Cloud Governance Challenges and Best Practices

Understanding the significance of cloud governance

It is a set of rules. It applies specific policies or principles to the use of computing services. This model aims to secure applications and data even if located distantly. The best solutions include People, Processes, and Technology. It basically refers to the decision-making processes, criteria, and policies involved in the planning, architecture, acquisition, deployment, operation, architecture, acquisition, implementation, operation, and management of a Cloud computing capability. Its best practices help to optimize the organization's:

Operations: Doing it efficiently
Risk and compliance: Doing it securely
Financial: Doing more with less

Importance of cloud governance in modern businesses

The below-mentioned points are the importance of Cloud Governance

Make it easier to manage resources

Cloud service providers like AWS (Amazon Web Services Solutions) and many others are now advising customers to move multiple-tenant workloads residing in a single account or subscription into different accounts. Using various accounts will manage distinct workloads, one of the best practices today to deliver precise access, control, and cost management. Moreover, using its best practices limits an issue's security and financial blast radius. Using the correct Governance Model of Cloud Services helps organize the volume of accounts most organizations need and provide visibility around key online activities and trends.

Helps curb shadow IT

Risk and spending increase when you do not understand what systems are in use or where corporate data resides. Whenever a delay occurs in getting access to resources, employees turn to shadow IT. It is helpful as it places the required framework to request and access resources quickly. It gives team members access to the breadth of allowed resources among compliance and budget constraints.

Reduces labor

Instead of using spreadsheets or any other similar manual processes that track accounts, cost, and compliance, the other way is to set guardrails at the appropriate point in your organizational hierarchy: these guardrails control access, budget, and policy of the required projects. In addition to this, complete solutions offer enforcement actions that allow you to do away with necessary follow-up actions after receiving an alert. Following best practices save time and effort as it prevents non-compliant activities and budget overruns.

Due to time pressure, do not shortened Cloud Governance services test phase before the go-live as it may become a costly mistake for your business. Source, Four Lessons Learned From Cloud Infrastructure Adopters

How cloud governance ensures security and compliance

Governance policies contain a set of protocols of how things should be regulated on it. So, its policies should be created and regularly reviewed by business executives, managers, and IT experts.

The Cloud Governance policy must include the following:

Standards for the design of infrastructure
Monitoring of infrastructure and application
Security Policy
Programming standards
Backup recovery services

Certain sensitive information and data should be restricted to all unauthorized users. Therefore, one should use proper authentication and permission level checks.

A Cloud Governance Model should be a proper roadmap for your cloud consumption, how you plan a new deployment policy, how you will switch your application from one provider to another, what will be the deployment process, and who will evaluate them.

This plan operates over four levels, listed below:-

Infrastructure or virtualization platform
Operating systems
Platform/application
Business/user activity on that platform

A firm policy will help you run the business well; otherwise, it will result in security loopholes, reduced performance, and permanent data loss. This is why choosing the best solutions and following best practices are essential

An approach to developing, building, and shipping applications that take advantage of modern Cloud computing services Click to explore our, Guide to Secure Cloud Native Applications

Top 6 Governance Principles

Six governance principles for its solutions are the basis for effective governance. Every organization varies in its governance necessities. Thus, it should be necessary to amend the policies listed below to match your specific circumstances.

Financial management

This point consists of budget policies and cost trend policies. Both policies are closely related as long as you need to be aware of cost trend influencers to determine whether budgets will meet or need to adjust them.

Cost Optimization

A cost optimization policy reduces cost by keeping you up-to-date with opportunities to take advantage of committed use discounts and modifying you to occasions when committed use discounts are not being utilized fully.

Operational Governance

The operational governance principle contains system testing, and two cost-cutting measures - identifying and terminating unused ZOMBIE assets and scheduling stop/start time for non-production instances used in the development, software testing, staging, and QA.

Performance Management

A better model for governing data relates to optimizing assets for their workloads. It consists of downgrading assets due to initial over-provisioning or a fall in demand - or upgrading them as demand increases. Its best practices also include ensuring that the stored data is in the most cost-effective location.

Asset & Configuration Management

Asset and configuration management consists of everything from consistent tagging for cost allocation to identifying non-conforming assets, like those that exceed the permitted capacity, are incompatible with existing assets, or those that launched outside a U.S. region.

Security & Incident Management

Best solutions or services cover multiple cloud security components and may need to be subdivided into smaller principles to address issues. For example, Encryption, Access controls, Security groups, Audit trails, Application access rules.

Threat intelligence provides organizations with early warning of attacks and enables security teams to respond quickly and effectively. Click here to know, How to Integrate Threat Intelligence for Security & Incident Response?

Challenges in Cloud Governance

Some of the challenges are below mentioned:-

Performance Management

When any business uses cloud services, it is the service provider's responsibility to supply proper services and enhance performance. If the service provider goes down, the client's performance using the services will also decrease. To avoid such conditions, a proper Governance Cloud Model, a set of policies, and choosing one of the best solutions can be helpful.

Governance/Control

A proper set of policies and procedures helps to support your organizational strategies and business goals. It will enhance the business and reduce the company's operational cost.

Cost Management

Organizations using cloud services will be in profit as it is a very cost-effective approach. The policies are designed in such a way that, if followed, will result in high profit. A properly considered cloud governance model optimizes cost by conducting better financial analytics, automating policies, or maintaining management reporting practices, which will help provide cost management.

