The Growing Value of Cloud Brokers in Multi-Cloud Environments: A Comprehensive Research Study

Cloud brokers are rapidly becoming essential facilitators in increasingly complex multi-cloud environments. This research explores how these intermediaries are transforming cloud adoption and management while delivering significant business value across diverse organisational contexts.

Executive Summary

The cloud brokerage market is experiencing rapid growth, valued at USD 8.75 billion in 2022 and projected to reach USD 22.1 billion by 2030, with a compound annual growth rate of 12.2% 10. This growth is driven by the increasing complexity of cloud environments and the accelerating adoption of multi-cloud strategies, with 62% of large UK organisations already utilizing multi-cloud environments and an additional 18% actively transitioning 2. Cloud brokers address critical challenges in this landscape by simplifying service selection, optimising costs, enhancing performance, and providing expertise that many organisations lack internally. As organisations continue to embrace multi-cloud approaches, with UK adoption of multiple public clouds expected to increase from 11% to 46% within three years 5, cloud brokers are positioned to become indispensable strategic growth partners that bridge technical complexity and business value.

Introduction to Cloud Brokerage

The Emergence of Cloud Brokers

As cloud computing has matured from a novel technology to a business imperative, organisations face increasing complexity in selecting, integrating, and managing multiple cloud services. In this environment, cloud brokers have emerged as specialised intermediaries that help navigate the challenges of multi-cloud adoption.

A cloud broker (CB) is an entity who acts as an intermediary between Cloud Service Providers (CSPs) and Cloud Service Consumers (CSCs), performing essential tasks that involve the selection, integration, and delivery of cloud services 1. Unlike traditional IT services, cloud brokers operate in dynamic environments characterised by constantly evolving service offerings, pricing models, and technical capabilities across multiple providers.

Cloud brokers represent a natural evolution in complex marketplaces. Similar to intermediaries in other industries, they solve the "chicken-and-egg problem" by creating value for both sides of the market—helping consumers find appropriate services while enabling providers to reach more customers 1. This intermediary position allows brokers to aggregate demand, streamline service discovery, and optimise resource allocation in ways individual organisations often cannot achieve independently.

The Growing Complexity of Cloud Environments

Finding and comparing appropriate cloud services that best fit organisational requirements has become increasingly complex, time-consuming, and cost-intensive, especially for small and medium-sized enterprises (SMEs) 1. With no "one-fits-all" cloud service provider, companies face the challenge of selecting and combining services from different vendors to meet all their requirements, a process that demands specialised knowledge, tools, and methodologies.

The traditional approach of directly engaging with multiple cloud providers creates significant overhead in contract management, technical integration, and operational monitoring. Cloud brokers address these challenges by providing specialised expertise and technology platforms that simplify the discovery, comparison, and management of cloud services across diverse provider ecosystems.

Market Analysis and Growth Trends

Current Market Valuation and Projections

The cloud brokerage market is experiencing substantial growth as organisations increasingly recognise the value of specialised intermediaries in managing complex cloud environments. Recent market analysis indicates that the global Cloud Brokerage Market was valued at USD 8.75 billion in 2022 and is projected to reach USD 22.1 billion by 2030, growing at a compound annual growth rate (CAGR) of 12.2%10. This growth rate significantly outpaces many other segments of the IT services market, reflecting the increasing strategic importance of cloud brokers.

Multi-Cloud Adoption Driving Broker Demand

The rise of cloud brokers is closely tied to the accelerating adoption of multi-cloud strategies across industries. Research shows that 76% of organisations used a multi-cloud strategy in 2023, with projected growth to 86% by 202413. More significantly, 97% of IT respondents in the Flexera survey indicated plans to adopt a multi-cloud system within the next 12 months 13.

In the UK specifically, hybrid multi-cloud models are expected to increase from 19% today to 26% over the next three years, with the use of multiple public clouds projected to rise dramatically from 11% today to 46% in one to three years 5 9. This rate exceeds both EMEA and global figures, suggesting particularly strong momentum in the UK market.

Enterprise Cloud Spending Patterns

Organisations with higher cloud spending are significantly more likely to employ multi-cloud strategies. Research indicates that while only 12-13% of customers with annual cloud spending between $10,000 and $1 million use multi-cloud environments, this percentage rises dramatically with increased spending 5. For customers spending over $1 million annually, multi-cloud adoption jumps to approximately 30%, and among enterprises spending $20 million or more, multi-cloud becomes the dominant model with 45-55% adoption 5.

