Reducing the cost of money for cities. City Broker a new and enhanced revenue stream.

From here to there isn’t an exact measure. It is simply a device used to explain how the span of an object is relative to the perspective of the person speaking about the span. We do that all the time, estimate distance. As drivers we estimate how far ahead the car is in front of us (as DC drivers we estimate the distance between the two cars next to us as to if we can CRAM our car into that space). We estimate the height of trees and the depth of the water we are considering crossing on foot. We estimate all the time.

Now there are things we don’t estimate. We expect exacting measurement from the device we select for that particular task. That exacting measurement includes voltage, distance on a GPS and exact traffic conditions. Those are things we do not estimate. What are the components of a cloud brokerage and a broader city marketplace that we wouldn’t expect to be measured, and what would we expect to be measured?

The easy one is, if we are using a broker, we expect that we will be billed for what is used and only for what is used. Storage we leave on the server is something we expect to be billed for, exactly. The same is true for compute and other consumed resources like network. All of those we would expect a regular bill from the city broker for. The easy way to do that would be to tie the brokerage account to any tax accounts such as property taxes and the like. Collection could be set-up monthly so as to reduce the cost of money spent for the city. They could also move property taxes to month, which gain would reduce the cost of money for the city.

What would be inexact however? Well you wouldn’t want to get a bill for unexpected security services as that would be provided as part of the broker service. So a flat monthly brokerage change would be expected but may be a variable. Some organizations make a lot of changes over the course of a month but also would utilize lower forms (micro instances) of compute power. The broker could over them a spot market solution that moved their solution frequently to keep the overall costs low.

This would require the broker to have a container system that could effectively move an application between cloud service providers and within a cloud service provider quickly. Given the cost of managing moves there would a fee for this service. The organization would need too bland that cost (move fee) against the value (reduced overall cost by staying in the spot market).

That initial startup offering would allow smaller organizations to leverage more compute power at the lowest possible cost, but a fixed fee. The city broker could also offer fixed fee compute for small companies struggling to meet/match their overall budgets. Bundled services could include things like security (mandatory), X number of processors, Y amount of disk and Z amount of network per month fixed fee. The City Broker would notify the organization at 50, 75 and 90% utilization so the organization is prepared for end of month slowdown in services.

Obviously the city broker could reduce costs for small business on pre-buys as well. The difference between leasing a car (and releasing it at the end of the lease) versus the cost of buying a car outright. Leaving for time periods would allow the city to offer the best rate for that cloud service. Buying 200 mailboxes for 12 months is cheaper than buying 200 mailboxes on the first of every month.

Beyond the easy technology services there are a number of other services the city broker could offer that would be fixed fee as well.

Fixed Fee consulting around how to better enable, grow and develop the market the organization is shooting for. Beyond that a number of other services that can be offered as well as value add services such as shared access to services and reduced cost office supplies.

Beyond office supplies the city could offer a deal to all member organizations. City supported networking and unified structure. Get your Wi-Fi available anywhere in the city. This would allow small network vendors to actually sell Wi-Fi, pay the city a small fee and give their customers the ability to use Wi-Fi throughout the city. A great new market for the City and small businesses!

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