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Talk like a CFO and win funding for your IT projects

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You have an idea for an IT project that will really help improve the business. The next step is to get funding. You’ll be more successful at winning IT budgets if you understand what finance wants to …

You have an idea for an IT project that will really help improve the business. The next step is to get funding. You’ll be more successful at winning IT budgets if you understand what finance wants to know about your IT project—and you can successfully sell the benefits. In this session, you’ll get a CFO’s perspective on how to present your next IT project—and get the funding for it.

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  • 1. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Talk like a CFO and win funding for your IT projects Alain Amroun HP Financial Services, EMEA
  • 2. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. “The option is not whether to make the investment; the option is only to choose the best investment. The most important thing is, how is this going to support our business? How is this creating value by supporting better decisions, quicker decisions, more-complex decisions?” CFO, German Energy Company
  • 3. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3 CFO priorities Whatever the strategy, CFOs need to work hand in hand with the CIO • Difficulty in growing revenues means CFO are focusing on bottom line. Hence operating efficiency. • New regulation requires faster delivery of critical information, especially in industries such as FSI. • Many companies preparing for renewed growth while improving customer service levels. • CFO’s need to decide which IT investments need to be made now and which can wait one more year!
  • 4. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.4 CIO challenge: Align with business, drive innovation How to keep technology current and affordable?Financial constraints Capital budgets are reduced, cut, frozen • Typical CFO strategy is to conserve capital • Greater level of spend justification required Rising OPEX Operating expenses are squeezed • “Do more with less” • Seek to reduce TCO Aging architectures Technology is outdated quickly • Strong increase in failure rate, downtime, and support costs • IT becomes the bottleneck in executing company goals There is a real risk of IT assets becoming obsolete before they are fully depreciated.
  • 5. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.5 Engaging the CIO & CFO When do you talk TCO or ROI? How do you align IT with business • TCO analysis works well when IT is not a business driver – Works well for “must do” project • Example: IT Refresh / Datacenter Consolidation • ROI analysis works well when IT is seen as a strategic business partner – Works well for projects considered to be new revenue or functionality or as growth areas – Requires a financial roadmap Elevate your conversation beyond IT
  • 6. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.6 Building the business case Project timeline Initial Year 1 Year 2 Year 3 Simulates the impact of proposed solutions and quantifies the value to the business IT and business costs baseline Revenue baseline Investment Cost savings Incremental revenue Benefit s Financing Capex
  • 7. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.7 X86 Server TCO study customized for your environment and costs Building the business case – HP refresh for less 3 year TCO costs Current New HP Gen8 Saving Saving % Power and Cooling €288,455 €72,220 €216,235 75% Labour Admin €115,200 €22,320 €92,880 81% Prov. Labour €0 €1,860 (€1,860) 0% SW Licensing €227,833 €58,857 €168,976 74% HW Support €179,498 €21,703 €157,794 88% Space €5,637 €1,456 €4,180 74% Total Operating €816,623 €178,416 €638,206 78% Total op/Month €22,684 €4,956 €17,728 Hardware / Month 0 €3,338 -€3,338 Total / Month €22,684 €8,294 €14,390 63% Current monthly operating costs Monthly operating costs Monthly lease payment 63% OPEX savings! 31 new HP ProLiant DL380 Gen8 servers 120 old HP ProLiant DL380 G4/G5/G6 servers NOTE: All costs, payments, and savings are estimates. This analysis generated by the ProLiant ROI Calculator
  • 8. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.8 Learn more about this topic Use HP’s Augmented Reality (AR) to access more content 1. Launch the HP AR app* 2. View this slide through the app 3. Unlock additional information! *Available on the App Store and Google Play
  • 9. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Thank you