Technology solutions today are abundant, yet many organizations lack teams with the skills required to effectively tap into those solutions, thus failing to reap potential benefits. The rather expensive drive for research and development has eliminated weaker technology organizations, putting a small number of truly high-tech companies in the driver’s seat.
I recently wrote an article for Accounting Today outlining where traditional IT models missed the mark and how cloud adoption is inevitable.
Unfortunately, most organizations feel their IT assets are significantly underutilized. Project fatigue and budget overruns kept most from aggressively building on initial implementation as their initial optimism turned into disappointment, disappointment into pessimism and pessimism into apathy.
A reoccurring problem with traditional IT models is determining who endures the risk. With advances in technology, cloud computing has the ability to minimize risk and provide cost savings. The growth in cloud adoption goes beyond evolution and economics, and lies in the emotion of risk reduction.
At its core, the cloud promise is one of portability and control. In the not-too-distant past, a decision to change technology providers was analogous to an anesthetic-free root canal.
But in today’s commoditized cloud world, the psychological one-two punch of sunk cost bias and risk aversion no longer gets in the way of change. Power and control – both emotional drivers – have shifted back towards the buying community, and rightly so.
As technology for cloud-based solutions continues to evolve and be optimized, users will experience a reduction in implementation complexity and long-term risk. Migrating IT solutions into an on-premises cloud will provide organizations with greater cost savings and benefits.
To read the full article, visit the Accounting Today website.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.