Is CFO the last man standing when it comes to Cloud?
In today’s business world, while the companies have gone up the cloud way, from ERP, CRM to even HCM Solutions, almost every aspect of Business Management has accepted the cloud except one, i.e. the Finance or the CFO who are still hesitant to shift their systems to the cloud.
What is holding the CFO back from investing in Cloud?
One of the primary reasons for this reluctance to embrace cloud ERP software is that, a CFO’s role is to mitigate risk, take care of the compliance, and thus have a very conservative approach towards accepting new technology. In addition, owing to the stiff competition and slow economic situation, CFOs have not been able to focus and allocate time to widen their knowledge on the technology related to cloud and its benefits to elevate the company’s business.
Additionally, the presence of a variety of cloud jargons like Software as a Service, Public clouds, ASP, and private clouds add to the confusion of the already reluctant CFO. Furthermore, many times vendors cheat companies by mentioning that they are providing cloud based solutions, whereas in reality they do not offer pure web based solution. This results in the CFO believing that cloud technology does not have any actual benefits as it claims to be and often lacks accessibility. They are also apprehensive of putting company’s confidential financial data outside the safe walls of the company, which might invite a huge amount of risk to the company.
Another reason is the misconception that cloud technology is only suitable for SMBs and not for large companies. While the cloud-based solutions were earlier built in such a way that it could cater the needs of small businesses, today the technology has developed in such a manner that it can support larger enterprises as effectively as SMBs.
To conclude, it is understandable the adoption of cloud ERP software by CFOs may be comparatively slower, but still it is slowly growing popular among the CFO community too. The treasury and finance functionality have been less keen when it comes to adoption, but CFOs are turning to them, as they want to be on the job even when they are not at their workstation and cloud based treasury management system helps in this mobility. As the adoption was slow all these years, the growth curve for the cloud by CFOs is expected to show a healthy trend, envisage Indian IT experts.
How to pitch your Cloud Software to CFO then?
It is highly likely that a CFO will not understand the tech talk related to Cloud, ERP or the Software. He will be more interested in the costs involved, the duration and the ROI involved. Prepare your pitch accordingly. All costs from one – time payment to renewal and monthly investments need to be clear from the start. Another important thing that CFOs do not like to listen is about ‘hidden costs’ which start tallying up after the client has signed up. To start on a good foot from start, you need to be clear about all the costs and stick to it.
The biggest advantage of a Cloud based ERP Solution is the transferring of capital costs to operational costs. Once the ERP moves to cloud, there will be lesser infrastructure and investment needed to maintain the hardware, power and power. To know about Cloud computing with Sage Software Solutions Pvt Ltd, contact us here, you can also SMS SAGE to 56767or drop us a mail at Sales@sagesoftware.co.in for free demo and consultation.
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.