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Answers:

• Cross-functional team composition

Correct: A Cloud Center of Excellence (CCoE) should ideally be composed of a cross-functional team

that includes members from finance, operations, and technology departments. This ensures a holistic

approach to cloud management.

• Vendor lock-in avoidance

Incorrect: While avoiding vendor lock-in may be a strategic goal, it is not a key element in establishing a

CCoE, which focuses more on internal governance and best practices.

• Frequency of software deployments

Incorrect: The frequency of software deployments is generally not a key consideration when establishing

a CCoE. The focus is more on governance, cost management, and best practices.

• Governance and best practices

Correct: Establishing governance mechanisms and best practices is a key element of a CCoE. This

helps in standardizing cloud usage across the organization and aids in effective cost management.

• Data center locations

Incorrect: While data center locations may be important for performance and compliance reasons, they

are not a key element to consider when establishing a CCoE, which focuses more on internal

governance and best practices.

General explanation:

When establishing a Cloud Center of Excellence (CCoE) as part of a FinOps initiative, the focus should

be on creating a cross-functional team and establishing governance mechanisms and best practices.

These elements are crucial for effective cloud management and cost optimization. Other factors like

vendor lock-in avoidance, frequency of software deployments, or data center locations, while potentially

important in other contexts, are not key elements in establishing a CCoE.