18 TREASURY & RISK JUNE 2017 SPECIAL REPORT treasuryandrisk.com
The adoption of cloud solutions by treasury departments is just part of a larger corporate migration to software-as-a-service (SaaS) technology. According to a 2016 survey by consulting firm Protiviti, 64% of organizations say that they are investing in the cloud.
“We are seeing more adoption of enterprise
solutions in the cloud,” said Ed Page, a managing director at business consultancy Protiviti
and leader of its national financial services
IT consulting practice. “We’re starting to see
much greater traction for ERP solutions, and
even a number of banking solutions are starting to gain traction in the cloud.” The fact that
financial institutions are willing to use cloud
solutions is particularly notable, he said, since
that industry has been one of last bastions of
Another survey, released last month by
451 Research, shows businesses expect their
spending on cloud services and hosting to
grow at a pace of 25.8%, more than double
the 12% growth they expect in their overall
information technology spending.
Liam Eagle, the research director for hosting
and cloud at 451 Research, said the shift from
handling different types of computing work
internally to having the work done externally
“is universal across every workload we track.
“We don’t see anything where the percent-
age handled internally is increasing over the
next two years,” Eagle said, adding that what
differs from one type of work to another is
“mostly the extent to which it’s shifting and
where it’s going.”
Customer relationship management (CRM)
systems are one of the few types of solutions
for which companies say the majority of their
current spending is for external services, at
55%, versus just 45% for internal staff and IT
resources, according to data from 451 Research.
Eagle said the CRM situation reflects the
fact that Salesforce.com, which offers a cloud
computing solution, “was early to market with
something that became seen as the de facto
way to execute CRM.
“And there was no huge legacy of on-prem-
ises CRM software,” he said. “Adopting Sales-
force, for many businesses, was the equivalent
of adopting CRM.”
ERP is one of the areas that remains mostly
on-premises. In the 451 Research data, 77% of
corporate ERP spending is currently desig-
nated for internal staff and IT resources, Eagle
said. But that is set to change. Survey data
from 451 Research shows that companies ex-
pect the portion of their ERP-system spending
that goes to internal staff and IT resources to
decrease to 42.9% over the next two years.
“A huge beneficiary is going to be SaaS and
hosted services, going from 9.7% of spending
to 26% of spending,” he said, but added that
there will also be increases in spending on
such external areas as infrastructure as a service, managed services, and security services.
Another category that is making a big shift
is database and data warehousing, Eagle said.
That area currently has the largest percentage
of on-premises spending, but there will be a
significant move to external providers, mostly
infrastructure as a service, he said. Another
Survey shows companies see their
cloud spending growing at double
the pace of the overall IT budget.
BY SUSAN KELLY