Over 54% of organizations do not know how many cloud computing projects may be underway in their own business, and 15-30% of companies’ IT spending is done without any IT control or knowledge. This lack of visibility into shadow IT could potentially inhibit your control over I.T’s budget and risk.
As a CFO, security concerns, the ability to integrate with traditional IT infrastructures or the lack of in-house cloud expertise may be contributing to delaying your cloud decision. The problem is that inaction today could derail your business growth tomorrow. IDC projects private cloud IT infrastructure hardware will experience a 13.4% CAGR from 2012 to 2017 and is expected to total $12.0 billion by 2017.
A “wait and hold” approach to cloud could provide you with a false sense of security that you can gain more control over your cloud implementation strategy by delaying until a critical need arises or the economy improves. However, this approach could actually leave your company with less control over the long term, forcing you to nip at the heels of your competitors that have already initiated a cloud strategy. Your IT department may get impatient and pursue public cloud options as a way to respond to business needs. Forrester forecasts that the global market for cloud computing will grow from $40.7 billion in 2011 to more than $241 billion in 20202. It is incumbent to you as a CFO to collaborate with the CIO to determine the best cloud strategy.
I want to leave you with a video, in which HP CFO Cathie Lesjak and PWC US Cloud Leader Mike Pearl discuss cloud, investment strategies and how delaying may have unexpected implications. Providing two unique perspectives on cloud, you will hear how to drive alignment across your organization to gain better control of costs, limit risks, reduce Shadow IT and ensure the right processes are in place to drive growth.