After years of helping organizations adopt cloud computing, I’ve developed a comprehensive approach to implementing cloud operating models. In this post, I’ll share my framework for building an effective cloud organization, whether you’re just starting your cloud journey or looking to formalize existing cloud operations.

Core Insights

A cloud operating model isn’t just another IT framework – it’s the foundation for how your organization delivers and manages cloud capabilities. At minimum, you need two core functions:

• A cloud enterprise architecture function
• A cloud operations function

For larger organizations with independent business units, each unit might need its own cloud operating model, overseen by a center of excellence.

The 5-Step Implementation Framework

1. Establish Advisory Bodies

Start by creating a cross-functional Advisory Council. This isn’t just another committee – it’s your cloud steering group that brings together stakeholders from:

• Central/BU IT teams (EA, Infrastructure, Security, Apps)
• Corporate functions (Sourcing, HR, Finance, Legal)
• Business leadership

The Advisory Council should be led by your chief cloud architect and limited to about 20 people for effectiveness.

2. Align on Priorities

Before diving into implementation, get clear agreement on your cloud strategy principles. Don’t just default to “cloud first” – think through your:

• Risk appetite – a fusion of business and cyber security
• Desired business autonomy
• Cloud adoption priorities
• Transformation goals

3. Build the Core Operating Model

Position a cloud enterprise architecture function at the heart of your model. This could be a formal COE or a smaller team, but it needs three core capabilities:

• Cloud governance
• Cloud service brokerage
• Cloud transformation support

Pro tip: Don’t outsource this function – it’s too strategic. You can augment with contractors, but keep leadership internal.

4. Establish Cloud Delivery Functions

This is where the rubber meets the road. You need to:

• Define the balance between development and operations
• Choose your cloud operations approach (centralized, distributed, or hybrid)
• Integrate security throughout the application lifecycle

Remember: Different applications may need different operational approaches. SaaS, cloud-native, and migrated applications often require distinct management styles.

5. Integrate Supporting Functions

Don’t forget to connect:

• Sourcing and vendor management
• IT finance
• Program management
• Learning and development

Launch a Cloud Community of Practice to foster collaboration and knowledge sharing. This isn’t just another meeting – it’s your engine for cultural transformation.

Making It Work in Practice

A few key success factors I’ve observed:

1. Start Small: You don’t need everything day one. Begin with core governance and build from there.
2. Stay Flexible: Your model will evolve as your cloud adoption matures. Design for change.
3. Focus on Business Outcomes: Keep your operating model aligned with business goals, not just IT efficiency.
4. Build Community: Success requires broad organizational buy-in and participation.
5. Quick Wins: Be iterative, make impactful yet simple milestones and showcase progress.

The Path Forward

Remember that no single operating model fits all organizations. The key is finding the right balance for your specific context while maintaining enough flexibility to evolve as your cloud journey progresses.

I’ve seen organizations successfully implement these models in 6-12 months, but the transformation journey continues well beyond that. The most successful implementations stay focused on business outcomes while building strong communities of practice to support ongoing evolution

Of course this is a high level overview. Reach out to me if you want to chat and drill down in any of these.

What’s your experience with cloud operating models? I’d love to hear your thoughts and challenges in the comments below. Keep an eye out for the next cloud post where we will take this down a level and talk about the Cloud Workforce.