IaaS – a commodity CME seeking to trade with 6fusion’s help

IaaS – a commodity CME seeking to trade with 6fusion’s help

451 Research published a report on the CME Group’s plans for building a commodity exchange to trade cloud IaaS computing resources. 451 provides a good summary through a SWOT analysis in the report:

SWOT Analysis



6fusion’s metering capability and existing retail marketplace together with CME’s experience is a strong combination. The ability to use any technology to manage workloads between providers abstracts the virtual machine from the contract, thereby reaching a greater addressable market. A simple spot-market focus has limited experience for broker-dealers; most intermediaries would prefer access to a range of instruments with which they can find novel ways to generate profits. If this particular exchange doesn’t work, we don’t expect it to end CME’s quest to trade IaaS.



As enterprise adoption grows, consumers are looking for new ways of saving money; broker-dealers interacting with a market provide such an opportunity. Service providers are also increasingly looking to use third-party services to deliver value-added capabilities. Cloud brokers and integrators will use exchanges as another sourcing channel. Reliance on resellers – for success, the exchange requires many participants. Are buyers ready to use a third party to purchase cloud resources, and are sellers ready to risk margin (and their product differentiation) to an exchange? Broker-dealers are in a chicken-and-egg situation – do they get involved from day one and bring the liquidity to implement a derivatives market, or do they wait until the derivatives market has arrived before taking the opportunity seriously.


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