Thursday, March 20, 2014

IT Teams Play An Important Role In Procurement Of Cloud Software

I had a chance to talk to a group of new sales hires at SAP yesterday. One of them was Jeffrey Hutchinson, the former CIO of Maple Leaf Foods. Jeffrey was kind enough to share the perspective of the CIO and his or her role while an organization moves to the cloud.

He pointed out that while it was easier for the business to buy single cloud applications without the help of IT teams, it is not so simple to buy a more crucial application such as employee administration without the help of the IT team. I was discussing this with David Ludlow, the head of HCM solutions at SAP today and he pointed out that IT teams are more experienced in evaluating and buying business software compared to the business. While business teams evaluate functionality , IT teams are experienced in evaluation many aspects of business software such as total cost, security, integration, data migration and analytics.

I found out there are SAP customers who went ahead and bought critical cloud solutions without involving the IT team and could not implement it due to the lack of support from the IT team. Without the support of the IT team, they could not secure an implementation budget from the CFO.

As business critical applications move to the cloud, procurement of cloud software is certainly starting to look a bit more like procurement of on-premise software.

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