How IT spending may shift if CMOs take more control

Tools

If it's true--as some analysts predict--that CMOs and business unit managers are gradually taking control of IT spending, what will it mean for the type of spending that results? The shift in control of the IT budget will likely mean a redirection from capital expenditures to operating expenditures when it comes to cloud computing, resulting in a lot less spending predictability, predicts Bernard Golden, vice president of Enterprise Solutions for enStratus Networks.

If CMOs are in charge of cloud spending, it will be less fixed than it is today because it will be largely focused on the public cloud, requiring no capital investment, Golden writes in a post at CIO magazine. The unpredictability of the spending will be exacerbated because marketing-oriented applications have a more variable user base and load. 

"Today, when cloud computing makes resources available in minutes, there's little to prevent you from starting right away," he writes. "Even if there's a budget forecast at the beginning of the year, you can expect significant variation as CMOs choose to pursue promising new business opportunities."

IT departments tend to focus on total cost of ownership, but marketing pros are more likely to focus on return on investment. "This means IT organizations that want to be in the infrastructure game will have to provide fine-grained chargeback and stand ready to bill users on a pay-per-use basis," he writes. "In addition, those users will expect to have the same flexibility with regard to use of the internal cloud as they have with external clouds."

For more:
- see Bernard Golden's post at CIO

Related Articles:
Going to battle with, not against, marketing
As the CMO's status rises, does the CIO's status fall?
International Speedway's CIO also heads marketing