CFOs and CIOs can keep up with Business’ growth with Cloud Computing, discovers Deloitte report
The latest issue of CFO Insights from Deloitte investigates the role of cloud computing and focuses on the benefits and decision-making concerns offered by transitioning to this new technology environment.The assessment from Deloitte’s report addresses technology decision-makers, notably the CIOs and CFOs, who will soon need to face the reality that they need to transition their organization’s computing technology, it services, and data to “the cloud”. As cloud computing technology attains wider usage, more businesses will soon have to deal with the decision to shift from an on-premises technology setting to a cloud based one.The idea of cloud computing has prevailed for a long time. The basic premise behind it is that the business can outsource daily management of resources on a need-only basis, identical to buying utility services, such as water and power. However, one crucial factor is that the cloud computing resources are delivered over the Internet.
The Deloitte report underlines the need to have a productive working relationship between the CFO and CIO. The decision to embrace cloud computing is broader in scope than just the information technology department. The CFO can strategize cloud computing to execute financial objectives, and at the same time create a risk intelligent culture. The CIO can increase the visibility of the technology department as an esteemed part of the organization.
Cloud resources can broadly be classified into these four categories: Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a service (IaaS). Most individuals assume SaaS to be the only cloud computing resource, which involves the administering of software applications on demand. The software applications can range from email, backup and file storage solutions to customer relationship management (CRM) and financial applications.
However, there are other use cases for cloud computing. For example, PaaS is used a software development platform to develop new applications, whereas IaaS is used an on-demand hardware resource platform.
The Deloitte report advocates the introspection of relative costs and benefits of different cloud resources before taking the decision. Most organizations reserve the use of cloud computing to low-risk projects, or tasks ideally unsuitable for on-premises technology.
The most cited benefit by various CFOs and CIOs in their interviews is the flexibility that cloud computing offers; it can scale and react to technology changes very quickly. Significant reduction in infrastructure costs and IT support staff requirements are also a few of the other benefits cited.
However, the CFOs and CIOs also raised a few concerns in their interviews regarding the safety and reliability of using cloud computing. Is the data safe? Where is it stored? Is the data backed up? What should a business do when it needs to shift from one cloud technology provider to another? These are all the questions that are asked frequently an organization before embracing cloud computing.
Nevertheless, the CFOs and CIOs also reported that cloud vendors are more likely to provide higher levels of performance and better security. The vendors have to perform as their business depends on it; if they fail to provide a good service, then they will lose all their clients and reputability.
The report recommends the business to assess its technology needs in the context of its purpose and needs. As the business changes and evolves, the technology also needs to keep up with it. By evaluating the business’ administrative concerns and how the availability of cloud technology will influence the organization, the CFOs and CIOs can make sure that their business transits fluently into a cloud computing environment.
