Barriers to deciding on a consumption-based model for funding IT

Abstract

This study explores the factors that hinder IT departments in moving towards a consumption-based operating model (OpEx). The study explores the views of major stakeholders in a large global technology company on the possible introduction of the model. These views are triangulated with those of a select number of external experts. IT funding decisions have been complex problems for organisations. In the real world there are conflicts between the nominal IT funding practices and the actual IT operational practices currently being employed. The IT funding process skews the downstream management controls. Further research is required to understand the dynamism between the two. The study uses the lens of Behavioural Cloudonomics, which is at the intersection of psychology, economics, and the cloud and is well positioned to help us understand and address the factors that underpin the economic decision-making behaviours around the move to the Cloud.