Updated on 2025-05-07 GMT+08:00

What Are Cloud Operating Models?

Before the emergence of cloud computing technologies, enterprises had established IT operating models to define how IT supports service development. In a narrow sense, IT operating models refer to how an enterprise manages and operates its IT resources, services, and infrastructure. Enterprises use these models in effectively configuring, managing, and optimizing IT resources to enhance performance and efficiency, reduce costs, and increase flexibility to align with their service objectives and strategies. Broadly, the IT operating models also encompass organizational structure, operational processes, roles, and responsibilities. Simply put, IT operating models define how the IT department functions. A traditional IT operating model is centered on IT infrastructure deployed in on-premises data centers or IDCs. This includes IT hardware and basic software like virtualization. Enterprises typically purchase IT hardware and software assets upfront to ensure the secure, stable operation of service systems. Over time, the performance of IT hardware deteriorates, or the hardware itself may fail, requiring technical personnel to dedicate significant time to manage, maintain, and update it.

With the emergence of cloud computing technologies, enterprises began building IT infrastructure using cloud platforms and services, gradually migrating numerous service systems or directly deploying them on public clouds. This marked the transition to the cloud computing era. The cloud platform-based IT operating models (often called the cloud operating models) shift the enterprises' focus from IT infrastructure to applications and data assets. In cloud operating models, enterprises must efficiently configure, manage, and optimize cloud resources to ensure the secure, stable operation of service systems on the cloud. Simply put, the cloud operating models represent how enterprises leverage cloud technologies and services to drive service development. The objectives of the cloud operating models are identical to those of the traditional IT operating models. Both of them use technologies to help enterprises achieve their business goals and maximize business value. The following table highlights the differences between the cloud operating models and IT operating models.

Table 1 Differences between the IT operating models and cloud operating models

Category

IT Operating Model

Cloud Operating Model

Cost model

  • Relies on capital expenditure (CapEx). Hardware must be planned and purchased in advance, which takes significant time.
  • Operates on a pay-per-use operating expense (OpEx) basis, allowing enterprises to adjust costs flexibly based on actual usage, reducing upfront investments.

Key points of management

  • Enterprise management emphasizes IT infrastructure maintenance, server uptime, and physical security of data centers.
  • Enterprise management focuses on higher-level operations, such as application performance optimization, data management, and cloud security.

Agility

  • Hardware procurement and deployment are time-consuming. Resource expansion requires complex approval and procurement processes, resulting in slow responses.
  • Innovation and change are restricted by hardware resources, making adaptation to service needs difficult.
  • Cloud resources can be scaled dynamically based on demand, enabling rapid responses to service requirements.
  • Deploying new applications or features is faster, supporting agile development and continuous delivery.
  • Innovation is no longer tied to hardware procurement cycles, allowing quick testing and launching of new products or services.

Security

  • Enterprises are responsible for security.
  • Protection focuses on the physical perimeter and internal network security of data centers.
  • Security follows a shared responsibility model. Cloud service providers manage the security of cloud platforms and services, while enterprises are responsible for the security of upper-layer applications and data.
  • Cloud providers also offer cloud native security services and best practices to support enterprises in protecting their applications and data.

Required skills

  • Technical personnel primarily manage and maintain IT infrastructure, spending considerable time on hardware fault resolution, performance optimization, system updates, and more.
  • Skills include hardware maintenance, network management, and virtualization.
  • Technical personnel require expertise in cloud platform usage, cloud resource configuration, optimization, automatic O&M tools, cloud security management, and more.
  • Advanced skills are needed for application performance optimization and data management.

The cloud operating models offer significant advantages in flexibility, agility, and cost-effectiveness. However, they also impose higher demands on personnel skills and security management within enterprises. Enterprises must gradually transition from the traditional IT operating models to the cloud operating models in alignment with their service requirements and development strategies.

The cloud operating modes are not the natural outcome of enterprise cloud transformation. Simply migrating all service systems to the cloud does not automatically result in an effective cloud operating model that fully supports service objectives. A robust cloud operating model is a prerequisite for the successful cloud transformation of an enterprise. To maximize the business value derived from cloud computing, enterprises need to design optimal cloud operating models tailored to their existing IT operating models and the characteristics of their service systems. The responsibility matrix and collaboration mechanism between the CCoE and the application teams must be clearly defined for the cloud operating models. Drawing from the cloud transformation experiences of numerous enterprises, Huawei Cloud has identified three kinds of cloud operating models.