2023 IT
Spending Trends

2023 IT Report Cover

Overview:

Working with hundreds of enterprises each year, the Tangoe Advisory Services team amasses tremendous insights into market and pricing trends. This is our second annual report where we share what we’ve learned in order to provide you guidance in maximizing your IT budget. Rest assured, there is a depth of detail behind each one of the findings below that can give you specific information on carriers, geographies, and products. Ready to unlock those details and specific insights you need to achieve your business outcomes? The Advisory Services team can be engaged to help consult you.

400+

consultants w/
250+ years
experience

60

hours of staff
augmentation
delivered

15%-30%

avg. savings
identified

$35B

database of
spend

400+

consultants w/
250+ years
experience

60

hours of staff
augmentation
delivered

15%-30%

avg. savings
identified

$35B

database of
spend

Top 5 Business and IT Trends

Office closures and corporate downsizing triggers shifts in technology investments

  • Accelerated migrations from traditional voice to SIP/VoIP or UCaaS only
  • SD-WAN is now mainstream, and the number of broadband connections deployed drives IT complexity with more services and vendors to manage
  • Fixed wireless with broadband has driven complexity up

COVID spending is shifting more toward traditional, enterprise-level providers

  • I.e. from Zoom to Teams

Reemergence of travel (domestic and international) drives changes in mobile plans

  • Pooled to unlimited
  • More international plans to control costs

5G and fixed wireless connectivity isn’t just for back-up anymore

  • Primary access for remote locations, retail outlets, and SD-WAN endpoint connections

Cloud sprawl has become a top IT issue and concerns are ballooning

  • Managing the volume of providers has become more cumbersome
  • Hybrid cloud environments are pervasive and so are the costs
  • It is time get a handle on SaaS apps, their costs, and Shadow IT security too

Top 5 Pricing Trends

MPLS

Customers are receiving better rates. While MPLS port pricing at the best levels, has leveled off, more companies are able to achieve this better level of pricing

Internet

Domestic Internet has stopped the steep decline – Pricing is becoming more commodity based than value based as businesses have more and more options for IP connectivity

VoIP and SIP

Experienced declines in pricing as competitive options increased

Mobile

Pricing remains flat however gaining a deep understanding of the plans, features and utilization against it will unlock savings potentials. Move to unlimited has taken hold as video calls increase driving up data usage. Carrier imposed surcharges continue to rise and have a material impact on costs. Outside of the US, we see continued declines in pricing and by country, new tariffs imposed.

Cloud

Pricing is flat to declining in all aspects of cloud (IaaS, SaaS and UCaaS) however costs are dramatically on the rise and enterprises need to get a handle on their entire cloud purchases and utilizations

2023 Pricing Trend Chart

What Does This Mean For Enterprises In 2023

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Move off legacy services ASAP (POTs lines)

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Leverage an ITEM solution to help manage multiple providers in SD-WAN model, cloud (IaaS and SaaS), and mobile.

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Evaluate mobile features as well as pooled/tiered plans which should drive savings despite the carriers trying to push unlimited plans.

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Get cloud costs under control – and in order to simplify this, a Cloud Expense Management platform can be deployed across all cloud assets to monitor and adjust in real time using a single platform with one dashboard.

Need expert advice on carriers, rates and contract terms or support in your digital transformation initiatives, then reach out to the Tangoe Advisory Services team.