2025 Predictions: The Future of Tech Costs and the Ability to Control Them

As we head into 2025, technology is evolving at faster speeds. To remain competitive, businesses need to not just keep up but consider the possibilities ahead. The rise of quantum computing, artificial intelligence, and cloud dominance will undoubtedly reform the way organizations operate, innovate, and engage with customers. In observing how today’s advancements are already transforming the strategies and tools we use, Tangoe’s leaders are also anticipating how current changes in cloud, mobile, and telecom technologies will influence businesses and IT expense management trends in 2025 and beyond. Below are the predictions we believe will shape the future, helping companies navigate evolving challenges and seize new opportunities. 

CLOUD TECHNOLOGY PREDICTIONS

The Answers to Innovation will also Become the Biggest Financial Threats

Emerging technologies like quantum computers and GenAI can solve complex problems significantly faster than traditional methods, but hyper-fast computing power will both help and hurt companies. Emerging technologies will drive unprecedented innovation, but they’ll also unleash risks with new costs that can spin out of control, forcing companies to battle the very tools fueling their progress.

GenAI: An Automation Gem with a Financial Darkside

Quantum Computing: Speeds So Fast Security will be Powerless and the Cloud will be More Powerful than Ever

  • Quantum computing will redefine computing speeds.
  • However, it will also have the ability to defeat traditional encryption schemes, calling on all companies to refresh their AI, cloud, mobile, and telecom assets under new standards for quantum-safe cryptography.
  • Quantum computing will likely be driven by cloud resources and made available by major cloud service providers. This equates to a very real potential to mushroom cloud spend the same way AI has today.

Take Action:

Proactively managing the financial risk of emerging technology will become increasingly crucial to stay competitive in a future where new hyper-speed technologies will demand even more resources and critical pivots. Visualizations will aid in cost monitoring and help companies plan for future expenditures by extracting ROI insights on new tech investments. They are essential for taking both a reactive and proactive approach to cost management. By tightly governing IT and cloud financials, businesses can better harness the power of tomorrow’s innovations without being overwhelmed by unpredictable cloud spending surges and security risks.  

As AI Governance Gains Momentum, Cloud Management and Sustainability will Become a Matter of Compliance

Artificial intelligence is being infused into every corner of business operations, making AI governance the new hot button for CIOs. But for AI systems to function in ways that are safe, ethical, and transparent, they need guardrails and oversight. It’s only a matter of time before governing AI becomes a matter of the government in the form of regulations. 

AI compliance measures will have a trickle-down effect. AI systems are fueled by software applications and data center infrastructure, which can have a material impact on infrastructure costs, security, and environmental sustainability factors including carbon footprints and greenhouse gas emissions. With these elements inextricably linked, new requirements will influence the way businesses manage a variety of their IT assets.  

This means requirements to maintain deep transparency into:

AI governance could go so far as to redefine IT asset management with mandates even bleeding over into IT human resources too. AI compliance could put more pressure on IT teams and talents, bringing the IT skills gap to a fever pitch.   

Take Action:

In recent years, companies have used their existing policies and principles to ensure AI was managed responsibly, but in the future, this approach will no longer be enough. Embracing transparency in cloud data management and cloud sustainability initiatives like GreenOps (which pairs well with FinOps) will prepare IT leaders for future AI regulations and controls concentrated on responsible, ethical, and safe innovation. Don’t forget to lean on experts for strategic sourcing services to lower the impact of new demands on internal IT resources.

With No Boundaries in Sight, the Horizon for FinOps will Reach Farther than You Might Think

Two major factors are revolutionizing the practice of cloud optimization: AI-based automation and the FinOps Framework of best practices. FinOps was originally designed to help curb the costs of public cloud infrastructure, but its gaps are becoming increasingly apparent as it becomes the go-to model for cost savings 

It’s not just IaaS that needs more supervision. A new study shows:  

  • On average, 38% of SaaS spending comes from Shadow IT
  • 67% of companies admit their productivity software licenses (such as Microsoft 365®) go to waste
  • 94% of IT and financial leaders agree that FinOps needs to incorporate SaaS – not just IaaS

The SaaS wheels of change are turning with a fresh chapter unfolding to fill what some call the missing piece of the FinOps puzzle. The think tank behind the FinOps Framework is working diligently to develop and incorporate comprehensive SaaS optimization best practices into its model.  

But this expansion only begs the bigger question: Can FinOps become the strategy for all-encompassing IT cost management? Tangoe’s leaders believe that it has powerful potential to grow, ultimately elevating to a much higher status.  

