Target Cloud Operating Model Overview

This white paper presents insights into the Target Cloud Operating Model, focusing on the dual needs of large organizations to innovate cloud-native digital services while enhancing critical heritage services. It outlines that successful implementation requires recognizing the distinct characteristics of heritage and digital services. Heritage services demand high investment with low change frequency, while digital services are designed for flexibility and rapid iteration. The report discusses the importance of organizing squads—cross-functional teams dedicated to specific services—into domains and product families to improve decision-making and speed of delivery. It emphasizes the need for a structured cloud operating model that fosters collaboration between product and technology leaders, while providing contextual alignment for squads. The paper does not include specific advice on portfolio management or technology choices. Instead, it aims to establish a clear framework for organizations to define their cloud operating capabilities and drive business agility.