Why money matters?

I've been interested in the financial aspects of the technology industry for most of the last 20 years, probably from the first time that I created really comprehensive business case for a client - to help convince them of the value of geographical information systems (GIS) and how they could save them money, through improving the management of their physical assets. Since then I've build hundreds, if not thousands, or business cases to help the cost justification of technology investments, for either buyers or sellers of technology and services.

Rather than focusing on the increasingly discredited measures like ROI and/or TCO I've more recently been asked to estimate the payback period for technology investments, and to look at the ways that deals are financed - so that the investments can be suitably "engineered" to help those investment pay for themselves more quickly, and to better match the timing of the cash that funds the investment with the real financial benefits that are accruing. Financial structuring of deals has always been important but it is now more important than ever.

In recent months, and in part driven by the recession, I've been asked about financing again - perhaps more than ever. As a result I've been researching the subject more deeply again, seeing what financing concerns are being faced by buyers and the financial products that vendors are offering to help with these concerns. I presented a summary of some of the recent research in a webcast for HP Financial Services (HPFS) recently, to their customers and staff around the world - co-presenting with my Datamonitor colleague Martha Bennett. HPFS recorded the webinar and are making it available "on demand". You can find the webinar, entitled Moving to a variable-cost model for IT, online at the HPFS website. Reaction so far has been really positive - feel free to head over and listen to it (site needs some basic registration details).