Special: The implementation of cloud computing

FDs and others are often concerned about the extent to which sensitive information should be held online, beyond the confines of the corporate firewall.

From his experiences at GNM, Beale thinks it crucial that project-sponsoring executives work to overcome uncertainty among users.

“Early engagement with legal and risk roles within the organisation about potential issues will help during and after the implementation,” he says.

Some of the scare stories associated with cloud computing could leave FDs questioning the sense of moving applications and data online. But caution is advised and Peter Cochrane, former chief technology officer (CTO) at BT, suggests some of the cloud’s built-in security features can be overlooked.

The flexible nature of cloud computing means the protection of applications and data can be invoked centrally at minimal expense. “It is a world that could ultimately provide the solution to the security problems of people carrying content on vulnerable laptops," says Cochrane.

Preventing such wayward activities has traditionally been the role of the IT department. But the continued development of cloud computing – and the ability of users to buy technology on-demand and monitor activity from afar – could mean the technology team becomes an anachronism.

Cloud computing, then, is likely to have a big impact on the work of the FD, as well as the cost-effective provision of IT across the business. Capgemini CTO Karl Deacon says the cloud is likely to affect the entire IT investment strategy. From tactical planning to cashflow management, FDs will face many challenges as the business is expecting to roll out new services quickly.

“The speed of decisions, relative to IT-related business change, will become very rapid,” says Deacon.

FDs are already considering the impact of the cloud. Tom Berquist, CFO at software giant Corel, is a big proponent of online provision. He says cloud c omputing offers high availability and reduces the pressure on the internal IT helpdesk, removing the requirement to have deep infrastructure expertise in-house.

More specifically for FDs, Berquist says, most finance technology requirements can also be handled through the cloud. Key areas – such as accounts payable, purchasing, expense reports and performance management – are already available online through multiple vendors. The only question for FDs is, how much is too much? For Berquist, the potential is limitless.

“As more of these finance applications also support mobile infrastructure, we can provide our sales people, managers and executives with real-time applications that provide significant insight into what is happening with customers, vendors, inventory, cash management and many other key business metrics,” he says.

Berquist expects more business services to be provided online and on-demand. If it can make the FD’s life easier while making money, it really is the disruptive killer app it sells itself as.

As the global economy recovers from recession, FDs are likely to find that cloud computing quickly becomes a best friend after something of a cultural change and a leap of faith. Despite the vociferous hype around it, that would be a silver lining.