Instead of targeting government spending, the real problem for CIOs is in their data centers, cloud environments, and sprawling SaaS portfolios.

There’s a catch, though. While efficiency cuts are a top priority, most IT teams are actually increasing their budgets this year—a paradox that might seem counterintuitive.

In this article, we’ll break down why IT spending is both shrinking and expanding at the same time, and how IT leaders can cut waste in a way that fuels innovation rather than stifles it.

The Case for Cutting: Where IT Waste Is Hiding

One of the biggest cost-cutting areas is cloud spending. While the cloud has been an essential enabler of remote work, AI, and scalable infrastructure, it has also led to rampant overspending. Reports show that over 30% of cloud budgets are wasted on unused or underutilized resources.  Many companies have begun optimizing cloud workloads, reducing excess storage and computing power, and even shifting some workloads back on-premises to cut costs.

Beyond cloud inefficiencies, SaaS bloat is another major area where IT leaders are slashing waste. The proliferation of SaaS applications—many of which enter the business without IT’s approval—has led to unchecked spending on tools that are redundant or rarely used. Gartner estimates that as many as 25% of provisioned SaaS licenses are not regularly used by employees. 

Compliance and IT asset waste are also on the chopping block. With software vendors increasing the frequency of audits, businesses that fail to track their IT assets effectively risk facing surprise fees. To avoid these costs, many organizations are now enforcing stricter IT asset lifecycle management policies, ensuring they only pay for what they actually use.

The Budget Paradox: Why IT Spending Is Still Growing

As CIOs are looking to cut waste, IT budgets are growing. Global IT spending is expected to increase by 9.8% in 2025, reaching $5.61 trillion. (Our recent market survey came to the same conclusion.)

If companies are slashing costs, why are budgets going up? 

The answer lies in prioritization and reallocation. IT leaders aren’t just cutting—they’re spending differently. Money is shifting from bloated SaaS subscriptions and underused cloud infrastructure toward cybersecurity, AI-driven automation, and digital transformation initiatives.

Security is a top priority. With ransom attacks on the rise, companies are increasing their investments in zero-trust security frameworks and AI-driven threat detection.

How to Cut IT Waste Without Undermining IT’s Mission

The best IT leaders aren’t just cutting costs—they’re making IT more efficient, agile, and impactful. Here’s how they’re doing it:

• Gain Centralized Visibility Over IT Spending

One of the biggest reasons IT budgets spiral out of control is because teams lack visibility into what they’re actually spending. Shadow IT, rogue SaaS renewals, and cloud sprawl are impossible to control if they’re not being tracked. A unified platform that provides real-time visibility into IT assets, cloud usage, and software licenses is critical for making data-driven spending decisions.

• Cut Unused and Redundant Tools

Not all SaaS tools are created equal, and many IT teams end up paying for overlapping software that serves the same purpose. Conducting an IT rationalization audit can uncover tools that can be eliminated or consolidated.

• Automate Cost Optimization

AI and automation aren’t just helping with IT operations—they’re improving cost efficiency. IT leaders are leveraging automated cloud cost optimization tools to right-size workloads, track under-utilized services, and avoid over-provisioning.

• Strengthen Security to Avoid Costly Breaches and Audits

Cutting security budgets is a short-term gamble that often costs more in the long run. Instead of reducing security spending, IT leaders should look for ways to consolidate security tools and invest in automated compliance tracking to avoid costly vendor audits. A single security breach or licensing penalty can wipe out any cost savings CIOs manage to create.

• Measure Adoption and Impact of IT Investments

Every IT investment should be measured—not just in terms of cost, but in terms of impact. Are employees using the tools IT is paying for? Are cloud services actually improving efficiency, or are they adding complexity? The best CIOs are tracking adoption metrics and making adjustments based on real-world usage data.

Final Thoughts: Cut Smarter, Not Just Deeper

CIOs don’t need to just “cut costs.” They need to spend better. IT is both a cost center and a driver of business innovation—and balancing those realities is what separates reactive budget cuts from strategic IT leadership.

By eliminating waste in SaaS, cloud, and IT operations while reinvesting in security, automation, and smarter IT management, companies can control costs without killing IT’s impact.

🚀 Want to eliminate IT blind spots and optimize spending? Learn how Block 64 can help CIOs centralize IT visibility, optimize cloud and SaaS costs, and protect IT budgets. 

Start a free trial today.

The post IT is Having a ‘DOGE Moment.’ But It’s Not Just About Cutting Costs. first appeared on Block 64.

From underused SaaS licenses to over-provisioned cloud infrastructure, these inefficiencies are costing companies millions every year.

