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How to explain the real cost of cloud computing to your C-suite
As it turns out, 56 percent of CIOs say it is very difficult to explain to C-suite peers capital expenditure or operational expenditure ins-and-outs when vying for IT budgets and approvals, according to Black Book’s 2018 Health IT Trends report. That could be bad news for cloud computing, a technology that holds much promise in healthcare. CIOs encounter difficulties working with the rest of the C-suite on CapEx versus OpEx because by making comparisons between the cost of running an on-premise data center versus the cost of moving to the cloud, communication and overall understanding can get misconstrued, said Michael Archuleta, CIO and HIPAA and information security officer at Mt San Rafael Hospital in Colorado. “Unless the cloud numbers are significantly higher, there are many beneficial aspects to cloud economics that would cause the remaining C-suite to view it as a very strategic approach,” he said. “In my opinion, a much better strategy would be to identify decision criteria for determining whether a given app should be hosted on-premise or could be moved to the cloud.”
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