Interestingly, even organisations embracing multi-cloud typically maintain a primary cloud provider that receives the majority of their spending. Analysis reveals that in a two-cloud architecture, the average spending distribution is approximately 80/20—with 80% allocated to the primary cloud and 20% to the secondary cloud 5. This spending pattern underscores the need for sophisticated brokerage services that can optimize investments across primary and secondary providers while ensuring seamless integration.

Cloud Broker Models and Functions

Core Functions of Cloud Brokers

Cloud brokers perform several essential functions that create value for organizations navigating multi-cloud environments:

Service Discovery and Selection: Brokers help identify appropriate cloud services based on specific organizational requirements, using sophisticated matchmaking algorithms to find optimal provider-consumer matches1 3.
Cost Optimisation: By leveraging market knowledge and economies of scale, brokers help organizations minimize costs while maximizing service quality, often through aggregation of demand or strategic timing of resource procurement8.
Integration and Management: Brokers facilitate the technical integration of services from multiple providers, creating unified management interfaces and workflows that simplify operations10.
Performance Optimisation: Advanced brokers continuously monitor and optimize service performance, addressing issues such as latency, resource utilization, and workload placement3.
Compliance and Risk Management: Many brokers offer specialized capabilities for managing compliance requirements and security risks across multiple cloud environments13.

Types of Cloud Broker Models

The cloud brokerage market encompasses several distinct operational models, each offering different value propositions for organizations:

Aggregation Brokers: These brokers consolidate multiple cloud services into a unified offering, simplifying procurement and billing while potentially negotiating volume discounts.
Integration Brokers: Focusing on technical interoperability, these brokers develop specialised middleware and APIs that enable seamless data exchange and workflow integration across disparate cloud environments.
Customisation Brokers: These providers enhance existing cloud services with additional features, security controls, or management capabilities tailored to specific industry requirements or organisational needs 10.
Marketplace Brokers: Operating as multi-sided platforms, these brokers create dynamic marketplaces where cloud consumers and providers can discover each other and transact efficiently, often employing auction mechanisms or other market-based approaches 8.
Managed Service Brokers: Offering end-to-end management of cloud environments, these brokers provide comprehensive support spanning selection, implementation, optimisation, and ongoing operations10.

Each model addresses different organisational priorities and maturity levels, with many brokers employing hybrid approaches that combine elements from multiple models.

Benefits of Cloud Brokers in Multi-Cloud Environments

Time and Cost Efficiency

One of the most significant benefits of cloud brokers is their ability to minimise search time and reduce costs. By serving as specialized intermediaries with deep market knowledge, brokers eliminate the need for organizations to independently research, evaluate, and negotiate with numerous cloud service providers 1. This efficiency is particularly valuable for small and medium enterprises (SMEs) that lack dedicated cloud expertise or procurement resources.

Research indicates that organizations using cloud brokers can achieve substantial cost savings through several mechanisms. Brokers frequently leverage their market position to negotiate preferred pricing, identify cost-effective service configurations, and optimise resource allocation across multiple providers 3. Additionally, by recommending appropriate services based on specific requirements, brokers help organizations avoid overprovisioning—a common problem that leads to significant wasted expenditure in cloud environments.

The cost benefits extend beyond direct procurement savings to include operational efficiencies. By simplifying the management of multi-cloud environments, brokers reduce the administrative overhead associated with maintaining relationships with multiple providers, reconciling diverse billing systems, and managing separate technical interfaces 10.

Enhanced Selection and Matching Capabilities

Cloud brokers employ sophisticated algorithms and methodologies to match organizational requirements with appropriate cloud services. The ViBROS framework, for example, provides automated selection of cloud services through a matchmaking system that aligns consumer requirements with provider capabilities 1. This approach enables faster, more accurate service selection compared to manual processes that often rely on limited information or superficial comparisons.

Advanced brokers go beyond basic feature matching to consider factors such as performance characteristics, compliance capabilities, geographic availability, and cost structures. This holistic approach enables more nuanced recommendations that better align with an organisation's specific needs and constraints 3.

Some brokers employ innovative technologies such as the Analytic Hierarchy Process (AHP) to perform systematic pairwise comparisons of service options, generating ranked recommendations based on multiple weighted criteria 1. These capabilities are particularly valuable in complex decision scenarios where organisations must balance competing priorities such as cost, performance, security, and compliance.

Flexibility and Vendor Independence

Cloud brokers play a crucial role in helping organisations avoid vendor lock-in by facilitating easier movement between cloud providers. This flexibility preserves strategic optionality and enhances negotiating leverage with individual providers1. As organisations increasingly adopt multi-cloud strategies, the ability to distribute workloads optimally across providers becomes a significant competitive advantage.

