August 20, 2015
August 20, 2015
Contributor: Laurence Goasduff
While using cloud computing increases opex costs, CIOs should consider other financial factors before making a decision.
Many organizations are slow to adopt cloud computing due to confusion around the financial impact of its implementation and management.
"Despite the hype, the uptake of cloud computing as a solution has not been as rapid as first anticipated, in part because of the confusion created around the financial benefits," said Sanil Solanki, research director at Gartner. "While it's said to be cheaper than on-premises, cloud gets push-back from the finance function because it increases operating expenditure (opex) costs. IT departments let finance take the lead on this decision, and this stalemate is rarely broken."
Ahead of the Gartner IT, Financial, Procurement & Asset Management Summit 2015, September 21-22, in London, U.K., Mr Solanki, said that while using cloud computing does increase opex costs, CIOs should consider other financial factors before making a decision.
CIOs who have a rounded view of the financial impact of cloud are more likely to have progressive discussions with their finance business partners about when and how to deploy cloud services. Understanding the outcomes cloud computing can support is crucial for IT leaders when having these discussions. Adopting the cloud can save significant amounts of money, which ultimately is the lifeblood of any business.
Gartner has outlined the positive and negative financial considerations of cloud computing.
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