Cloud-based software is redefining the way companies of all types and sizes approach their workflow processes. Software-as-a-Service (SaaS) is booming as companies aim to reduce their total IT expenditure, but it’s also shifting the IT power balance towards the CFO. As the availability and impact of technology has mushroomed in recent years, financial executives are often seen as the final barrier to technological advancement. Security concerns and financial costs give many CFOs a good reason to be cautious. But when it comes to the cloud, CFOs are embracing the enormous benefits that SaaS can provide.
The economic benefit of implementing the SaaS model is compelling for any CFO. The benefits include:
- Flexible pricing. There are many payment models when it comes to SaaS, giving companies flexibility as they prepare for costs and plan budgets. There is also a lower TCO, which allows companies to reinvest in innovative ideas rather than technological infrastructure.
- Immediate deployment. Any major technological change in a company can take up to 24 months to fully implement. With Saas, however, integration can occur within hours without expensive software or bulky hardware.
- Speedy Innovation. SaaS solutions are generally specific to a particular workflow process. Because SaaS focuses on functionality in that area without unneeded add-ons or features, the responsiveness is greater. Furthermore, SaaS updates and upgrades ensure that the company using it stays current on customer and market demands.
SaaS Contributes to the CFOs Ever-Expanding Role
A newly released KPMG study reveals that almost half of all finance executives intend on investing in SaaS within the next few years. In fact, the SaaS market is projected to grow to $21.3 billion by 2015. As SaaS and cloud integration reshape IT departments, they’re also reshaping the role of the CFO.
SaaS provides real-time data and business information, which is incredibly beneficial for any finance department. This results in CFOs championing SaaS advancements because of the cost reduction and efficiencies it provides. SaaS growth results in increased influence for CFOs in every industry. But CFOs aren’t the only ones affected. As SaaS improves efficiency, CIOs can change their attention from IT infrastructure to innovation and business transformation.