IT Leaders Concerned About Technology Spend Being Owned by Business Units

Stockholm, Sweden. April 26, 2018: Snow Software (“Snow”), the global leader in Software Asset Management (SAM) and Cloud Management solutions, has announced the findings of a major piece of research, commissioned to gain insight into the changing balance of technology purchasing and the issues this raises.

The explosion in cloud applications and Infrastructure as a Service (IaaS) has enabled business units to purchase critical business software and increasingly bypass the IT team when defining, sourcing and managing new IT initiatives. The research found that changes in IT procurement and consumption are driving a divide between business and IT.

Concern over business unit control

24 percent of survey respondents say at least half of their organizations’ technology spend is controlled by business units, rather than the IT team. In addition, 19 percent say control is shifting away from IT.

The survey revealed the extent of IT leaders’ concern as business units increasingly take ownership of technology spend.

An opportunity for IT to become more strategic and innovative

Despite their concerns, 69 percent of survey respondents see the increasing business unit ownership of technology spend as an opportunity to better support and align with the business.

“There is no question that many CIOs are now grappling with the divide between business and IT as purchasing patterns continue to shift – a divide we call the Disruption Gap. However, CIOs needn’t fear this shift. This research illustrates that forward-thinking CIOs are adapting to become a trusted advisor to the business,” said Axel Kling, CEO at Snow Software.

“Increasingly, the CIO is required not just to define and lead individual projects, but to provide the CFO and the executive team with an understanding of technology budgeting, aggregation of spending plans across the organization (regardless of owner) and assurances that money is being spent wisely.” You can’t do that, says Kling without the correct solution. “These responsibilities are impossible to deliver without insight into technology consumption. This requires mature processes and actionable analytics.”

Click here to download the report: Why IT Needs Oversight If Digital Investment Is To Succeed