Managing your global business with cloud technology: cloud computing changes the economics from a capital investment to a pay-as-you-go model and it's becoming more ingrained in businesses today. It's the benefits to efficiency, speed and cost savings that resonate with chief financial officers.

• Author: Ford, Steve
• Position: TECHNOLOGY

Cloud computing is becoming more ingrained in business today. The buzz from colleagues and the media about this emerging technology indicates that this new way of computing can have a significant impact on the way business is run. But the question many are asking is: "How can I harness the cloud to impact my business?"

A good place to begin is with a clear definition. Wikipedia defines cloud computing as "a style of computing in which dynamically scalable and often-virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in or control over the technology infrastructure 'in the cloud' that supports them."

So what does this mean for business? For one thing, it changes the economics of computing from a capital investment to a pay-as-you-go model. Major software investments are replaced with significantly smaller fees based on usage. Another significant shift is the removal of major infrastructure-related tasks such as system backup, disaster recovery and system management. The cloud model eliminates these headaches and costs for the user by shifting the responsibility to the cloud provider.

Where in an organization might cloud computing have an impact? It's critical that chief financial officers understand how the technology can be used and the potential benefits around cost savings and efficiency, along with potential risks involved.

One example of a business area where cloud is a great fit is in global transactions and the supply chain. This model can connect entire networks of suppliers, banks, partners and service providers with minimal costs and resources. Many of the major risks and headaches experienced in the last 20 years from massive enterprise resource planning systems and other forms of on-premise software can be significantly reduced or removed by cloud technology.

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As organizations become increasingly global in their business, supply chains and transaction management becomes more complex. For most businesses, growth is tied to ability to operate both domestically and overseas with the addition of each location increasing complexity

Driving Growth More Efficiently

Global transactions and sourcing are becoming increasingly important and in this area cloud solutions have a significant impact on efficiency and cost savings. The major benefit of cloud technology versus typical on-premise software is the elimination of overseas staff and support.

Transacting with new global partners is significantly easier and less expensive using cloud, thereby allowing businesses more flexibility to transact with...