Because the financial implications to the company can be significant, it is imperative that the executive team be aligned on all substantial IT expenditure decisions that impact EBITDA. Second, cloud computing solutions could/should reduce the resources required to run IT operations.

Since IT operations personnel are typically reported as operating expenses, this reduction in staff could offset the impact of the cloud computing expenditure on EBITDA. Lastly, there may be hope on the horizon as financial accounting standards continue to evolve to include more guidance on reporting cloud computing expenditures, potentially making these decisions more straight forward.



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