Cloud Computing Greatly Reduces Upfront Cost
While the traditional IT procurement process has long been based on making large initial purchases of hardware, software, and services , most Cloud Computing offerings are based on a subscription model. With a subscription based model, no capital expenses are required to kick off projects. Companies can start small, with virtually no up-front costs, and then scale up as business needs dictate.
This makes Cloud Computing an attractive option for CFOs who are focused on financial predictability and project accountability. The ability to pay as you go minimizes both implementation and financial risks because customers can both scale based on results and ensure that vendors are held accountable throughout the entire implementation and support lifecycle. Furthermore, the lack of a large up front investment also prevents the client from being locked into any single technology or vendor.
With both reduced risks and costs, Cloud Computing helps companies implement more advanced technologies despite reduced capital budgets.
Cash Is King
With today's economy being unpredictable at best, the ability of a company to preserve capital for a rainy day may make the difference between surviving the next economic crisis and closing the doors forever. With the lack of an upfront investment, and the ability to scale as needs dictate, Cloud Computing gives CFOs the advanced technology they desire without parting with the capital that they need to comfortably conduct day to day operations.
An Alternative to Financing - Especially When No Financing Is Available
Often times, CFOs would look to leasing or traditional bank financing to avoid a large capital outlay when beginning a new project and/or refreshing their infrastructure. Unfortunately, the current credit crisis has made such financing significantly more difficult, if not entirely impossible, to attain. Cloud Computing provides all of the same benefits, without the long term commitment, and without interest.
