Hi all,
I thought I might share some thoughts about the financial aspect of the new wave of IT.
IT has always been a cost. It doesn't generate revenue, it's expensive and it's sort of invisible to the end users in the same way people on a train don't care about the rail lines.
It's taken a long time for IT to get accepted by bean counters as having a real function with definate cost benefit and now we are here we need to give them some exciting news.
We're not going to be a CAPEX for very long!
Yeah!
Why would any business who could outsource their hardware to the cloud not do so?
There could be a problem here though. When we rock up to finance and say that we need £1.2m for some tin, at least they can understand that something has been bought. It depreciates, it can be sold and it has value. The the issue now is that with the evolution of cloud offerings the only thing we could end up buying is TIME.
Time does not depreciate. Time is gone the moment it turns up. You can't (easily) sell on your time. Time has no value once its used. The day is not too far away when for some places IT will no longer be a CAPEX but a pure OPEX action.
This could mean our poor finance teams needs a heads up that IT are about to hugely shake up how things are done and may need to adjust their figures accordingly.
Food for thought certainly.
Thanks for reading,
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