Cloud Governance: Basics and Practice

302 Pages·2022·5.249 MB·English

by  Steven Mezzio, Meredith Stein, Vincent Campitelli

StevenMezzio,MeredithStein,VincentCampitelli
CloudGovernance
Professors of Practice Series
Edited by
Chris Beer
Steven Mezzio, Meredith Stein,
Vincent Campitelli
Cloud Governance
Basics and Practice
ISBN978-3-11-075526-8
e-ISBN(PDF)978-3-11-075537-4
e-ISBN(EPUB)978-3-11-075547-3
ISSN:2749-9499
e-ISSN2749-9502
LibraryofCongressControlNumber:2022943438
BibliographicinformationpublishedbytheDeutscheNationalbibliothek
TheDeutscheNationalbibliothekliststhispublicationintheDeutscheNationalbibliografie;
detailedbibliographicdataareavailableontheinternetathttp://dnb.dnb.de.
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Foreword
Iam pleasedtointroducethebookCloudGovernance:BasicsandPractice,the
firstvolumeinanewseriestitledtheProfessorsofPracticeSerieslaunchedby
DeGruyter.Theseriesadvocatestheimportanceofbalancingtheorywithreal-
world practice-driven perspectives, which will help students, scholars, practi-
tioners,andinfluencersinternationallygainadditionalinsightsintointegrating
thebook’stopicwiththeexternalbusinessenvironmentandcontext.
By way of professional background, I have been a professor of practice at
WarwickBusinessSchoolinLondonsince2013anddirectoroftheWarwickBusi-
nessSchoolDBA Program.Iamalsoanexecutive directorofoneof theworld’s
leadingexecutivementoringcompanies,whereIhavetheprivilegeofsupporting
seniorbusinessleadersand their organizations.In addition,I have heldopera-
tional,governance,andleadershiprolesinarangeoforganizationsinternation-
ally. Thisexperience greatly informs my approach to writing and teaching and
helpsmeintegrateapractitionerperspectiveintoalecturetheatre.
TheProfessorsofPracticeseriesisanew,original,andtimelyseriesofbooks
authored by professors of practice in business schools worldwide and practi-
tioners.Professorsofpracticeareprofessorsorlecturersinhighereducationwho
serve as practitioners or influencers in public and private companies, govern-
mentagencies,consultancyfirms,regulators,externalauditors,ornot-for-profit
organizations that span size and geography. Each book in this series draws on
theory,practices,andtheauthors’combinationofteachingandpracticeexperi-
ence.Thebookscovercriticaltopicstaughtinacademicsettings,combinedwith
real-lifeexamplesfromaninternationalperspective.Thisapproachhelpsreaders
understandboththetheoreticalandappliednatureofthesubjectmatter.
Booksintheserieswillbeofinteresttoarangeofcohorts.Forinstance,busi-
nessschoolstudents;executiveeducationprogramme participants;teachersand
researchers; andbusiness practitioners, including directors, organizationalbusi-
nesspractitioners,regulators,externalauditors,legalandcompliance,andlearn-
inganddevelopmentinfluencers.
ThetitleofthisfirstbookintheseriesisCloudGovernance:BasicsandPrac-
tice. The book combines two independent and complexdomains, thecloud, and
corporate governance. Each has organization-wide strategic, performance, risk,
businessprocess,andhumancapitalimpactsandoutcomes.Eachisalsoriddled
with confusing jargon and an abundance of inconsistent definitions of terms,
frameworks,andcomplexecosystems.
Thewidescaledeploymentofthecloudrapidlyanduniquelyinfiltratesandim-
pactstheentireorganization.Whileprovidingvaluableopportunities,thisorganiza-
tion-wideimpactisexacerbatingexistingrisks,creatingnewandunexpectedrisks,
https://doi.org/10.1515/9783110755374-202
VI Foreword
and materially stressing, disrupting, and transforming long-standing and proven
corporategovernancepractices(e.g.,strategies,processes,andcompetencies).
