They also need to be prepared for the disruption the cloud brings to the traditional IT organizational structure.
Shifting to cloud involves moving from a centralized system for purchasing computing power to a distributed model that puts more decision-making power into the hands of development and application managers. Cloud can empower technologists with the tools needed to be innovative, but companies also need to ensure security.
The following lessons can help companies manage governance amid their cloud journeys.
Establishing an internal governance strategy
Cloud computing disrupts the status quo. Moving operations to cloud can be transformational, so it is crucial to engage all involved parties and ensure that they are on board and willing to collaborate. Many sell-side firms and larger buy-side firms are approaching this change by establishing an internal steering committee — or center of excellence — to develop guidelines and best practices to help manage a successful cloud program. Such committees are vital for working through agreement on goals for cloud, for example, key business problems that cloud can solve or key KPIs.
As with any cross-functional committee, firms need to make sure that all groups are represented. Work for a balance of CTOs, application developers, those in traditional procurement roles, operational staff, systems support and more.
One of the most challenging aspects of forming a committee is including people whose roles will be changing as a result of shifting to the cloud. Could some employees, worrying about their roles, push back or thwart development? Companies must emphasize the strategic reasons for moving to cloud — rather than cost-cutting — if they are to foster trust and willingness to collaborate. Such sharing of information should help employees understand how the cloud benefits the firm and that it will open up new opportunities for them.
Managing external cloud relationships
With cloud computing, companies are partnering with cloud providers and cloud-enabled products in new ways. With providers continually innovating and offering new services, companies are seeing their providers as close, long-term partners.
Working in cloud has enabled many companies to work more closely with their customers because with cloud and software-as-a-service, companies are using common data sets and common services. Bloomberg works with cloud providers to help innovate and develop new services for customers who are in already in the cloud. In an on-premise environment, diagnosing an error in a data set or application would be difficult because clients would have downloaded data for use on their own servers. In cloud environments, Bloomberg’s teams can now better support clients because they have a fuller view of the problem.
Aligning operations with technology
Firms that believe they can use cloud to transform their business without changing their processes are likely to be disappointed. Cloud enables companies to scale quickly, share resources and connect in different ways. Thus, many roles will change and new ones emerge. For instance, large banks with sizable hardware procurement teams may need to think about how to supplement and support staff as they move to the cloud.
Companies that are successful in adopting cloud are leveraging their existing employees to work with cloud providers. Such individuals might be senior technologists or lead architects who already understand the company’s legacy systems and can work with trusted vendors to create a new system in the cloud.
Enterprises often seek out cloud computing as a way to save on costs only to discover that the implementation process can be complex and costly. To make the process more efficient, companies can achieve some cost-savings or advantages through collective purchasing and working with a vendor at scale. That said, moving to cloud should be about business strategy, not saving costs.
Firms that move to cloud can scale up quickly and efficiently but need to rethink their company processes and governance. With a well-crafted strategy that leverages existing resources, companies can get the most out of cloud.