Cloud Infrastructure Technical Due Diligence
Expert assessment of cloud architecture, scalability, cost optimization, and migration readiness for M&A
Cloud infrastructure is the backbone of modern businesses, yet its complexity often hides significant risks and opportunities. Our cloud due diligence experts evaluate architecture design, operational maturity, cost efficiency, security posture, and migration readiness—providing critical insights for your investment decisions.
Cloud Due Diligence Assessment Areas
Comprehensive evaluation of cloud infrastructure, operations, costs, and organizational readiness.
Cloud Architecture Assessment
Evaluation of cloud infrastructure design and architecture:
- Multi-cloud vs. single cloud strategy
- Architecture patterns and best practices
- Microservices vs. monolithic design
- High availability and fault tolerance
- Disaster recovery and business continuity
- Network architecture and connectivity
- Infrastructure as Code (IaC) maturity
Scalability & Performance
Assessment of system scalability and performance characteristics:
- Auto-scaling configurations and policies
- Performance benchmarks and SLAs
- Load testing and capacity planning
- Database scalability and performance
- CDN and edge computing usage
- Caching strategies and implementation
- Bottleneck identification
Cost Optimization
Detailed analysis of cloud spending and optimization opportunities:
- Current cloud spend analysis
- Reserved instances and savings plans
- Right-sizing opportunities
- Idle and unused resource identification
- Cost allocation and tagging practices
- FinOps maturity assessment
- Projected cost trajectory
DevOps & Operations
Evaluation of cloud operations and DevOps practices:
- CI/CD pipeline maturity
- Deployment frequency and practices
- Monitoring and observability stack
- Incident management and on-call
- Change management processes
- SRE practices and reliability
- Documentation and runbooks
Cloud Security
Assessment of cloud-specific security controls and practices:
- IAM policies and least privilege
- Network security and segmentation
- Encryption (at rest and in transit)
- Security monitoring and alerting
- Compliance posture (SOC 2, HIPAA)
- Secrets management
- Container and Kubernetes security
Migration & Integration
Evaluation of migration readiness and integration complexity:
- Hybrid cloud dependencies
- On-premises integration points
- Data migration complexity
- Application portability
- Vendor lock-in assessment
- Multi-region deployment
- Integration with acquirer systems
Cloud Platforms & Technologies We Evaluate
Deep expertise across all major cloud providers and cloud-native technologies.
Amazon Web Services (AWS)
- ✓ EC2, ECS, EKS, Lambda
- ✓ RDS, DynamoDB, Aurora
- ✓ S3, EBS, EFS
- ✓ VPC, CloudFront, Route 53
- ✓ CloudWatch, CloudTrail
Microsoft Azure
- ✓ Virtual Machines, AKS, Functions
- ✓ Azure SQL, Cosmos DB
- ✓ Blob Storage, Managed Disks
- ✓ Virtual Network, Front Door
- ✓ Azure Monitor, Log Analytics
Google Cloud Platform
- ✓ Compute Engine, GKE, Cloud Run
- ✓ Cloud SQL, BigQuery, Spanner
- ✓ Cloud Storage, Persistent Disks
- ✓ VPC, Cloud CDN, Cloud DNS
- ✓ Cloud Monitoring, Cloud Logging
Container & Orchestration
- ✓ Kubernetes (EKS, AKS, GKE)
- ✓ Docker & Container Runtimes
- ✓ Helm & Package Management
- ✓ Service Mesh (Istio, Linkerd)
- ✓ Container Registries
Infrastructure as Code
- ✓ Terraform
- ✓ AWS CloudFormation
- ✓ Azure Resource Manager
- ✓ Pulumi
- ✓ Ansible, Chef, Puppet
Observability & Monitoring
- ✓ Datadog, New Relic
- ✓ Prometheus & Grafana
- ✓ PagerDuty, OpsGenie
- ✓ ELK Stack
- ✓ Jaeger, Zipkin (Tracing)
CI/CD & DevOps
- ✓ GitHub Actions, GitLab CI
- ✓ Jenkins, CircleCI, Travis CI
- ✓ ArgoCD, Flux (GitOps)
- ✓ Spinnaker, Harness
- ✓ Azure DevOps, AWS CodePipeline
Databases & Caching
- ✓ PostgreSQL, MySQL, SQL Server
- ✓ MongoDB, Cassandra, Redis
- ✓ Elasticsearch, OpenSearch
- ✓ Memcached, Elasticache
- ✓ Kafka, RabbitMQ, SQS
Why Cloud Due Diligence Matters in M&A
Cloud infrastructure complexity can hide significant risks and value creation opportunities.
