no data, no reliable tools they trust, no way to correlate the data, no way to model it in real time, no way to map it to the market, no way to compare it to current strategy....etc.
A4: CFO have no visibility and understanding of cloud related costs that IT initiatives are driving across business and IT units. They don’t understand how to predict on budgets and use cloud to drive Enterprise operational efficiencies. #cfo#cio
@IBMservices A4 2nd hurdle is operationalizing that data collection. "How do I get real-time visibility and control over spend when it comes to supporting an agile business??" #CFO
The capex to opex shift is a struggle for CFOs, particularly as traditional payback measures such as ROI and TCO are still utilized to measure return on non-traditional IT (cloud)
@CMooshian Most of the time the EBITDA numbers drive the opex capex conversation. Agreed, traditional metrics fall apart if you are looking for the wrong key indicators for success
- #cloud providers change their "terms & conditions" / "contracts" / and "pricing" regularly, and CFO's are still coming to grips with the impact of "aaS" pay as you go under variable contract terms ;-(
- CFO's are also still coming to terms with the fact that a single developer with a laptop and a credit card can spend a fortune if they are not careful and then need the CFO to clean up the messy #cloud services bill afterwards
- CFO's love "as a Service" because it's #opex and not #capex, but they LOATH the #risk associated with the #cloud cost if it's allowed to go unkempt and "run away" .. #cloud scale and speed can result in #cloud sticker shock if unchecked
@dez_blanchfield I think we have counted over 50 pricing changes to date in a few of the big providers. Compound that with changing portfolios, thousands of locations, tens of thousands of services for trillions of combinations
- #CFO's still have a way to go getting their heads around the challenges of "reserved instance" style pricing they know VS "on demand scale up & down" usage based billing and how to measure, report and validate / verify that #usage#cost
Dez, is it really more risk or less? Isn't it better to have dozens of security ninjas watch stuff vs 1-2 overworked, underpaid, general tech guys on staff in-house
Cloud is really about being able to turn if off and give it back when done. Per second billing is really for people deploying FaaS and only need it when the packet on the wire says so.
A common metering model across providers that captures different CapEx and OpEx models across external providers and Internal IT provides CFO, CEO and CIO a common platform to drive Business Value of IT
A7: CFO and CEO’s can target initiatives that fundamentally drive economic value and only invest on an on-demand basis using the power of the cloud model ... pt.1 #cio#cfo
A7: ... Cloud provides them the flexibility to adopt this model. Old IT did not. This will become the new engine and operational model for Business and IT Investment. pt 2 #cfo#cio
A7 We see cost shifting from traditional deployments, and an agile transition requires visibility into current AND future spend required to hit service levels. #CFO is the key!
Only if they have the data and can model it Without the real-time data, they are paralyzed and cannot pick a direction. That is why many have not adopted. They do not have enough data to quiet the noise.
- the great thing about #cloud is you can quite literally build 99% of #cloud tech on a laptop and grow from there, and as you need to you can scale into public cloud and do it fast and automate / orchestrate and DevOps will save your day
- some of the most successful #cloud innovations I've seen have been those who #disrupt the status quo by gutting operational cost out of legacy and #transform with DevOps in #public / #hybrid / #private#cloud by starting small then scaling
Visualizing what you current pay for vs what you currently use is the only way to start. Optimize for correct strategy, not to lower a bill. A cheaper bad decision is still a bad decision.
- thinking outside the box is critical at such times, and that's where #cloud quote literally is THE only way to go.. remove the box and you have #cloud, go XaaS across the board, only pay for what you use, and in turn you save time & money
- cannibalise legacy platforms and "borg" them into #cloud based solutions, every legacy system you can transform to #cloud invariably slashed operational costs which in turn gives you capital to re-disperse into further #cloud innovation ;-)
#CFO
