Cloud Services Brokerage Market

[257 Pages Report] The Cloud Services Brokerage (CSB) market is expected to grow from USD 11.4 billion in 2024 to USD 26.2 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 18.0% during the forecast period. The CSB market dynamics have recently evolved from a traditional model of cloud service aggregators to sophisticated providers due to improved technology and rising demand for efficiency, flexibility, and interoperability.

Initially, CSBs were used to create a middle tier between the users and the providers. Nevertheless, introducing multi-cloud and hybrid cloud systems has significantly changed this field. Such changes call for more sophisticated approaches to handling cloud services and integrating, managing, and optimizing diverse cloud services.

Besides, the numerous data and applications flowing across and within the different platforms have created a high demand for full-fledged CSB solutions due to the relatively complex environment of such sophisticated ecosystems. Forces fueling this growth include the continuing trend toward telecom, BFSI, and IT services sectors’ digitalization, the demand for improved compliance and governance, and the emergence of new forms of software designed to work on the Internet. The COVID-19 epidemic quickly fostered the shift toward the cloud as companies sought solutions that would enable them to accommodate more workers without interruptions.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

CSB Market Dynamics

Driver: Growing adoption of multiple cloud solutions

The increased use of multiple cloud solutions propels the CSB market since managing multiple cloud systems is difficult. As more and more enterprises embark on the use of clouds, CSBs assist in the organization and utilization of a variety of cloud services optimally. According to Forbes, Turing.com and CloudZero figures revealed that by 2024, the majority, approximately 94% of firms worldwide, are expected to be using cloud technology. Cloud services brokers are helpful in this regard since they help organizations manage this complexity by offering integrated services to get the best of the available cloud services. It is used as an intermediary providing solutions to connect the different channels of clouds and manage costs and multi-cloud operations. These trends indicate the need to improve brokerage services to stop vendors from locking their clients in a way that disrupts business operations and disaster recovery because of the shift toward hybrid or multi-cloud solutions. CSBs offer functional solutions, such as management platforms, analytics, and advisory services, to work effectively in complicated settings. The requirement to address and control processes of that sort would likely stimulate development within the CSB market since anything improved on their platform would, in turn, necessitate change. Against this backdrop, CSBs are critical enablers of simplified cloud management and relevant solutions for strategic business-cloud management.

Restraint: Security and data privacy concerns

The risks of hacking, data breaches, illegal access, and data loss increase as companies shift their operations from the traditional environment to the cloud. Since their information is susceptible, many organizations are still afraid of using cloud services because they are insecure about the contents of their information online; this, therefore, calls for cloud brokers to have stringent policies that ensure customers' confidential details are safe from hackers or any other unauthorized person. The brokers should ensure encryption and secure authentication mechanisms that safeguard the confidentiality of the transferred documents so that any attempt for sabotage fails.

Moreover, it will further be complicated by-laws that include compliance with GDPR or CCPA; in these cases, brokers have to verify whether they are acting according to the legal requirements and residency policies regarding how the information is dealt with on their behalf for other countries. Besides, data sovereignty concerns introduce legal challenges where data may be subject to the hosting country's laws. This complicates the fact that different security measures are adopted by cloud service providers, thus begging questions on the reliability of the vendors and security concerns around the service. It is the quick actions that are taken during a security event that significantly reduce the extent of damage caused by such an event. For all these reasons, cloud brokers have to, at all costs, focus on developing solid measures for data protection and compliance mechanisms that deal effectively with security and privacy concerns.

Opportunity: Need for multi-cloud management

Multi-cloud solutions have numerous advantages and could be developed in the global market for cloud services brokerage. The more an organization moves to a multi-cloud strategy, the harder it gets for them to manage such diverse settings. Instead, the burden will fuel the need for CSBs engaging in multi-cloud, which must have a single plane of sight, consistent automation, optimization, and security. Also, through such intermediaries as CSBs, cloud governance can be optimized, leading to the optimization of consumption play and the enhancement of control over costs. For that reason, the position of CSBs would remain highly central to businesses in optimizing their cloud investments and achieving operational excellence to meet the emerging multi-cloud management demands effectively.

Challenge: Integration of modern cloud solutions with legacy systems

Many legacy systems cannot integrate with the new cloud, and the latter makes them costly to upgrade and may pose security issues. They may also present performance issues because they were not designed with cloud architecture in mind, and their staff may be inexperienced in state-of-the-art cloud solutions and platforms. In addition, its antecedents, vendor lock-in, and regulatory compliance are a source of more problems regarding integration. That is why organizations must design specific integration scenarios and, if possible, upgrade the outdated platforms.

Cloud Services Brokerage Market Ecosystem

Based on verticals, manufacturing segment to account for second-largest market share during forecast period

The manufacturing sector increasingly relies on CSB solutions to drive operational efficiency and innovation. CSB platforms offer manufacturers the ability to integrate and manage disparate cloud-based services; combining different types of cloud-based service models enables manufacturers to reduce complexity across functions, such as supply chain management, production scheduling, and quality control, on a single platform. This consolidation improves visibility, coordination, and efficiency across organizational production units. In addition to this type of integration, CSB solutions enable the integration of data analytics and IoT, an essential requirement for new manufacturing capabilities. Combining cloud-based analytics tools with IoT enables organizations to monitor equipment performance in real time and analyze production data, enabling organizations to conduct predictive maintenance and imbue their operations with optimized performance standards. These conditions reduce downtime and drive productivity. By utilizing cloud technologies, manufacturers can experiment with innovation through new technologies while adapting to changing product demand and maintaining control of compliance concerning costs and complexity.

