As companies worldwide continue to drive ambitious digitalization and modernization agendas, the river of investments in cloud keeps gushing.
According to a Gartner® report, “ . . . by 2026, 75% of organizations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform.”1
Reflecting the macro trend, many of the companies I meet with are starting efforts to formalize a cloud center of excellence. The initiative promises desirable and significant benefits.
Companies that create a cloud CoE can more adeptly build upon and unify aspects of application, platform engineering, strategy and architecture, and modern IT operations. This all leads to accelerated application migration and modernization to cloud—which we know is a key strategy for enterprises under pressure to shift IT investment into cloud-native capabilities.
Companies that have formalized a cloud CoE report substantial benefits in areas of efficiency, accountability, security, governance, as well as better visibility and cost forecasting.1 We can agree that the reasons are compelling.
What changes with a cloud CoE?
The establishment of a cloud CoE brings exciting changes for your technology, new ways of working for your teams, and highly-coveted culture changes.
- Pace of innovation. The cloud CoE is able to drive and evangelize innovations. These entities typically are composed of senior executive architects who help to drive standardization of architectural designs, industry reference architecture, and blueprints. The enterprise compiles and adopts innovations into day-to-day project execution methodologies.
- Cost management. Budget and resource management improves for cloud cost allocation, cloud resources tagging, and cost charge-backs and show-backs to business units to ensure complete cost management transparency. This enables different roles within the businesses to help manage and report cost and resource utilization.
- More cross-functional teams. Products, application development, and platforms engineering teams are able to co-create solutions more efficiently. Notably, this starts to reduce enterprise technical debt by bringing in faster and more agile solutions.
- Sharing of best practices. Better security, risk and compliance capabilities improve management of cloud infrastructure threats. These practices eventually determine the extent of enterprise security maturity in provisioning and managing cloud infrastructure.
- Improved cloud operations. More automation improves cloud operations across the organization, with better observability, monitoring, proactive remediation techniques, disaster recovery management, and operational resilience.