Where’s my money going?
That’s the question on a lot of executives’ minds. Over the past few years, they’ve invested millions into tech—SaaS, AI, digital transformation—you name it. But despite all those dollars spent, the value isn’t always as clear as they’d hoped.
Software costs have been steadily climbing, and 2025 looks like more of the same. In fact, nearly 80% of organizations saw their software budgets grow this past year, often due to pricey new AI features. And according to Forrester, IT budgets are set to go up by another 5.3% next year, with 9 out of 10 CIOs bracing for bigger bills. But here’s the catch: many of those budget bumps will just cover inflation, so CIOs are being forced to look hard at what’s really driving value in their tech stacks.
This means one thing—it’s re-evaluation time. With SaaS sprawl and shadow IT piling up, CIOs are having to make some tough calls on what to keep, what to cut, and how to streamline operations. So what’s on the horizon for 2025? Both Gartner and Forrester are predicting that the big bucks will go toward projects that show real value, with a balance between short-term wins and long-term innovation.
And with GenAI starting to move past the “hype” phase, CIOs are shifting their focus to building a connected infrastructure—one that brings together data, processes, and people.
So grab a coffee, settle in, and let’s get into it. This is Inclusion Cloud’s ultimate roadmap for CIOs to tackle what’s next in 2025.
Let’s jump in!
Trend #1: Strategic SaaS Procurement to Combat Sprawl and Tame Technical Debt
Use it or lose it—that’s the theme for 2025.
If you’re a CIO, you’ve probably felt the impact of “SaaS sprawl” firsthand. It starts small: one department picks up a new SaaS tool here, another team finds a solution there, and before you know it, you’ve got a full-on sprawl—a tangle of disconnected tools, each solving an immediate need but creating hidden costs and complexities.
So, what’s the problem?
It’s not just the mounting subscription fees, although those certainly add up. The real issue is that each isolated app introduces technical debt into your ecosystem. Think of technical debt like clutter in a house—each tool that isn’t fully integrated with the others requires extra “maintenance” in the form of workarounds, manual processes, and support. Over time, this debt compounds, forcing IT teams to spend resources managing chaos instead of driving innovation.
Gartner projects global IT spending to jump to $5.75 trillion in 2025, one of the biggest growths we’ve seen in the last couple of years, partly fueled by the need for infrastructure to support AI. But if this spending just goes toward managing a chaotic sprawl of single-task apps, CIOs won’t see the full value of their investments.
So, how do you get on top of it? Start by tackling SaaS sprawl with a clear procurement strategy—one that doesn’t just greenlight new tools but considers how they fit into your broader digital landscape.
Here’s the goal:
CIOs need to become the “architects” of their company’s tech stack, designing a streamlined system where every app has a purpose and a place. This means implementing procurement practices that prevent the sprawl from getting worse while making sure each new tool fits seamlessly with existing systems. Here’s how to make it happen:
- Centralize SaaS Management: A centralized system for SaaS purchases lets you keep a bird’s-eye view of all tools, eliminating the rogue purchases that often lead to sprawl. It’s like having a single entryway to your digital ecosystem—you know exactly what’s coming in.
- Evaluate for Integration Potential: Every new tool should be evaluated not just for its capabilities but also for how well it “plays” with existing systems. If a tool doesn’t integrate easily, it may end up isolated, creating the need for custom solutions, which piles up technical debt.
- Adopt FinOps Practices: Rising cloud costs mean that CIOs need financial insights into their software usage. A FinOps approach tracks app usage, optimizing for cost-effectiveness and ensuring that you’re only paying for tools that provide real value.
These procurement strategies give CIOs the power to cut back on redundant and underused tools, addressing the technical debt from disconnected applications. IT spending might be on the rise, but inflation hasn’t gone away, leaving executives with the challenge of stretching their budgets. That means trimming unnecessary apps and redirecting resources to fuel innovative projects (which we’ll dive into a bit later).
Trend #2: Agentic AI Governance: Are You Prepared for Autonomous Machines?
We’re at the gates of the next-gen of automation and decision-making.
If you’re accustomed to reading tech blogs, you’ve probably seen Agentic AI at the top of every trend list. In fact, Gartner has chosen it as the number one priority on CIOs’ agendas and predicts that by 2028, at least 15% of day-to-day work decisions will be made autonomously.
And as Gen AI is passing from the hype phase to the phase of disillusionment, it’s clear that many expectations (and dollars) will be directed toward AI agents. But this doesn’t mean that Gen AI should be completely forgotten. Instead, it means IT leaders will identify the limits and use cases for the technology, leaving behind the highly inflated expectations that have been building up.
