Gartner Research

Assess Your Cloud Adoption Strategy's Financial Statement Impact

Published: 25 March 2013

ID: G00248480

Analyst(s): Biswajeet Mahapatra

Summary

Public cloud adoption can negatively affect working capital by increasing current liabilities and reducing assets on the balance sheet. Some IT leaders fine-tune their cloud adoption strategies to find a balance that avoids negatively affecting the income statement or reducing corporate valuation.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Establish a Capex-to-Opex IT Spending Split
  • Keep an Eye on Short-Term Borrowing Rates
  • Benchmark an IT Working Capital/Total IT Assets Ratio
  • Keep an Eye on the Assets Side of the Balance Sheet and the Capital Intensity Ratio

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