Technology decision makers, notably CFOs and CIOs, are facing the reality that their organisation's computing technology and data will at some point be "in the cloud".

Several studies make the compelling case for cloud computing, including potential lower computing costs and increased flexibility or scalability in requirements. With the cloud market likely to grow from $40.7B in 2011 to $241B in 2020 (Forrester), businesses are grappling with the decision of what to move to the cloud, when to move it, and how to transition from an on-premises computing environment to a cloud computing technology environment.

What are the benefits of cloud computing?

The most cited benefit is the agility that it provides; businesses are not saddled with technology infrastructure and businesses can react more quickly to change technology. Also, cloud computing is an operating expense; you pay for it as it is consumed. You do not need significant capital investment in computing resources in a cloud environment.

However, concerns do remain regarding cloud computing for CFOs and CIOs: the security of data, the location of data, back up mechanisms should it all go wrong and the guarantees can the cloud service provider provide.

How do you know that cloud is right for you?

For CIOs and CFOs, alignment through the cloud decision can help them decide where cloud is appropriate for their organisation. The basic message is to become comfortable with the cloud computing concept, after all we all have a hotmail, Gmail or other personal email account which is essentially stored in the cloud, so it's not a new thing.

The approach to determining whether cloud is appropriate involves assessing technology in the context of business purpose and risks. For companies that do wish to enter the cloud they should start small and sample with lesser risk technologies and related influences on the business. Following the pilot approach and with greater comfort in the cloud, continue to shift the computing environment to cloud by using an appropriate assessment-based road map.

Providing direction: Through the four faces of the CFO

The move towards cloud computing provides the CFO with an opportunity to make a real impact when driving decisions through the lens of the four faces – strategist, catalyst, steward and operator. It allows the CFO to embrace cloud computing, catalysing behaviours across the organisation and executing strategic and financial objectives, while diligently creating a risk intelligent culture.

  • Catalyst: Cloud computing may shift behaviours to allow users to choose technology features that provide the most impact to the business. Established CRM tools found in the cloud can foster more collaborative working and provide real time customer data, helping to deliver better customer relationships and increased revenue.
  • Strategist: Cloud computing may allow the shift to increased data analytics and business value generation, as the additional processing power and capacity available in the cloud can offer a lower cost way of delivering real-time decision making.
  • Operator: Cloud computing may help enable the finance organisation's ability to partner with the business and smoothen technology investment and cash flow, as financial insight for the business can be provided in a more scalable and financially beneficial way.
  • Steward: Cloud computing may give rise to additional data and transmission concerns. However, cloud encourages a more sensible approach to thinking about risk, examining the value of (and appropriate protection for) specific classes of data, rather than relying on a one-size-fits-all physical security approach.

For many organisations, technology does not keep up with the rate of change in business, which often results in and 'end justifies the means' culture. Rather, with the CFOs and CIOs evaluation of governance and how the availability of cloud technology can impact their organisation, they can help their organisations see through the clouds.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.