What a technology budget includes
A technology budget groups spending across software, cloud, security, support, and maintenance. The goal is visibility and avoiding “subscription creep”.
Typical categories
- SaaS: per-seat tools.
- Infrastructure: hosting, compute, databases.
- Security: backups, monitoring, protection.
- Support: maintenance, consulting, services.
- Ops: domains, licenses, training.
A 6-step method
1) Inventory your tools
Include owner, cost, renewal, seats, and real usage.
2) Mark critical vs optional
Prioritize tools that keep operations running.
3) Normalize to annual cost
Convert everything to yearly cost for comparison.
4) Add growth assumptions
New hires, projects, seasonal peaks.
5) Reserve a buffer
10–15% for unexpected changes.
6) Review quarterly
Prevent paying for forgotten subscriptions.
FAQ
Which KPI matters most?
Cost per seat and the percentage of underused tools.