloud platforms
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Benefits of Using a Cloud Services Broker
• Simplification– Relationship with a single provider– Single point of entry to multiple clouds– Singular façade with coherent, uniform services– Provides a common visibility layer– Handles security, certificates– Directs transaction to destination– Seamless integration whether on-premise or cloud-based business
services
• Allows businesses to focus on their core competency vs. learning how to interact with new cloud services
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Benefits of Using a Cloud Services Broker
• Can start small and can leverage services as business scales or encounters significant events like:– Changing distribution methods or channels– Trying out new lines of business– Mergers & acquisitions and divestiture– Business partners coming and going
• Future proofing - ensure that business stays up with latest technologies
• Fast time to deployment• Cost considerations
– Fixed (predictable) pricing– Shift from capital expense to operating expense
• Increased reliability
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Benefits of Using a Cloud Services Broker
• Customers have access to subject matter experts on demand with:– Experience connecting systems and working with cloud-based
services– Best practice domain expertise (holistic vs. project focused)– Experience in many vertical markets and solving many types of
complex integration challenges– A trusted advisor role
• Unique specialty in addressing the data layer level– Resolving data quality issues at the source (breaking through
information silos on behalf of customers)– Enriching data, adding significant value to services– Enabling analytics and business intelligence
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Transformation of IT’s Role
• Cloud Services Brokers handling complex data integration shifts the focus for IT to refining business processes and innovation
• Focus on core business and partnering with the business– Business model design– Value networks – Business processes that deliver sustained competitive
advantage
• Find new methods and avenues to differentiate & compete– Try new things at low risk/cost, freedom to experiment– Enable new distribution channels– Think of new ways to leverage technology
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Evolution of IT’s Role
• Increasing business strategy alignment– What to leverage from 3rd parties – How to apply services to achieve business goals
• Managing an ecosystem of partners and vendor relationships & orchestration
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Case Study - Solution & Results
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Challenge Solution Results
Urgent need to migrate away from current provider that was a fulfillment partner and integration is not their core competency and not extensible
Need to integrate with online stores, multiple partners, multiple fulfillment partners
Need to provide order management, stock checks, tax calculations, real time credit card authorization, financial processing, fulfillment processing
Need to provide current, accurate, complete product information and pricing across the enterprise
Need to have agility for rapid changes moving forward
Outsourced partner integration
Outsourced transaction processing
Advanced routing capabilities
MDM hosted solution
Develop governance & extracts from multiple sources
Provided discrepancy reporting
Migrated customer off of fulfillment partner
Provided real time stock checks, calculations and transaction processing
Single data sourcereduces errors between online and customer systems
Lower costs
Ability to scale for new acquisitions and expanding markets
Allows more focus on core business
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Case Study Business Processes
• Inventory/stock check• Tax calculation• Credit card authorization• Split and forward to fulfillment• Split, calculate and forward to ERP• Order tracking/status• EDI processing• MDM with 3 legacy source systems
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Case Study – Solution Walk Through
Order P
lace/Confirm
Order P
lace/Confirm
Order Place/Confirm
Order Place/Confirm
Shipping Confirm
ation
Catalo
g Dat
a Con
firm
ation
Tax Calculation
Tax Calculation
Credit Card Auth.
Credit C
ard Auth.
Inve
ntor
y F
eed
Stock Check
Inve
ntor
y Fe
ed
Inventory Feed
Order Confirm
3rd Party Integration
SAP
Homegrown System
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Suppliers
Case Study 2
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Platform MDM, Transformation,
Integration, CSB Security
Business-to-Business (B2B)
Third-PartyLogistics
OutsourcedManufacturer
FinancialInstitutions
Customers
Orders & Invoices
Orders
Orders & Inventory
Orders & Receipts
Cash Transactions
Cloud-Based Services (SaaS, DaaS)
Expenses
Employees
Contacts & Orders
Web Services
CurrencyWS
InventoryPricing
WS
Shipments & InvoicesFreight WS
Application-to-Application (A2A)
CustomerSingle Connection
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Keys for Success
• Navigation of technical landscape & responsiveness to change at all levels– Interoperability inside and outside of the
organization among systems and across business partners
• Have a good handle on data management and integration– Allow for better segmentation & analysis by
having consistent, accurate data
• Migrate to cloud when you are ready, for areas that make sense and are manageable
• Be in a position for Business Process Agility (speed, any to any, agnostic)
@LiaisonTech 22
Summary
• Collecting, assembling and making use of information is getting more complex
• Standards alone cannot solve this problem• Every company has challenges with harmonizing and
managing data• Cloud Services Brokerages (CSBs) can help navigate
the emerging and complex technology environment• The core competency of emerging Data Aware Cloud
Brokerages is to localize and manage data complexity
@LiaisonTech
Solutions
• Data Integration• Data Management • Data Security
Multinational
• Global headquarters in Atlanta• European offices in Finland,
Netherlands, Sweden, UK• More than 7000 customers
worldwide in over 46 countries
For more presentations:
Liaison Webinars
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Additional Resources