Cloud Federation: It's Happening

Business models are emerging

Although far from a fait accompli, cloud federation is in the works. Like ants in the Internet ant hill, cloud providers are beginning to join forces to improve their individual prospects for long-term growth and sustainability.

Three companies, SpotCloud, OnApp, and Tier 3, have placed bets on the idea that small-to-medium-sized cloud providers can benefit by federating resources. Each has a different business model that potentially blazes a trail for cloud federation. As its name implies, SpotCloud is a spot market that brings together buyers and sellers of commodity IaaS resources. OnApp federates cloud provider resources to deliver global content delivery network (CDN) services. And Tier 3 federates cloud provider resources to expand geographic reach and scalability for cloud computing services.  

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