Overview
“A changing IT operating model demands revisiting the sourcing strategy”
How to maximise the benefits of cloud depends on the characteristics of each individual enterprise or enterprise archetype and the accompanying IT operating model. There are organisations that merely use standard software whilst others develop software internally. Execution of the cloud strategy may change the archetype of the organisation. Consequently, the current sourcing strategy must be aligned with the objectives as laid out in the cloud strategy so that it optimally supports the new way of working.?
Responsibilities will shift and tasks will change when moving workloads to cloud, depending on the migration strategy. Think of shifting to ‘DevOps’ for a workload that is refactored into a cloud-native one. Or technical infrastructure and application management becoming obsolete when applications are replaced by SaaS, putting more focus on service and supplier management and functional application management. A future mode of operations showing how the organisation plans to ‘operate’ the variety of cloud-based workloads is a prerequisite for developing a cloud sourcing strategy.?
Once the new way of working is clear, make-or-buy decisions should be evaluated. In general, capabilities that deliver competitive advantage or make a crucial difference for the organisation are best organised internally. Managing cloud services is (very) different from on-premises technology and reaping benefits from cloud is not an easy task. New skills and expertise are required. Also, Your existing workforce is most likely already under a lot of pressure. Consider sourcing external help, at least temporarily, to build up capabilities or help with executing the cloud strategy. Standard IT capabilities should preferably be outsourced. ?
In cloud, traditional horizontal sourcing is usually replaced by vertical sourcing and when going cloud native, many system management tasks are carried out by the CSP. New capabilities from outsourcing partners are needed, such as managing landing zones, Infrastructure as Code, integration or applying specific cloud services such as data analytics services.
Activities checklist
Initial:
- Determine the enterprise archetype?
- Determine the IT operating model archetype based on best practices?
- Analyse and assess the current IT operating model?
- Determine the optimal IT operating model?
- Do a GAP analysis and determine needed adjustments?
- Decide upon needed adjustments and define the target IT operating model?
- Evaluate the make or buy decision by considering the strategic objectives put down in the cloud strategy – recognise the need for external help?
- Adjust (or draft) the sourcing strategy
Recurring:
- Periodically revise the IT operating model taking outcomes of executing the cloud strategy and accompanying strategic value tracking metrics into account?
- Revise the IT operating model when changing or updating the enterprise, business, IT or Cloud strategy
RASCI
| cloud consultant | supporting | transformation consultant | |
| cloud architect | consulting | cloud partners | consulting |
| cloud security specialist | DevOps team | ||
| cloud developer | business stakeholder | consulting | |
| cloud engineer | architecture | consulting | |
| cloud analyst | security | ||
| product owner CCoE | finance | ||
| management | accountable | procurement | responsible |