Achieving cloudops excellence

In the bustling metropolis of Digital Innovation City, a fictional mid-sized tech company named InnovateCorp grapples with an ever-expanding, cloud-based infrastructure. Like many others, this organization made the leap to the cloud with the promise of scalability, agility, and cost efficiencies ringing in their ears. However, a conspicuous gap emerged as the company continued to migrate operations online. The lack of a robust cloud operations strategy is beginning to undermine their ambitious cloud adoption goals.

InnovateCorp’s journey is emblematic of a broader trend across enterprises today. While businesses transition to cloud platforms, driven by the desire to stay competitive and leverage cutting-edge technologies, the operational aspects of cloud computing often take a back seat. Enterprises are engrossed in what they can build in the cloud but frequently need to pay more attention to how these systems will be maintained and optimized over the long haul.

What went wrong

Operations in the cloud space encompass not just the routine upkeep of applications but also the management of performance, security, and cost optimization. InnovateCorp, for instance, initially focused on shifting their workloads to the cloud, perhaps captivated by the advanced analytics and the promise of enhanced performance. However, without a well-defined operational strategy, they soon faced cost overruns, security vulnerabilities, and service bottlenecks.

The reality is that many enterprises are scraping by on cloudops and end up spending much more to fix problems, such as data breaches and outages, which lead to reputational damage and poor employee morale.

I’m seeing enterprises today spend $100 million dollars on application development in the cloud and then attempt to get by with only a $5-million-dollar operational budget. This means cutting corners, hiring less qualified operations staff, and suffering the death of a thousand cuts as things go wrong systemically.

Why spend so much to build and deploy applications, including AI, if you’re not going to follow up with a way to keep meeting the needs of the business? It’s always confused me, but I see it consistently.

How to fix cloudops?

The cloud is not a static environment. It evolves constantly, requiring continuous oversight and adaptation. In the absence of this understanding, organizations may find themselves overwhelmed by sprawl, where unmanaged or underutilized resources inflate operational costs. This scenario directly results from enterprises focusing disproportionately on the developmental aspects of cloud projects while overlooking the critical need for operational management.

Organizations must implement monitoring tools to track real-time performance metrics and security compliance. Additionally, automation and AI-driven operations can dramatically reduce the risk of human error and refine resource management processes. This shift reduces costs and bolsters the resilience and reliability of cloud services.

Although there are no hard-and-fast rules regarding how much to spend on cloudops as a proportion of the cost of building or migrating applications, I have a few rules of thumb. Typically, enterprises should spend 30% to 40% of their total cloud computing budget on cloud operations and management. This covers monitoring, security, optimization, and ongoing management of cloud resources. Of course, the exact percentage depends on the organization’s specific needs and strategies and the complexity and scale of its cloud deployments.

Large enterprises with extensive cloud infrastructures may have different ratios than smaller businesses with simpler setups. But 30% to 40% is not far off what you should be spending, and if you’re not, I suspect you may have seen things go south recently. Effective allocation ensures optimal performance, cost efficiency, and security compliance.

Splurge on skills

Cloudops requires a new skill set. Continuous training and development programs that focus on operational best practices are vital. This transforms the IT workforce from traditional system administrators to cloud operations specialists who are adept at leveraging cloud environments’ nuances for efficiency.

Beyond technical implementations, enterprise leaders must cultivate a culture that prioritizes operational readiness as much as innovation. The essential components are clear communication channels, cross-departmental collaboration, and well-defined roles. Organizational coherence enables firms to pivot and adapt swiftly to the changing tides of technology and market demands.

It’s also crucial to measure success by deployment achievements and ongoing performance metrics. By setting clear operational KPIs from the outset, companies ensure that cloud environments are continuously aligned with business objectives. Regular reviews and adjustments based on these metrics can guide improvements and initiatives that lead to sustained operational excellence.

Cloudops as a first-class citizen.

I’m sure I’m not telling you something you did not already know. However, if you know it, why are you spending 15% on cloudops when you should be paying double?

Most of the time, it comes down to limited budgets because money is redirected to AI development these days. I hear many stories of security and operations budgets being cut to fund expensive AI projects. That’s both good and bad. Good because you’re moving forward with a strategic investment in AI technology. Bad because your AI systems will likely face-plant on day one. I suspect we’ll hear many of these stories next year.

As enterprises migrate to cloud platforms, they must not lose sight of the importance of cloud operations. Fictional companies like InnovateCorp and real companies like yours can achieve and sustain their competitive edge in an increasingly cloud-driven world by focusing on operational excellence. It’s a lesson in balance. It’s also a lesson on funding. To many IT executives who read this blog, it means having an argument as you go through another budgeting process. Trust me, it’s worth the fight.