What Is Cloud Custodian? Automating Cloud Governance with Policy‑as‑Code

Written By:
Founder & CTO
June 23, 2025

As organizations accelerate their digital transformation, the need for streamlined, automated, and developer-centric cloud governance has never been more pressing. Managing security, compliance, resource optimization, and operational hygiene in cloud environments often turns into a tangled mess of manual checks, spreadsheets, cron jobs, and post-mortem reviews. But what if you could enforce governance policies programmatically, much like how you write application code?

This is where Cloud Custodian shines, a powerful, open-source tool purpose-built for automating cloud governance using policy-as-code. Originally developed by Capital One and now under the Cloud Native Computing Foundation (CNCF), Cloud Custodian is a developer-first rules engine that allows teams to define, validate, and deploy cloud compliance policies in simple YAML files. It supports a wide array of cloud environments including AWS, Azure, Google Cloud Platform (GCP), Kubernetes, and even Terraform, making it a top choice for managing multi-cloud architectures.

With Cloud Custodian, developers gain the ability to treat cloud infrastructure and policy management as code, bringing cloud governance into the CI/CD pipeline, enabling GitOps workflows, and offering real-time, automated remediation for a wide range of use cases, from security enforcement to cost control.

Why Developers Should Love Cloud Custodian
1. Simple, Declarative DSL That Makes Governance Human-Readable

One of Cloud Custodian’s strongest appeals is its use of a simple, declarative domain-specific language (DSL) written in YAML. This approach removes the need for writing complex scripts or managing long chains of cloud CLI commands. Instead, policies are described using human-readable terms that map directly to the structure and properties of your cloud resources.

For example, rather than manually checking for EC2 instances that are idle or untagged and then stopping them via the AWS CLI or SDK, developers can declare this behavior in a YAML policy that defines which resources to target, what conditions to check (filters), and what action to take. This not only reduces complexity but also ensures that policy logic becomes self-documenting and version-controlled, making it easy for teams to collaborate and iterate.

Developers appreciate how approachable Cloud Custodian is, no need to learn a new programming language or framework. It provides a low-friction, high-impact entry point into policy-as-code.

2. Multi‑Cloud & IaC Integration for Consistency Across Environments

Cloud Custodian’s strength lies not just in its simplicity, but in its breadth of support for multiple cloud platforms and infrastructure as code (IaC) tools. Today’s organizations increasingly adopt multi-cloud strategies, spreading workloads across AWS, Azure, GCP, and often using Kubernetes or Terraform to orchestrate infrastructure. Each of these platforms comes with its own APIs, tools, and compliance challenges.

Cloud Custodian acts as a unified policy engine across all of them. Developers can write one policy logic and apply it across environments with minor changes, if any. This creates a single source of truth for policy compliance, helping teams achieve governance consistency without platform lock-in.

In Kubernetes environments, Custodian can run as an admission controller, inspecting resource definitions in real time and blocking deployments that violate organizational policies. In Terraform workflows, it can validate planned resources before they’re applied, preventing drift and misconfiguration before they go live.

This makes Cloud Custodian an ideal choice for organizations practicing GitOps or IaC-first cloud operations. It ensures that compliance and security become part of the infrastructure provisioning process, rather than an afterthought.

3. Real‑Time Enforcement & Event‑Driven Automation for Cloud Hygiene

Traditional compliance models rely on batch processes, weekly audits, monthly security checks, and quarterly cost reviews. But in today’s cloud-native world, infrastructure changes every minute. Virtual machines spin up and down. Databases get cloned. Security groups are updated dynamically.

Cloud Custodian addresses this challenge by enabling real-time, event-driven policy enforcement. By hooking into cloud event streams like AWS CloudTrail, Azure EventGrid, or GCP Audit Logs, Custodian policies can react to changes as they happen. You can automatically stop an untagged EC2 instance as soon as it’s launched. Or send a Slack notification the moment an S3 bucket is created with public access permissions.

The beauty lies in the automation: Cloud Custodian deploys itself as a serverless function (using AWS Lambda, Azure Functions, etc.) that responds to relevant events, evaluates policies, and takes corrective actions on the fly. Developers no longer have to rely on cron jobs or batch jobs, they can trust that Custodian will enforce rules immediately and consistently.

This is crucial for achieving continuous compliance and secure-by-default environments, especially in regulated industries like finance, healthcare, and government.

4. Cost‑Optimization Policies That Save Real Money

Beyond security and compliance, Cloud Custodian is a potent tool for cloud cost management. With cloud bills climbing steadily as organizations scale, having fine-grained, automated control over unused or misconfigured resources can yield significant savings.

Custodian enables developers to enforce policies that:

  • Identify and delete unused EBS volumes

  • Stop idle EC2 instances

  • Delete old log groups

  • Enforce tagging for cost attribution

  • Reclaim unused snapshots and unattached IPs

Rather than relying on external cost tools, developers can embed these cost-saving policies directly into their DevOps workflows. This not only improves visibility but allows teams to take proactive action, preventing waste instead of reacting to it.

The result? Organizations can reduce cloud spend by 20–40% on average, simply by automating cleanup and enforcing resource hygiene at scale. All of this, without requiring finance teams or platform administrators to manually chase down individual teams for cost violations.

5. Developer‑Centric Governance That Integrates With Git and CI/CD

One of the foundational principles behind Cloud Custodian is that cloud governance should be developer-led. That means developers shouldn’t need to wait for operations teams to write scripts or rely on security teams for ad-hoc audits.