💰 Cost Surprises
Cloud costs can spiral unexpectedly. Without proper analysis, you may inherit inefficient infrastructure with 30-50% optimization potential or unpredictable cost growth trajectories.
📈 Scalability Limits
Architecture decisions made early may not scale. Monolithic designs, database bottlenecks, and single points of failure can limit growth potential and require significant re-architecture.
🔗 Vendor Lock-in
Deep dependencies on proprietary cloud services can complicate integration with acquirer infrastructure or future cloud strategy changes. Understanding portability is critical.
⚙️ Operational Maturity
Immature DevOps practices lead to slow deployments, frequent incidents, and team burnout. Understanding operational maturity predicts post-acquisition productivity.
🔐 Security Gaps
Cloud misconfigurations are a leading cause of breaches. Overly permissive IAM, exposed storage, and inadequate network controls create significant security risk.
🔄 Integration Complexity
Connecting target cloud infrastructure with acquirer systems requires careful planning. Architecture mismatches, network connectivity, and identity integration add complexity.
Common Cloud Due Diligence Findings
Based on 60+ cloud assessments, here are recurring findings we identify.
💸 Cost Inefficiency
Over-provisioned instances, unused reserved capacity, lack of auto-scaling, no cost monitoring. Typical finding: 25-40% potential cost reduction.
Impact: Unnecessary cloud spend, margin pressure
📜 No Infrastructure as Code
Manual infrastructure provisioning, click-ops culture, no version control for infrastructure. Environment drift between dev, staging, and production.
Impact: Slow deployments, configuration errors
🔐 Security Misconfigurations
Public S3 buckets, overly permissive security groups, root account usage, missing encryption. Cloud security posture management gaps.
Impact: Data exposure, compliance violations
📊 Limited Observability
Basic monitoring only, no distributed tracing, missing dashboards, reactive incident response. Mean time to detection (MTTD) measured in hours.
Impact: Extended outages, poor user experience
🏗️ Architectural Technical Debt
Monolithic applications, tightly coupled services, single database bottlenecks. Architecture that worked at startup scale won't support growth.
Impact: Scaling limitations, slow feature delivery
🔄 No DR/BC Planning
Single region deployment, no tested disaster recovery, unclear RTO/RPO targets. Backup strategies not validated through recovery testing.
Impact: Business continuity risk
Our Cloud Assessment Process
Comprehensive cloud infrastructure evaluation methodology.
Architecture Discovery
Document cloud architecture, services used, network topology, and deployment patterns. Create comprehensive infrastructure inventory.
Cost & Resource Analysis
Analyze cloud spending patterns, identify optimization opportunities, evaluate reserved capacity, and project future costs.
Scalability & Performance Review
Assess auto-scaling configurations, performance benchmarks, capacity planning, and architectural scalability limits.
Security & Compliance Assessment
Evaluate cloud security controls, IAM policies, encryption, network security, and compliance posture.
Operations & DevOps Evaluation
Assess CI/CD pipelines, monitoring and observability, incident management, and operational maturity.
Integration Roadmap
Deliver detailed assessment with risk quantification, cost optimization plan, and post-acquisition integration roadmap.
Need a Cloud Infrastructure Technical Due Diligence Assessment?
Our cloud experts will comprehensively evaluate your target's cloud architecture, cost efficiency, scalability, security posture, and operational maturity. Identify the infrastructure risks and opportunities that impact your M&A deal.