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Service providers deliver what CFOs really want: predictability and flexibility

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Derek_Howard.jpgGuest post by Derek B. Howard, WW Service Provider Marketing Manager

 

What do service provider customers’ CFOs really want? Some might say flexibility; others might prefer predictability. For many of the service providers I meet with, they want both. Either way, more and more service providers are realizing that cloud services provide greater financial flexibility and the ability to accurately predict spending.

 

Achieving greater financial flexibility

One of the most important benefits to the cloud is the ability to shift fixed capital expenses to operating expenses. This move results in greater financial flexibility, transparency, and spending control. In addition to improving the balance sheet, IT costs become far more predictable, while management can better optimize costs and understand the total cost of investments.

 

Enabling faster IT

A majority of CFOs say that using the cloud reduces the time required to bring new IT products and services to market. Cloud-enabled synergies between IT and finance allow the CIO and CFO to develop a shared vision and roadmap for moving the business forward.

 

Reducing costs and financial risk

Organizations can generally save between 15 to 50 percent by using the cloud instead of maintaining traditional IT assets. The cloud can also enable service providers and their customers to increase accountability and lower financial risk by aligning IT purchases to recurring revenues.

 

Using cloud analytics to drive strategy and improve services

Cloud services can also provide data for advanced software billing solutions, providing service providers and their customers with insights into cost, consumption, and usage management. Advantages range from offering improved customer service to answering “what if” questions such as “What if I change a price?”

 

Differentiating cloud services for survival

Cloud-oriented service providers face substantially increasing price pressures. These sharp price pressures are forcing the commoditization of some cloud services. To survive and overcome this challenge, service providers must differentiate themselves by developing broader and more responsive product portfolios, offering enhanced security solutions and compliance support, and showing the market and prospective customers that they are strong, viable enterprises.

 

Service providers can ensure their customer’s CFO no longer has to choose between flexibility and predictability. Download the HP business white paper to learn more.

 

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