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What Cloud Brings to Us?

Self-Service Financial Control and Organizational Governance in Cloud Chunqiang Tang, Chang-shing Perng, Salman Baset IBM T.J. Watson Research Center. What Cloud Brings to Us?. Key features of cloud On-demand self-service Auto-scaling Advantages: improve productivity and agility

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What Cloud Brings to Us?

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  1. Self-Service Financial Control and Organizational Governance in CloudChunqiang Tang, Chang-shing Perng, Salman BasetIBM T.J. Watson Research Center

  2. What Cloud Brings to Us? • Key features of cloud • On-demand self-service • Auto-scaling • Advantages: improve productivity and agility • Risk: circumvent traditional business process around IT financial control and organizational governance

  3. Examples of Risks in Using Cloud without Governance • Example 1: A student over-spends his professor’s credit card on Cloud resources. • Example 2: A large enterprise continuously adjusts its IT budget allocation and organization structure, making it hard for frontline engineers to balance spending. • Example 3: Due to a bug in a Cloud application’s autoscaling controller, it mistakenly creates 1,000 virtual machines (VMs) instantaneously. • Example 4: An employee provisions in the Cloud a public facing VM using the company’s domain name, but it exposes inappropriate Web contents, due to either mistake or abuse.

  4. Root Cause of the Governance Problems Cloud lives in fairyland • Cloud is totally disconnected from the governance structure and process in the real world • No reflection of the hierarchical structure of an organization • No reflection of the complex budget flow in an organization Corporate Structure Example: a school’s budget flow

  5. Solution Overview for the Governance Problems (1/2) • Separation of governance mechanism and policy • Cloud provider builds the mechanism for governance • Cloud user defines the governance policy through self-service • Organizational governance solution • Hierarchical account structure • User self-service to grow or change the hierarchy • Parent account has authority over child account

  6. Solution Overview for the Governance Problems (2/2) Financial control solution • User self-service to create, divide, and pass “credit tokens” to represent budget flows • A credit token comes with user-defined rules, and the cloud provider enforces the rules • E.g., hourly spending < $100 AND monthly spending < $1000 • Users can define monitoring rules to trigger alert on spending

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