Cloud governance best practices: Key strategies for success

In an era of digital transformation, businesses are increasingly turning to the cloud to harness its scalability, flexibility, and innovation potential. However, as they delve deeper into the cloud ecosystem, many organisations find themselves facing a common set of challenges: spiralling costs, security vulnerabilities, and a lack of visibility and control over cloud resources.


Managing cloud infrastructure efficiently has become a pressing concern for businesses of all sizes, impacting their bottom line and overall operations. Fortunately, cloud governance can support your organisation with a structured approach to address these pain points and navigate the complex cloud landscape.


Cloud governance: A solution to the rising challenge of managing cloud

Cloud governance is the cornerstone of an organisation’s cloud strategy. It provides a comprehensive framework for managing cloud resources, policies, and processes, addressing the challenges that often accompany cloud adoption. With cloud governance, businesses can achieve cost control, enhance security, and optimise their cloud environment, all while maintaining a firm grip on their operations – an ideal situation for all your challenges!


What is cloud governance?

At its core, cloud governance is a set of practices, policies, and procedures designed to ensure that a company’s cloud resources are used efficiently, securely, and in alignment with its strategic objectives.


A cloud governance framework involves defining and enforcing rules that dictate how cloud resources are provisioned, utilised, and monitored. This structured approach enables businesses to strike a balance between innovation and control within the cloud, allowing them to grow in confidence.


Why is cloud governance important for businesses?

The importance of cloud governance cannot be overstated. As organisations navigate the complex cloud terrain, several critical factors underpin the significance of robust cloud governance framework:

Cost control

Cost optimisation is a primary concern for businesses that are operating in the cloud. Without governance, cloud spending can spiral out of control as resources are provisioned and scaled without the proper oversight. Cloud governance allows you to introduce mechanisms to monitor, allocate, and optimise your costs effectively.

Security and compliance

In our increasingly digital cloud landscape, security threats are rife, making it a key priority for organisations to maintain their security postures. Cloud governance ensures that security policies are enforced, access is controlled, and compliance requirements are met, safeguarding sensitive data and maintaining regulatory adherence.

Resource visibility

A lack of visibility into cloud resources can reduce an organisation’s ability to track usage, identify inefficiencies, and plan for growth. Cloud governance provides the insights of transparency, enabling businesses to gain a comprehensive view of their cloud assets and expenditure.

Operational efficiency

Streamlining cloud operations and fostering collaboration across teams is essential for maximising your business efficiency. Cloud governance promotes collaboration by defining roles, responsibilities, and workflows, ensuring that cloud resources are used optimally to support business objectives.


The components of cloud governance

A successful cloud governance strategy is like a well-orchestrated symphony, where each component plays a crucial role in harmonising operations, reducing costs, enhancing security, and ensuring compliance.


So you can get the most out of your cloud infrastructure, we will explore each component in detail, guiding you on how to craft an effective governance strategy that aligns with your business objectives:


1. Organisational structure

The foundation of effective cloud governance lies in a well-defined organisational structure. This component establishes clear hierarchies, delineates roles and responsibilities, and defines reporting structures within the cloud management framework. By mapping out the relationships between your various teams and individuals, organisations can ensure that your cloud management tasks are distributed effectively and that accountability is assigned where it matters.


Our top tips for creating organisation structure:

Role definitions: Clearly define the roles and responsibilities of individuals involved in cloud management, such as cloud architects, administrators, and developers. This includes specifying who has access to what resources, the rights they should have and the scope of their decision-making authority.

Team collaboration: Promote cross-functional collaboration by breaking down silos between teams, such as IT, security, and finance. Encourage communication and cooperation to align cloud initiatives with broader business objectives.

Escalation procedures: Establish escalation paths for addressing issues, managing incidents, and making critical decisions. Define how and when issues should be escalated to higher levels of authority.


2. Visibility and accountability

Visibility into cloud resources and accountability for their usage are fundamental components of creating a successful and effective cloud governance framework. This component involves implementing tools and processes that provide insight into cloud resource utilisation and assigning responsibility to teams and individuals for managing these resources.


Our top tips for gaining cloud visibility and accountability:

Resource discovery: Employ asset discovery tools to continuously monitor and identify cloud resources. This includes virtual machines, databases, storage, and networking components.

Usage monitoring: Implement robust monitoring solutions to track resource usage, performance metrics, and cost trends. Use analytics and reporting data from your cloud infrastructure to gain actionable insights.

Accountability framework: Define clear ownership and accountability for cloud resources. Each resource should have an assigned owner who is responsible for its management, cost control, and ensuring adherence to policies.

