Cloud service brokerage (CSB) enabler tracks statistics that details overall cloud distribution sales and how businesses are actually adopting the cloud

SANTA CLARA, Calif., February 22, 2010 – Jamcracker, the Cloud Services Brokerage enablement company, today announced results of their first annual report on cloud adoption and usage. The research provides 2010 usage statistics and tracks users within the Jamcracker Services Delivery Network (JSDN), encompassing dozens of service providers and distributors, over one hundred cloud providers and hundreds of thousands of businesses. The market opportunity for cloud service brokerages (CSBs) is expanding rapidly as the volume of cloud services continues to expand. According to Gartner, "By 2015, CSBs will represent the single-largest category of growth in cloud computing, moving from a sub-$1 billion market in 2010 to a composite market counted in the hundreds of billions of dollars.” (Defining Cloud Services Brokerage: Taking Intermediation to the Next Level, October 8, 2010.)

Key findings include:

• Across all JSDN distribution partners, year over year growth from 2009 was highest in email and collaboration service categories in terms of overall percentage growth. Much of this growth is attributed to growing market awareness and aggressive price moves by Google and Microsoft and a growing trend by businesses of all sizes to migrate their email from on-premise to hosted solutions.
• The second half of 2010 experienced a sharp rise in overall sell-through growth from existing partners, with JSDN-wide sell-through revenues increasing by an average of 12.5% month-over-month during this period. This can be attributed to increasing awareness and acceptance by businesses for cloud services as well as an overall shift in the channel towards expanding their focus on cloud services sales and marketing to counter an industry-wide decline in margins from software, hardware and broadband services.
• Communication Service Providers as a segment have been first-to-market with the CSB model, with a heavy emphasis on security, email and collaboration services sales. Our aggregate market analysis indicates that SMBs view these services as natural extensions of telco's core offerings, and therefore accept them as trusted providers.
• In addition to driving a sharp rise in net new revenues, telcos are seeing additional benefits including reduced churn of their installed base for core services as well as increased customer life-time profitability. As one example, Telstra recently reported that their cloud service customers are 62% more likely to renew their broadband contracts.
• Overall, 2010 was a year of rapidly growing interest in the CSB model and expansion across traditional and non-traditional distribution channels. CSB early adopters experienced significant growth as they expanded their focus beyond market trials and ramped up their cloud services sales and marketing activities. Cloud providers are also increasingly seeking distribution partners, illustrated by a 40% growth in Jamcracker's cloud service catalogue solution partners over the past year.

 

"We are seeing an increasing focus on CSB as not only a technology platform, but a means to augment company business models towards rapidly growing subscription-based revenue streams," said Steve Crawford, vice president of marketing and business development at Jamcracker. "This coming year, we expect to see a continued and increased use of the CSB model into mainstream service providers, traditional distributors and enterprise and governments looking to offer more services to their end-users."

For more information and to download the full report, go to www.jamcracker.com/2010-JSDN-Cloud-Services-Sell-Through-Report

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About the Jamcracker Services Delivery Network

The Jamcracker Services Delivery Network (JSDN) enables service providers and traditional software distributors to get to market quickly and cost-effectively with the ability to deliver cloud services. The JSDN provides distribution partners the ability to deliver cloud services via their own private-branded marketplaces and through their existing channel partners.

Different types of cloud service offerings can 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.

About Jamcracker

Jamcracker enables Service Providers, Cloud Services vendors and Enterprise IT organizations to unify the delivery and management of disparate cloud services. Jamcracker was founded in 1999 by K.B. "Chandra" Chandrasekhar, the founder of Exodus Communications and chairman of e4e Services.