Category Archives: Governance
Building cloud expertise is hard. Building multicloud expertise is even harder. By “multicloud” in this context, I mean “adopting, within your organization, multiple cloud providers that do something similar” (such as adopting both AWS and Azure).
Integrated IaaS+PaaS providers are complex and differentiated entities, in both technical and business aspects. Add in their respective ecosystems — and the way that “multicloud” vendors, managed service providers (MSPs) etc. often deliver subtly (or obviously) different capabilities on different cloud providers — and you can basically end up with a multicloud katamari that picks up whatever capabilities it randomly rolls over. You can’t treat them like commodities (a topic I cover extensively in my research note on Managing Vendor Lock-In in Cloud IaaS).
For this reason, cloud-successful organizations that build a Cloud Center of Excellence (CCOE), or even just try to wrap their arms around some degree of formalized cloud operations and governance, almost always start by implementing a single cloud provider but plan for a multicloud future.
Successfully multicloud organizations have cloud architects that deeply educate themselves on a single provider, and their cloud team initially builds tools and processes around a single provider — but the cloud architects and engineers also develop some basic understanding of at least one additional provider in order to be able to make more informed decisions. Some basic groundwork is laid for a multicloud future, often in the form of frameworks, but the actual initial implementation is single-cloud.
Governance and support for a second strategic cloud provider is added at a later date, and might not necessarily be at the same level of depth as the primary strategic provider. Scenario-specific (use-case-specific or tactical) providers are handled on a case-by-case basis; the level of governance and support for such a provider may be quite limited, or may not be supported through central IT at all.
Individual cloud engineers may continue to have single-cloud rather than multicloud skills, especially because being highly expert in multiple cloud providers tend to boost market-rate salaries to levels that many enterprises and mid-market businesses consider untenable. (Forget using training-cost payback as a way to retain people; good cloud engineers can easily get a signing bonus more than large enough to deal with that.)
In other words: while more than 80% of organizations are multicloud, very few of them consider their multiple providers to be co-equal.
What sort of org structures work well for helping to drive successful cloud adoption? Every day I talk to businesses and public-sector entities about this topic. Some have been successful. Others are struggling. And the late-adopters are just starting out and want to get it right from the start.
Back in 2014, I started giving conference talks about an emerging industry best practice — the “Cloud Center of Excellence” (CCOE) concept. I published a research note at the start of 2019 distilling a whole bunch of advice on how to build a CCOE, and I’ve spent a significant chunk of the last year and a half talking to customers about it. Now I’ve revised that research, turning it into a hefty two-part note on How to Build a Cloud Center of Excellence: part 1 (organizational design) and part 2 (Year 1 tasks).
Gartner’s approach to the CCOE is fundamentally one that is rooted in the discipline of enterprise architecture and the role of EA in driving business success through the adoption of innovative technologies. We advocate a CCOE based on three core pillars — governance (cost management, risk management, etc.), brokerage (solution architecture and vendor management), and community (driving organizational collaboration, knowledge-sharing, and cloud best practices surfaced organically).
Note that it is vital for the CCOE to be focused on governance rather than on control. Organizations who remain focused on control are less likely to deliver effective self-service, or fully unlock key cloud benefits such as agility, flexibility and access to innovation. Indeed, IT organizations that attempt to tighten their grip on cloud control often face rebellion from the business that actually decreases the power of the CIO and the IT organization.
Also importantly, we do not think that the single-vendor CCOE approaches (which are currently heavily advocated by the professional services organizations of the hyperscalers) are the right long-term solution for most customers. A CCOE should ideally be vendor-neutral and span IaaS, PaaS, and SaaS in a multicloud world, with a focus on finding the right solutions to business problems (which may be cloud or noncloud). And a CCOE is not an IaaS/PaaS operations organization — cloud engineering/operations is a separate set of organizational decisions (I’ll have a research note out on that soon, too).
Please dive into the research (Gartner paywall) if you are interested in reading all the details. I have discussed this topic with literally thousands of clients over the last half-dozen years. If you’re a Gartner for Technical Professionals client, I’d be happy to talk to you about your own unique situation.