What can IT budget holders, ITAM and IT procurement leaders expect in 2025?

Depending on which reports you read, the global economy is either going to grow (Goldman Sachs), or we could be facing a recession (BCA research) or there is simply a lot of uncertainty (SPS Global). Whenever there is economic uncertainty, one thing is certain: budgets are watched even more closely.  

Which is why in 2025, Livingstone will be doing even more to help clients optimize what they have, find cost savings, and reduce their risk. We asked some of our consultants and experts for their predictions on what they expect to see in 2025 to help you prepare for the year ahead: 

Software prices will go up  

Despite some recent news from Microsoft about a slight price decrease for Commercial Cloud Services in the UK due to price harmonization, IT budget holders will have to factor in significant price increases from most vendors in 2025.  

For example, all licenses for Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Dynamics 365 and Power Platform including Power BI, that are consumed on a pay-monthly basis on CSP, MCA-E, and Buy Online will increase by 5% from 1 April 2025. Meanwhile Power BI will jump by up to a huge 40% in price from this date. 

IBM’s annual global price harmonization takes effect on 1 January 2025, with prices increasing by up to 7%. Similarly, SAP support agreements will auto-renew on 1 January 2025 unless customers have acted, with the renewal increase capped at 5%. And Salesforce announced a 9% average price increase for its cloud products, including Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau.  

With prices increases, it becomes increasingly important to optimize your Bill of Materials before you sign any new contracts to cut waste. 

AI will revolutionize ITAM 

It’s already been happening, but in 2025, expect AI to be a core part of your IT Asset Management processes if you want greater efficiency and more strategic decision-making. For example, GenAI can now interpret complex licensing agreements saving an enormous amount of time, while autonomous AI agents will be capable of proactively optimizing software usage and reallocating licenses, ensuring cost-effectiveness and compliance. All of this is good news for your IT budget and your team’s productivity. 

The combination of predictive analytics, real-time data and external risk factors will also offer far more accurate software demand forecasting while mitigating risks. As multi-cloud environments grow, AI tools will seamlessly manage SaaS, IaaS and PaaS portfolios, to automate optimization and galvanize operational agility. Discover how Livingstone's Contract Intelligence is using AI to transform the contract management process.

Oracle Cloud, AI and vertical solutions will grow 

In 2025, Oracle will focus heavily on advancements in cloud computing, AI integration, and sector-specific solutions, especially in healthcare and enterprise applications. While Oracle’s Cloud offerings have been slower to take traction than the other hyperscalers, it has been growing its Infrastructure as a Service (IaaS) offerings and strengthening partnerships with Azure and AWS. This multi-cloud strategy will enhance its global reach. 

The company is also embedding AI across its services to optimize business operations and decision making. This includes AI-driven analytics for predictive insights and automation capabilities to streamline workflows​. A standout initiative is Oracle’s next-generation electronic health record (EHR) system. This platform integrates AI to simplify clinical workflows, enhance patient care with personalized treatment plans, and improve operational efficiency in healthcare systems. This system is designed to address longstanding issues in legacy healthcare technology​. 

While the solutions offered from Oracle may be tempting, they come with complex licensing. We strongly urge organizations to speak to Oracle licensing experts like Livingstone to optimize your contract before signing.  

Budgeting will get harder 

Rapid technological changes make it harder to predict future needs or to know which of the new technologies like AI, blockchain or advanced cybersecurity solutions will provide the best ROI.  The complexity of multi-cloud environments and the increasing reliance on subscription-based models (SaaS, IaaS, PaaS) will lead to unpredictable costs, as businesses may struggle to forecast future usage or price changes in these services. 

The cybersecurity criminals aren’t taking a year off either. As the threats evolve and AI adds to cybersecurity complexity, organizations may struggle to budget for new security tools and personnel. Plus, the costs associated with breaches, compliance requirements and evolving regulations with further complicate budgeting efforts.  

Be ready to embrace GreenOps 

In 2025, there will be a stronger emphasis on transparent reporting, with AI-driven tools enabling real-time monitoring and reporting of ESG metrics. 

GreenOps will evolve by using more advanced technologies such as AI and machine learning to optimize energy consumption, reduce carbon footprints, and ensure efficient resource usage across IT infrastructures. Automation will play a critical role in dynamically adjusting operations to be more energy-efficient, particularly in data centers, cloud environments, and edge computing. 

Livingstone combines AI with a team of experienced experts to drive cost-savings for clients while reducing their risk and improving operational efficiency. Get in touch to find out how we can help you in 2025. 

 Insights provided by: 

 Andy Gray, Senior Consultant, SAM at Livingstone 

Gareth Redshaw, Snr. Director – Optimization & Negotiation Consulting, Livingstone 

Ben Dove, Principal Consultant for Oracle, at Livingstone