While this may take some time, FinOps’ core principles are well positioned for propagation:
  • Practices are established via a vendor-neutral approach with projects characterized by transparency.
  • Sweeping collaborative efforts include players and business leaders from every corner of the industry.
  • FinOps Committees are already solving gargantuan problems – as evidenced by their new cloud data standards. Plus, they’re simultaneously pleasing an ocean of stakeholders including vendors and practitioners.

This explains why the model is collectively popular. Trust and problem-solving experience give the Framework a strong foundation for wider applicability across the entire IT estate. There’s nothing else quite like it, which is why FinOps holds the greatest possibility of helping companies ensure they get the most value from potentially every innovation investment.

Take Action:

Be proactive. Business leaders should explore adopting FinOps principles for cloud optimization, understanding that they will likely prepare their companies with a framework of best practices for much more than just IaaS and SaaS. Engage DevOps teams so FinOps practices become the habits of IT engineers and R&D processes. This way companies aren’t slipping into reactive mode when more AI-related expenses arise in the future. Purpose-built FinOps solutions can help jumpstart corporate programs. Studies show 3rd-party software and services are more effective than the native tools of IaaS providers, home-grown software, and manual processes.

The Private Cloud Comeback: On-Premises Solutions will Reclaim their Market Share

At first, public cloud infrastructures exploded with swift ascendence. In 2025, repatriation will have its moment. Just a few years ago every IT leader was hot on moving most everything to the cloud. Cloud-first and cloud-only strategies were all the rage. Now, we will see that appetite slow. Private, on-premises architectures will regain ground due in part to the increasing concerns in security, lack of control, and rising IaaS expenditures.

With ROI lacking, many believe the public cloud has failed to deliver the nirvana everyone was promised. Cloud investments will still grow, and public architectures will likely never die, but in the year ahead decision makers will take a more thoughtful approach to workload placement.

What it Means for IT Leaders:

All of this means IT leaders will need sharp decision-making processes for workload placement, knowing when to go public versus private. While security and scalability often drive selection, financial tipping points should also be a key consideration. In on-premises environments, visibility into spending on physical data centers (power, water, management personnel etc.) and virtual assets (VMs, software) is essential in revealing fully loaded costs. While this data can be difficult to collect, it will help guide decision makers in knowing when it’s more cost effective to use a public versus private cloud strategy.

Take Action:

Rebalance your network as needed and consider your ability to manage and optimize hybrid clouds. Comparing private versus public expense information is paramount in determining which platforms are best suited to meet needs without increasingly consuming more of your IT budget. 

MOBILE TECHNOLOGY PREDICTIONS

GenAI and Quantum Threats will Widen Gaps in Mobile & Application Security

In 2025 and beyond, free GenAI tools, quantum computing, and deepfakes will advance cybersecurity threats further blurring the lines between what’s real and what’s an attack. With more sophisticated social engineering and threats at scale, companies will be increasingly vulnerable due to new gaps in their mobile and application security. This will create financial risks, compliance challenges, and logistical problems, as corporate-owned and personally owned mobile devices continue to be one of the most popular attack surfaces for bad actors.

It will be increasingly important to:

  • Assess assets in preparation for upcoming encryption requirements to protect against transformations in quantum computing being used to break traditional security mechanisms
  • Manage the lifecycle of mobile devices and user accounts to protect data security — tracking staff changes and taking precautions not to expose application access to former employees
  • Tightly control the SaaS environment, understanding complex terms around third-party access
  • Layer security on your devices and create multiple layers for data protection, data privacy and information access with vigilance toward company assets, access, and data flows

Traditional methods for the items above may not work in tomorrow’s advanced threat landscape. Companies and their security teams will need to take tighter control over devices and applications using a proactive approach in restricting unauthorized users, tools, and services that run in corporate mobile environments.

Recently released post-quantum cryptography standards will rise on the horizon over the next two 2-3 years as quantum computing takes hold. This will require companies to replace every piece of encryption with revised unbreakable post-quantum algorithms. 

Take Action:

To help ensure a secure mobile future, companies should start by assessing and updating their current security frameworks with a focus on device lifecycle management, unified endpoint protection, and strict SaaS control with an eye toward coming changes in encryption. Begin by regularly auditing mobile devices, accessing accounts, and ensuring that former employees have no residual access. Evaluate third-party access and SaaS agreements carefully, limiting exposure to only essential providers. Proactive steps to plan for operational and financial impacts will fortify security efforts against AI-advanced threats and quantum-powered attacks. 

Mobile Data Prices: The Sea of Sameness will Force Leaders to Dive into the Details

In 2024, the mobile industry witnessed a variety of activities that will culminate in a new outcome for 2025 – diminishing price disparities. In the year ahead, pricing sheets for mobile data services will look like a hall of mirrors with all major providers presenting basically the same numbers.

