Economics of the Cloud... 'cloud 9' for the Cfo?

The advantages of cloud-computing are commonly known: You donʼt need

upfront infrastructure investment; scaling up is relatively easy; and the service

provider is likely to be more efficient than your company.

The ability to pay as you go from a service provider rather than spending

upfront feels natural to a CFO -- thereʼs nothing new about buying services.

Whatʼs new is that cloud-computing offers a delivery and financing alternative

to one of the bastions of corporate capital expenditures: IT.

If a CFO can see better cash flow, lower risk and visibility, he or she will likely

become a cloud-computing convert in no time. It is, however, not always a

bed of cash flow for everyone. Service level agreements, increasing monthly

costs and data ownership are all potential trouble spots that will need to be

resolved.

While it may not make sense for a company to apply a cloud-computing

model to every enterprise service, smart CFOs should seriously examine the

trend for some of their services. The big question now isnʼt whether to adopt

cloud computing, but rather, where and when to adopt it.

The CFO Institute, in association with Microsoft, conducted a survey amongst

CFOs and senior finance professionals to gather their perceptions and

understanding of cloud-computing, and its potential economic and efficiency

benefits.

Our CFO Survey revealed the following:

* The majority of CFOs consider investment in technology as a means

to cut costs.

* Reduced up-front costs, increased flexibility, and competitive

advantage are the key benefits of implementing a cloud computing

solution.

* Over 30% of CFOs surveyed are already using or are considering to

use a cloud computing solution, indicating a keen interest in cloud

technology.

* A concern regarding security and compliance was the number one

impediment to large Indian corporations in adopting