RACI matrix for Cloud Based Delivery — a PoV

Note: As an illustration accounting Financial Services Industry needs

I have written multiple articles related to cloud based delivery. I felt the need of this article as well, as many of my customers have adopted various cloud models like Private, Public, Hybrid and SaaS based delivery including Managed Services model. But without clear demarcation of roles and responsibility it becomes difficult to handle any situation be it cloud migration, hosting, maintenance, optimization, portability and interoperability. So, Lets have a quick thought on it.

The financial services industry is rapidly adopting hybrid cloud solutions to leverage the scalability, agility, and cost-efficiency of public cloud while maintaining control and security of sensitive data in the on-premises environment. However, managing a hybrid cloud environment can be complex, requiring clear delineation of roles and responsibilities among different stakeholders. A RACI matrix can be a valuable tool for achieving this clarity in a managed services model.

The acronym RACI stands for: R — Responsible: The person who performs the task. A- Accountable: The person who is ultimately responsible for the success of the task. C — Consulted: The person whose input is required before the task is performed. I — Informed: The person who needs to be kept informed about the progress of the task.

In the Financial Services World

Effectively managing a hybrid cloud environment in the financial services industry requires aligning roles and responsibilities with a clear organizational structure and an re-imagined enterprise architecture. RACI matrix can be a powerful tool for achieving operational efficiency and risk mitigation.

1. Organizational Structure: — Re-build/re-define the org. Structure

The ideal organizational structure for managing a hybrid cloud in financial services should:

• Separate business units from technology: Establish distinct teams for business functions (e.g., trading, risk management) and technology (e.g., cloud architects, security engineers).
• Centralize cloud expertise: Form a dedicated cloud center of excellence (CCoE) responsible for cloud strategy, architecture, and governance.

Align with existing teams: Integrate cloud management responsibilities with relevant teams like IT (includes Development and maintenance teams) , security, and compliance.

2. Enterprise Architecture:

The enterprise architecture should:

• Define hybrid cloud topology: Clearly map on-premises infrastructure and cloud services, including workloads distribution and data flow.
• Implement reference architecture: Develop a standardized architecture for cloud deployments, ensuring consistency and scalability.
• Prioritize security and compliance: Design the architecture with robust security controls and compliance measures aligned with financial regulations.

3. RACI Matrix Integration:

The RACI matrix can be applied to map roles and responsibilities across the organizational structure and enterprise architecture:

• By Layer: Define RACI for each layer of the hybrid cloud architecture (e.g., infrastructure, platform, application).
• By Process: Assign RACI for key processes like cloud provisioning, application deployment, security monitoring, and data migration.
• By Team: Clearly define RACI within each relevant team (e.g., CCoE, IT, security, business units (esp. Funding & product Units).

RACI Matrix from an Operations Perspective

Incorporating the operations perspective into a hybrid cloud RACI matrix for financial services managed services is crucial for ensuring seamless functionality and optimized performance.

As there is no option to insert a tabular structure, i have placed with a Separator

Task # Responsible# Accountable# Consulted # Informed

Cloud infrastructure provisioning#Managed service provider (MSP)#Financial institution IT team#Cloud provider#Security team

Cloud application deployment #MSP#Financial institution application team#MSP cloud architects#Network team

Cloud security monitoring #MSP#Financial institution security team#Cloud provider security team#Compliance team

Data migration to the cloud#MSP#Financial institution data management team#Business units#Regulatory authorities

Patch management for cloud workloads#MSP#Financial institution IT team#Cloud provider#Application owners

Application performance monitoring#MSP#Financial institution application team#MSP cloud architects#Network team#Transaction processing times, user experience monitoring, resource optimization

Network performance monitoring#MSP#Financial institution network team#Cloud provider#Security team#Latency, packet loss, network congestion, security threats

Cost optimization#MSP#Financial institution IT team#Cloud provider Finance team#Resource usage analysis, cost allocation, pricing model negotiations

Compliance and regulatory reporting#MSP#Financial institution compliance team #Regulatory authorities#Legal team#Data privacy, auditing, reporting requirements, incident management

Additional considerations for operations:

• Service Level Agreements (SLAs): Clearly define performance and availability expectations for each service within the RACI matrix to ensure accountability and measurable outcomes.
• Incident Management: Establish a clear escalation process for operational issues, including roles and responsibilities for troubleshooting, resolution, and communication.
• Change Management: Implement a robust change management process to minimize disruption during infrastructure or application updates in the hybrid environment.
• Continuous Improvement: Regularly review and optimize operations processes based on performance data and feedback from stakeholders.

It’s a Running Document

• The RACI matrix should be reviewed and updated on a regular basis to reflect changes in the organization, technology, and regulations.
• The RACI matrix should be communicated to all stakeholders involved in the hybrid cloud environment.
• Training should be provided to all stakeholders on how to use the RACI matrix effectively.
• It should be updated periodically with Organizational and Partners Policy changes

By incorporating these considerations and expanding the RACI matrix with an operations focus, financial institutions can achieve a more holistic and efficient approach to managing their hybrid cloud environment within a managed services model.

Originally published at linkedin.com.