Research shows that organisations are embracing multi-cloud environments primarily due to the flexibility they provide. Half of the respondents in one study identified the ability to run workloads in suitable environments as one of the major strengths of multi-cloud approaches 2. This flexibility enables organisations to leverage the unique strengths of different providers for specific workload types.

Cloud brokers enhance this flexibility by reducing the technical and operational barriers to using multiple providers. They create abstraction layers that shield organisations from the complexity of provider-specific APIs, management tools, and billing systems13. This abstraction enables more fluid workload placement and migration based on evolving business requirements rather than technical constraints.

Specialised Expertise and Support

Cloud brokers provide organisations with access to specialised expertise that would be difficult or expensive to develop internally. This expertise encompasses technical knowledge of cloud platforms, market intelligence about provider capabilities and pricing, and methodological approaches to service selection and integration 1.

For many organisations, particularly those in the mid-market segment, maintaining in-house expertise across multiple cloud platforms is impractical. Cloud brokers fill this gap by offering on-demand access to specialists who continuously monitor the evolving cloud landscape and understand the nuances of different provider offerings13.

Beyond selection and procurement, many brokers provide ongoing support for activities such as implementation, migration, optimisation, and management of cloud services 1. This comprehensive support enables organisations to achieve faster time-to-value when adopting new cloud services while reducing operational risks during transitions.

Performance and Reliability Optimisation

Cloud brokers contribute to improved service performance and reliability through several mechanisms. By matching workloads with appropriate infrastructure and continuously monitoring service levels, brokers help organizations achieve optimal performance for their specific applications 3.

Some specialised brokers focus on finding the most energy-efficient routes between users and data centers, minimizing latency while also reducing environmental impact 6. Others employ sophisticated algorithms to allocate resources dynamically based on changing workload patterns, ensuring efficient utilisation while maintaining performance targets11.

In multi-cloud environments, brokers can enhance reliability by distributing workloads across providers or regions, reducing dependence on any single infrastructure component. This approach creates natural redundancy that protects against provider-specific outages or regional incidents 2.

Advanced Broker Technologies and Innovations

AI and Machine Learning in Cloud Brokerage

Artificial intelligence and machine learning are increasingly being integrated into cloud brokerage platforms, enabling more sophisticated service selection, workload optimisation, and predictive analytics. These technologies allow brokers to analyse vast amounts of performance data, usage patterns, and market information to generate increasingly precise recommendations and optimisations.

Fujitsu's AI computing broker middleware exemplifies this trend, demonstrating up to a 2.25x increase in computational efficiency in trials with multiple companies11. The technology dynamically allocates GPU resources on a per-GPU basis, optimising resource allocation and memory management across various platforms and AI applications. Its memory management capabilities enable the simultaneous handling of up to 150GB of AI processing—approximately five times the physical GPU memory capacity11.

Energy-Efficient Brokerage Solutions

As environmental sustainability becomes a more significant priority for organisations, some brokers are developing specialised capabilities to reduce the energy consumption associated with cloud services. These energy-efficient multi-cloud brokers focus on finding the lowest energy consumption route between users and designated data centers, as well as identifying the minimum possible number of most energy-efficient services that satisfy user requests6.

Research in this area has produced innovative models and algorithms that can identify the most energy-efficient route among multiple possible routes and create energy-aware composition plans by integrating the most energy-efficient services6. These approaches not only reduce environmental impact but can also lower operational costs associated with power consumption.

Sky Computing and Intercloud Brokers

A particularly promising development in cloud brokerage is the concept of "Sky Computing," which redefines the interaction between users and cloud services by proposing a unified "Sky of Computing" instead of isolated providers. This model leverages intercloud brokers to abstract the underlying cloud services, improving workload migration across clouds 4.

SkyPilot, an open-source intercloud broker developed as part of Sky Computing research, demonstrates significant enhancements in optimizing and managing batch jobs, offering substantial cost savings for organisations 4. It has been extended to serving workloads, especially for AI applications, addressing challenges such as GPU shortages and geopolitical technology restrictions.

Research in this area has also examined broker policies designed for deadline-sensitive jobs, implementing effective approaches that enable the utilisation of unreliable but cost-effective spot instances while still meeting deadline s4. These innovations are particularly valuable for organizations with flexible but time-constrained workloads.

Broker-Based Auction Mechanisms

Some cloud brokers are implementing innovative market mechanisms, including auctions, to optimize the allocation of cloud resources while balancing provider and consumer interests. These approaches create more dynamic and efficient marketplaces for cloud services, potentially leading to better resource utilization and pricing models that more accurately reflect actual supply and demand conditions.

