# How to Build a Cloud Governance Framework from the Basics
Cloud computing and cloud services have become a reality, and they are here to stay. Organizations of all sizes are adopting cloud computing and cloud services to accelerate innovation, improve efficiency, and reduce costs. But how many of these organizations have actually defined and developed a cloud governance model and framework?
Cloud governance is a method of information and technology (I&T) governance focused on accountability, defining decision rights, and balancing benefit, risk, and resources in an environment that embraces cloud computing. Cloud governance helps you create business-driven policies and principles that establish the appropriate degree of investments and control around the life cycle process for cloud computing services.
When practicing cloud governance, it is critical to manage risk, adapt effectively, ensure continuity, and communicate objectives. Enterprises must develop a clear governance strategy and management plan to obtain the most benefit from their cloud initiatives. These plans should determine the direction and objectives of cloud computing and exploit the opportunity to fully align I&T with the goals of the enterprise and add value to the organization.
In this blog post, we will explain how you can build a cloud governance framework from the basics by following seven steps:
## Step 1: Identify and understand business objectives
The first step in building a cloud governance framework is to identify and understand your business objectives. What are you trying to achieve with cloud computing? How does it support your overall business strategy? What are your key performance indicators (KPIs) for measuring success?
By answering these questions, you can define your vision for cloud computing and align it with your business goals. You can also identify your growth opportunities and how cloud technologies can help you realize them.
## Step 2: Determine high-level strategy
The next step is to determine your high-level strategy for implementing cloud computing. This involves deciding on some key aspects such as:
– Which type of cloud service model (IaaS, PaaS, SaaS) best suits your needs?
– Which type of deployment model (public, private, hybrid) best meets your requirements?
– Which type of service provider (AWS, Azure, Google Cloud) best matches your preferences?
– Which type of architecture (monolithic vs microservices) best supports your applications?
These decisions will have implications for your cost structure, performance level, security posture, and scalability potential. You should evaluate the pros and cons of each option and choose the one that maximizes your value proposition.
## Step 3: Define roles and responsibilities for cloud governance team
This team should consist of representatives from different stakeholders such as business units,
IT departments, legal teams, security teams, etc. The team should have clear authority and accountability for making decisions related to cloud governance.
Some examples of roles and responsibilities for a cloud governance team are:
– Cloud Governance Lead: Responsible for overseeing the overall implementation
and execution of the cloud governance framework.
– Cloud Architect: Responsible for designing and maintaining the optimal architecture for cloud services.
– Cloud Engineer: Responsible for developing and deploying applications on cloud platforms.
– Cloud Administrator: Responsible for managing and monitoring the operational aspects of cloud services such as provisioning, configuration, backup, recovery, etc.
– Cloud Security Officer: Responsible for ensuring compliance with security policies
and standards for data protection, access control, encryption, etc.
– Cloud Auditor: Responsible for verifying adherence with regulatory requirements such as GDPR,
HIPAA, PCI-DSS, etc.
## Step 4: Establish policies and standards for cloud services selection and usage
The fourth step is to establish policies and standards for selecting and using cloud services. These policies and standards should define the criteria for evaluating cloud service providers, specify acceptable levels of service quality, set limits on resource consumption, enforce rules on data classification, etc.
Some examples discussed but not limited include:
– Service Level Agreement (SLA): A contract between you and your service provider that defines expectations regarding availability, performance, reliability, support, etc., as well as penalties or remedies in case of non-compliance.
– Cost Management Policy: A policy that outlines how you will track, allocate, optimize, budget,
report, forecast, your spending on various types; categories, dimensions, of costs associated with using,
operating, maintaining, cloud services.²
– Security Policy: A policy that outlines how you will protect your data, systems
## Step 5: Implement tools and processes for monitoring and reporting on cloud performance and costs
The fifth step is to implement tools and processes for monitoring and reporting on your cloud performance and costs. These tools and processes should help you collect, analyze, visualize, data on various aspects of your cloud operations such as availability, reliability, scalability, latency, throughput, errors, etc. They should also help you track, allocate, optimize, report, forecast, your spending on various types, categories, dimensions, of costs associated with using, operating, maintaining, cloud services.
Some examples of tools and processes for monitoring and reporting on cloud performance and costs are:
– Cloud Monitoring Tools: These are tools that help you monitor the health and performance of your cloud services. They can alert you when something goes wrong or when a service level agreement (SLA) is violated. They can also provide dashboards and reports that show metrics such as CPU utilization, memory usage, network traffic, response time, etc. Some examples of cloud monitoring tools are AWS CloudWatch³, Azure Monitor, Google Cloud Monitoring, etc.
– Cloud Cost Management Tools: These are tools that help you manage your cloud spending. They can help you track your usage and costs by service, resource, project, team, etc. They can also help you optimize your costs by identifying unused or underutilized resources, recommending cost-saving actions, applying discounts or reservations, etc. Some examples of cloud cost management tools are AWS Cost Explorer, Azure Cost Management, Google Cloud Billing, etc.
## Step 6: Define metrics and KPIs for measuring cloud outcomes and value
The sixth step is to define metrics and KPIs for measuring the outcomes and value of your cloud initiatives. These metrics and KPIs should align with your business objectives and strategy, as well as with your SLAs and policies.
They should also be SMART (specific, measurable, achievable, relevant, time-bound).
Some examples of metrics and KPIs for measuring cloud outcomes and value are:
– Business Metrics: These are metrics that measure how well your cloud initiatives support your business goals such as revenue growth, customer satisfaction, market share, etc.
For example, you could measure how much revenue you generate from customers who use your cloud-based application or service.
– Operational Metrics: These are metrics that measure how well your cloud operations perform in terms of efficiency, quality, reliability, etc.
For example, you could measure how much time it takes to deploy a new feature or fix a bug on your cloud platform.
– Financial Metrics: These are metrics that measure how well you manage your cloud spending in terms of budgeting, allocation, optimization, etc.
For example, you could measure how much money you save by using reserved instances or spot instances on your cloud provider.
## Step 7: Review and update cloud governance framework periodically
The seventh and final step is to review and update your cloud governance framework periodically.
This is because cloud computing is constantly evolving and changing, as well as your business needs and objectives. You need to ensure that your cloud governance framework remains relevant and effective in a changing cloud environment.
You should review and update your cloud governance framework periodically by conducting audits, assessments, surveys, etc. to measure the performance, compliance, satisfaction, of your cloud services.
You should also monitor the trends, innovations, best practices, in cloud computing and adapt your framework accordingly.
# Conclusion
Cloud governance is not a one-time project, but an ongoing process that requires constant attention and improvement. By following these seven steps, you can build a cloud governance framework from the basics that will help you achieve your business objectives, manage your risks, and optimize your value from cloud computing.
If you need help with building or implementing your cloud governance framework,
we are here to help.
We are a team of experienced and certified cloud governance consultants who can help you design and execute a customized and effective cloud governance strategy for your organization.
Contact us today for a free consultation. We look forward to hearing from you!
Source:
(1) Cloud Governance Explained: Creating An Effective Strategy – CloudZero. https://www.cloudzero.com/blog/cloud-governance Accessed 3/21/2023.
(2) Why Cloud Governance is Important | Lucidchart Blog. https://www.lucidchart.com/blog/cloud-governance-framework Accessed 3/21/2023.
(3) Cloud Governance | Framework & Model Principles | Imperva. https://www.imperva.com/learn/data-security/cloud-governance/ Accessed 3/21/2023.
