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The Cloud Federation Stack & Third-Party Intermediary Roles

Study material and explanations for Unit 5

The Cloud Federation Stack and Third-Party Cloud Integration

To allow completely different cloud platforms (AWS, Azure, Google Cloud, private OpenStack clouds) to communicate and trade computing capacity, engineers use a standardized Cloud Federation Stack.


1. Layers of the Cloud Federation Stack

The 4-Layer Cloud Federation Stack
Layer 4Application & Service Management Layer
Cross-cloud workflow engines, multi-cloud deployment tools
Layer 3Federation Brokerage & Negotiation Layer
Matches buyer requests with seller bids, negotiates cross-cloud SLAs
Layer 2Virtual Resource Management Layer
Converts VM images (e.g., AWS AMI to Azure VHD), provisions cross-cloud storage
Layer 1Physical Resource & Interconnect Layer
High-speed dedicated fiber trunks (DirectConnect, ExpressRoute) between data centers

2. Third-Party Services: Cloud Brokers and Aggregators

When an enterprise uses 3 or 4 different cloud providers at the same time, managing individual bills and accounts becomes a nightmare. Third-party intermediaries solve this:

1. Cloud Service Broker

  • Acts as a consultant or automated software agent that negotiates contracts, compares pricing between AWS and Azure, and picks the most cost-effective provider for each workload.
  • Analogy: PolicyBazaar comparing 20 different car insurance policies to find you the cheapest and best coverage!

2. Cloud Aggregator

  • Combines multiple separate cloud services into a single unified dashboard or bundle.
  • Example: A platform that packages AWS virtual servers + SendGrid email service + Stripe payment gateway + Twilio SMS into one turnkey business package with a single combined monthly invoice.

💡 DAVV Exam Tip

Question (5 Marks): “Draw and explain the Cloud Federation Stack. What is the role of a Cloud Broker?”

  • Draw the 4-layer stack diagram shown above.
  • Explain the role of the Cloud Broker using the PolicyBazaar comparison analogy.