Cloud Service Brokerages (CSBs) use arbitrage service model to offer flexible and strategic choices to enterprise customers. Under this model, enterprises get to choose from multiple similar services in a trustworthy manner.
As explained in the earlier post, the rise in big data along with the increased use of unified communication channels and the advent of cloud services have completely changed the enterprise IT landscape. Enterprises are increasingly using cloud services brokerages (CSBs) to manage the complex and diverse cloud services offerings from various providers.
CSBs follow mainly three business models to manage enterprise cloud services, of which cloud service arbitrage is an evolving model.
Flexible and high value
Under the arbitrage model, Cloud Service Brokerage will buy computing resources from cloud providers at wholesale rates and subsequently, offer it to customers in smaller packages. In this process, CSBs will also help add greater cumulative value to the computing resources.
Besides supporting customers to achieve maximum return on investment in technology and mitigating the complexity of implementation and maintenance of technology, arbitrage offers the much-needed flexibility to enterprises to build, buy or outsource its computing requirements by reducing the overall risk involved in investments and ownership cost.
The main difference between aggregation and arbitrage models is that under arbitrage, Cloud Services Brokerage offers flexible services to enterprises based on their varied business requirements and cost parameters whereas the arbitrage services are fixed. Under arbitrage model, a customer can get backup service and performance guarantees from CSBs.
CSBs providing arbitrage services are similar to an online insurer offering comparative rates from different insurance companies so that customers can choose the best rate and the type of insurance from among those available.
Arbitrage model is set to become popular with the growth in cloud services. It allows CSBs to shift workloads from one provider to another depending on the organizational needs and cost consideration. As arbitrage follows a pay-per-use model, enterprises are not tied to long-term contracts, and this makes it easier for CSBs to shift workloads between different cloud providers.
This flexibility to shift between services is especially useful as cloud technology is still evolving, and pricing models are fluid.
Moreover, the flexibility of arbitrage model helps enterprise customers to innovate and accommodate new services. In today’s world, innovation is the key to survival. Cloud technology should be able to keep pace with the changing needs of an enterprise customer.
Under arbitrage model, enterprises can focus on innovation while Cloud Service Brokerages will offer flexible cloud services that can accommodate the changes and transform the businesses.
DoubleHorn can help you implement flexible cloud services at an affordable rate. We can provide you efficient solutions and services to choose from so that you can innovate faster and stay ahead of the competition. Sign-up for a complimentary consultation or contact us at firstname.lastname@example.org (or) 855-61-VOICE (86423) for more information.