Despite the many benefits that come with cloud computing, you may be struggling to convince your CFO to take the plunge. In this blog we’ll take you through how to convince your CFO to invest in cloud computing.
Cloud computing is constantly evolving the way businesses operate, enabling them to deliver services in a modern, digital-forward manner. However, convincing your CFO to invest in cloud computing can be tricky – especially if they are uncomfortable with the shift in IT spend it requires.
In this blog, we will explore the key points you should emphasise when presenting a persuasive cloud argument to your CFO that highlights its financial advantages. Conveying these key points will drastically increase the likelihood of your CFO giving you the nod to invest in cloud computing.
Explaining Cloud Computing Cost Optimisation
Let’s face it – cost savings will almost always make your CFO’s ears prick up. Fortunately, one potential advantage of cloud computing is its potential for cost optimisation. When discussing this aspect with your CFO, emphasise the following points:
- Infrastructure costs. Cloud computing eliminates the need for on-premises hardware and infrastructure, saving substantial capital expenditure. With the cloud, you can leverage a pay-as-you-go model, scaling resources up or down as needed, and paying only for what is used.
- Operational costs. By migrating to the cloud, your organisation can reduce operational expenses associated with maintaining and managing on-premises infrastructure. Cloud service providers handle routine maintenance, updates, security, and backups, freeing up valuable IT resources.
- Efficiency and productivity. Cloud computing enables greater efficiency and productivity through streamlined processes, automation, and collaboration tools. Employees can access data and applications from anywhere, leading to improved productivity and reduced downtime.
A note of caution: it’s wrong to say that cloud computing is ‘cheaper’ than on-premises computing. As per the third bullet above, the important thing is to explain benefits in terms of optimisation – allocating spend in a more agile, forward-thinking way.
Emphasising Cloud Scalability and Flexibility
Cloud computing offers unparalleled scalability and flexibility when compared to on-premises computing, allowing organisations to adjust their resources rapidly to meet fluctuating demands. Here’s how you can explain these benefits to your CFO:
- Pay-as-you-go model. With cloud computing, you can easily scale resources up or down based on your needs. This eliminates the need to over-provision infrastructure, ensuring optimal resource utilisation and cost savings.
- Enhanced agility. Cloud services enable quicker deployment of applications, enabling your organisation to respond rapidly to market changes and seize new opportunities. The ability to scale resources on-demand ensures you can handle sudden surges in user traffic or seasonal demands without disruptions.
- Avoidance of capital lock-in. By moving to the cloud, your organisation can avoid long-term commitments and the risk of being locked into outdated technology. Cloud services provide the flexibility to choose the most suitable pricing models and transition easily between providers, ensuring competitive advantage and future-proofing investments.
Highlighting Improved Security and Compliance
Addressing security and compliance concerns is vital when persuading your CFO to invest in cloud computing. Highlight the following aspects:
- Robust security. Cloud platforms like Microsoft Azure, when deployed and managed by secure cloud partners like Six Degrees, have robust security protocols built in from the ground up that offer significantly greater levels of security than on-premises deployments can reach without significant investment.
- Enhanced disaster recovery and business continuity. Cloud platforms offer reliable backup and disaster recovery mechanisms, ensuring the safety and availability of your critical data. This reduces the risk of costly downtime and minimises potential financial, operational and reputational losses in the event of a downtime incident.
- Compliance support. Cloud platforms like Microsoft Azure are designed to enable organisations to meet industry-specific regulations a lot more easily than on-premises deployments.
Illustrating Competitive Advantage and Innovation
Cloud computing can be a powerful catalyst for innovation and gaining a competitive edge. When discussing this aspect with your CFO, highlight the following:
- Quicker time-to-market. With the cloud you can deploy and scale applications quickly, enabling quicker time-to-market for new products and services. This agility allows your organisation to stay ahead of competitors and capture market opportunities more swiftly.
- Focus on core competencies. By leveraging cloud services, your IT team can shift their focus from managing infrastructure to driving innovation and supporting core business objectives. This allocation of resources enhances productivity, fosters creativity, and enables the organisation to focus on its unique value proposition.
- Access to advanced technologies. Cloud computing provides access to cutting-edge technologies such as artificial intelligence, machine learning, and big data analytics. These technologies can drive business insights, improve decision-making, and enable predictive capabilities, giving your organisation a competitive advantage in the market.
How to Convince Your CFO to Invest in Cloud Computing
Investing in cloud computing is a financially sound decision that offers numerous benefits to organisations. By emphasising cost optimisation, scalability and flexibility, security and compliance, and competitive advantage and innovation, you can convince your CFO of the value and return on investment that cloud computing will bring to your organisation.
At Six Degrees we’ve enabled hundreds of organisations to reach their cloud potential. By constantly evolving our technical capabilities, we ensure we can deliver the best possible secure cloud services to our clients.
We’ve created a handy infographic that lists the relative benefits of on-premises and cloud hosting, which you can download here. And if you’re ready to speak to one of our experts, it’s really easy to setup a call. Just fill out this simple form and we’ll get back to you to discuss your organisation’s cloud priorities – and how we can help you achieve them.