In an article for CIO.com, Brian Carson discussed his interview with Apptio CEO and co-founder Sunny Gupta who revealed his top five 2010 financial management predictions. As Carson indicates, based upon the idea that elements of the IT cost structure will be more discernible, Gupta’s predictions include:
1. Adoption of greater financial management discipline by CIOs.
Cost cutting has made it even more of a realization that proper IT financial management cannot be achieved with implementation of certain disciplines. As a result, automated financial systems will be helping to manage IT for the enterprise.
2. IT will be required to demonstrate value of services by CEOs.
IT organizations will be required to communicate the value of their services. As the article indicates, IT organizations track the cost of delivering goods and services in addition to having systems in place that analyze, allocate, and reduce costs. IT departments who are unable to explain total cost of their services will lose credibility with their organization leaders.
3. The CIO role will shift to a service provider
Traditionally, CIOs’ focuses have been centered on technology. However, as the IT landscape evolves, CIO roles become modified to better suit the changes that IT organizations must adapt to. CIOs’ role will also include being a service provider and being able to pool IT resources for efficiency. Improvements must be made in processes that handle the supply and demand of IT services.
4. IT leaders must understand costs and benefits of cloud computing and software as a service (SaaS).
Some organizations choose to outsource IT services. Therefore it is important for leaders in the IT organization to understand their internal cost per service and to determine if cloud computing or Saas is beneficial for the enterprise. Cloud computing and SaaS will increasingly be adopted though there is still uncertainty about the full cost of cloud computing services.
5. Virtualization drives the shared services model.
With the pairing of virtualization and the shared services environment, IT management systems that track cost and usage of IT services will become more sophisticated as there is increased adoption of these tools.
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