Thisdisruption shinesa brightlightonhow best togovernthe cloud effec-
tively and practically within an organization’s overall strategy and governance
ecosystem. Governing the cloud responsibly and securely is, therefore, crucial.
Cloudgovernanceplaysa crucialand central roleinresponsibly optimizingthe
strategic opportunities afforded by the cloud while at the same time governing
therangeofrisksemergingfromtheuseofthecloud.
Thisbookcombinestheory,real-worldpractices,andtheuniqueeducational
andpracticeperspectivesoftheauthorstoprovideabasicyetcomprehensivein-
troductiontotheuniquecombinationofcloudcomputing(thecloud)andcorpo-
rate governance. It successfully brings to life the diverse range of opportunities
and challenges associated with governing the deployment and enterprise-wide
growth and use of the cloud, while explaining and contextualizing the abun-
danceofinconsistentdefinitionsofterms,frameworks,andecosystems.
TheauthorsofCloudGovernance:BasicsandPracticebringthefollowingto
readers:
– Abalancedmixofknowledge,skills,andexperienceintherelevantdomains
ofcorporategovernance,cloudgovernance,organizationalstrategy,change
management, and learning and development; this diversified experience
spans industry sectors, international jurisdictions, and public, private, and
not-for-profitorganizations.
– An effectively balanced, user-friendly presentation of both the basics ele-
ment (e.g., providing user-friendly, practical definitions and explanations
ofcomplexjargon)andthepracticeelement(e.g.,examplesofbestpractices,
popularframeworksandstandards,andinfluencerperspectives).
– Easy-to-readchaptersthatdescribethegovernanceimplicationsofthecloud;
creatively introducing their “Cloud Governance House” – a unique, simple,
andpracticalcloudgovernanceecosystemthataddressesthiscomplextopic
inasimpleway.
CloudGovernance:BasicsandPracticewillappealtodiversifiedcohortsofinter-
nationalstudents,operationalandriskmanagers,boards,auditors,andadvisors.
Understanding thecombination of both has emerged as a critical capabilityfor
variousstakeholders,including students,teachers, researchers, boards,and ex-
ecutivesofcompanies,irrespectiveoftheirsizeandlocation.Italsoisanessen-
tial companion to those studying and interested in the stand-alone topics of
corporategovernanceorcloudcomputing.
ProfessorChrisBeer
Director,WarwickBusinessSchoolDBAProgramme
Contents
Foreword V
Part I:Introduction: TheContextof CloudComputing
Chapter1
SilverLinings:TheFourthIndustrialRevolutionandtheUtopianPromises
ofCloudComputing 3
KeyTerms 3
1.1 Introduction 4
1.2 TheFourthIndustrialRevolutionandCloudComputing 4
1.3 DefiningCloudComputing 6
1.4 SilverLinings:TheUtopianPromisesofCloudComputing 7
1.5 TheDarkSideoftheCloud:CloudRisks 10
1.6 Conclusion 10
Chapter2
TheDarkSideoftheCloud:High-ProfileCyber-Attacks 13
KeyTerms 13
2.1 Introduction 14
2.2 InformationTechnologySystemsandCyber-Attacks 14
2.3 TheDarkSideoftheCloud:High-ProfileCyber-Attacks
ReportedintheMedia 15
2.4 AreyouSurprisedbytheWaveofCloudCyber-Attacks? 17
2.5 Conclusion 18
