You can’t create a 2025 I.T. budget planning strategy using outdated guesses. Over the last few years, higher costs, remote work, and too many software tools have changed how businesses spend on I.T.
Many 2024 budgets didn’t work. Not because of overspending, but because leaders didn’t know which tools were used or contributed to business growth.
Businesses are increasing their I.T. budgets in 2025, but 92% of companies still plan cost-saving measures. 38% will decommission outdated infrastructure, and 28% will pause future I.T. projects. Planning smart isn’t optional; it’s critical.
Charles Bender, CEO of Attentus Technologies, says, “Smart budgets begin by facing the misses, not just the money. You can’t plan forward if you don’t fix what stalled progress in the previous year.”
What hasn’t changed is the need to connect spending with business goals. If you want a better budget for 2025, start with what didn’t work in 2024.
Make Every I.T. Dollar Count in 2025!Stop paying for tools that don’t deliver. Start budgeting for results with Attentus Technologies. |
1. Review Your Last I.T. Budget Line by Line
Never build a new budget from scratch. Go through your 2024 plan line by line to avoid repeating mistakes.
Start by comparing what you thought you’d spend vs. what you spent. Find areas where you spent too much or too little.
44% of organizations waste budget on SaaS tools they barely use. Check if you maximized tools or if they just sat unused.
Review:
- All vendor contracts. Check what renews automatically.
- Tools that were underused or no longer needed.
- Any last-minute purchases that weren’t in the original plan.
This gives you a clear view of what worked and what didn’t.
2. Categorize Spending by Business Function
If you group your budget by tool or vendor, it’s hard to tell what matters. Instead, organize your 2025 technology budget by how each item helps the business.
Group your spending like this:
- I.T. operations: Keeps things running. Examples: network, devices, support.
- Growth initiatives: Helps teams work faster or reach more customers.
- Innovation: New tools or pilot projects that could help in the future.
If an expense doesn’t support a clear need, remove it or flag it for later review.
3. Identify Recurring Costs That Will Expand in 2025
Recurring costs such as subscriptions often increase over time. If you don’t track them, they can use up more of your budget than you expect.
How to manage them:
- Review all subscription-based tools. Check how many users and how often they use them.
- Watch your cloud costs. They grow fast with more data.
- Check software renewals. Make sure you still need the tools.
- Look for unused or similar tools that add to recurring costs.
Reviewing these now helps you prevent budget surprises in 2025.
4. Map Device Lifecycles to Planned Budget
Hardware is often ignored during planning. That leads to problems. Old or slow devices reduce productivity and increase the number of support requests. According to the 2025 Tech-forward CEO report, outdated tech is costing U.S. businesses $1.8 trillion annually in lost productivity.
What to do:
- List all hardware: laptops, servers, switches, routers.
- Sort them by age. Identify devices nearing the end of life.
- Create a replacement plan. Spread upgrades over time.
- Flag any devices already causing problems.
This helps your team stay productive and reduces surprise costs.
5. Budget Based on Department Needs and Feedback
A good budget supports how teams use technology. I.T. touches the entire business, so include people from every department.
Ask managers:
- Which tools slow your team down?
- What systems cause frequent support requests?
- Are staff using tools not approved by the I.T. department?
Use this input to update I.T. request tracking and identify department-specific I.T. needs. Your budget should solve real issues, not just renew licenses.
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6. Use the Run Grow Transform Model to Justify Spend
Use the Run Grow Transform model to explain where the money goes.
Break it down:
- Run: Daily operations. Examples: support, backups, network security.
- Grow: Projects that improve workflows or increase reach.
- Transform: New tools or strategies that change how work is done.
This model helps others understand how each item fits into business goals.
7. Start Vendor Evaluations Before Q4
If you wait for renewal notices, you’re behind. Speak to vendors early so that you have more time to evaluate options.
Steps:
- Ask vendors about price changes and discounts.
- Remove tools or features you no longer use.
- Compare vendor performance with what they promised.
This gives you time to make smart decisions.
8. Build a Buffer for Support and Emergency Projects
Unexpected costs will come up. A failed server, a compliance update, or a sudden increase in support tickets can disrupt everything.
How to plan for it:
- Review past support ticket trends. Look for common problems.
- Plan for more tech issues next year.
- Use past I.T. incident costs to estimate emergency spending. Set aside 5–10% of your budget.
This keeps you prepared.
9. Finalize a Living Budget and Set Quarterly Review Points
A budget shouldn’t be set once and forgotten. Your 2025 I.T. budget planning should change with your needs.
How to keep it flexible:
- Use a rolling budget model so you can make updates.
- Hold quarterly reviews to check your progress.
- Track results using clear reports and tools.
This helps you stay on track and adjust when needed.
Compare I.T. Budget Categories by Function
Now, organize your budget by function. It makes it easier to explain and defend.
| I.T. Budget Category | Description | Example Items | Recommended % |
| Operations (Run) | Daily support and tools | Network, devices, support | 40–50% |
| Growth Initiatives | Improves performance or reach | Automation, collaboration tools | 20–30% |
| Transformation Projects | New tools or approaches | AI pilots, training | 10–15% |
| Emergency/Support Buffer | Unplanned needs | Repairs, compliance | 5–10% |
| Planning/Review | Tracking and strategy | Budget software, consultant time | 3–5% |
Plan Better with Attentus Technologies
I.T. budget planning is not just about money. It’s about solving problems and setting priorities.
Attentus Technologies helps companies build smart budgets that work. We focus on stability, protection, and what your business needs.
We’ve never had ransomware on a system we manage. We keep 97% of our clients long-term.
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Want more from your budget? Contact us today. We’ll help you review, adjust, and improve your 2025 I.T. plan.