Resource tagging: Enforce a consistent tagging strategy for cloud resources. Tags provide metadata that can be used to categorise resources, allocate costs, and apply policies more effectively.


3. Policy baseline

The policy baseline component of cloud governance focuses on defining and enforcing policies that govern your resource provisioning, access control, and various operational aspects within your various cloud environments.


Our top tips for creating a policy baseline:

Policy creation: Develop a comprehensive set of policies that align with your organisation’s objectives and regulatory requirements. These policies cover areas like resource allocation, security controls, compliance, and data management.

Policy enforcement: Utilise cloud-native policy enforcement mechanisms to ensure that policies are consistently applied across your cloud infrastructure. Automation plays a vital role in enforcing policies in real-time.

Policy review and revision: Cloud governance is not static; it evolves over time. Regularly review and update your policies to adapt to changing business needs, emerging threats, and evolving cloud services.


4. Security baseline

Security is a paramount concern in cloud governance. The security baseline component is dedicated to enforcing robust security practices to protect cloud assets, data, and applications.


Our top tips for ensuring a security baseline:

Identity and Access Management (IAM): Implement strong IAM policies, including multi-factor authentication (MFA), role-based access control (RBAC), and least privilege access, to secure user and application access to cloud resources.

Data encryption: Enforce data encryption both at rest and in transit using encryption keys and protocols provided by the cloud provider. Ensure that sensitive data is adequately protected.

Threat detection and response: Deploy threat detection and monitoring solutions to identify and respond to security incidents promptly. Implement alerting mechanisms to notify security teams of suspicious activities.

Compliance frameworks: Adhere to industry-specific compliance standards and regulations, such as GDPR, HIPAA, or SOC 2, by implementing controls and practices that align with these frameworks.


5. Cost baseline

Cost optimisation is a central concern in cloud governance, and the cost baseline component focuses on strategies for tracking, budgeting, and optimising cloud spending.


Our top tips for managing costs:

Cost monitoring: Implement cost monitoring tools and dashboards to gain visibility into cloud spending. Track costs at the granular level of resources, services, and departments.

Budgeting: Establish clear budgetary guidelines for cloud spending. Allocate budgets to different teams or departments based on their cloud utilisation requirements.

Cost allocation: Develop mechanisms to allocate cloud costs accurately, ensuring that each department or project bears its fair share of expenses. This promotes accountability and cost-consciousness.

Resource optimisation: Continuously assess and optimise resource allocation to eliminate waste and maximise the efficiency of cloud spending. Implement auto-scaling and rightsizing practices.


6. Automation

Automation is the linchpin that ensures policies, controls, and optimisation measures are consistently applied across the cloud environment. This component involves leveraging scripting, orchestration, and infrastructure-as-code (IAC) to automate repetitive tasks and enforce policies.


Our top tips for creating automation:

Policy automation: Use automation scripts and tools to enforce policies, such as resource tagging requirements, security controls, and compliance checks, ensuring immediate compliance and minimising human errors.

Resource provisioning and scaling: Implement automation to provision and deprovision resources dynamically based on demand. Auto-scaling ensures that resources scale up or down automatically to maintain optimal performance and cost efficiency.

Configuration management: Use infrastructure-as-code (IAC) principles to define and manage cloud resources as code. This enables consistent resource configuration, version control, and reproducibility.

Continuous compliance: Automate compliance checks and remediation actions to ensure that cloud resources remain in a compliant state. This includes real-time security scanning and vulnerability remediation.


Cloud governance is the linchpin of effective cloud management. It empowers businesses like yours to harness the cloud’s potential while maintaining control over costs, security, and resources. By adopting a structured approach to cloud governance and understanding its components, your organisation can navigate the cloud landscape with confidence, ensuring that your cloud investments drive innovation and growth while mitigating risks and inefficiencies.


At Redcentric, we’re more than just experts; we’re your dedicated partners in the cloud journey. Our team of impartial cloud experts are committed to helping you unlock the full potential of your cloud investments. We understand the unique challenges that organisations face in maintaining control, managing costs, and ensuring security within the cloud.


As an external third party, we bring a fresh perspective, free from internal biases, to provide you with impartial advice. Our goal is simple: to empower your business to thrive, helping you save money, enhance security, and achieve unparalleled governance.


If you’d like to discover more about cloud governance, please feel free to join our event on the 18th October in London as we’ll be discussing and answering your questions alongside Channel 4 and Microsoft. Please save your space today.

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