It’s fair to say that Agentic AI is the natural evolution of Generative AI, because it’s powered by the same technology—LLMs—but adds layers of autonomy that allow agents to act independently, make data-driven decisions, and adapt over time. All without needing constant human input.
Why CIOs need a governance framework for autonomous agents
With the rise of Agentic AI comes an urgent need for a robust governance framework. Autonomous agents, like Salesforce’s Agentforce or Oracle Autonomous Database, operate with minimal human intervention. While this brings efficiency, it also raises ethical concerns about privacy, control, and compliance. If these agents have access to critical data and decision-making capabilities, CIOs need to set guardrails to maintain oversight and prevent potential risks.
Data plays a central role in Agentic AI’s effectiveness. The quality, accessibility, and governance of data directly impact the decisions made by these agents. Without investing in data quality and proper governance, organizations risk wasting resources on inaccurate analytics and poorly informed decisions. A solid data governance strategy, including best practices in DataOps, is essential for managing data access, quality, and security—ensuring that autonomous agents operate responsibly and align with organizational values.
Ethics and trust in agentic AI
The autonomy of AI agents introduces new ethical considerations. Unlike traditional tools, these agents act without direct human oversight, which raises questions about transparency, fairness, and privacy. Implementing an ethical framework is essential to ensure that these agents operate within defined boundaries:
- Builds transparency
- Protects sensitive data
- Adhere to data privacy and ethical standards
Trend #3 Don’t Just Collect Data—Activate It with Knowledge Management
With the skyrocketing amount of data being generated every day, the real challenge isn’t just collecting it—it’s turning that data into actionable knowledge. And just as importantly, it’s about getting that knowledge into the hands of the people who need it most, when they need it.
Knowledge is the bridge that connects past experience with future innovation.
The world’s most valuable companies aren’t just sitting on mountains of data; they know how to transform it into action.
In 2025, this transformation will be critical as CIOs prepare to leverage multicloud environments, with 64% of tech leaders already recognizing multicloud as a catalyst for innovation. In fact, by 2025, over 80% of CIOs are set to prioritize investments in cybersecurity, Gen AI, and data analytics—all key ingredients for tapping into the true potential of knowledge management.
Imagine a workplace where employees don’t waste valuable hours hunting for information. Instead, a well-designed, centralized knowledge system captures and shares insights across every team, allowing everyone to access reliable, consistent information in seconds. This ensures cohesion in every process that a company has.
And as AI tools like virtual assistants, copilots, and recommendation engines become integral to workflows, a well-organized knowledge base provides the context needed to deliver more precise outcomes for the employees who interact with them.
Trend #4 Stop Fires Before They Start: Proactive Problem Management for 2025
Imagine running a complex IT operation—when systems go down unexpectedly, it’s like a chain reaction of issues, impacting productivity, customer experience, and even revenue. In 2025, IT leaders are moving beyond putting out fires; they’re focusing on preventing those fires from starting in the first place with Proactive Problem Management.
Proactive Problem Management (PPM) is a core part of IT Service Management (ITSM) frameworks, particularly ITIL, which emphasizes structured approaches to managing IT services.
Unlike reactive approaches, which focus on fixing issues after they occur, PPM aims to identify and resolve root causes of incidents before they impact the whole organization. ServiceNow is the leading platform to manage IT services and their studies show a huge impact on Fortune 500 companies by appling these practices and the right tools in place:
- 68% reduction in service maintenance
- 30% increase in incident resolution productivity
- 30% decrease in incident volume
With the growing complexity of the tech stack—often fueled by SaaS sprawl and “spaghetti architecture”—the need to take a proactive approach is fundamental to avoid the potential loss of millions of dollars due to downtime and inefficiencies.
For these reasons, consider a platform like ServiceNow to streamline your IT operations and turn a potential crisis into a manageable task.
As a ServiceNow partner, we can help you leverage Gen AI to automate and optimize your IT operations. Ready to make IT more efficient and resilient? Let’s talk!
Trend #5 Deepfake Phishing Threats Are Rising—Are You Protected?
Your CEO might not be your CEO.
It could be yet another deepfake phishing attack.
And that’s not just speculation—it’s already happened. A high-ranking executive at Ferrari was recently targeted by a cybercriminal who used AI to impersonate their CEO, mimicking their voice almost perfectly in a WhatsApp call.
This type of attack can cost a company dearly, not only financially but also in terms of brand reputation. With 95% of cyber threats caused by human error, this isn’t likely to change soon. What’s evolving, however, is the power of AI tools that criminals now wield to steal data and inflict economic damage. In fact, deepfake frauds rose by an astounding 3000% in 2023 alone.
To protect your company’s interests, consider these best practices for combating these new synthetic cyberthreats:
- Educate employees on what deepfakes are and how they can be used maliciously.
