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2026 IT Budget Surge: Turning 10%+ Increases into ROI vs a Vendor Windfall

Written by Austin Zolman | Feb 26, 2026 5:56:14 PM

The 2026 IT Budget Surge: How to Turn 10%+ Increases into Measurable ROI, Not Vendor Windfalls

The consensus with most analyst firms, is that worldwide IT spending is projected to reach $6.15 trillion in 2026, up 10%+ year over year, driven by an 80.8% surge in AI-related spending, a 31.7% jump in data center systems, and acceleration in software spend - projected to grow by over 14% driven by data analytics, cybersecurity, and integration of AI platforms into core business functions.

At the enterprise level, 75% of CFOs expect tech budgets to rise, and 48% are planning increases of 10% or more. The largest allocations are going to IT, AI, and revenue-generating functions.

At the same time, expected headcount growth is dropping from 6% in 2025 to just 2% in 2026. Boards are sending a clear signal:

    • Spend more on technology
    • Hire fewer people
    • Prove the ROI

That tension is exactly where vendor risk lives.

FinOps 2026: AI Spend Is Now Mission Critical

The FinOps Foundation’s State of FinOps 2026 report confirms what most CFOs already feel.

AI cost management is now the number one desired skill for FinOps teams, cited by 58% of organizations. Nearly 100% of enterprises are actively managing AI spend, up from 63% just one year ago.

FinOps has expanded well beyond hyperscaler cloud bills:

    • 90% now manage SaaS
    • 64% manage licensing, a sharp increase
    • FinOps teams increasingly influence vendor negotiations

The cost control perimeter has expanded from AWS and Azure to Microsoft licensing, Salesforce SKUs, SAP contracts, Oracle Java, and AI bundles embedded across the stack.

The implication is simple. AI cost governance is no longer optional. It is structural.

Vendor-Side Pressure Is Accelerating

At the same time budgets are rising, vendor pricing pressure is compounding.

Microsoft

    • July 2026 global Microsoft 365 and Office 365 price increases, up to 33% on certain tiers
    • November 2025 removal of automatic volume discounts in Enterprise Agreements
    • Heavy bundling of Copilot, Security Copilot, Defender, and other AI features

For many enterprises, the first quote now lands 10 to 30% higher before negotiation begins.

Oracle and SAP

    • Oracle’s shift to per-employee Java licensing
    • Support cost creep across installed bases
    • SAP maintenance increases and pressure to migrate ahead of ECC end of support

Add to that:

    • 5% to 7% annual escalators that compound over multi-year terms
    • Opaque bundling across Salesforce, ServiceNow, and Broadcom VMware
    • AI feature justifications for functionality many enterprises are not yet fully using

CFOs increasingly recognize these costs as structural, not temporary.

The Hidden Five-Year Risk

A 10% uplift in 2026 may look manageable.

Compound 5% to 7% escalators over five years and you are facing 20 to 40% structural growth in vendor spend, before incremental AI add-ons.

Layer on:

    • Shelfware from bundled AI modules
    • Passive renewals
    • Misaligned user definitions
    • True-up exposure
    • No benchmark or exit rights

The result is predictable. Vendors capture the majority of the AI upside.

Turning Budget Growth Into ROI

NET(net)’s methodology is built around one premise: It’s not just about the price. It is about right-buying, right-licensing, and right-pricing, aligned to contract and structural protections

Across multi-supplier programs, we have demonstrated measurable impact. For example, one enterprise healthcare engagement delivered $48.1 million in net savings over 42 months, with a 20% average savings rate and a 972% client ROI

The objective in 2026 is not to cut innovation. It is to prevent waste and structural lock-in while AI investments scale.

A Practical Optimization Framework

    • License Audits and True-Up Avoidance
      • Validate actual entitlements versus deployment
      • Remove redundant SKUs
      • Preempt audit risk
    • Contract Term Optimization
      • Escalator caps
      • Usage protections
      • Benchmark and repricing rights
      • AI-specific addendums
      • Exit and migration flexibility
    • Multi-Vendor Rationalization
      • Overlap elimination across SaaS
      • Consolidation where economically justified
      • Avoiding forced bundles
    • FinOps Visibility Beyond Cloud
      • Extend cost discipline to SaaS, on-prem, and support agreements
      • Align financial governance with procurement and IT
    • Negotiation Timing and Leverage
      • Start 12 to 18 months before renewal
      • Build credible alternatives
      • Structure deals around business outcomes, not vendor quarter ends

Why This Matters for Large Enterprises

Our historical data shows that the most value is created in large, complex environments, particularly across financial services, technology, and healthcare enterprises

These organizations often manage hundreds of millions in strategic IT spend across Microsoft, Oracle, SAP, Salesforce, AWS, and others.

When budgets rise 10% or more, even a 15% to 30% optimization on key suppliers translates into millions of annual impact. That is capital that can fund AI transformation rather than subsidize vendor margin expansion.

Self-Assessment: Are Your 2026 Renewals Optimized?

Before your next major renewal, ask:

    • Are escalators capped and benchmarkable?
    • Do AI add-ons have usage-based off-ramps?
    • Have you modeled five-year compounding impact?
    • Are unused features embedded in bundled SKUs?
    • Do you have leverage, or are you negotiating inside vendor guardrails?

If the answer to any of these is uncertain, you are likely leaving value on the table.

Final Thought

CFOs are right to invest in AI and technology. Growth requires it.

But growth without structural discipline creates vendor dependency, not shareholder value.

The winners in 2026 will not be the companies that simply increase IT budgets. They will be the ones that combine AI ambition with commercial rigor.

Invest aggressively.
Negotiate intelligently.
Make every vendor dollar accountable.

About NET(net)

At NET(net), we don't just optimize IT investments, we weaponize them for competitive advantage. As the world's leading technology investment optimization firm, we've spent over two decades perfecting the art and science of extracting maximum value from technology supply chains while neutralizing vendor pricing manipulation.

Our battle - hardened methodology has influenced trillions of dollars in technology investments, captured hundreds of billions in documented value, and transformed how enterprises approach every facet of IT spend - from emerging technology such as AI, ML, IoT, RPA, Quantum, and Blockchain, to IaaS, PaaS, and SaaS, to enterprise hardware and software solutions, and professional services arrangements including strategic outsourcing relationships.

We're not consultants who theorize about optimization, we're the specialists who help you devise and execute your strategy. Our proven frameworks turn vendor pricing chaos into strategic opportunity, licensing complexity into competitive advantage, and cost centers into value engines. Whether you're facing an aggressive vendor audit, navigating a forced migration, or simply refusing to accept runaway IT costs, NET(net) delivers the expertise, experience, and execution you need to dominate rather than merely survive.

Founded in 2002, NET(net) has established itself as the essential strategic partner for enterprises and technology providers who demand performance, not promises. We've mastered every major area of IT optimization because we understand that in today's vendor-hostile environment, half-measures guarantee defeat.

Experience the NET(net) advantage. Contact us at info@netnetweb.com, visit www.netnetweb.com, or call +1 (616) 546-3100 to discover how we can transform your technology investments from cost burden to strategic weapon.

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