Technology Budgeting for 2024

IT budgeting has become a cornerstone in financial planning due to heightened reliance on digital solutions for improved productivity and competitiveness.

As we look ahead to steer businesses through 2024, the emphasis lies in crafting a budget that not only addresses pressing requirements but also scales in alignment with long-term goals. 

A carefully planned IT budget is essential for maximising resource efficiency, aligning technology investments with business goals, and supporting well-informed decisions that contribute to sustainable growth.

Before we provide a comprehensive overview of technology budgeting, let’s take a look at the latest tech trends that could yield significant returns and shape the IT landscape in the new year, as discussed in our previous blog. It’s the perfect time to review emerging technologies and trends for consideration in your IT budgeting process.

We’ve condensed the key insights from Gartner’s Australia IT Spending Forecast 2024 for your quick overview. 

Discover the key steps in crafting a well-structured IT budget with this concise step-by-step walkthrough. 

Adapted Technology Investment Strategies for Different Budget

Enriched Small Budget Strategy

• Focus on strengthening foundational technologies.
• Invest in robust networking infrastructure for reliable connectivity.
• Establish small-scale data analytics capabilities for insights and informed decisions.
• Prioritise cybersecurity to protect digital assets. 

Amplified Medium Budget Strategy

• Upgrade network connectivity for faster and more reliable internet.
• Invest in comprehensive data management solutions for better storage and utilisation.
• Deepen AI integration across business processes.
• Explore extended reality (XR) and blockchain technologies for innovation. 

Advanced Large Budget Strategy

• Invest in cutting-edge connectivity solutions like AI-enabled cloud networking and 5G.
• Implement an extensive AI strategy with advanced machine learning models.
• Explore advanced XR applications for immersive experiences.
• Venture into emerging technologies like Web3 and quantum computing for industry-shaping innovation. 

Three (3) Best Practices for Technology Budgeting 

1) Align IT Investments with Business Goals

• Evaluate each project’s contribution to overarching organisational goals. 
• Align resources judiciously with business priorities. 
• Consistently monitor and evaluate ongoing projects for sustained alignment. 

2) Choose Cost-Efficient Technologies

• Explore open-source software alternatives to reduce expenses without compromising quality. 
• Utilise virtualisation to minimise hardware costs, energy consumption, and enhance resource efficiency. 
• Embrace cloud computing for scalability and adaptability, transitioning to operational expenditure frameworks. 

3) Regularly Review and Optimise Expenses

• Conduct scheduled audits of IT infrastructure to eliminate redundant systems and services. 
• Engage in vendor negotiations for improved pricing terms and enhanced value. 
• Track software licenses and subscriptions to avoid fees for unused services.

By embracing these insights, you can align your technology investments with business goals, optimise resource allocation, and prepare for future needs. 

What are your 2024 tech goals? 

At New Era Technology, rest assured you’ll find the perfect solutions tailored to your business requirements.

Let’s discuss how we can collaborate to achieve your 2024 tech goals. 

Information for this blog post was sourced from Pluralsight,  Gartner, ISTT, Inc., Forbes, and Splunk.