Cloud governance: Managing cloud costs and risks

As organisations increasingly rely on public cloud infrastructure, a comprehensive cloud governance strategy and plan become necessary. Cloud governance practices not only help manage related costs but also decrease risks, increase efficiency, and ensure compliance.

Building a strong cloud governance model

Establishing a strong cloud governance model is essential for any organisation looking to optimise its cloud environment. This model provides oversight and control across the entire cloud infrastructure, ensuring that all cloud-related activities align with the company’s strategic objectives. A comprehensive governance framework typically encompasses several key components:

1. Workload management

At the heart of cloud governance is effective workload management. It is especially important for any business to profile its workloads and make effective use of company resources by understanding what types of workloads are involved.

Often, workloads are divided into those that are more important and those that are less critical. The former are allocated resources proportionally based on the load of mission-critical tasks, while the latter—consuming additional resources—perform work that is not as necessary. That is why constant profiling and categorisation of workloads not only leads to more effective resource use but also to a more advanced decision-making approach in cloud resource allocation.

2. Access control

Access control is one of the most important elements contributing to successful cloud operations. Strict access policies that dictate who can deploy, modify, and access public cloud resources help ensure that every cloud user has defined roles and responsibilities.

Developing access guidelines addresses the problem of preventing unauthorised access to certain resources while streamlining access for authorised users. Overall, this approach makes the operation of cloud teams more focused and free of overlapping responsibilities, thereby ensuring a more efficient and secure cloud operation.

3. Compliance and security

As regulatory requirements become more stringent, ensuring compliance with leading industry standards such as GDPR, HIPAA, and SOX is essential for any organisation using public cloud services. A good governance model implements various compliance checks and strict security standards to secure sensitive information and meet legal requirements.

By addressing the challenges of legal compliance and adopting the relevant security approach, organisations are not only responding to the threat of legal issues but also ensuring that they are legitimate users of cloud services.

4. Cost control and resource optimisation

When it comes to cloud operations, effective cloud governance is primarily associated with cost control and efficient resource management.

Organisations should constantly monitor and report on their consumption-related activities and use of cloud services to understand patterns, identify untapped or inefficiently used resources, and adjust accordingly based on proactive governance. This approach is beneficial as it allows the organisation to optimise expenses and exploit opportunities such as saving on Reserved Instances or using automation tools, rather than overprovisioning and overpaying for unnecessary resources.

Efficient cost control ensures that the company’s financial discipline is maintained and that all public cloud investments are maximally beneficial.

The strategic benefits of cloud governance

Implementing a well-structured cloud governance framework offers numerous strategic benefits. By integrating governance into their cloud strategy, organisations can achieve significant cost reductions, improve resource utilisation, and enhance overall operational efficiency. Effective cloud governance goes beyond setting rules—it creates a framework for continuous improvement, drives accountability, and ensures that cloud operations are aligned with business objectives.

For organisations aiming to optimise their cloud environments, evaluating and strengthening their cloud governance frameworks is crucial. A comprehensive governance model that includes workload management, access control, compliance, and cost optimisation can lead to substantial savings and operational efficiencies.

In an increasingly complex digital landscape, investing in cloud governance is not just a strategic choice—it’s a necessity for maintaining control, reducing risks, and ensuring sustainable success from your cloud investments.

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Tags: cloud, Public Cloud