In some companies, technology is the second biggest cost after payroll. Subscriptions, licenses, services, and tools that never stop.
Over time it becomes the CTO's daily worry. The pressure builds: cut the cost without hurting the company. And the focus usually goes straight to swapping tools for cheaper ones and sitting through endless vendor meetings about contracts and unused licenses.
But there is a second, more dangerous problem. You start to find departments subscribed to their own tools, because they "like them" and are "comfortable" with them. That is not just extra cost. Those are tools outside your control, and a possible door for fraud against the company that you are the last to know about.
A capable CTO maps everything and works out where to tighten. And starting now beats delaying. Every month you wait, the subscriptions grow, the cost grows, and the problem grows.
Five ways I have controlled tech spend
After more than 20 years, these are the methods that served me well.
1. Do not give everyone what they ask for
Always ask two questions first: why do you need this, and is there an alternative?
2. Default everyone to the lowest license
For tools with tiered licenses, where each tier gives certain features and storage (email is a good example), put everyone on the lowest tier possible. Whoever needs more will ask. That is far easier than surveying each employee, or downgrading their license and bracing for the reaction. Most people do not care whether you save money, and many will think "why cut mine, I deserve it?" I have applied this in several companies, and a large share of employees never even noticed their license had dropped. The ones who complained genuinely needed it, so I upgraded them.
3. Negotiate with vendors, and negotiate from strength
Cancel what is overpriced or pointless. And when you negotiate, you must be the stronger party. Do not let the vendor know you depend on them. Make sure they know there is an alternative and that they cannot twist your arm.
Once, a vendor cut our service in the middle of the workday, with no warning, because we were late on some invoices. The intention was for me to come begging so they could say: now pay. The surprise was my reply. I sent them a formal email that came down to this: thank you, this is my formal request to end the relationship. Goodbye.
4. Route all tech purchases and payments through you
Agree with finance that no request to buy a tech tool goes through except via you, and that all payments run through you, whether a purchase order you approve or a company card that stays with you. That is how you actually control the spend.
5. Be the only Super Admin
Be the Super Admin on every platform and tool, and grant access only to those who truly deserve it. The moment someone else can add users, the problem begins: suddenly you are facing accounts you never created, and the whole budget lands on you.
I have many examples of cutting cost. Here are a few (without company names, to protect privacy):
A per-branch monthly subscription of 3,600 SAR dropped to 635 SAR.
A service with a one-time 200,000 SAR upfront fee plus 200 SAR per branch each month became zero upfront and 70 SAR per branch.
A commission of 1.7% taken on every sale became 0.85%.
A company tried to fine us 10 million SAR over incorrect use of their licenses. In the end we paid around two million.
Of course, some of these points and examples do not apply to large companies with mature procurement and sales governance. But that does not mean their costs are in good shape. The principles are universal, the application differs by organization.
The company trusted you and placed you in this seat to protect its money. You are the custodian of it.
And you? What have you done to save your company money?
I have spent more than 20 years leading technical teams and cutting the waste that quietly builds up around them, in tools, in spend, and in licenses. If your tech bill keeps climbing and you are not sure where it is leaking, you can submit a request and tell me what you are dealing with. No commitment, just an honest conversation.