Planning technology service costs for 2025 means understanding and incorporating trends and lessons learned in expense management throughout 2024. SpyGlass is sharing top technology expense management (TEM) takeaways from the last 12 months to help your planning and budgeting goals for the year ahead.
First, we’ll dig into last year’s top trends and how they should shape your decisions for 2025, and then offer some specific suggestions to get you on track for a streamlined, successful year.
2024 Trends
“Doing more with less” was an overall theme for 2024 and continues to be a priority for 2025. To execute this, it’s helpful to review where companies focused their technology spending and efforts to innovate throughout 2024.
Cloud Computing Cloud spending continued to grow exponentially last year. The cloud has become essential for organizations to consolidate and unify their data, harness new AI technologies, and accelerate digital transformation initiatives. However, as companies transition to hybrid and multi-cloud environments, many struggle to manage cloud spend and gauge their ROI. The result? Wasted resources and missed opportunities.
We accurately predicted a massive increase in cloud spending, which is expected to round out at around $805 billion worldwide for 2024. Budgeting and proactively reviewing your organization’s overall cloud computing picture should continue to be a high priority in 2025.
FinOps Solutions In 2024, companies increasingly considered or invested in FinOps (Finance + DevOps) solutions to gain better insights into cloud investments or enhance existing cloud management practices. Championed by the FinOps Foundation, developers, engineers, and C-Suite are prioritizing FinOps. According to recent Wakefield Research, 89% of surveyed professionals perceive FinOps as the solution to managing the complexities of cloud costs.
However, in our technology expense auditing efforts across the country, we find companies increasing cloud spending, but buying more than they need or paying for services they already receive. Smarterspending based on data-driven decisions should be a high priority in 2025.
“One in two business leaders say challenges with measuring the value of the cloud prevent them from achieving cloud ROI.” – PwC 2024 Cloud and AI Business Survey
Tech Redundancies and Inefficiencies Last year, companies became aware of the risks of obsolete technology. Obsolescence leads to increased risk of security issues, inefficiencies, higher maintenance and support costs, lack of compliance, and missed savings.
In 2024, we saw organizations throughout the private and public sectors that scrutinized their IT spending through a TEM audit realize massive savings by identifying inefficiencies and continually examining costs.
“A SnapShot Audit helped us understand our tech services, get our costs where they should be, and what opportunities we have to make changes.” – Ric King, Assistant Superintendent of Business Services, Schaumburg School District 54, Schaumburg, Illinois
The Costs of Obsolete Technology Outdated systems and legacy programs don’t just drag down efficiency; they can compromise your computing environment, which can be very costly. In 2024, we predicted that more companies would look to unload the dead weight of old, outdated systems while improving and strengthening their cybersecurity environment.
Additional opportunities exist here to strengthen your Cybersecurity environment. Case in point: SpyGlass finds tech service savings opportunities in 99% of engagements, illustrating more work to be done in this area.
Driving Value Through Digital Transformation The last year placed a high priority on investing in tools and technology. As a result, many organizations invested heavily in software-as-a-service licenses — such as Zoom, HubSpot, and Microsoft 365 — to improve business operations. But a recent report shows that, on average, companies use only about half of the software licenses they have purchased.
For enhanced visibility and control, centralized procurement platforms offer real-time insights into purchasing activities, enabling better decision-making. Streamlined procurement doesn’t just save money; it aligns with broader business goals. By fostering improved supplier relationships, organizations can drive innovation and gain a competitive edge in the market. Additionally, it frees up resources for more strategic initiatives, enabling organizations to stay ahead of the curve.
“SpyGlass extends its technology expense management expertise after an audit by providing access to SpyCare. As a managed service providing an automated SaaS platform, SpyCare retrieves monthly invoices, performs comprehensive audit, and flags any anomalies or changes.” – Steve Fisher, Vice President, Strategic Services
Smart Tech Steps for 2025
Proactive steps to control your tech spending in 2025 means running smarter, leaner, and more efficiently. Here are a few steps we recommend to include in your 2025 planning to ensure optimal tech spending with little to no waste.
Conduct a Technology Audit Identify outdated systems and their operational impact. A SpyGlass SnapShot Audit provides a comprehensive, detailed assessment of your telecom and technology expenses, uncovering potential savings and ensuring optimal contract terms.
Evaluate Risks and Costs Analyze how much obsolete technology is costing you, not just in maintenance but in potential security vulnerabilities, inefficiencies, and compliance. The expense of upgrading may be the smart thing to do to protect your company and your data. Prioritize upgrades with the highest ROI in security, efficiency, and cost savings.
Seek Expert Guidance Working with a technology expense management (TEM) firm like SpyGlass provides valuable insights on your spending. Our detailed audits include proactive cost management strategies to help businesses optimize their tech spend and stop wasting money on unnecessary or outdated services.
Conduct Preventative Maintenance Proactive maintenance with services like SpyCare gives you the tools to maintain your initial SnapShot ideal optimization status while continuously identifying, eliminating, and preventing future waste.
2025 Action Steps
Smart, proactive planning. You can’t track what you don’t know. A technology expense management (TEM) SnapShot Audit analyzes billing for services such as voice, data, cloud, SaaS, and mobility, uncovering personalized savings opportunities.
After completing a SnapShot Audit, enroll in SpyCare to keep your tech expenses in check and budgets optimized. SpyCare is a fully automated approach allowing you to manage technology expenses smarter, faster, and easier:
Expense Management: Monthly invoice analysis with predefined rules to proactively identify and manage exceptions — all with zero hassle for you.
Sourcing Management: Enhanced contract tracking, pricing benchmarking, and expert insights on emerging technologies — helping you make the best pricing decisions.
Dedicated Support: Continuous availability to address any questions or special requests you may have.
SpyCare’s latest enhancements mean less work for you, greater control over your expenses, and an improved ability to keep your tech service budget optimized year-round.
Take charge of 2025 with smarter technology spending.
A SnapShot Audit starts your tech cost management journey.
