Depending on your organization there will be some form of approval flow for purchasing. This flow, in some cases a very complex or bureaucratic process (or both), needs to be prepared to handle the elastic nature of cloud. The property of scaling resources up and down very fluidly is a benefit of the cloud and should be made use of, however we want to maintain proper authorization for cloud purchasing and procurement.
We want to maintain proper authorization for cloud purchasing and procurement.
Recognize that there are many opportunities to drive down cost in the cloud. The forms of cloud resources differ and it pays to evaluate purpose and fit periodically. Updated resource models could also benefit cost structure. For example, if the supplier updates IaaS instance models it could be that a newer smaller model provides enough resources to handle your workload. A low effort way to cost savings. Along the same lines is detecting sub-optimal use of cloud resources.
The importance from a governance standpoint is ensuring the proper use of IT budget and alignment between IT and the Business. The activities we undertake here are successful if we eliminate bureaucracy or at least create a smooth path through bureaucratic processes. And not unimportant; prevent unauthorized IT purchases.
The show back (or charge back) reports should be used in the transition phase as a moment of (interdisciplinary) reflection. Are expectations being met? If not, what are we going to do about it? Use it as a governance tool to show alignment (or misalignment) between business goals and IT spend and a way to optimize cost.
The CCoE will advise on the purchasing and contracting processes for cloud. Furthermore our cloud heroes from the CCoE have the task of making sure the platform can deliver the (meta)data. Not only that but also present the data in useful dashboards and/or reports. This of course includes recommendations on resource optimizations to benefit cost savings.
The CCoE has the task of making sure the platform can deliver the (meta)data.
Process or Activity
The CCoE determines a best-fit ‘consumption model’ based on historical data, manages ‘service limits’ and tunes capacity based on workload.
Demarcation of Responsibilities
Product Owner creates a Cloud Service Budget Plan.
Financial Management monitors monthly cloud spend (do not automate this process immediately).
Service Portfolio Manager is ultimately responsible for P & L of the services.
To Do List
Configure budgets, reports and dashboards for all stakeholders.
Build awareness for the budgetary workings after the digital transformation.
Create transparency in cost of cloud resources per business unit/stakeholder.