The adoption of cloud computing is increasing – more than 50 percent of U.S. companies have elected to take advantage of one or more cloud-based solutions or services. It is a compelling and appealing way to acquire IT capabilities while reducing costs. For core financial processes such as accounting and budgeting, the cloud offers new and innovative ways of working that are more economical and operationally practical than the traditional on-premise deployment of these software applications.
Financial executives have a vital role in ensuring business return on all major areas of investment and are becoming more actively involved in the selection and deployment of cloud solutions. In fact, IT investment is becoming an area that CFOs often have responsibility for or influence over. According to Gartner, 42 percent of organizations have IT reporting to the CFO, and 26 percent of IT investments require direct authorization by the CFO.
The potential for increased speed and flexibility coupled with reduced operating costs makes cloud technologies a top priority for any business conversation. However, critical functions like accounting and enterprise resource planning (ERP) often remain on-premise. Whether CFOs have concerns stemming from a perceived lack of control, data security, the ability to integrate with other applications or migration costs, many organizations are still questioning whether the cloud is right for their most critical processes and financial data.