Target business outcomes and value - Building a Cloud Operating Model

Target business outcomes and value

Unlike some of the more technical domains, building out and establishing a cloud operating model is more fluid in terms of prescriptive outcomes. Our experience in working with successful cloud Technology Leaders (CIO/CTO) is that they look to establish a Cloud Enablement Engineering (CEE) capability that is value generating before they are faced with failures and firefighting. Examples of value generation seen by some AWS adopters include:

  • 60% reduction in downtime

  • 51% efficiency savings

  • 14x reduction in time to deliver

  • 43% reduction in operational costs

Unfortunately, all too often there is a focus solely on the technology of cloud and it is not until issues arise that many IT leaders are forced into acting and doing something different. The four most common events are as follows:

  • Bill shock, such as significantly higher cloud costs than anticipated

  • Operational outages, and a timely struggle to recover

  • Security and data breaches

  • Stalled projects caused by an everlasting desire to build the perfect cloud datacenter project with no return in value

A successful cloud operating model (COM) enables organizations to operate applications reliably and securely in the cloud with a faster pace of innovation and value to the business. A key component of leading COM approaches is the adoption of a Product based approach of the cloud platform. By adopting a product mindset, each team can take the responsibility and accountability for increased awareness, ownership and operational excellence through self-healing systems that can recover quickly using integrated failure detection and remediation. Platform optimization can also be added through the measurement of known application baselines and testing those baselines using chaos engineering (failure injection) and game days (interactive team-based hands-on learning exercise).

Achieving these recommendations most likely needs a culture shift around how organizations design, deploy, and operate their cloud platform and a focus on automation with repeatable, ongoing processes.