Whats the role of your cloud CoE ?

I am trying to address when companies should orchestrate cloud providers offerings as managed service in their IT portfolio. This article doesn't take a stance of cloud providers.


First thing first, size of the enterprise matters. If it is small or medium, it doesn't make lot of sense to form a big division to make managed offerings for cloud. If IT spend is small (< 5Million) or medium (< 100 million), it makes sense to use cloud provider services with some governance and without any orchestration layers. Remember more than 20% of your IT budget might be in Shadow IT.

If you are a big enterprise and you are going to play a lot in the technology field based on your customer base, then it makes sense to have your own Center of Excellence with Governance and also with orchestration. Manufacturing, transportation and some services may NOT always need lot of spend on IT. On the other hand Financial services, Retail, Restaurant  and Healthcare might need lot of IT spend due to latest trends. It really matters what is your future demand for technology from your customer base.

As more than 80% of large enterprises are going for multi-cloud, its really tricky to let your IT and shadow IT teams use cloud provider services. As in the long run, you will end up with lot of dependency on cloud providers. The orchestration or COE (Center Of Excellence) team should have a way to distribute cost and enable patterns. As we all know Pareto principle applies here.  This team should be responsible for three support activities: Product Support, System support and User support.

First the COE team need to refine products from multiple cloud vendors and make them abstract for internal teams with Terraform or some other open source tools/UI. This team is still responsible for finding latest and greatest innovations in cloud and fitting that as managed service for the internal teams to use. This team is responsible for establishing the SLA's and holding cloud providers accountable.

Second , the team is also responsible for System support. Road maps on how the systems need to be migrated to cloud native journey. When to Re-Host, Re-Architect and Re-factor. This team is responsible in guiding the application teams and architects through this journey. Offering journey maps with pre-defined patterns for most popular use cases.

Third and most important thing is user support, helping internal teams in developing the capabilities, identifying the gaps, training needs, documentation, migration tools, brown bag sessions etc.,

This is the most important piece out of all the three. You might have greatest holistic product offerings/patterns and best system support plan to migrate, without users adoption all those efforts go in vain.
Your intention with user support is to find the opportunities for cutting the code times. 

Roughly, PaaS is 15% of cloud spend, IaaS is 20% and SaaS is 65% of the cloud spend.

Reference: Microsoft partner playbooks.

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