Quick Study: IT Budgets and Cost Management

Autumn isn’t just about cool temperatures, kids back in school, and planning for the holidays. Managers across every enterprise department start the fall with that dreaded CFO invitation to annual budget meetings.

For IT leaders, that planning process always is tough, given the complexity of IT budgets not only for personnel salaries but often for major capital expenditures and growing operational expenses for cloud and other services. Oh, and don’t forget the training cost as emerging technologies require new staff skillsets.

IT budgeting probably has never been more complicated in that CIOs face demands to do more with less, perhaps leaving new business initiatives or necessary upgrades and maintenance to die on the vine.

For 2022-2023, IT leaders face a bigger challenge than they have encountered in recent years. That “do more with less” mandate this time comes in an era of nasty inflation that continues to drive up prices for every bit of technology and service at the same time that every employee’s cost of living is skyrocketing.

This Quick Study might help managers prioritize their dollars. We’ve collected a variety of InformationWeek articles that offer advice on managing IT spending now and in the year ahead.

IT Budget Trends

IT Budgets in the Face of a Recession: How to Plan

Planning an IT budget against the backdrop of a possible recession requires businesses to re-prioritize spending initiatives and closely monitor ROI.

Explosion of Connected Assets Requires IT Management Evolution

A strong IoT management strategy includes having the right skills and training in-house to leverage existing capabilities and services with the technology required for managing those assets.

Why IT Should Have a Separate Training Budget

Having a training budget has its positives and negatives, but based on my experience, it’s more beneficial for IT to fund and determine its own training needs.

Tech Spending Climbs as Digital Business Initiatives Grow

Enterprises overall were expected to spend 8.4% more on technology in 2021 than they did last year, but not all of that budget was under the control of the CIO. In some cases, power, influence, and spending power was moving away from CIOs and given to other executives within the business.

Managing Cloud: Why to Keep a Data Center Mentality

The move of more compute to the cloud and the edge has many organizations rethinking their need for data centers — yet data centers aren’t going away and neither should “data center thinking.”

Tipping Point: Tech Decentralizes Out of IT

Business units are hiring more technology workers than IT departments are hiring. How will this impact IT budgets, CIO influence, and the future of the IT department?

How IT Budgets Must Adapt to Remote Work

The pandemic brought IT to an inflection point where there is no turning back. The growth in remote work will force CIOs to rethink technology and IT organizational structures, deployments — and budget.

CIOs: Stop Spending on Bad Tech

US IT departments waste $85B yearly on bad tech. Chief information officers must assess their tech stack to prevent deeper debt and the potential added cost of attrition.

Spending on Key Technologies

Optimizing Your Cybersecurity Budget

Strong cybersecurity comes at a price. The exact amount depends on your risk tolerance and factors such as past incidents, current security issues, and future plans.

How to Maximize Your Organization’s Cloud Budget

Tired of sky-high cloud costs, but you know that the cloud represents the future? Here are some suggestions for bringing your cloud spending back down to earth.

10 Cloud Strategies to Avoid Cost Overruns

If optimizing your cloud spending is on your to-do list this year, these tips could help you stay within budget.

How Not to Waste Money on Cybersecurity

Security should be every enterprise’s top priority. Just remember that simply throwing money at the problem isn’t the answer.

CIOs Turn to the Cloud as Tech Budgets Come Under Scrutiny

With a lot of uncertainty still ahead, businesses that can invest in flexible systems, like the cloud, should do so — but chief information officers must deploy resources tactically.

How to Get Your Cloud Spending Under Control

Cloud spending is now a significant part of a company’s IT budget, yet nearly one-third of it goes to waste. Here are some strategies to help you optimize.

IT Spending in 2022

As Inflation Skyrockets, Is Now the Time to Pull Back on New IT Initiatives?

With inflation and supply chain issues, the prices of just about everything are soaring. So it is with hardware and software prices. Is now a good time to push forward or pull back on projects?

Top Business Needs Driving IT Spending Today

Cutting costs alone won’t save the company in times of economic crisis. The options for IT leaders are limited. So, what will help?

Back-to-Office Canceled: The New Phase of IT Spending

For 2022, many organizations are delaying their back-to-the-office plans. Here’s what that will mean for CIO IT spending priorities moving forward.

https://www.informationweek.com/strategic-cio/quick-study-it-budgets-and-cost-management

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