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Volume 32, Issue 2

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Wednesday, 10 April 2019 14:50

The Questions CIOs Need To Be Asking About Their Firm’s Cloud Application Exposure

In my tech market forecasts, I am starting to see the intersection of two worrisome trends:

  • software subscription fees for multi-tenant SaaS or for single-instance hosted software are rising rapidly, with a growing percentage related to existing software as opposed to new, and with a high percentage having fixed annual fees or fees tied to metrics with little relationship with company revenues;
  • a small but rising risk of recessions, which could reduce company revenues by 5% or more.

The combination of these two factors could place CIOs in a bind where a significant portion of their tech budget is rising inexorably but the potential for their CEOs to ask them to cut tech budgets is also rising.  To see whether CIOs will face this situation, I would recommend that they ask and answer the following questions: