Cost savings from the cloud make CFOs happy
November 11, 2014
With the meteoric rise of cloud computing, it has become obvious that IT is no longer just all about IT. As each non-IT functional area of business starts to trade in information and data as part of their standard operating procedure, it is clear that everyone in the enterprise has a stake in how these cloud-based IT solutions are adopted and managed.
CFOs cheer the cloud on
One area in which this is starting to become more pronounced is in finance. The cost savings the cloud brings to companies have CFOs in good spirits, as the savings can be reinvested in other business processes and objectives.
Moving financial management systems to the cloud, in particular, has been a boon for forward-looking CFOs. Keith Kravcik, the CFO of Ovation, a restaurant chain that includes Tahoe Joe, Old Country Buffet and other buffet-style restaurants, said that by abandoning legacy IT systems and adopting financial management solutions in the cloud, he and his company have been able to cut on-premise technology costs and put those savings toward improving their product.
"The ROI is calculated just on hard savings," Kravcik said in Forbes. "And to me, that was really head count and support of old legacy systems that no longer have to be turned on, so we can turn them off."
By adopting this new technology, companies like Ovation have been able to spend less on technological capabilities overall and focus on what is most important – the products and the customers.
Enterprise must invest in the cloud the right way
The benefits of the cloud have been well-established, but they don't just magically appear as soon as they're brought on board. Managers throughout the enterprise must make sure they find the perfect solution for their situation – integrating it seamlessly into the overall picture of the business.
Cloud Tweaks wrote that choosing the right provider is essential if the true potential of cloud computing is to be unlocked. Decision makers should ask themselves what their needs are and then invest accordingly. What are the requirements in terms of scalability, security, cost savings and other key deciding factors for the business? These questions should be answered before making an investment.
Having the relevant in-house cloud expertise is also necessary. Many cloud solutions are hosted and maintained by third party providers. It would behoove managers and executives to have people on board that can make sense of the ever-evolving world of cloud computing.