VideoOutsourcing
You are here: Home : Topics A-Z : Outsourcing
Cost Surprises Hidden by Clouds
When it comes to IT costs, nothing is ever simple, and the public cloud model is no exception. That's why CFOs need to get smart and get involved.
December 5, 2011
One of the value propositions ballyhooed by vendors for moving from on-premise computing to the public cloud is that the latter will reduce your IT costs. This may or may not be the case.
In Why the Cloud Can Be Like a Subprime Mortgage, I touched on the lure of the low-entry cost of public cloud computing. With many businesses focusing sharply on managing short-term costs, multiyear total cost of ownership considerations are not always top of mind. But in certain instances, even after a relatively short time period the cumulative cost of paying for a public cloud subscription may well exceed the cost of a conventional capitalize-and-depreciate perpetual-license purchase. For that reason, it behooves CFOs to perform a high-level comparative cost analysis between on-premise computing and the public cloud. This begins by opening up your old accounting textbook and looking up the rent vs. buy calculation. Read more...
Follow this topic
- Subscribe to our Outsourcing RSS feed
More Outsourcing Articles
-
Shared Services: The New Old Thing
Globalization and new technologies are driving a new enthusiasm for an old idea and an even older goal: eliminate duplication, enforce standardization, and cut costs. And CFOs lead the charge. October 13, 2011
-
Have Project, Will Travel
Hopping from client to client for a finance and accounting consulting firm is a good lifestyle choice for this veteran executive. August 1, 2011
-
Back on the Map
Ireland's domestic economy may be in shambles, but expansion-minded U.S. firms see plenty of opportunity. June 1, 2011
-
Offshore Outsourcing: For Smaller Companies, Too
Why sending work overseas is starting to make sense for smaller finance departments. May 25, 2011
-
Outsourcing Matures, Slowly
To make outsourcing deals succeed, CFOs still need to ask plenty of questions – and demand more flexibility in contracts. March 1, 2011
-
What KPMG's Latest Purchase Means
The Big Four firm is branching into the back end of outsourcing deals. February 25, 2011
-
Finance as a First-Mover, Literally
Novo Nordisk's offshoring effort pays dividends. November 1, 2010
-
Lite Makes Right
Companies are putting a new twist on a '90s trend as they look to squeeze more life from assets without jettisoning them altogether. November 1, 2010
-
Brazil Is Booming (and Maddening)
U.S. companies are keen to expand into Latin America's biggest market, but CFOs report that Brazil poses unique challenges. July 15, 2010
Related White Papers
advertisement
Business Solutions Center
advertisement