Based on cloud service models, IaaS to hold second-largest market share during forecast period

The Infrastructure as a Service (IaaS) cloud service model in the CSB market is poised to grow at the second-largest CAGR during the forecast period. IaaS enables businesses to rent virtualized computing resources, such as servers, storage, and networking, over the Internet on a pay-as-you-go basis. IaaS enables organizations to quickly scale their IT infrastructure according to changing business needs, lowering or eliminating capital expenditures, and simplifying physical servers and hardware management. Rising demand for cloud-based solutions, representing a lower total cost of ownership and scalability and reproducibility of business solutions compared to physical solutions, will drive demand for IaaS. In addition, CSBs provide oversight for IaaS offered by multiple cloud solution providers, simplifying the management of IaaS and enhancing cost management, security, and compliance with regulations and policies. The growing acceptance of hybrid cloud strategies and multi-cloud solutions and the ever-increasing demand for scalable infrastructure to support cloud-native applications enable IaaS to continue multiplying.

Based on regions, North America to account for largest market share during forecast period

The North American CSB market is expected to dominate the global market with maximum share because almost every company is now grafting multi-cloud environments for flexibility, less risk, and minimum cost for business operations. CSBs are mediators that provide cloud governance, compliance solutions, service coordination, monitoring and enforcement, and vendor management. Among leading cloud providers, AWS, Microsoft Azure, and Google Cloud are increasingly locking horns in this area in new consultancy deal arrangements to complement the service delivery capacity and geographical scope. New technologies, such as automation in the cloud and AI for management, enhance work within CSBs. Nevertheless, issues like the need to employ well-trained personnel and data privacy kept reducing the Americas' CSB market as North America enjoys a superior IT platform and constant development of new cloud services. The levels of investment that the US government has made in cloud computing for operations of the public sector and the focus that the region has put on digital transformation also help fuel the growth of the CSB market, thus leaving North America a strong player during the forecast period.

Key Market Players

The CSB  market is dominated by a few globally established players, such as Accenture (Dublin), IBM (US), Broadcom (US), Arrow Electronics (US), Fujitsu (Japan), DXC Technology (US),Wipro (India), Eviden (France), AWS (US), Infosys (India), NTT Data (Japan), TCS (India), Tech Mahindra (India), BMC Software (US), Flexera (US), Jamcracker (US), Cloudmore (Sweden), Eshgro (Netherland), OpenText (Canada), Incontinuum (Netherland), Compunnel (US), Shivaami (India), Bittitan (US), Capegemini (France), Oracle (US), Cignex (US), ActivePlatform (Belarus), CloudFX (Singapore), CloudBolt (US), CloudSME (US), AppDirect (US), Morpheus Data (US), Interworks. Cloud (UK), Racknap (India), Spot (US), and CloudBroker (Switzerland). Cloud computing's quick growth and more complex multi-cloud setups expand the CSB market. There is a growing adoption of hybrid and multi-cloud strategies to increase the company's agility and reduce expenses, necessitating complex brokerage services. Some trends, such as better cloud management, optimized tools, and improved security and compliance, are needed to help work through various clouds. Providers focus on the smooth transition from one cloud to another, bettering SLA, and providing mechanisms to take care of costs. Cloud brokers continue to build the latest technologies, including AI in analytics and decision-making, to remain relevant. They are expanding their offerings to offer superior, more durable cloud infrastructures and cater to emerging enterprise requirements.

Want to explore hidden markets that can drive new revenue in Cloud Services Brokerage Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the cloud services brokerage market to forecast revenue and analyze trends in each of the following submarkets:

By Service Type:

• Aggregation
  • Multi-cloud Management
  • Data Integration
  • Automation & Orchestration
• Service Intermediation
• Security Management
• Performance & Usage Reporting
• Service Arbitrage
• Service Catalog Management
• Marketplace Integration
• Enablement Services

By Cloud Service Model:

• PaaS (Platform as a Service)
• IaaS (Infrastructure as a Service)
• SaaS (Software as a Service)

By Organization Size:

• Large Enterprises
• Medium Enterprises
• Small Enterprises

By Vertical:

• BFSI
• Telecommunications
• IT & ITES
• Government & Public Sector
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Media & Entertainment
• Healthcare & Life Science
• Other Verticals

By Region:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In December 2023, Wipro strengthened its partnership with RSA by offering cloud migration services that would make it easier to move its data to a cloud repository and improve its IT infrastructure for three years. This agreement will help RSA strengthen its IT systems, explicitly concerning cloud computing, automation installed in compliance with regulatory requirements, security measures implemented, and growth potential.
• In December 2023, Google Cloud and Accenture announced the opening of a Center of Excellence for generative AI. The center would be to speed up the adoption and application of AI in industries. Google offered complex AI models and integration technologies, while Accenture provided customization services, improving efficiency and driving business transformation.
• In October 2023, IBM acquired Equine Global, an Indonesian ERP and cloud consulting firm, to boost its consulting services and hybrid cloud in the region. This acquisition added Equine Global's ERP knowledge and critical partnerships with SAP, Oracle, and AWS to the company.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst