Under The Microscope
Cloud Computing Compels Attention
SAN JOSE, Calif.-The economics of cloud computing and SaaS (software as a service) are encouraging small and mid-sized companies to adopt the new technologies quickly, while bigger companies are either waiting on the sidelines or adopting the technologies on a divisional or business unit level to "try them out."
A new study by Proformative, a free .
resource and community for corporate finance, accounting, treasury, and related professionals, had three critical findings:
* Cloud Computing and SaaS will be critical to companies over the next few years, and CFOs feel as if they are already "behind the curve" and need to be educated
* Cloud Computing and SaaS reduce IT CapEx and OPEX and create a direct link between IT consumption and cost
* Cloud Computing and SaaS have delivered to many firms higher ROI, increased collaboration, and greater confidence in systems and their business value.
For info: www.proformative.com
Risk Based Pricing Paper Available
GARDEN GROVE, Calif.-Informative Research, a mortgage credit solutions provider, recently published its "Risk Based Pricing Notice for Mortgage Lenders White Paper."
Effective Jan. 1, 2011, companies that use a credit report or score in connection with a credit decision must send a specific "risk-based pricing notice" to consumers regarding their loan pricing. The Fed provided a specific exception to mortgage lenders to meet the requirement by adding enriched information on the Credit Score Disclosure form. In the White Paper, Informative Research explains the exception and gives specific information about what lenders are required to provide borrowers, quoting the Federal Reserve Board's specific language regarding mortgage lenders.
"While the Risk-Based Pricing Rule applies to all lenders, there is a variation on the requirement for mortgage lenders," said Brad Kelso, EVP, sales and marketing at Informative Research.
Q3 Survey Finds Uncertainty
MOUNTAIN VIEW, Calif.-Despite indications of economic stabilization, a combination of heightened unemployment concerns, continued expectations for a "double-dip" recession, and high levels of economic uncertainty have dampened optimism by finance professionals.
That's according to a quarterly poll of financial executives conducted in September 2010 by business performance software provider Adaptive Planning and the Business Performance Innovation Network.
The Q3 2010 Business Volatility and Variables Survey found 41% predict a "W-shaped" recovery, similar to last quarter's 46%. Nearly all finance executives (99%) expect meaningful jobs growth will not occur until next year or beyond. Respondents have pushed back their expectations for the timing of this jobs recovery, with 38% expecting jobs growth will not occur until 2012-two quarters later than the previous survey. Moreover, finance executives consider unemployment to be the single greatest concern for the overall US economy, with 68% citing it among the top challenges.
The majority view current economic conditions as the same (46%) or better (30%) than they were six months ago; however, only 36% of financial executives believe economic conditions will improve over the next six months. This marks the third consecutive quarter in which optimism has declined. Similar to the last survey, which was the highest "negative" reading since March 2009, 20% expect that the economy will be in worse condition in six months.
"Despite consecutive quarters of economic stabilization, unemployment concerns continue to significantly impact the expectations of a significant percentage of finance executives," said William Soward, CEO of Adaptive Planning. "We have seen a steady erosion of optimism and continuously high levels of economic uncertainty in recent polls." The concern he said is that even if this doesn't happen this way, finance execs sway a whole firm's outlook.