That outcome stresses how important it will be to dig into the specifics of each plan. In a market where everything appears the same, those tiny details – hidden fees, data speeds and throttling practices, and contract terms – will reveal the true differences.

Here’s what we saw in 2024 that gives rise to this trend:

  • Market Consolidation: T-Mobile purchased U.S. Cellular in a $4.4B deal giving T-Mobile broader operations and a list of new assets affecting market competition and overall market dynamics. Plain and simple – there are fewer vendors to choose from, and remaining carriers face less competition which can lead to higher prices. Learn more about the impact of this acquisition on prices.
  • Across-the-Board Inflationary Adjustments: Some AT&T customers saw price increases of $5 to $10 per month per line while other T-Mobile customers were hit with increases of $2-5 per line per month. Verizon customers were not immune either – some faced $4 spikes. Like an incoming tide, all boats were rising together.
  • Total Market Saturation: Given today’s saturated market (most everyone has a cell phone these days – particularly post-pandemic), so there’s less pricing pressure on carriers because there’s very little net-new business to compete for.
  • The Only Motivator is the Big Switch: Today, carriers are price motivated only when customers are willing to switch providers. Expect more switch-and-save promotions and apply pressure during contract renewal processes.

Take Action:

In 2025, the best deals won’t be defined by voice or SMS services — in nearly all cases these are included in the cost of the plan, making unlimited plans a moot point. Instead, decision makers should focus on premium data allotments (the amount of data you get that isn’t throttled, slowed, or deprioritized), bundled options, hidden fees, device pricing, and contract terms that restrict flexibility. The sea of sameness will make it more critical to have an intimate understanding of every detail in the contract. Grab your magnifying glass and dive into the fine print or ask a cost management consultant to help you with price benchmarking and contract negotiations.  

The Bygone Days of BYOD: The End is Near

Over the next few years, mobility ownership trends will continue to shift away from current Bring-Your-Own-Device (BYOD) approaches. Soon, corporate-owned strategies will become the preferred model and best practice. It could also introduce new compliance requirements and risks. The shift will bring benefits like improved security and streamlined management, making it easier for companies to enforce policies and ensure device compliance and data protection.

While BYOD ownership policies gained popularity due to perceived cost savings, many companies find that the financial benefits (if any) don’t justify the added security risk and administrative work. One of the biggest disadvantages of a BYOD policy is the limited control that IT has over the hardware. IT teams struggle to dictate the installation of applications, the level of device security, or the data stored on the devices. With different models, aging devices, and a variety of operating systems, unified endpoint security is more challenging and time consuming.

Consider that:

  • Over 81% of employers are considering a return to company-issued phones for privacy and security reasons, with leaders identifying work-only devices as the best route for data security and privacy.
  • “We are seeing more and more employers move from a pure bring-your-own-device model to employer provided devices where CIO’s can have greater governance to protect critical infrastructure from cyber-attacks,” said IDC’s enterprise mobility Research VP, Phil Hochmuth.
  • Tangoe, which manages 14 million devices on behalf of global companies, finds that most clients who embrace BYOD policies eventually transition to corporate-owned models.

Take Action:

Consider transitioning ownership models now, before encryption requirements pile on more security challenges with the onset of quantum computing. Start with an inventory of your mobile devices, defining how many employee-owned phones and laptops your organization has. The smoothest migration paths are marked by self-service purchasing portals that allow employees to choose their own device while being guided by corporate procurement policies. This is the best practice for balancing convenience with compliance. Companies with large BYOD fleets may want the support of mobile device management services to handle device setup, endpoint security software enrollments, and employee technical support during the transition. 

Mobility Managers Will be Tricked into Thinking Overspending has Been Solved

Unlimited mobile data plans are wildly popular and for good reason — mobility leaders are relieved of the watchdog duties. No more monitoring data usage and comparing consumption habits against plan limits in order to avoid costly overage fees. But as unlimited plans become the ubiquitous choice for businesses in the years ahead, these plans could also become a mental trap.

The freedoms of an unlimited service can trick mobile leaders into operating under false pretenses, making them believe that they no longer need to keep an eye on costs.

Unlimited data plans don’t prevent overspending. Endless data shouldn’t mean the end of financial oversight.

“Even when we sign up for an unlimited data plan, there seems to be no such thing as set-it-and-forget-it for mobile expenses,” explained Analyst and Founder of ZK Research, Zeus Kerravala in a Forbes article. He cites the three key issues as: 

1

Unlimited doesn’t always mean the most cost-effective: The allure of an unlimited plan can fade quickly when shared or pooled data plans would have been the more cost-effective choice. Additionally, mobile data usage can vary widely among departments and employees, making an overarching unlimited plan a bad choice, particularly as business needs change over the course of a standard 3-year contract.

