Survey: Unchecked Cloud Consumption Strains IT-Finance Relationship

A new survey shows tension between IT and business when it comes to spending money on public cloud services.

Dimensional Research survey at the recent Amazon Web Services Global Summit found that 82 percent of IT professionals have difficulty justifying cloud-consumption bills to their finance department.

Cloud Cruiser's Deirdre MahonDeirdre Mahon, Cloud Cruiser’s chief marketing officer, told Channel Partners that because the tech side of business is forced to move along at the pace of finance, IT needs new resources to help make finance more comfortable with cloud expenditures.

“Because of the increased spend and the fact that developers love the cloud, something has to be done,” she said. “There has to be governance and policies made out in order to justify the spend.”

Mahon said the disconnect with finance has something to do with the way IT funds traditionally have been allocated. In the past, most IT budgets have been determined on a yearly basis and left little room for readjustment.

“It was all after the fact. They would acquire the hardware and services, provision all that, get it set up to a data center,” Mahon said. “Sometimes they figured out, ‘Oh, we bought too much; let’s adjust next year.’”{ad}

That strategy doesn’t mesh as well with the new technologies in place, she said.

“If you think about for cloud – it’s all pay-as-you-go, pay-by-the-drink –you have to have some way to meter and manage the economics of that,” she said.

The costs can slowly add up in a process becoming well known as “shadow IT.”

“The per-unit charge is so low that you can fly below the radar,” she said.

And so, for the sake of avoiding a knock on the door from a confused CFO who wants to know why the bill is so big, Mahon urges IT departments to implement more metrics and governance.

“Cloud consumption can’t go unchecked,” she said.

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