The New Normal: CFOs as Tech Buyers

I recently came across a great Proformative article that highlights a trend we’ve experienced over the past 18 months at Transverse. The article touches on an all-too-familiar theme: the expanding role of the CFO. Specifically, it discusses the impact of CFOs being tasked with more direct oversight and accountability for tech purchases, including cloud computing initiatives. Regardless of who you ask, there’s no indication this trend is going to slow in the foreseeable future. In fact, it’s likely accelerating.

This fundamental change is forcing CFOs to account for business dynamics beyond those traditionally associated with finance and accounting. As evidence of this, the article references a recent Garner study that found nearly half of finance chiefs have seen their influence over IT investments increase between 2010 and 2012. Even presented without context that statistic is compelling; however, it is even more interesting when you consider the broader business context.

Until recently, most organizations tasked the IT department with scoping, testing and procuring software and services on behalf of business users —many of whom had little, if any, say in which tools were purchased. Today, the picture is very different. Cloud-based companies like Salesforce.com and Concur recognized that many traditional, on-premise solutions were both cost prohibitive for many organizations and frustrating to end users. Cloud computing has been called many things, but one often overlooked benefit of the move to cloud-based applications is that it essentially democratized tech purchasing. Finally — a way for people that actually use software to voice opinions about the way that it should function.

At Transverse, we frequently hear from our customers that the finding the right combination of value and functionality in a financial management platform used to be a near-impossible task and existing solutions were equal parts cumbersome and stagnant. Now, there are a plethora of options, and the pace of innovation across each platform is rapid. Today the cloud billing market is booming as a direct result of CFOs making technology purchase decisions based solely on what provides the best ROI and optimal mix of functionality and flexibility.

We’re excited about what’s in store for both our customers and Transverse. If you are a CFO or finance leader and have questions about how cloud billing fits into your organizational priorities, we want to hear from you..