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Managing Cloud Operations in China – Rahi
Cloud Services

Managing Cloud Operations in China

By Pablo Puig

March 10, 2023 - 6 min

Managing Cloud Operations in China

Managing Cloud Operations in China: Centralization or Localization?

A Cloud Center of Excellence (CCOE) is a team that helps organizations to effectively and efficiently use Cloud Computing Services. A CCOE is responsible for developing the cloud strategy, implementing best practices, and managing cloud usage across an organization.

China’s cloud market has grown significantly in recent years and is expected to continue to grow in the coming years. As more businesses in China adopt cloud technologies, the question of how to manage cloud operations in China becomes increasingly important. Should businesses centralize their cloud operations or localize them?

Importance of a Cloud Center of Excellence

A Cloud Center of Excellence team is essential for organizations to effectively and efficiently manage their cloud computing resources. By creating a CCOE team, businesses can ensure the following:

  • Efficient Cloud Management: Cloud computing services are complex, and without proper management, they can quickly become expensive and inefficient. A CCOE team can ensure that cloud resources are properly allocated, maintained, and optimized, reducing costs and increasing productivity.
  • Security: Cloud security is critical for businesses, and a CCOE team can ensure that the organization is using secure cloud services and implementing security best practices. The team can also develop policies and procedures for handling sensitive data and ensure compliance with regulatory requirements.
  • Innovation: Cloud computing offers many opportunities for innovation, such as leveraging AI and machine learning services. A CCOE team can identify and implement new cloud services to improve business processes and drive innovation.
  • Collaboration: A CCOE team can facilitate collaboration between different teams and departments within an organization, ensuring that everyone is on the same page and working towards common goals.
  • Scalability: Cloud computing offers the ability to scale resources up or down as needed, which is particularly useful for businesses with fluctuating demand. A CCOE team can help organizations take advantage of this flexibility and ensure that resources are allocated appropriately.
  • Creating a Cloud Center of Excellence

    Consider the following factors when creating and building a CCOE team:

  • Define the Objectives: The first step in creating a CCOE team is to define the objectives. Determine the business goals and requirements for the team and what success will look like.
  • Identify the Members: Identify team members who have experience with cloud computing, IT infrastructure, security, and compliance. Consider team members from different departments to ensure that the team has a broad understanding of the organization’s needs.
  • Develop a Plan: Develop a plan for the CCOE team, including its goals, objectives, and tasks. Assign responsibilities and establish timelines.
  • Define the Processes: Define processes and procedures for cloud management, including cloud resource allocation, monitoring, and maintenance. Establish guidelines for data security and compliance.
  • Identify Cloud Services: Identify the cloud services that will be used by the organization and determine the best practices for using them. Research and evaluate new cloud services that could be useful for the organization.
  • Implement Best Practices: Implement best practices for cloud management, security, and compliance. Develop training programs for employees to ensure that everyone understands the importance of cloud management and security.
  • Monitor and Optimize: Continuously monitor cloud usage and optimize resources to reduce costs and improve efficiency. Regularly review the CCOE team’s goals and objectives to ensure that they are aligned with the organization’s needs.
  • Centralization vs. Localization

    Centralization refers to the practice of managing all cloud operations from a central location, such as a global Cloud Center of Excellence (CCOE). This approach offers several benefits, including better control over cloud resources, improved visibility into cloud operations, and easier management of cloud services. However, centralization can also create challenges, particularly in China where the regulatory environment is complex and constantly evolving.

    Localization, on the other hand, refers to the practice of managing cloud operations locally, either through a dedicated CCOE in China or through local partners. This approach offers several benefits, including better compliance with local regulations, improved understanding of the local market, and stronger relationships with local partners. However, localization can also create challenges, such as duplication of effort, inconsistent processes, and difficulty in managing cloud resources across regions.

    Pros and Cons of Centralization and Localization

    Centralization and localization both have their advantages and disadvantages, and the choice between them will depend on the specific needs and circumstances of the business. Here are some of the pros and cons of each approach:

    Option 1: Create a CCOE specifically for China

    Pros
  • Cultural Awareness: A CCOE specifically for China can ensure that the team is culturally aware and can tailor its strategies and operations to the local market.
  • Legal and Compliance: Regulations in China can be complex and require specialized knowledge. A CCOE focused on China can ensure compliance with local regulations.
  • Local Resources: A China-focused CCOE can provide access to local resources, such as data centers, cloud providers, and vendors.
  • Cons
  • Duplication of Effort: Creating a CCOE specifically for China may lead to duplication of effort and inefficiencies, as there may be some overlap with the global CCOE.
  • Limited Expertise: A China-focused CCOE may not have access to the same level of expertise or resources as a global CCOE.
  • Higher Costs: Creating a separate CCOE for China can be more expensive than managing all regions through a global CCOE.
  • Option 2: Manage all regions, including China, through a global CCOE

