How Do IT Budgets Really Work: The Suite Spot

The State of the CIO Survey reports that the majority of CIOs are involved in purchasing decisions about IT spend at some level, whether or not they control it directly. However, when a partnership is formed between the leader and IT teams, CIOs are significantly more likely to be involved with approving the solution purchase (71%) and making the final vendor selection (64%) than in companies where IT is viewed as a cost center or service provider.

Powered by RedCircle


Removing the fog of acronym war and delivering the value commentary needed to make complex technologies work for businesses, The Suite Spot is a fireside chat with IT leaders about all topics IT and OT, striving to bring clarity to the business value of traditional tech topics. On this segment of The Suite Spot, hosts Carlos VargasPaul Lewis and Howard Holton  take on IT Budgets and chew over how they really work in large and small organizations alike.

“CIOs rarely control how they spend IT money. In other words, it’s rarely their decision on how their budget gets split into certain types of transactions. But they sometimes, and sometimes more often than not, but just sometimes control when they spend money, and that might be monthly or quarterly. Sometimes, the bigger the organization it might in fact be weekly. And what they usually do control, though, is what they’re spending money on. And the reason why is because most (people) outside of IT don’t know what that IT spend is,” Lewis stated. “They wouldn’t know a firewall from a compute device from capacity and storage. They’re just words to them.”

“Ultimately, the budgets are still divided into these buckets,” explained Holt. “You have an operating expense budget—these are things you spend money on but that are not depreciated; they’re not owned assets by the company. Then you have a cap ex budget, and these are assets that are owned by the company and depreciated over time. That’s probably the most valuable thing for people who don’t have any kind of finance background or any serious P&L to understand because those things are handled drastically differently for tax purposes. And thus, the CFO cares a lot on what those two buckets are.”

According to Holt, the IT/CIO relationship in small organizations tends to be tight, which although allows for more influence on how money is spent, but with stricter budgets. In larger organizations, however, you have more freedom of cash and budget. Regardless, shifting funds from one bucket to another is not something that is ever going to be done on the fly in any organization of any kind.

Make Sure to Subscribe to The Suite Spot to Stay Up to Date!

Follow us on social media for the latest updates in B2B!



facing adversity head-on
Facing Adversity Head-On: Leadership Insights From Charmeachealle Moore
July 23, 2024

Welcome to “Through the Storm,” where resilience and facing adversity head-on takes center stage. If you were to look up the word in the dictionary, you might just find a picture of Charmeachealle Moore, known affectionately as Mike Moore. His life story reads like a testament to unwavering determination and perseverance. Mike is a…

Read More
Breaking the Cycle and Inspiring Others
July 23, 2024

Nowadays, the traditional path to education is being questioned more than ever and there are numerous stories that provide a beacon of hope for those considering alternative routes. As the number of adults without a high school diploma reaches nearly 22 million in the United States, the importance of understanding and embracing non-traditional education…

Read More
School Safety and Regulatory Compliance
Approaching Safety and Regulatory Compliance with Intent and Purpose
July 23, 2024

In this episode of School Safety Today by Raptor Technologies Michelle Dawn Mooney sat down with special guest, Carrie Mockler, the Vice President of Operations at PublicSchoolWORKS, a Raptor Technologies company. PublicSchoolWORKS is a fully automated, all-in-one learning management system for online training for school staff and a comprehensive risk management program. Key Takeaways: •…

Read More
The Power of Self-Compassion in Leadership and Cognitive Diversity Can Transform Workplaces
July 23, 2024

Mental health and a sense of belonging are critical issues in today’s workplaces. So much that it is essential to practice self-compassion and form a better understanding of cognitive diversity. Leaders today must navigate the complexities of fostering connection and reducing isolation among their teams. Recent studies indicate that 40 percent of employees feel…

Read More