Research into broker auction strategies has explored various market designs, including approaches specifically tailored for medium-term workloads 8. In these models, the broker initially interacts with providers to lease reserved instances at a discount, then introduces virtual machines with commitment terms that meet the requirements of the majority of users, and finally sells these resources using auction algorithms 8.

These market-based approaches enable more efficient resource allocation while providing pricing flexibility that can benefit both providers and consumers. By establishing minimum and maximum bid limits based on factors such as service depreciation and term commitments, brokers can create structured marketplaces that reduce price volatility while still allowing for competitive dynamics 8.

Case Studies: Successful Multi-Cloud Adoption

Large Enterprise Examples

Several prominent enterprises have successfully implemented multi-cloud strategies, demonstrating the tangible benefits of this approach when supported by effective brokerage capabilities:

BMW: The automotive manufacturer employs a multi-cloud strategy using AWS and Microsoft Azure to streamline global cloud governance, enhance scalability, and support its digital transformation. This approach has enabled faster innovation and operational efficiency across regions 13. By working with specialised brokers, BMW has been able to maintain consistent governance across cloud environments while leveraging the unique capabilities of each provider.

Nike: The global sportswear company leverages multiple cloud providers, including AWS and Google Cloud, to improve scalability, resilience, and innovation across its global operations. Nike uses Google Cloud for data analytics and machine learning to enhance customer experiences while relying on AWS for infrastructure services 13. This selective approach to provider selection exemplifies the value of broker-facilitated matchmaking between specific workload requirements and provider capabilities.

Unilever: The consumer goods company uses a multi-cloud strategy to support its global operations and digital transformation. This approach optimises its supply chain, improves collaboration, and ensures compliance with local regulations, driving efficiency and innovation across the company 13. Unilever's experience highlights the importance of compliance-aware brokerage that can address varying regulatory requirements across different markets.

General Electric (GE): GE uses a multi-cloud strategy to modernise its IT infrastructure and support digital transformation. By using multiple cloud providers, GE enhances operational efficiency, reduces downtime, and accelerates innovation in its industrial services 13. The company's approach demonstrates how brokers can support complex transformation initiatives that span diverse business units with varying technical requirements.

These examples illustrate that organisations embracing broker-facilitated multi-cloud strategies can become more successful and resilient by leveraging the best services from multiple providers. This approach reduces dependency on any single vendor, allowing for greater flexibility, optimised performance, and enhanced stability in increasingly dynamic business environments.

Challenges and Considerations

Managing Multi-Cloud Complexity

While cloud brokers offer significant benefits, organisations must still address several challenges when implementing multi-cloud strategies. The technical complexity of multi-cloud environments was identified as a main concern or area of risk by 27% of IT decision-makers in one study 2. This complexity stems from differences in provider APIs, service definitions, billing models, and operational requirements.

Effective cloud brokers help mitigate this complexity through abstraction layers, unified management interfaces, and specialised expertise. However, organisations must still develop internal capabilities for governing multi-cloud environments and ensuring consistency across providers. This includes establishing clear policies for workload placement, data classification, security controls, and operational procedures 13.

Skills and Expertise Requirements

Working with cloud brokers does not eliminate the need for internal cloud expertise, but rather changes its focus. Organisations still need staff who understand cloud concepts, can articulate business requirements effectively, and can manage relationships with both brokers and providers. The specific skills required depend on the brokerage model employed and the division of responsibilities between the organisation and the broker.

Most organisations benefit from developing a cloud center of excellence (CCoE) or similar structure that brings together technical, financial, and business perspectives to guide cloud adoption and management 13. This interdisciplinary approach ensures that brokerage relationships align with broader organisational objectives and constraints.

Cost Management Across Providers

While cloud brokers can help optimise costs, managing expenditure across multiple providers introduces new challenges. Organisations must develop comprehensive visibility into spending patterns, resource utilisation, and cost allocation across environments. This visibility is essential for making informed decisions about workload placement and resource optimisation.

Interestingly, research shows that organizations typically maintain a significant concentration of spending with their primary cloud provider even when adopting multi-cloud strategies. In a two-cloud architecture, the average spend split is around 80/20—80% on the primary cloud and 20% on the secondary cloud 5. This pattern suggests that most organisations adopt targeted rather than balanced multi-cloud approaches, using secondary providers for specific workloads or capabilities rather than equal distribution.

