1. Implications of FASB Rule Changes
2017 IDC Special Study of IT and Finance Executives that Unveils Buying Impacts of FASB
Susan Middleton, TFS

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Executive Summary 3
Research Objectives 6
Key Analysis and Findings 7
Related Research
Contact Information
Appendix
Methodology / Demographics 16
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FASB Compliance Leads to Review of IT Buying Processes: 94% of Respondents Plan to Change Buying Behaviors
FASB Compliance is Spurring Review of IT Acquisition Strategies by Deal Size, equipment types and financing options
Most firms expect costs for compliance efforts with be over $50K
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Opportunity for new SaaS platforms to help with longer term compliance efforts; mix of new and existing partners
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Both IT and Finance executives are leading the FASB compliance efforts. Most firms will hire an outside accounting firm to help with compliance.
For organizations, the biggest compliance hurdles are accounting systems and changes to internal controls. Opportunities exist for firms to help compile lease documentation and support compliance efforts
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For US enterprises, the pending FASB rules are initiating a comprehensive review of future equipment acquisitions and will lead to an evaluation of other IT asset procurement options
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5. This IDC survey reviews data from IDC’s 2017 FASB Special Study
IDC’s Technology Financing Strategies and data center teams conducted a survey about the new FASB rules and the implications on customers future buying behaviors
Survey respondents were 200 IT and Finance decision makers in medium to large enterprises in the US during January 2017.
All participants were very knowledgeable or somewhat knowledgeable about the pending FASB rules and their firms plans for preparation.
The goal of the survey was to assess customers views of the new FASB rules, firm readiness, and impact on future buying behaviors.
Additional detail and data available via request
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7. Source: [FASB Survey IDC January 2017, N=200 =
Respondents Use Procurement Mix of Leasing and Purchase; Majority Work with Vendor Captive
Today, does your organization lease or purchase its IT assets? And your firms’ Finance Partner?
Source: [FASB Survey IDC January 2017, N=200 =
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8. Source:: [FASB Survey IDC January 2017, N=200
Majority of Deals Include Bundled Offerings of Equipment, Software, Services and Support
Q. Do the leasing deals include software, service and support or IT equipment?
Source:: [FASB Survey IDC January 2017, N=200
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9. IT and Accounting Departments are Leading FASB Compliance Efforts
Which teams within your company are preparing for the new FASB rules?
Source:: [FASB Survey IDC January 2017, N=200
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10. Source:: [FASB Survey IDC January 2017, N=200
Most Firms Want Help with FASB Preparation and Accounting and Consultants are Top Options
Which type of companies are you working with to help your firm transition to compliance with the new FASB rules?
Source:: [FASB Survey IDC January 2017, N=200

11. SaaS Platforms Play a Role in FASB Compliance
Are you planning to acquire a SaaS platform to help with the FASB transition? Is this an existing or new platform?
Source:: [FASB Survey IDC January 2017, N=200

12. Most firms expect to pay over $50,000 for FASB Compliance
What are the cost projections for your firm to prepare for the transition to compliance with new FASB rules?
Source:: [FASB Survey IDC January 2017, N=200

13. Source:: [FASB Survey IDC January 2017, N=200
Two Biggest Challenges Are Change to Accounting Systems and Internal Controls: Underscores Need for Outside Help
Which aspects of the FASB compliance will be most challenging?
Source:: [FASB Survey IDC January 2017, N=200

14. © Source:: [FASB Survey IDC January 2017, N=200
FASB Compliance Leads to Review of IT Buying Processes: 94% of Respondents Plan to Change Buying Behaviors
When considering adding IT capacity in the future will the new FASB rules change your firms buying process?
© Source:: [FASB Survey IDC January 2017, N=200

15. © Source:: [FASB Survey IDC January 2017, N=200
Most Expect Minimal Decrease to IT Acquisition Ratios: Will happen in 12 months
By what percentage do you expect your IT asset acquisition ratio to decrease?
© Source:: [FASB Survey IDC January 2017, N=200

16. © Source:: [FASB Survey IDC January 2017, N=200
FASB Compliance is Spurring Review of IT Acquisition Strategies by Deal Size
When considering future IT asset acquisitions and the new FASB rules, will deal size impact your firm's decision about lease versus purchase?
© Source:: [FASB Survey IDC January 2017, N=200

17. © Source:: [FASB Survey IDC January 2017, N=200
FASB Compliance is Spurring Review of IT Acquisition Strategies by IT Asset
Will the pending FASB changes impact your firm's acquisition of other IT assets?
© Source:: [FASB Survey IDC January 2017, N=200

18. Change in IT Asset Acquisition Strategy will Impact Certain Equipment Categories
Which of the following IT assets will be impacted by the pending FASB changes?
Respondents that said Yes to change in strategy
© Source:: [FASB Survey IDC January 2017, N=200

19. © Source:: [FASB Survey IDC January 2017, N=200
Over 91% of Respondents want Bundled Offers- Underscores Previous Survey Findings
Is your firm more likely to look for bundled offers that include hardware, software and services (including maintenance and support) as a results of pending FASB changes?
© Source:: [FASB Survey IDC January 2017, N=200
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20. Most Respondents Considering Other IT Infrastructure Alternatives
Will the pending FASB changes cause your team to consider other IT infrastructure alternatives?
© Source:: [FASB Survey IDC January 2017, N=200
n =
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21. Private Cloud Is Top Consideration- Hosted and On-site
Which of the following IT infrastructure alternatives will your team consider as a result of FASB changes?
© Source:: [FASB Survey IDC January 2017, N=200

22. Pending FASB Rules May Cause Shifts in Funding Strategies
Will the pending FASB changes cause your firm to reconsider their leasing strategy? Where will you get your funding for IT acquisitions?
© Source:: [FASB Survey IDC January 2017, N=200

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Essential Guidance
Enterprises are preparing for new FASB compliance rules and seeking outside help from accounting firms or consultants
Both Finance and IT leaders are leading internal FASB compliance efforts and will have an improved level of detail about costs related to IT procurement and leasing. This new knowledge will impact future IT asset buying behaviors.
Majority of respondents expect to change IT procurement behaviors because of improved data about acquisition strategies
IDC survey data reveals:
The equipment types that are under increased scrutiny
Which IT consumption models are most popular as alternatives to traditional acquisition behaviors
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25. Screener Requirements
IDC’s Technology Financing Strategies and data center teams conducted a survey about the new FASB rules and their firms compliance efforts.
Annual Revenue
$100M-$500M
Over $500 M US
37%
64%
Field Time: January 2017
Method: Web
Screener Requirements
Must be involved in the decision about all IT procurement for their firms
All respondents were knowledgeable or very knowledgeable about the new FASB rules and compliance efforts
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Source: [FASB Survey IDC January 2017, N=200

26. Source: [FASB Survey IDC January 2017, N=200
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