2

Service throttling: If an unlimited plan allows the carrier to throttle data usage, that could be highly disruptive to employees’ ability to do their jobs efficiently. Plus, unlimited doesn’t always mean unlimited, particularly with international travel.

3

Comparing costs and tracking spending: Very few businesses use a single mobile provider, and carriers won’t help you track the spending of other carriers. Without cost analysis there’s little cost comparison guiding future purchasing decisions.

Take Action:

Make no assumptions about unlimited plans and maintain financial oversight. Regularly analyze usage patterns across departments and assess whether pooled or shared plans could offer greater cost efficiency. Leverage unlimited plans when they make sense for your business, but even predictable costs still need management. Beware of throttling policies and international travel plan restrictions. Leverage mobile expense management tools to keep tabs on usage reports and easily compare costs across multiple carriers. Financial management practices generate insights that can prevent unnecessary expenses and ensure every dollar spent supports the business.

TELECOM TECHNOLOGY PREDICTIONS

2025 will be the Year of Satellite Internet Services

Ready the popcorn for the Kuiper versus Starlink showdown starting in 2025. Satellite connectivity services will get cheaper and faster as Amazon’s Kuiper enters this emerging market as the newest player on the block, pressuring pioneer and incumbent, Elon Musk’s Starlink (owned by SpaceX). Smaller providers like Hughesnet and Viasat will likely fade into the background. Here are the market trends as evidence: 

Consider that:

  • Hurricanes are the newest use case: In October, Starlink and T-Mobile worked together to activate satellite-supported cellular service (known as direct-to-cell coverage or D2C) so T-Mobile customers affected by Hurricanes Helene and Milton could still communicate. While the service wasn’t fully reliable because D2C satellites had not been fully deployed, customers could receive emergency alerts and send text messages. Starlink’s D2C services are still undergoing deployment but remain a promising form of communications for disaster-stricken areas where cell towers have been disabled.
  • Market competition pushes prices lower: Kuiper has the potential to deliver speeds up to 400 megabits per second. That’s a good deal faster than current speed expectations from Starlink (25 to 100Mbps with standard service), and the equipment could come at a lower cost despite Starlink reducing its fees in select areas.
  • Vendor lock-in will be less of a concern: with another large provider in the market. Kuiper plans to start rolling commercial service in 2025, starting with service demonstrations for enterprise customers. Next, consumer beta testing will begin. General availability will begin late in the year, reported Amazon.
  • A fast-growing demand for services: Investors are worried about Kuiper’s initial investments and heavy spending, but the upside potential may quickly ease concerns. Tangoe, which tracks more than 295,000 telecom circuits on behalf of clients, found that in 2023 satellite services (through Starlink) made the biggest surge in adoption yet — moving up from the 81st largest vendor to the 48th. This makes Starlink one of the fastest-growing vendors serving our clients. Strong business interest combined with lower costs will fuel demand in 2025.

Take Action:

As satellite internet services gain traction, IT and finance leaders should consider several factors to assess potential benefits, limitations, and financial impacts. Satellite has distinct advantages in remote locations, but the first consideration should be bandwidth and latency, particularly considering bandwidth-hungry voice communications and video conferencing. Reliability and performance are heavily dependent on the number of satellites each provider has rotating Earth’s orbit. Other considerations include initial hardware and setup costs, security, and integration with existing hybrid and multi-cloud environments. Consultants can help you audit telecom circuits, optimize services and navigate this evolving market.  

The New Tech Frontier Will Explode Telecom Costs and Challenges

Low costs for IoT devices. AI infused into everything. The rise of edge computing. Quantum computers just around the corner. As emerging technologies converge with existing ones, a new frontier of technological advancement will take hold. In this next era, machines will talk to machines, and IT organizations will be building decentralized networks serving as hyper-fast AI-exchanges and IoT super-hubs in support of the machine experience.  

The impact of machine-to-machine (M2M) communications will mean explosive network costs — at least at first.  

Initial spikes will be significant as organizations invest in new infrastructure, specialized edge hardware and services, and skilled personnel to implement and maintain these advanced systems. However, with the efficiency gains of AI and the potential of quantum computing to solve complex problems much faster, costs will be reduced over time.

Unimaginable network efficiencies will be achieved thanks to AI automation that’s faster than a lightning strike, delivering superior utilization, reliability, and performance for data-heavy ecosystems.   

Take Action:

In preparing for the next era of machine-to-machine communications, innovation leaders should pay attention to network management weaknesses, hybrid-cloud network scalability, IT expense management, data security and governance, IT skills, and R&D backed by strong piloting programs. With AI, edge computing, and quantum algorithms demanding networks on steroids, leaders will need to position their organizations to capitalize on these disruptive technologies while managing risks and costs effectively.