Custodian policies are code, written in YAML, stored in Git, and deployed through CI/CD pipelines just like application software. Developers can:

  • Validate policies before merging (custodian validate)

  • Run dry-runs in staging environments

  • Push approved policies to production environments

By integrating into Git workflows and CI tools like Jenkins, GitHub Actions, GitLab CI, or CircleCI, Custodian ensures that governance becomes part of the development lifecycle. This results in faster feedback loops, better collaboration between teams, and ultimately fewer compliance surprises in production.

It also means teams can practice “shift-left security”, where violations are caught early, closer to the source code, instead of during post-deployment audits.

How It Works: From Single Policy to Enterprise-Wide Cloud Enforcement
Filters + Actions = Policy Logic

Every Custodian policy consists of three building blocks:

  • Resources (e.g., EC2, S3, IAM users)

  • Filters (which describe the conditions for matching resources)

  • Actions (what to do when matches are found)

This model is powerful because it mirrors how developers think: find the thing, check if it’s in the wrong state, then take action. By abstracting cloud API logic into a declarative, testable format, Custodian frees developers from writing boilerplate code while still maintaining full control.

Execution Modes for Every Stage of Maturity

Custodian can be used in several modes:

  • Local mode: For manual runs and dry-runs in dev or staging

  • CI/CD mode: For integration into pipelines

  • Event mode: For live, real-time enforcement in production

Whether you’re just getting started or rolling out Custodian to a fleet of hundreds of accounts, it scales with you. For large organizations, tools like c7n-org help orchestrate multi-account deployments and manage policies across environments and regions.

Benefits: What You Really Gain

For modern cloud-native developers, Cloud Custodian provides more than governance, it becomes a core development tool. Key benefits include:

  • Automation without complexity: Write simple policies and let Custodian do the hard work of enforcing them across your cloud infrastructure.

  • Improved accountability: Every policy lives in Git, with full versioning, code reviews, and audit history.

  • Reduced toil: Replace custom shell scripts and one-off tools with consistent, portable policy definitions.

  • Scalable guardrails: Apply rules across hundreds of resources without needing bespoke automation logic.

  • Faster delivery: Governance as code means no bottlenecks from centralized review boards, dev teams stay agile without sacrificing control.

Cloud Custodian vs Traditional Governance Approaches

Let’s face it: traditional governance practices are ill-suited for the dynamic nature of today’s cloud platforms. Manually checking for violations, sending email reminders, or relying on documentation rarely scales.

Legacy methods suffer from:

  • Slow feedback loops

  • Human error

  • Siloed ownership

  • Lack of enforcement

Cloud Custodian addresses all of this by being:

  • Declarative: Define desired state, not how to achieve it

  • Automated: Execute actions in response to real events

  • Multi-cloud: Works across AWS, GCP, Azure, Kubernetes, and more

  • Git-native: Designed for CI/CD and infrastructure as code pipelines

This makes it a modern replacement for outdated governance tooling, especially for teams already practicing DevOps or GitOps.

Real‑World Use Case: Financial Services

In the financial sector, where security and compliance are non-negotiable, Cloud Custodian has proven transformative. One bank implemented Custodian across 30+ AWS accounts to:

  • Enforce encryption on S3 and RDS

  • Ensure every resource was tagged with billing metadata

  • Stop unused compute instances automatically

The result was a 60% reduction in security violations, a 25% drop in cloud costs, and drastically reduced audit prep times. By empowering developers to own their compliance posture, the bank improved agility without compromising oversight.

Best Practices

To get the most from Cloud Custodian:

  • Start simple: Begin with cost cleanup or tag enforcement policies.

  • Run in dry-run mode to see effects before enforcement.

  • Store all policies in Git with peer-reviewed pull requests.

  • Integrate with CI/CD for automated validation and deployment.

  • Use c7n-org to coordinate policy rollouts across accounts.

  • Monitor logs and metrics to assess policy coverage and outcomes.

These practices ensure your policy-as-code implementation remains robust, scalable, and aligned with modern DevOps standards.

Next‑Gen Governance: Kubernetes & Terraform Integration

Cloud Custodian isn’t limited to traditional cloud resources. It extends governance to containerized environments and infrastructure provisioning workflows. In Kubernetes, it runs as a policy controller, enforcing standards at deployment time. For Terraform, it evaluates plan files to detect non-compliant infrastructure before changes are applied.

This allows teams to:

  • Shift compliance left in the development cycle

  • Catch violations before they impact production

  • Maintain consistent governance across platforms

Downsides and Mitigations

Like any tool, Custodian isn’t perfect. It has no built-in GUI, and YAML syntax may be a learning curve. However, tools like Stacklet and open dashboards can fill the UI gap. YAML can be abstracted with templates or generators for larger orgs.

Most importantly, the benefits far outweigh the limitations for teams serious about automating cloud governance at scale.

Cloud Custodian is a game-changer for developers who want to take control of cloud governance without being buried in complexity. With support for multiple clouds, simple YAML policies, real-time automation, and full GitOps integration, it’s a powerful ally for enforcing compliance, saving costs, and scaling DevSecOps.

Whether you're building in AWS, provisioning with Terraform, or running Kubernetes at scale, Cloud Custodian lets you define and enforce the rules of your cloud, on your terms, at your speed, and with full transparency.