Chapter3
Cloud101:TheBasicsofCloudComputing 19
KeyTerms 19
3.1 Introduction 20
3.2 DefiningCloudComputing 20
3.3 OutsourcingtoThird-PartyCloudVendors 22
3.4 CloudServiceModels 23
3.5 CloudDeploymentModels 24
3.6 TheOrganizationalImpactofCloudComputing 26
3.7 Conclusion 28
VIII Contents
Part II:TheBasicsofCloud Governance
Chapter4
CloudStrategy 31
KeyTerms 31
4.1 Introduction 31
4.2 AnEvolvingCloudStrategy 32
4.3 CloudStrategicGoals,ObjectivesandExpected
Outcomes 34
4.4 DevelopinganOrganization-WideCloudStrategicPlan 36
4.5 CloudStrategyChallengesandEnablers 39
4.6 Conclusion 44
Chapter5
CloudPerformanceManagement 47
KeyTerms 47
5.1 Introduction 48
5.2 DefiningOrganizationalPerformanceManagement 48
5.3 TheStrategy-PerformanceManagementRelationship 50
5.4 PerformanceManagementandInformationTechnology 50
5.5 CloudPerformanceManagementandKeyPerformance
Indicators 51
5.6 ChallengesandEnablersofCloudPerformance
Management 55
5.7 Conclusion 57
Chapter6
TheBasicsofCloudGovernance 59
KeyTerms 59
6.1 Introduction 60
6.2 DefiningCorporateGovernance 60
6.3 StrategyandGovernanceMisalignments 63
6.4 DefiningCloudGovernanceandConceptualizingaCloud
GovernanceBusinessProcessEcosystem 64
6.5 Conclusion 69
Contents IX
Chapter7
CloudComputingandtheSharedResponsibilityModel 71
KeyTerms 71
7.1 Introduction 72
7.2 MarketDefinitionsofaCloud-SharedResponsibility
Model 72
7.3 ExpandedConceptualizationofaCloud-SharedResponsibility
Model 73
7.4 ImplicationsofDeployingaCloud-SharedResponsibility
Model 75
7.5 Conclusion 76
Part III:TheOrganizationalandITContext
ofCloud Governance
Chapter8
CloudVendorsandtheOrganization’sIn-HouseITFunction 81
KeyTerms 81
8.1 Introduction 82
8.2 TheImpactoftheCloudontheOrganization’sIn-HouseIT
Function 82
8.3 CloudVendors 85
8.4 CriteriaforSelectingaCloudVendor 86
8.5 CloudService-LevelAgreements(SLA) 89
8.6 Conclusion 94
Chapter9
CloudSprawl,CloudInventoryandCloudManagement 95
KeyTerms 95
9.1 Introduction 96
9.2 CloudSprawl:WhereisMyCloud? 96
9.3 CloudInventory 97
9.4 CloudManagement 99
9.5 Responsibilities:CloudInventoryandCloudManagement 101
9.6 Conclusion 102
X Contents
Chapter10
SustainableCloud:TheRelationshipBetweentheCloudandESG 103
KeyTerms 103
10.1 Introduction 104
10.2 SustainableCloud 104
10.3 EnvironmentalFactorsandtheCloud–TheEinESG 105
10.4 SocialandGovernanceFactorsandtheCloud–TheSandthe
GinESG 106
10.5 ESGReportingandtheCloud 107
10.6 Conclusion 109
Chapter11
Cloud-DrivenChangeManagementandLearning 111
KeyTerms 111
11.1 Introduction 111
11.2 Cloud-DrivenOrganizationalChange 112
11.3 Cloud-DrivenChangeManagement 114
11.4 AGapinCloudSkills:TowardaCloud-EnabledWorkforce 118
11.5 Cloud-RelatedLearningandDevelopment(L&D)
Considerations 121
11.6 Conclusion 126
Part IV:GovernanceFunctionsDisrupted andTransformed
bytheCloud
Chapter12
CloudRiskManagement 131
KeyTerms 131
12.1 Introduction 132
12.2 DefiningRiskManagement 132
12.3 DefiningCloudRisk 133
12.4 IdentifyingCloudRisk 134
12.5 WhatCanGoWrong 134
12.6 AssessingCloudRisk 136
12.7 RespondingtoCloudRisk 137
12.8 Conclusion 139