The issue goes beyond just SaaS sprawl. IT leaders must address waste across all categories of technology spend to unlock real savings in 2025.

Here’s a breakdown of the challenges—and opportunities—awaiting IT leaders as they take control of their budgets.

The State of IT Budget Waste

The numbers speak for themselves: IT organizations are leaving money on the table across all major ITAM categories. According to Block 64’s survey:

• 33% of respondents estimate wasting 10% of their IT budget on underused software and SaaS licenses.
• 46% say they waste 25%.
• Even more striking, 17% report wasting half their software and SaaS budget or more.

Hardware and cloud infrastructure fare no better:

• Nearly 45% of IT leaders admit to wasting 10% of their budgets on these categories.
• An additional 36% say they waste 25% of their IT budget, while 14.8% acknowledge losing 50% or more.

The trend aligns with external research. Gartner reports that organizations lose an average of 25% of their SaaS budgets to unused entitlements and overlapping tools. At the same time, cloud spending inefficiencies account for up to 35% in wasted costs, further draining resources.

While organizations are wasting more of their IT budgets each year, they are also spending more overall. According to the Block 64 report, 94% of IT leaders expect their IT budgets will increase over the next three to five years, amplifying the urgency to address inefficiencies and optimize spending.

SaaS and Cloud Costs Are Only Part of the Problem

While SaaS receives plenty of attention, it represents just 12% of total IT spending for midsize enterprises, according to Gartner. Other categories, such as hardware, on-premise software, and cloud infrastructure, make up 39% of IT budgets. Yet these areas often lack the same scrutiny, perhaps because they are less novel than SaaS, leaving major savings untapped.

This disparity raises an important question: do IT leaders truly have a handle on their IT spending?

In the Block 64 survey, 87% of respondents claimed to have sufficient visibility into their IT consumption across software, hardware, and cloud. However, visibility doesn’t always translate into action. In reality, only 58% of organizations actively manage all three categories. Among the remaining 42% who don’t manage all categories, the gaps are striking:

• Just 25% actively manage cloud assets.
• Only 21% actively manage hardware.
• And 35% manage software.

This contradiction highlights a critical challenge: while IT leaders believe they understand their consumption, significant gaps in management leave inefficiencies unaddressed, driving unnecessary costs and risks. To tackle these inefficiencies, IT leaders must adopt more robust IT asset management strategies that encompass all areas of spend—not just SaaS.

Opportunities for IT Leaders in 2025

The good news? IT leaders recognize the potential to turn these challenges into opportunities. According to Block 64’s survey, the top-ranked opportunities for the year ahead include:

1. Improving security footprints (46%).
2. Increasing cost savings (40%).
3. Gaining better visibility into IT assets (37%).

These opportunities reveal a growing awareness among IT leaders about the importance of holistic IT asset management. By adopting platforms like Block 64, organizations can gain complete visibility into SaaS, hardware, cloud, and on-premise assets. 

As IT budgets continue to grow, so does the potential for waste. The data is clear: midsize enterprises that fail to centrally manage their IT assets risk overspending by 25% or more each year. The time for action is now.

About Block 64: Block 64 helps businesses gain control of ITAM spending with its hybrid IT asset management platform. Start your free trial to gain actionable insights into SaaS, software and hardware usage, risks and savings opportunities, today.

The post How Much IT Leaders Waste on Cloud, SaaS, Hardware Budgets first appeared on Block 64.

Microsoft Ignite 2024 just wrapped and there was no shortage of huge Copilot announcements. Let’s rephrase that: There was a relentless stream of big, fascinating, exciting Copilot news. New agents. New security tools. New pricing. It was frankly hard to keep up.

That’s why today we’re going to break down the biggest take-aways and discuss some of the opportunities they give you, the trusted partner.

1. Copilot Actions: Automate Everyday Tasks Like Never Before

Microsoft introduced Copilot Actions, allowing users to automate repetitive tasks such as scheduling emails and compiling weekly reports. This feature is currently in private preview.

Actions streamlines client workflows, helping to reduce manual effort, increasing efficiency and productivity.

Partners might see this as an opportunity to deepen consulting services to implement and customize Copilot Actions for clients, helping them stay competitive and excel in the digital age.

2. New Copilot Agents: Enhancing Team Collaboration

Microsoft also announced a series of new agents that work alongside teams.

Facilitator Agents work within Teams meetings and chats, taking real-time notes. These agents are in public preview for customers worldwide and are available on desktop (Windows/Mac), web, and iOS/Android (consumption only).

