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Kenneth Johnstone, the recently hired CFO of a growing financial services organisation, has been at work for weeks developing several data centre return on investment (ROI) scenarios.
‘Managing a $300 million budget is not as simple as I thought it would be’, he thinks. He didn’t anticipate that the Board of Directors would be so focused on this issue. ‘So much is hinging on this “build vs. outsource” data centre decision’, he mutters to himself. He’s tense about tomorrow’s presentation to the board, but he is confident that he has made a compelling case in favour of ‘build’.
He rehearses his presentation one final time. ‘Outsourcing offers a good option, but we don’t want to lose the talent we already have in-house. Plus, managing the outsourcer is more of a resource drain than most people realise’. He knows the board is most interested in the financial aspect of the decision. ‘From a purely financial standpoint, outsourcing offers a compelling alternative. But . . . let’s consider what the numbers really mean and what the hidden cost might be’.
Noticing the time, Ken calls it a night and drives home to catch a few hours of sleep.
It’s the morning of the big day. Ken paces back and forth in the hallway. He’s presented to the board before, yet his stomach is in a bit of a flutter. Everyone is waiting for Liz, the Chairman of the Board. Wasting her time is a bad idea. As Ken enters the room, he brushes off his anxiety, and converts his tension into positive energy. After all, he’s prepared and he knows what he’s talking about.