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.

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.

There is far too much happening beneath the surface that they simply aren’t able to see or do anything about. It’s like an iceberg.

This is a serious issue, one that leads to unmanaged costs, hidden security risks, and surprise fees. No IT department can afford to operate like this. Which is why we created Block 64.

Block 64 is a comprehensive IT asset discovery and management platform for organizations looking to gain full visibility into their IT infrastructure. It empowers IT leaders to proactively oversee IT lifecycle, ensure compliance, and tackle security vulnerabilities head-on.

In our last article, we talked a little bit about why this is happening. Read all about the Top ITAM Mistakes if you missed it.

In this article, we will go through some of our key solutions and show you how Block 64 solves the visibility crisis, transforming the way organizations manage their IT environments.

1. Lifecycle Management

What is Lifecycle Management?

Lifecycle Management involves overseeing the entire lifespan of IT assets—including hardware, software, and cloud infrastructure—from acquisition through to decommissioning. It’s about ensuring these assets are optimized, secure, and up-to-date throughout their use.

Why is it important?

Every IT asset has a finite lifespan. Neglecting to monitor their end-of-life (EOL) status can lead to unexpected downtimes, security vulnerabilities, and inflated maintenance costs. Operating on outdated hardware or software not only risks operational efficiency but also misses opportunities for cost-effective upgrades.

This is not a fringe concern. According to our Benchmarks for CIOs research, 37% of organizations are running unsupported SQL servers, and 52% are operating with unsupported Windows Server versions. Similarly, the report, which analyzed more than 250,000 endpoints across hundreds of North American businesses, found that 44% of IT hardware is beyond warranty. Aging, outdated and unsupported IT infrastructure is a serious, ubiquitous issue.

How Block 64 Solves It

Block 64 automates the tracking of assets across your entire IT landscape, delivering real-time insights into the age, usage, and performance of every component. For instance, the platform proactively flags systems nearing their EOL, allowing you to schedule replacements or upgrades before failures occur. This preemptive approach eliminates reactive replacements and surprise downtimes. By automating lifecycle tracking, Block 64 reduces manual effort and ensures no asset slips through the cracks.

Value Delivered

• Reduced Downtime: Prevent unexpected system failures by replacing assets before they fail.
• Cost Savings: Avoid expensive, last-minute upgrades and capitalize on cost-effective technology advancements.
• Resource Optimization: Free up IT personnel from manual tracking tasks, allowing them to focus on strategic initiatives.
• Enhanced Security: Mitigate risks associated with obsolete systems that are more susceptible to vulnerabilities.

2. Security & Vulnerability Management

What is Security & Vulnerability Management?

This practice involves the continuous identification, assessment, and remediation of risks within your IT environment. As new vulnerabilities emerge, IT teams must stay vigilant to prevent potential breaches.

Why is it important?

Unaddressed vulnerabilities are gateways for cyberattacks, leading to data breaches, financial losses, and damage to your organization’s reputation. In an era of sophisticated and evolving threats, proactive vulnerability management is critical to safeguarding your infrastructure.

How Block 64 Solves It

Block 64 offers continuous scanning of your IT environment, pinpointing security vulnerabilities across all endpoints. It identifies risks such as outdated software versions, missing patches, or system misconfigurations. For example, Block 64’s insights revealed that 74% of endpoints were exposed to critical vulnerabilities in a recent benchmark report. Armed with this information, IT teams can swiftly apply patches, upgrade software, or adjust security policies before these vulnerabilities are exploited.

Value Delivered

• Proactive Risk Mitigation: Address vulnerabilities before they can be exploited.
• Time Efficiency: Reduce the time spent manually tracking and prioritizing threats.
• Resource Allocation: Focus efforts on the most critical vulnerabilities based on severity.
• Enhanced Security Posture: Strengthen defenses against potential cyberattacks.

3. Compliance & License Management

What is Compliance & License Management?

Compliance management ensures your IT environment adheres to regulatory and industry standards. License management involves tracking software usage to prevent over-licensing (wasting resources) or under-licensing (risking penalties).

Why is it important?

Software audits can result in unexpected fees if licenses aren’t properly managed. Over-licensing leads to unnecessary expenses, while under-licensing exposes you to legal risks and potential fines during audits. For example, our Benchmarks research showed that 63% of businesses are running legacy versions of Java – putting them at risk of massive price increases due to changes in Java licensing.

How Block 64 Solves It

Block 64 provides real-time tracking of software usage and licensing across your organization. It delivers detailed insights into software utilization, helping you determine whether you’re compliant with licensing agreements. For instance, the platform can alert you when you’re approaching or exceeding license limits, allowing corrective action before an audit. Conversely, it highlights underused licenses, enabling you to reallocate or discontinue unused software subscriptions.

Value Delivered

• Cost Avoidance: Prevent financial penalties associated with non-compliance.
• Optimized Spending: Eliminate costs from underutilized licenses.
• Audit Preparedness: Maintain readiness for audits with accurate, up-to-date licensing information.
• Operational Efficiency: Save time by automating license tracking and compliance reporting.

4. Cloud & Copilot Planning

What is Cloud & Copilot Planning?

Cloud planning involves evaluating and migrating suitable IT assets to the cloud to enhance efficiency and reduce costs. Copilot planning focuses on preparing your IT environment for AI-driven tools like Microsoft Copilot, ensuring compatibility and optimal performance.

Why is it important?

Strategic cloud migration can lead to significant cost savings and operational improvements, but missteps can result in overspending and resource misalignment. Similarly, integrating AI tools requires careful preparation to avoid performance issues and security vulnerabilities.

How Block 64 Solves It

Block 64 assists in identifying which assets are prime candidates for cloud migration by analyzing resource utilization and interdependencies. For example, it can spotlight underutilized servers that, when migrated, optimize cloud expenditure and efficiency. In terms of Copilot planning, Block 64 ensures your infrastructure is secure and compatible with AI tools, facilitating a smooth and effective rollout.

Value Delivered

• Cost Optimization: Migrate only necessary assets to the cloud, avoiding unnecessary expenses.
• Efficient Migrations: Streamline the migration process with data-driven insights.
• AI Integration: Accelerate the adoption of AI tools like Copilot without compromising security.
• Future-Proofing: Prepare your IT environment for emerging technologies and innovations.

Ready to Transform Your IT Environment?

Experience the transformative power of proactive IT management with Block 64. Sign up for a free trial and gain full access to our platform—no commitments required. Devote just 30 minutes per week to your personalized dashboard, and witness the immediate value we bring.

👉 Start Your Free Trial Today

Don’t let outdated practices hold your organization back. Embrace the future of IT management and unlock your team’s full potential with Block 64.

The post Visibility Crisis: How Block 64 Solves Modern ITAM Challenges first appeared on Block 64.