The Interpreter Agent provides real-time speech-to-speech interpretation during meetings, and users can choose to have it simulate their own speaking voice. Interpreter will begin with supporting nine languages including Chinese (Mandarin), English, French, German, Italian, Japanese, Korean, Portuguese (Brazil), and Spanish, and will be available for public preview in early 2025.

In Business Chat, Employee Self-Service Agents answer common questions about company policies and other topics such as how to open an IT helpdesk ticket. Microsoft employees are already benefiting from this, seeing a 36% increase in self-help success rate for IT issues. Now available in private preview, it will be available more broadly in early 2025.

By incorporating them into their daily workflows, these agents can transform how teams interact and operate, improving collaboration. For partners, there is an opportunity to help clients create agents tailored to their needs, deepening client relationships with ongoing support and customization.

3. Agents in SharePoint: Transforming Knowledge Management

AI agents are now showing up in SharePoint. They will enable users to turn SharePoint sites and documents into scoped agents that act as subject matter experts.

For instance, a team lead can create an onboarding agent to onboard new team members, providing them with access to the most current information and the source files.

These agents are now in general availability and have already started to roll out, with expected completion by the end of this calendar year.

This enhances knowledge accessibility within organizations, helping clients find information faster (with two billion files added to SharePoint and OneDrive every day, there is certainly a lot of content to sift through)!

Partners might focus on providing training and support to help clients maximize the benefit of SharePoint agents, empowering them to navigate and utilize their information repositories effectively.

4. Quick Machine Recovery & Windows 365 Link: Empowering Every Employee to Work Securely

Windows 365 Link, a password-less device for Microsoft 365, enables desk-based users to securely work on a familiar Windows desktop in the Microsoft Cloud. It is now in public preview and will be generally available for $349 in select markets starting April 2025.

Quick Machine Recovery is a new solution to help customers recover from unexpected disruptions. It also gives admins the ability to execute targeted fixes from Windows Update on PCs even if they’re unable to boot. This feature will be available to those in the Windows Insider Program in early 2025.

There is an opportunity for you to sell and support these devices to help your clients to stay ahead in hardware solutions, and offer secure, cloud-based work solutions to address evolving security needs. By incorporating these devices and features into offerings, you can support your clients during critical times, modernize the workplace, and elevate the standard of IT support.

5. Copilot Analytics: Measuring Adoption and Business Impact

Copilot Analytics will be generally available in early 2025 as a component of the new Copilot Control System. This allows IT and business leaders to measure the adoption and business impact of Copilot and agents. As part of the new Copilot Analytics, Viva Insights will be included in Microsoft 365 Copilot at no additional charge.

Furthermore, the new Business Impact Report, now available in public preview, is designed to help organizations understand how Copilot usage relates to KPIs.

This new capability empowers your clients to see the value of their investment in Copilot, making it easier to plan strategically.

You can harness this data to show the effectiveness of the solution you have implemented, solidifying your role as trusted advisor. These insights also open the door for you to recommend additional services, driving new revenue and deepening your client relationships.

6. Pricing Updates: Introducing Monthly Billing

Keeping up on Microsoft licensing and pricing changes is always key.

At Ignite, several commercial licensing and pricing updates were also announced, including a new monthly billing plan for annual term subscriptions of Microsoft 365 Copilot. Rather than making an upfront annual payment, customers who purchase annual term subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service can choose to pay monthly. This option will be introduced on December 1, 2024, and will cost 5% more than the annual billing option.

Starting on April 1, 2025, Microsoft will standardize the monthly billing price for all new and renewing annual term subscriptions. This standardization will ensure consistency and transparency across all platforms.

Copilot in 2024 was about the hype. 2025 is about adoption.

Despite all the excitement around Copilot, there is still room to improve the adoption journey, and this Ignite session highlighted several key barriers to usage:

• Only 53% of users know what tasks to use Copilot for (“the knowledge gap”).
• Only 46% of users feel equipped to make the best use of Copilot (“the skill gap”)
• Only 37% of users believe they are able to realize the full potential of Copilot (“the confidence gap”)

While 79% of leaders think their company needs to adopt AI to stay competitive, 60% worry their organization lacks a plan and vision to implement AI.

By understanding these key announcements related to Microsoft Copilot and potential adoption hurdles, you can position yourself as a forward-thinking partner ready to help your clients navigate this dynamic landscape, and help them realize their vision.

Want to position your team as the Copilot experts to make adoption happen? We can help.

To uncover your clients’ security needs and build the best path for Copilot for Microsoft 365 adoption, check out Block 64’s Copilot Readiness Assessment. (You’ll get your first eligible client assessment free between now and December 31, 2024.

The post All the Copilot News from Microsoft Ignite 2024 for Partners (Hint: It’s a Lot) first appeared on Block 64.