CIO’s and CFO’s play important roles in any organization but historically the two have faced challenges working together in terms of budget and technology investments.
In fact, it remains so rare that only 28% of 303 IT and finance professionals surveyed said they have a formal reporting collaboration between IT and finance.
That is worrying low, especially when you consider that cloud strategies implemented by IT departments biggest challenge in 2019 is cloud cost management.
Budgets tend to be the largest point of friction and usually CIO’s invest in assets that may not always have a direct return of investment.
The high costs related to investments in cloud services are now causing clashes between CFO’s and CIO’s.
A lot of the cloud cost management budget issue can be found in the disconnect between IT and finance departments which will ultimately hurt the business.
IT departments are often unaware of the burden ballooning cloud budgets have on finance, mostly because their focus, understandably, is elsewhere.
51% of finance respondents surveyed said they occasionally overspend on cloud resources compared to 37% of IT respondents.
68% of finance respondents said they are alerted to overspend only after it’s too late while 80% of IT respondents said they are alerted beforehand.
The poor communication between the two departments will have severe negative impacts on overall business if cloud services are not managed better in the future.
80% of the IT and finance professionals surveyed said that poor cloud cost management causes issues like slowing cloud adoption, crippling innovation, lowering the quality of services, under-utilization of resources and increased costs.
Over half of the respondents surveyed said that cloud cost management is a daily worry but it is clear that the majority are currently failing to do anything about it.
The survey suggests the reasons causing this could be fears of hindering innovation, believing the amount is too small and not worth acting on or because they are not doing any form of showback/chargeback.
But budget concerns related to cloud resources ARE a huge area of concern that needs to be acted upon now.
In fact, 58% of respondents said they overspend their budget on cloud, and of those, 68% said they overspend by up to 25% more than budgeted.
That is why it is so important to tackle cloud cost management challenges now and why Kostner provides a service combining the intelligence of AI with business acumen to give you independent cloud insight.
Managing, tracking and acting on the dynamic changes in cloud costs and services is understandably very complex and in our opinion beyond what we can expect from any human.
By using AI, Kostner is able to analyze the millions of possibilities available to find the best possible way to run cloud at optimal costs and tailored to specific needs.
Cloud cost optimization should be a priority for CIO’s and CFO’s and this service will make that manageable ensuring you stay ahead instead of inflating your monthly spend.
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