IT Spending is Out of Control

The answer? IT Financial Management

2025 continues the trend of the last few years and looks unlikely to abate anytime soon. Let’s look at the external costs.

The large hyper-scalers are AI-mad and investing heavily in the new arms race of technology. This trickles down to the resellers who increase their costs also.

Tech vendors in all parts of the market are pushing for continued sales growth so this is reflected in increases in licensing, managed and professional services. I looked at a local provider and they are $300 / hour for the base personnel!

Internally, organisations are continuing to roll out projects and manage BAU growth. They are also trying to get a grip on the ever-increasing technology debt, and shadow IT creep, whilst trying to find budget relief through the identification of underutilised licensing and professional services contracts.

To say contracts and managing costs have become increasingly complicated is an understatement.

IT budgets are stretched thin to breaking point.

So, how do you take back control of your IT financials?

IT Financial Management (ITFM)—a structured approach to tracking, optimising, and reducing IT costs without disrupting business operations.

How much are hidden IT costs costing you?

Without proper ITFM in place, IT budgets often leak money in ways that go unnoticed until it’s too late. Some common areas where costs spiral out of control includes:

Shadow IT

Employees bypass IT to purchase their own tools and subscriptions, leading to security risks and duplicated costs. (I did see a server under a desk once that was apparently off the network and used for dumping financials...)

Unused Software Licenses

Many organisations pay for more licenses than they use, wasting thousands every year. Who has left and why have they still got licensing for 365?

Cloud Cost Overruns

Unmonitored cloud usage leads to unexpected billing surprises and budget blowouts.

Duplicate or Redundant Tools

Without a centralised view, businesses often buy multiple tools that serve the same function. Why do we have 35 tools to do 3D modelling? And is anyone in the business using them?

Poor Contract & Vendor Management

IT teams often miss renewal dates or fail to negotiate better terms, leading to higher costs. Where is the central repository for contracts? Do it provide updates on renewal dates?

What is IT Financial Management (ITFM)?

ITFM ensures you are understanding, optimising, and aligning IT spending with business goals. ITFM provides financial transparency across teams, helping organisations track costs, allocate budgets efficiently, and make smarter investment decisions.

Let’s Get IT Spending Under Control

STATE3 Enterprise ITFM: Smarter IT Financial Management for Your Business

Managing IT finances isn’t just about cutting costs—it’s about making technology spending work for your business. With STATE3 Enterprise ITFM, organisations gain control, visibility, and strategic insight into IT investments, contracts, and vendor relationships.

What Does STATE3 Enterprise ITFM Deliver?

✅ Manage

By centralising your IT contract and vendor management your team can

Track all IT contracts and vendor agreements
Understand your vendor and contract risk profile
Run impact assessments to understand how contracts affect business operations

✅ Analyse

By understanding your IT spend with in-depth analysis and visualisations, your team can

Break down and reassign IT costs by department, project, or business unit
Identify inefficiencies and optimise technology investments
Gain insights into total cost of ownership (TCO) across IT assets and services

✅ Control

By controlling and streamlining the process of contract renewals and vendor performance, your team can

Automate contract renewals, approvals, and compliance tracking
Avoid surprises with proactive renewal alerts and vendor negotiations
Ensure new contracts align with business and IT strategy

ITFM is No Longer Optional.

Without ITFM, businesses risk wasting millions in IT spend.

But with STATE3 Enterprise, IT teams get full financial visibility, control costs, and optimise IT budgets without sacrificing innovation.

Are you ready to take control of your IT finances?

Let's talk about ITFM