Justin Augat

A CFO’s Perspective on the Cloud:  Collaborating with CIOs to Increase Value for the Business

Blog Post created by Justin Augat Employee on Mar 9, 2015

by Justin Augat, Global Services Marketing, Hitachi Data Systems




These days, CIOs can’t afford to independently spearhead their own IT strategies. The emerging business-defined IT approach requires CIOs and CFOs to work closely together.  The goal: Achieve economic clarity around cloud solution investments to better meet an organization’s financial objectives.


Our customers tell us that it’s rare for IT professionals to have the time to research and fully grasp the economic principles necessary to differentiate among various cloud options: Private, hybrid and public cloud. However, by applying economic and financial principles to IT investments, organizations have an opportunity to save significant amounts of money when compared to traditional methods of funding IT.


We understand the complexity of cloud investment decision-making. This is why HDS is sponsoring the IT Economics Transparency webinar on Wednesday, March 25thRegister now by clicking here.


During this webinar attendees will gain insight into:

  • Understand what a CIO needs to know the true costs of IT.
  • Enhance communication with lines of business about internal and external IT delivery and service options.
  • Mitigate the risk of being seduced by low prices (SaaS, PaaS)
  • Sharpen your ability to better communicate and measure total costs of IT.
  • Tips to better identify, measure and set plans to reduce IT costs.


Recently we had the opportunity to sit down with Susan Lynch, Executive Vice President and Chief Financial Officer of Hitachi Data Systems to gain her perspective on these critical issues. Here is what she had to say:



Susan Lynch, Executive Vice President and Chief Financial Officer of Hitachi Data Systems


From a financial perspective, where do you see the value in cloud solutions (private, hybrid, public) that offer increased value for the business?

A cloud solution effectively expands our portfolio of award-winning storage management services and know-how on our data storage solutions to our customers. While our offerings have been historically focused on data storage hardware, the related software, and maintenance support and professional services, the price of our cloud services now includes data center storage management; day-to-day maintenance and risk-management. Additionally, we can provide our customers with new services and applications as they are released in real-time versus waiting for a sales call.


What are the uncertainties of cloud solutions with which you are most uncomfortable?

I would not say that I am uncomfortable with the uncertainties as most variables are known, can be quantified, and ultimately are a part of the service price to the customer. Yes, there are new challenges in providing cloud solutions that traditionally were managed by our end-customers. These challenges include optimizing costs that are new to a traditional hardware company such as real estate, power, cooling, network bandwidth and operational staff; providing ongoing customer service in the SMB space that our channel may have historically provided; as well as taking on more responsibility for network security.


How does the selection of private and hybrid cloud solutions benefit an organization’s financial goals?

Hitachi Data Systems has cloud solutions to effectively meet our customers’ needs while helping them reach their financial goals.

We are able to achieve this by providing our customers with the flexibility to purchase the cloud solutions they need in only the increment in which they need it. For example, if there is a mission-critical storage application needed, our customers can choose a private cloud solution with a custom architecture; or if there is flexibility in using standard protocols and needing infrequent access, our customers can choose our public cloud offering.


What trends do you see where finance is in partnership with the CIO’s investment decisions?

We are seeing more and more companies reduce their IT budgets, which is resulting in a move toward pay-per-use models. Now, finance organizations are partnering with their IT teams to evaluate the new financial models that can take their organizations to a subscription/utility type of model.



Learn more about this important topic by joining us at the IT Economics Transparency webinar on Wednesday, March 25thRegister now by clicking here.