Security Issues

The security of the data is also one of the major concerns. This is so because the security loopholes can be avoided by using some strict rules, Cloud Governance best practices, and policies. A Governance Model should build proper authentication policies to protect the information's confidentiality, integrity, and availability. As there are many security bug cases in the cloud service providers like AWS are aware of a security issue (CVE-2019-11246) in the Kubernetes kubectl tool that can allow a malicious container to replace or create files on a user's workstation.

Best Tools to Maintain Cloud Governance

The below listed are the best Cloud Security Governance Tools:

SpectralOps
Cisco Cloudlock
Bitglass
Cato Networks | Cato SASE
Fugue
Perimeter 81
Illumio Core

Our solutions cater to diverse industries with a focus on serving ever-changing marketing needs. Click here to learn XenonStack's Cloud Security Strategy for Hybrid and Multi-Cloud

Key Components of Cloud Governance

Cloud Governance Framework:
Establishes policies, procedures, and guidelines to ensure structured and controlled consumption of cloud services. It aligns with business objectives and compliance requirements and should be adaptable to evolving cloud environments
Cloud Service Catalog:
A comprehensive list of approved cloud services that includes details about features, functionalities, and security measures. This catalog helps standardize service consumption and mitigate risks associated with unapproved service
Cloud Service Management: Encompasses processes for managing the entire lifecycle of cloud services—from procurement to retirement. It includes provisioning, monitoring, and reporting on services while defining clear roles and responsibilities
Cloud Security: Ensures that all cloud services are secure and compliant with regulations. This involves implementing security controls such as encryption, access management, and regular security assessments to identify vulnerabilities
.
Cloud Cost Management: Focuses on monitoring and optimizing cloud spending to prevent unexpected costs. This includes setting policies for resource usage and identifying opportunities for cost savings through efficient resource allocation
Cloud Compliance: Involves ensuring that cloud services adhere to relevant laws and industry standards. Regular compliance assessments and clear policies for monitoring compliance are essential
Cloud Risk Management: Identifies potential risks associated with cloud services and implements strategies for risk mitigation. This includes establishing incident management procedures and a risk management framework aligned with business objectives

Benefits of Implementing Cloud Governance

Enhanced Security: A robust governance framework helps protect sensitive data through defined security policies and practices.
Cost Efficiency: Effective cost management leads to optimized resource utilization and reduced unnecessary expenditures.
Regulatory Compliance: Ensures adherence to legal requirements, reducing the risk of penalties associated with non-compliance.
Improved Risk Management: Identifies potential risks early, allowing organizations to implement mitigation strategies proactively.
Operational Efficiency: Streamlines processes related to service provisioning, monitoring, and reporting, improving overall operational effectiveness

Challenges in Cloud Governance

Complexity of Multi-Cloud Environments: Managing multiple cloud providers can lead to inconsistent governance practices across platforms.
Talent Shortage: There is often a lack of skilled professionals who understand both cloud technologies and governance frameworks.
Rapidly Evolving Technologies: Keeping governance policies up-to-date with the latest technologies can be challenging.
Data Security Risks: As organizations store more data in the cloud, they face increased risks related to data breaches and unauthorized access.
Integration Issues: Integrating existing governance frameworks with new cloud services may lead to gaps in compliance or oversight

Framework for Cloud Governance

A comprehensive framework for cloud governance should include:

Policy Management: Define clear policies regarding cloud usage that align with business goals.
Access Management: Establish role-based access controls (RBAC) to manage who can access what resources.
Cost Management Procedures: Implement processes for tracking spending and optimizing resource allocation.
Security Protocols: Create guidelines for securing data in transit and at rest through encryption and access controls.
Compliance Monitoring: Regularly assess compliance with legal regulations and industry standards.

6. Performance Metrics: Monitor the performance of cloud resources to ensure they meet established service-level agreements (SLAs)

Principles of Effective Cloud Governance

Security First: Prioritize security measures in all aspects of governance.
Transparency: Maintain clear communication about policies, roles, and responsibilities across the organization.
Adaptability: Ensure that governance frameworks can evolve with changing technologies and business needs.
Collaboration: Foster collaboration among stakeholders involved in cloud operations to enhance accountability.
Continuous Improvement: Regularly review and update governance policies based on performance metrics and evolving risks

Best Practices for Implementing Cloud Governance

Define Clear Policies: Establish formal governance policies that outline objectives related to efficiency, cost-effectiveness, and security.
Regular Audits and Assessments: Conduct frequent audits to evaluate compliance with established policies and identify areas for improvement.
Training Programs: Invest in training for employees to understand governance practices and their roles within the framework.
Utilize Automation Tools: Implement tools for monitoring compliance, managing costs, and securing data automatically to reduce manual overhead.
Engage Stakeholders Early: Involve relevant stakeholders in the development of governance frameworks to ensure buy-in and adherence across the organization

Explore more about cloud security challenges

Next Steps towards Cloud Governance

To achieve effective cloud governance, organizations should implement clear policies, establish security protocols, and ensure compliance with regulatory requirements. Regular audits, resource optimization, and role-based access controls are essential for maintaining operational efficiency and mitigating risks.