    Pros
  • Streamlined Operations: Managing all regions through a global CCOE can ensure streamlined operations, reducing duplication of effort and improving efficiency.
  • Access to Global Expertise: A global CCOE can provide access to a wider pool of expertise and resources than a China-focused CCOE.
  • Lower Costs: Managing all regions through a global CCOE can be less expensive than creating a separate CCOE for China.
  • Cons
  • Cultural Differences: A global CCOE may not be culturally aware of the local market in China, leading to potential challenges in strategy and operations.
  • Compliance Challenges: Regulations in China can be complex and require specialized knowledge. A global CCOE may not have the expertise to ensure compliance with local regulations.
  • Limited Access to Local Resources: A global CCOE may not have access to the same level of local resources, such as data centers, cloud providers, and vendors, as a China-focused CCOE.
  • Example of How Some Businesses are managing Cloud Operations in China

    Here are some examples of businesses that have either created a CCOE specifically for China or manage China through a global CCOE:

  • General Electric (GE): GE manages all of its cloud operations, including those in China, through a global CCOE. The CCOE is responsible for ensuring that GE’s cloud operations are secure, efficient, and aligned with the company’s business objectives. It also provides expertise and support for GE’s cloud initiatives in China and other regions.
  • IBM: IBM has a CCOE in China that focuses on helping Chinese companies adopt cloud technologies and develop cloud strategies that align with their business objectives. The CCOE provides expertise in areas such as security, compliance, and application development, and works closely with IBM’s global CCOE to ensure that its cloud operations in China are integrated with its operations in other regions.
  • Dell Technologies: Dell Technologies manages all of its cloud operations, including those in China, through a global CCOE. The CCOE is responsible for ensuring that Dell’s cloud operations are secure, efficient, and aligned with the company’s business objectives. It also provides expertise and support for Dell’s cloud initiatives in China and other regions.
  • Cisco: Cisco manages its cloud operations in China through a joint venture with local partners, and has a team of cloud experts in China that work closely with its global CCOE. The team provides support for customers in China, helping them develop cloud strategies and comply with local regulations, and also provides technical expertise and best practices for using Cisco services in the Chinese market.
  • Oracle: Oracle has a CCOE in China that focuses on helping Chinese companies adopt cloud technologies and develop cloud strategies that align with their business objectives. The CCOE provides expertise in areas such as security, compliance, and application development, and works closely with Oracle’s global CCOE to ensure consistency across all regions.
  • We Can Help with Your Cloud Operations in China

    Managing cloud operations in China can be a complex and challenging task, particularly for businesses that are new to the market. Fortunately, there are solutions available that can help businesses navigate the challenges of cloud operations in China. One solution is partnering with us, a leading provider of IT infrastructure and cloud services.

    We have extensive experience in helping businesses manage their cloud operations, both globally and in China. With a range of services designed to help businesses optimize their cloud operations, including cloud migration, cloud optimization, and cloud security, and a deep understanding of the regulatory environment in China, we can help businesses navigate the complex regulatory landscape to ensure compliance with local regulations.

    In addition to our expertise in cloud operations, we also have a strong presence in China, with offices and partners throughout the country. This local presence allows us to provide businesses with a high level of support and personalized service, ensuring that their cloud operations are running smoothly and efficiently.

    Overall, for businesses looking to expand their cloud operations in China, working with a partner can be an excellent choice. With expertise in cloud operations and a strong local presence, we can help businesses navigate the challenges of cloud operations in China and achieve success in this rapidly growing market.

    Conclusion

    Whether to create a CCOE specifically for China or manage all regions through a global CCOE depends on the specific needs and objectives of your business. A China-focused CCOE can provide cultural awareness, specialized knowledge, and access to local resources, but may be more expensive and lead to duplication of effort. A global CCOE can streamline operations, provide access to global expertise, and lower costs, but may face challenges with cultural differences and compliance with local regulations. Ultimately, it is important to weigh the pros and cons of both options and determine which is the best fit for your business.

    Author

    • Pablo is an IT professional specializing in cloud computing technologies for the past 7 years. With a special focus into the China market and the Chinese technologies, he has been supporting international businesses on their cloud journey to China. Pablo has received multiple awards and recognitions from AWS, Alibaba Cloud, and Tencent Cloud for his knowledge and success delivering solutions to customers.

    , Global Director of Cloud Solutions

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