Data Governance and Compliance

Moving data between cloud environments introduces significant compliance and governance challenges. Organisations must maintain control over data location, protection, and access across multiple providers, each with different security models and compliance capabilities. Cloud brokers can help navigate these challenges by implementing consistent policies and controls across environments, but organisations retain ultimate responsibility for compliance.

Data sovereignty requirements are becoming increasingly important in multi-cloud decision-making, with 44% of organisations identifying data sovereignty/privacy as a key driver of deployment platform choice 5. Cloud brokers with specialised knowledge of regional regulations and provider capabilities can help organisations navigate these complex requirements while maintaining operational efficiency.

Future Outlook and Recommendations

Emerging Trends in Cloud Brokerage

Several trends are shaping the future of cloud brokerage services:

Integration of AI capabilities: Cloud brokers are increasingly incorporating artificial intelligence to automate service selection, optimization, and management. These capabilities will become more sophisticated, enabling more precise matching of workloads to appropriate cloud services and more dynamic resource allocation in response to changing conditions 11.
Focus on sustainability: Energy-efficient brokerage solutions that minimize the environmental impact of cloud services will become more prevalent as organizations face growing pressure to reduce their carbon footprint 6.
Specialized industry solutions: Brokers are developing more targeted offerings for specific industries such as healthcare, financial services, and manufacturing, addressing unique regulatory requirements and workload characteristics.
Enhanced multi-cloud management: As multi-cloud adoption accelerates, brokers will offer more comprehensive capabilities for managing complex environments, including unified security controls, consistent governance frameworks, and seamless workload mobility13.

Strategic Recommendations for Organisations

Organisations considering or already implementing multi-cloud strategies should:

Develop clear multi-cloud objectives: Define specific business outcomes and technical requirements that will guide cloud provider selection and broker engagement. Successful multi-cloud adoption must align with broader organizational strategies rather than following industry trends.
Evaluate broker models carefully: Different broker models offer distinct advantages and limitations. Organisations should assess which model best matches their internal capabilities, governance requirements, and strategic objectives.
Start with targeted use cases: Rather than attempting a wholesale multi-cloud migration, begin with specific workloads that will benefit most from particular provider capabilities or pricing models. This targeted approach enables learning and capability development while delivering measurable value.
Invest in internal expertise: While brokers provide valuable external capabilities, organisations still need internal staff who understand cloud technologies and can effectively manage broker relationships. This expertise ensures that broker activities align with organizational priorities and constraints.
Implement comprehensive governance: Establish clear policies and procedures for workload placement, security controls, cost management, and compliance across all cloud environments. Effective governance is essential for realizing the benefits of multi-cloud while managing associated risks.
Continuously evaluate performance: Regularly assess both broker performance and the overall effectiveness of multi-cloud strategies against defined objectives. This ongoing evaluation enables adjustments to provider mix, workload placement, and broker engagement models as business requirements evolve.

Conclusion

Cloud brokers have emerged as essential intermediaries in increasingly complex cloud environments, providing specialized capabilities that help organisations navigate the challenges of multi-cloud adoption. The rapid growth of the cloud brokerage market—projected to reach USD 22.1 billion by 2030 10, reflects the growing recognition of the value these services provide in optimizing cloud investments and enhancing operational capabilities.

As multi-cloud adoption accelerates, with UK adoption of multiple public clouds expected to increase from 11% to 46% within three years 5, the role of cloud brokers will become increasingly strategic. These intermediaries not only simplify technical complexity but also enable more dynamic resource allocation, enhanced performance optimization, and improved cost management across diverse provider ecosystems.

Organisations that effectively leverage cloud brokers can achieve greater flexibility, improved reliability, and enhanced innovation capabilities while avoiding the pitfalls of vendor lock-in. However, realizing these benefits requires careful selection of appropriate broker models, development of internal expertise, and implementation of comprehensive governance frameworks that span multiple cloud environments.

The future of cloud brokerage will be shaped by emerging technologies such as artificial intelligence, increasing emphasis on sustainability, and growing regulatory complexity. Organisations that establish strong broker relationships now will be well-positioned to adapt to these changes and maintain competitive advantage in increasingly digital markets.

Actions and Next Steps

From reading the above report, hopefully you have understood the value of a cloud broker to your organisation. We would recommend you contact Canopy, and reach out to the team to get a no-win no-fee consultation on your current cloud infrastructure and scaling plan. The team will be on hand to understand your needs and put in place a clear action plan on how to reduce your cloud costs, whilst ensuring you scale efficiently in the cloud.

Citations

https://deepai.org/publication/cloud-broker-a-systematic-mapping-study