Cloud demands new IT organizational structure: How providers can help

But we have seen companies that do so simultaneously improve resiliency, labor productivity, and time to market by 20 percent or more. One B2B service provider that carried out this transformation experienced a 60 percent reduction in change failure rate while reducing labor spend by 30 percent. Moving to public cloud requires profound changes in the structure, missions and roles of, and within, IT organizations. Because the IT organization nearly always leads the cloud transformation, it is usually among the first to realign component roles, missions and organizational structure to complement cloud’s critical success factors. Streamline cloud operations and create cost-savings efficiencies by leveraging multiple cloud computing environments in a single network architecture.

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  • The product focus of each team can lead to duplication of base infrastructure or divergence of practices between teams, which is inefficient and limits knowledge sharing and mobility.
  • VMware Engine Migrate and run your VMware workloads natively on Google Cloud.
  • Former employee-owned accounts and accounts being retired should be moved to “suspended.” Accounts should be tagged with details, such as where they came from, in case there is a need to restore and for traceability reasons.
  • This is different from SREs working on services related to products—i.e., customer-facing code written in house.
  • FlexibilityAllowing the optimal level of autonomy to organizational entities so that individualized objectives can be realized.
  • The ultimate goal for many enterprises is to interconnect public and private clouds via cloud connectors to create hybrid clouds that are more scalable, elastic and cost-efficient than private clouds alone.

You’ll have lots of architecture astronauts on your hands, and they will need to be able to answer questions around things like high availability and disaster recovery. Even if there isn’t shared infrastructure, it’s valuable to have an opinionated set of technologies to consolidate institutional knowledge, tooling, patterns, and practices. This doesn’t have to act as a hard-and-fast rule, but it means teams should be able to make a good case for operating outside of the guard rails provided.


If you’d like to learn more about the services that will assist you in operating your multi-account environment, refer to the Managing the multi-account environment using AWS Organizations and AWS Control Tower blog. We also recommend you review Organizing your AWS environment using multiple accounts, which provides comprehensive guidance for designing and operating your multi-account environment. To get the right engineering talent on board, the bank first looked internally and found that 80 percent of its engineers could be reskilled and moved into different or new roles. This sensitivity to culture and prioritization of internal talent also helped the bank get its teams on board with the transformation. Shifting to an engineering-focused organization and gaining the support of advanced engineers also made it possible to adopt an SRE model. Setting objectives and key results at the outset of the transformation helps application development and infrastructure teams align on what they want to achieve with their new, agile, automated IT infrastructure.

The effective policy for a resource is the union of the policy set on the resource and the policy inherited from its ancestors. In other words, resources inherit policies from the project, which inherit policies from the organization resource. Therefore, the organization-level policies also apply at the resource level. Folder resources are an additional, optional grouping mechanism between organization resources and project resources. Folder resources and their child project resources are mapped under the organization resource.

OU: PolicyStaging

The IAM access control policies applied on the organization resource apply throughout the hierarchy on all resources in the organization. The key concept of folders is that they separate projects into logical groupings; you can then apply consistent policy to the child projects at the folder level to ease administrative overhead. As shown in the table below, the reference architecture used by uses five folders. Three of them (production, non-production, and development) separate the organizations into different environments. These folders are deployed through the deployment pipeline detailed inResource deployment. Cloud providers have an opportunity to help customers develop a new organizational approach that puts a private cloud within reach.

cloud organization structure

In a software-defined data center, virtualization and abstraction extend beyond servers to other parts of the IT environment, including networking, storage and IT operations management. This makes the five-minute VM a reality, rather than an unfulfilled promise. These functions are often handled by multiple specialized sub-teams of the IT organization in charge of individual domains — the networking team, the storage team, the monitoring team, the automation team, etc. This post dives deep into the recommended architecture of AWS best practices when building your organization. It will explain and illustrate the recommended OU structure and provide specific implementation examples. If you’re interested in a high-level overview of these concepts, we recommend that you review the Establishing your best practice AWS environment page.