- Implement multi-factor authentication (MFA) and confirm communications through known channels.
- Use advanced detection software to identify synthetic and manipulated content.
- Encourage caution in online sharing, as personal information can be exploited.
- Regularly review privacy settings on social media and other platforms.
Trend #6 Get the Best of Each Vendor with Multi-Cloud Environments
AI is expanding fast, much like a tree with branches reaching out in all directions, creating a complex network of technologies that depend on strong roots—reliable cloud infrastructure, efficient data storage, and robust processing power.
Multi-cloud environments are now a must for CIOs navigating this tech ecosystem. Nearly 95% of CIOs have a multi-cloud strategy in place, and more than half (52%) currently use multiple cloud providers—a figure set to reach 90% in the next five years.
But what do multi-cloud setups offer organizations?
Leveraging multi-cloud setups allows organizations to tap into the best features of each vendor, giving them the flexibility to move workloads seamlessly while reducing dependency on a single provider. In a globalized, post-pandemic world, having multiple providers supports business continuity, fast scalability, and compliance with regional data regulations.
However, this complexity requires careful monitoring to keep cloud costs under control.
Trend #7 AI Initiatives Will Drive Cloud Spending Up
Your cloud budget might just keep growing.
Despite your best efforts, cloud costs are soaring. Nearly three-quarters of companies blew past their cloud budgets last year, and tackling this has become a priority for CIOs everywhere. Many are turning to FinOps and real-time monitoring for better control. But here’s the twist—hidden charges, multiple storage tiers, and scattered SaaS apps keep cloud visibility murky.
And AI is only making it harder. AI initiatives are spreading everywhere, demanding infrastructure and processing power that can support fast, complex growth. Gartner projects IT spending will hit $5.75 trillion by 2025, with data center investments skyrocketing nearly 35% this year to meet AI demands.
Yet, here’s the challenge: ROI isn’t always immediate or obvious. Companies are pouring funds into cloud resources to support AI, but much of the infrastructure powers internal systems rather than delivering direct revenue. These invisible returns can make investors hesitant, and without a measurable impact on the bottom line, it’s easy to question the value.
Still, AI’s hunger for high-capacity computing isn’t slowing down, and neither is the need for strong cloud roots. The investment is inevitable. In a world where AI innovation is the competitive edge, cloud strategy becomes the backbone of resilience, agility, and sustained growth.
Trend #8 Strengthen Your Backbone with Enterprise Integration
Without integration, tech is just an expensive collection of tools.
The average organization uses nearly a thousand applications, yet only 28% of those apps are fully integrated. This creates data silos, inefficiencies, and ultimately wasted potential. The reality is that adding the latest tech—whether it’s AI, GenAI, or multicloud platforms—won’t yield real ROI if your data, platforms, and processes aren’t in sync.
As highlighted in this article, the current landscape is marked by challenges like SaaS sprawl, shadow IT, and technical debt. For CIOs, building an integrated enterprise is the way forward, especially within what’s now known as the “API economy.” APIs have become the backbone of digital business, driving over half of all internet traffic, and 74% of companies have already embraced an API-first approach to keep data and processes connected.
In practice, your approach to integration will depend on the specific needs of your organization. APIs are key for connecting individual systems, while iPaaS (Integration Platform as a Service) solutions like MuleSoft Anypoint, ServiceNow IntegrationHub, Snowflake, and Boomi provide centralized hubs to streamline complex integrations and manage data flows. For companies with extensive legacy systems, a Hybrid Integration Platform (HIP) or an Enterprise Service Bus (ESB) can be invaluable in seamlessly bridging both old and modern technologies.
The key here is to start the integration process, once and for all! You’ll find the right methodology along the way—and working with experts can make it simpler. The first step in any digital transformation is building a connected stack, making sure that your data and accumulated organizational knowledge are readily available to those who need it.
Only 48% of digital initiatives across enterprises meet or exceed their business outcome targets, according to Gartner. Often, this is due to silos and a lack of a complete view of operations because of fragmented systems. Always think about the big picture: when adding new software, don’t just consider the specific problem it solves, but also how it integrates with the existing technology stack.
Do You Have the Right Resources to Be Ready for 2025?
It’s one thing to know all the latest tech trends and strategies—but without the right resources, how can you move forward? Every business is different, and that’s why you’ll need tailored strategic consulting to make sure your efforts are headed in the right direction. And don’t forget—specialized talent is crucial to bring your 2025 plan to life.
Ready to get started? Book a call with us today and let’s begin shaping your 2025 IT strategy. Also, make sure to follow us on LinkedIn for more insights and updates on how to stay ahead of the curve!
