Cloud computing is still a gamechanger for CFOs despite the myths and objections, read to know how the technology in spite of its great potentiality, is yet to be explored completely.
The shift to cloud computing ecosystem was predicted long back with the advent of high-speed internet and uninterrupted connectivity.
Over a period of time, as the presence of digitisation grew almost every corporate deployed cloud as part of their enterprise strategy. As such, a cloud has a high probability of benefits for CFOs with promising results than the on-premises alternative in organisations.
Technology, indeed, has helped CFOs with the ability to do more with less.
The Need for Cloud
Companies invested in cloud computing for a variety of reasons irrespective of the cost including a quicker time-to-value, lesser implementation time, and the advantage of minimal time spent on day-to-day operational and administrative chores, such as maintenance and upgrades.
The cloud offers a feasible solution to assist the IT spend wisely, allowing resources to dedicate on innovation and lesser on maintaining current systems. By maximising the cloud, enterprises can quickly deploy applications and spread standard business processes across the global enterprise.
Myths and Objections
Every technology has its limitations, and these shortcomings often are targeted to dismiss it as incompetent to the overall performance of an existing process.
On similar lines, the cloud has been at the receiving end by most CFOs as they are concerned with its need for compliance, accountability, and audit of records, the security of the cloud environment, data privacy, and data rights. These objections and challenges need not hinder a cloud migration, as these are based on outdated information and myth.
Tackling Common Myths
Insecure Cloud – Do research that fits your cloud solution because the cloud does not have security obligations, mainly in terms of business process governance. Most cloud data centres, MSPs, as-a-service providers, and other cloud services adhere to a higher standard can dedicate more resources to security than many on-premises operations.
Limited control over the cloud – It’s true that day-to-day maintenance is mostly moved to the cloud provider, this does not rule out the authority over its control. The CFO can focus on regaining control over critical matters while leaving unimportant but more time-consuming procedural details to the provider.
Performance problems – Latency issues and delays have become obsolete as the current cloud implementations are delivered from high-performance data centres with the highest-speed connections that are both fast and reliable. For high performance and reliability, a regular check with the cloud provider’s upstream carriers and SLAs is worthwhile.
Isolated from other data and applications – Cloud computing is innate to integrate with the rest of the enterprise and hence puts to rest the myth that it’s secluded from data and apps.
Driving Strategy with Cloud
With improved insight into the cloud, the CFO can penetrate new markets and uncover new opportunities backed by real-time data. For instance, cloud business applications let you add fields easily and capture the right data. The same can be included in any reports and run real time at the business level. Anyone in the organisation can access and use the data into a format that helps their business.
The real-time data from cloud technologies help CFOs to drive strategy throughout the organisation from both a top-down and bottom-up approach. A CFO can review historical data to understand trends, set targets, and forecasts. By monitoring data as it updates instantly during execution, the CFO can help adjust and redirect strategy with teams more quickly than in the past.
Auditing is one of the crucial aspects in a CFO’s role, and simplifying this is easy with cloud-based applications which are equipped with audit functionality to know what changes were completed by what person at what time. They allow for a segregation of duties that the right person performed the correct process. These technologies improve financial and tax reporting.
CFOs can also make sure their organisations are meeting the latest accounting standards to stay on track and not fall behind.
Today, CFOs have a clear stake in enterprise IT strategy and shape how an enterprise best realises its cost benefits. The evolving financial functions are food for thought for CFOs who can inadvertently establish a transparent organisational culture for digital transformation. The time is ideal than ever, for CFOs to realise that new-age technologies have the potential to deliver both short- and long-term benefits, including costs savings, improved agility, and faster innovation.