As companies grapple with their annual IT budgets, trying to find creative ways to fund corporate initiatives can be a challenge. Our 3rd annual IT savings recommendations report offers ideas to help stretch those funds further. With a focus on tech spending trends, increased investments in AI and IoT, telecom transformations, and the most effective IT cost optimization strategies, Tangoe’s team of technology consultants summarize actionable ways to allocate your assets more responsibly in the year ahead. The report, beneficial for CFOs, FinOps practitioners, and CIOs, is based on the experience achieved from hundreds of digital transformation and cost-reduction projects with Tangoe clients across every industry.
Check out the report “2024 IT Trends and Savings Recommendations.”
Watching Your IT Budget Matters More in 2024
In 2024, technology cost governance becomes crucial as companies navigate technology inflation and the insatiable demands for digital innovation. Tangoe emphasizes the importance of eliminating tech overspending, efficiently monitoring financial returns, and ensuring innovation remains financially sustainable. This is the year that technology expense management will rise as a board-level priority, competing with top IT initiatives like cybersecurity and systems performance.
Consider some of these trends:
- Inflation is on the rise, impacting cloud, mobile, and telecom costs.
- Cloud invoices sprial out of control and quickly drain IT budgets.
- Generative AI initiatives have many CIOs needing to find funding from within.
- GenAI can lead to more Shadow IT problems.
Cloud Money-Saving Tips
Cloud optimization takes center stage as the number-one source of savings for companies. Tangoe reports that 30% of cloud assets go to waste, and clients saved up to 40% in 2023 with Tangoe’s cloud expense management solutions. Notably, AWS and other major cloud service providers face competition, and companies are advised to shop around for cost savings. Additionally, AI and Generative AI investments trigger more cloud spending problems, emphasizing the need for FinOps strategies that put tighter controls on on-demand resources and cloud utilization.
- Explore how AI is guiding savings and smarter investments in public cloud infrastructure
- Learn which vendor is being fiercely challenged and how to navigate new market competitors
- Uncover ways to combat cloud-flation proactively rather than reactively
Mobile & IoT Savings Tips
Mobile devices and IoT intelligence play a pivotal role in today’s innovation strategies. Tangoe’s new report highlights the rise of IoT spending and the impact of 5G connectivity and managed services, cautioning leaders to evaluate mobile device usage and data plans to help reduce unnecessary spending.
- See the most common type of overprovisioning and how it creates new savings opportunities
- Learn what 5G is doing to mobile and IoT innovation spending
- Get the “dirty little secrets” of unlimited data plans and find out if new hardware options are helping or hurting your path to savings
Telecom Savings Tips
Transformations in telecommunications remain a key focus for IT departments in 2024, with satellite internet services emerging as a new opportunity for global service value. The report addresses these trends but also dives deep into new challenges in telecom modernization initiatives, citing logistical hurdles that can get in the way of network and security upgrades like SD-WAN and SASE.
- Uncover how one new provider is rising in the ranks as a preferred telecom vendor among clients
- See how much companies are saving by switching to more affordable internet connectivity
- Explore the telecom price drop that gets overlooked as a key source of savings
Conclusion
While IT budgets are expected to rise slightly in 2024 – Gartner estimates an 8% growth in spending — the appetite for financial outlay remains cautiously optimistic, tempered by lingering indications of economic downturn. As innovation leaders navigate critical choices in deciding where to place their IT dollars, Tangoe’s report provides valuable insights including lessons ascertained from 2023 in how to budget for emerging technologies. From cloud optimization to effective mobile and IoT management, the report equips organizations with strategies to make informed decisions, save money, and stay ahead of the evolving trends in 2024.