While C-suite disagreements are to be expected, squabbles over the way a company spends on cloud services don't have to be. Clarifying a company's cloud spending is one way to align all executives.
Why is cloud spending a source of conflict among executives?
Cloud spending often leads to conflict among executives because each role has different priorities. For instance, a CFO focuses on minimizing costs and stabilizing cash flow, while a CTO prioritizes adopting the most effective technology. This divergence in objectives can create tension when determining the best approach to cloud strategy and optimization.
How can companies gain clarity on cloud spending?
To gain clarity on cloud spending, companies should track expenses using unit economics, which involves measuring how much revenue is linked to each dollar spent in the cloud. Establishing effective chargeback models and utilizing tools for detailed visibility can help executives understand the relationship between cloud resources and business outcomes, fostering collaboration among stakeholders.
What benefits come from aligning executive perspectives on cloud spending?
Aligning executive perspectives on cloud spending can lead to a more unified approach to cloud strategy. When executives collaborate and share insights, they can make data-driven decisions that maximize return on investment (ROI) in the cloud. This reduces the likelihood of conflicting visions and helps the organization move forward more effectively.
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