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Level 1The organizational structure depicted above shows the tenancy, or root compartment, at Level 1 in our compartment hierarchy. The root compartment will always be at Level 1 in every organizational structure. A key aspect of building an operationally efficient and secure OCI environment is having a complete understanding of how IT administration is currently executed. We should also establish what workloads might benefit from a change to a more cloud-native approach. One of the significant benefits of the cloud is that it enables low-cost, specialized deployments of a complete technology stack to be delivered in minutes. Automation means that we can do this at scale, with low risk and minimal human intervention.

cloud organization structure

For this reason, the Google Workspace super admin is granted the ability to assign IAM roles by default. The Google Workspace super admin’s main duty with respect to Google Cloud is to assign the Organization Administrator IAM role to appropriate users in their domain. This will create the separation between Google Workspace and Google Cloud administration responsibilities that users typically seek.

OU: Workloads

Doing so expands the binary approach of “not in scope for us or not yet seen by SRE” and “fully supported by SRE” by adding at least one more tier in between those two options. It may result in lack of standardization between teams, and/or divergence in practice. Enables focused SRE expertise to be directed to specific problems or teams.

cloud organization structure

It’s recommended that CI/CD Deployment OU is separated into a different hierarchy and AWS accounts, as the governance and operational models differ between the two. Building an IT infrastructure operating model for the future is a complex endeavor, but it is essential for companies that want to survive and thrive at the pace of digital. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. Take advantage of cloud-native architecture such as Kubernetes to modernize applications and accelerate digital transformation. This shift from capital expenditure to operating expense is a major reason for the popularity of cloud computing today.

Getting your organization resource ID

On the list that appears, click the organization resource to open itsIAM Permissions page. In the Select from dialog, click the organization drop-down list, and select the organization resource to which you want to add an Organization Administrator. If you’re a Google Workspace or Cloud Identity customer, an organization resource is provided to you automatically. On the Select from window that appears, click the organization resource drop-down list and then select the organization resource you want. Google Cloud Backup and DR Managed backup and disaster recovery for application-consistent data protection. Cloud Debugger Real-time application state inspection and in-production debugging.

Organizations can start by aligning SRE teams with applications or application clusters. As the organization’s operating-model maturity increases and operations become automated, SREs can be embedded into the application-development teams. In some very mature teams with more homogenous technical stacks, site reliability can become the responsibility of full-stack engineers instead of being designated to a separate role.

Multi-Cloud Architecture Solutions

Most enterprises start their path to private cloud adoption by extending their virtual infrastructures with tools that automate orchestration and operating-system provisioning. These are great places to start, but they aren’t sufficient to deliver on the promise of a “five-minute virtual machine ,” a term coined by John Treadway of the Boston-based consultancy Cloud Technology Partners. AWS customers look to move quickly and securely when launching new business innovations. The multi-account environment provides guidance to help customers plan their AWS environment. This framework is designed to meet security needs, while maintaining the ability to scale and adapt their environments with changing business demands.

The basis of a well-architected multi-account AWS environment is AWS Organizations, an AWS service that enables you to centrally manage and govern multiple accounts. At the outset of the transformation, the bank set clear and aspirational OKR targets to reduce hard, manual, repetitive work; to improve efficiency; and to automate new product testing. It also restructured how teams work together, stressing the importance of collaboration on application development and infrastructure. Most organizations rely exclusively on dictating business goals from the executive level down. In contrast, successful organizations combine those goals with a healthy mix of team-level goals channeled from the bottom up. A frontline infrastructure engineer often has the best understanding of resiliency issues that could bring down operations.

Databases Migrate and manage enterprise data with security, reliability, high availability, and fully managed data services. This model is different from traditional operations in that it takes a product-mindset approach to providing solutions to internal customers. This means it’s important that the group is able to understand and empathize with the product teams they serve in order to identify areas for improvement. It also means productizing and automating traditional operations tasks while encouraging good patterns and practices. This is a radical departure from the way in which most operations teams normally operate.

Site reliability engineers are the glue that binds application development and core infrastructure services. They work cross-functionally, partnering with application developers, application operations, and infrastructure teams. They also enhance the stability and reliability of applications in production and reduce or automate repetitive manual tasks so that the development team can focus on building products. To help applications run uniformly and consistently on any cloud infrastructure, SREs should also support containerization and replatforming efforts. Folder resources optionally provide an additional grouping mechanism and isolation boundaries between projects.

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