We can’t ignore cloud governance anymore

Recent developments in enterprise cloud computing reveal a concerning lack of attention to cloud governance, despite enterprises facing significant risks and potential losses due to outages, inefficiencies, and non-compliance. As enterprises migrate from traditional infrastructures to the cloud, they often do so without a clear strategy to mitigate risk, or they fail to set up an ecosystem that fosters innovation and accountability. That’s why governance has emerged as the most important topic in cloud computing today, and why I, alongside my co-author Meredith Stein, decided to address it in our new book, Unlocking the Power of the Cloud: Governance, Artificial Intelligence, Risk Management, Value.

The book proposes a framework for enterprises to think differently about how they govern their operations in a cloud-forward world. Governance in the cloud is the backbone of any sustainable, scalable, and secure cloud strategy. With decades of experience in cloud computing, artificial intelligence, and risk management, Meredith and I felt this was not only a timely subject but a necessary one. Enterprises are innovating rapidly, but many do so without considering the potential long-term consequences of ungoverned cloud environments. We’ve seen those consequences firsthand through inefficiencies, lost revenue, reputational damage, and even catastrophic outages.

Governance is critical to cloud ecosystems

Cloud computing has fundamentally shifted how businesses operate. Unlike legacy systems where infrastructure and operations were controlled on premises, the cloud introduces new operational complexities. It democratizes access to technologies such as artificial intelligence, machine learning, and advanced data analytics but also brings unprecedented risks. A single minor decision, from misconfigured security protocols to inadequate compliance measures, can trigger a cascade of failures across an enterprise.

Despite these risks, many organizations are still treating cloud governance as an afterthought. Instead, enterprises pour resources into migration and adoption at the expense of creating a governance framework meant to manage risks proactively. This oversight leads to the type of major outages and service disruptions we’ve seen recently, which cost companies millions of dollars and erode brand trust. Events like these aren’t inevitable. With proper governance structures in place, much of the fallout can be mitigated or avoided altogether.

Governance in the cloud is not a constraint—it’s an accelerator. A robust governance structure doesn’t just shield enterprises from risk; it also enables them to innovate without fear of missteps. Enterprises with effective governance can adopt emerging technologies like AI confidently, without exposing themselves to compliance, security, or data management pitfalls. But most organizations have trouble operationalizing this philosophy because they lack a road map. This is where Meredith and I saw an opportunity to make a difference.

Creating business value

In writing Unlocking the Power of the Cloud, one of our primary goals was to frame governance not as a bureaucratic hurdle but as a strategic enabler. Governance should elevate decision-making and risk management to an executive level, fostering alignment between IT, compliance, and business objectives. To do this, we take a business-first approach, emphasizing governance as a tool for achieving broader corporate goals.

The book is laser-focused on how cloud governance intersects with three critical areas: artificial intelligence, risk management, and value creation. We argue that these are the most pivotal aspects of cloud adoption today and that ignoring them leaves enterprises exposed to both external threats and internal disorganization.

First, the integration of artificial intelligence within cloud ecosystems represents both an opportunity and a challenge. AI’s ability to drive insights and automation can unlock massive efficiencies, but when deployed irresponsibly, it can lead to catastrophic failures in decision-making or compliance breaches. Governance ensures that AI initiatives are deployed responsibly, with roles and structures in place to monitor, audit, and refine their implementations.

Second, risk management in the cloud is changing faster than most organizations can keep up. Risks that were irrelevant five years ago, such as cloud-native application security or hybrid cloud architecture vulnerabilities, are now front and center. Enterprises must rethink their approach to risk in the cloud, from redefining acceptable levels of exposure to embedding automated tools that dynamically address vulnerabilities before they evolve into crises. In the book, we cover strategies for incorporating dynamic risk management tools, compliance structures, and a culture of accountability throughout an enterprise’s operations.

Finally, we can’t discuss governance without talking about value creation. Governance is too often viewed as a cost center. In reality, when done well, it’s the opposite. By unlocking operational efficiency, uncovering hidden risks, and providing transparency into resource allocation, governance creates a road map for long-term innovation and profitability. Remember that outages, like those we’ve seen recently, are not merely technology failures; they represent failures of governance. By embedding governance into cloud strategies, organizations can prevent unexpected financial losses and lay the groundwork for scalable success.

Lessons from recent outages

Take, for example, the ripple effects of recent high-profile outages. These failures cost organizations millions of dollars in operational downtime, supply chain disruptions, and reputational harm. In most cases, governance lapses were to blame: mismanaged configurations, the absence of monitoring systems, and inefficiencies in response times. These are not inevitable consequences of cloud computing but direct results of failing to prioritize governance as a central pillar of cloud strategy.

The majority of enterprises are rolling the dice. The belief that cloud computing inherently eliminates risks is a dangerous misconception; without guardrails and policies to control how the cloud operates within an organization, risks can grow unchecked. Enterprises are unknowingly declining millions of dollars in potential savings simply because they don’t invest in governance.

The solution to these challenges isn’t abstract or futuristic. It’s attainable today. Cloud governance frameworks are templates for how enterprises can align people, processes, and technologies to minimize risk while maximizing benefits. But understanding their necessity isn’t enough; implementation requires deliberate action, executive sponsorship, and a willingness to overcome initial resistance. The book is a deep dive into all these topics.

Raising the priority of governance

At the heart of this discussion is a critical mindset shift. Organizations must view cloud governance as foundational, not optional. The stakes are too high to get this wrong. A robust governance strategy is essential to survival as enterprises face increasing operational complexities.

Executives, boards, and CIOs must ask themselves a simple question: Can our existing governance strategies weather the next wave of disruption? If the answer isn’t a confident yes, it’s time to act. Done right, governance enables enterprises to scale faster, pivot intelligently, and innovate freely.

This book isn’t intended to sit on a shelf and collect dust. The goal is to spark a broader conversation about prioritizing governance in the age of cloud computing. Modern organizations cannot afford to relegate this conversation to second-tier status. It’s time for enterprises to lead.