Budget Advisory

Annual Software Budget Planning Calculator

Answer 7 questions to evaluate the robustness of your software budget planning process and identify improvement opportunities.

15-20%
Budget Overrun Risk
7
Questions
3 min
To Complete
Question 1 of 7Budget Advisory
Question 1 of 7
💰
Do you have a forward-looking view of all software renewals for the next 12-24 months?
Knowing what renews and when is the foundation of budget planning. Surprise renewals cause budget overruns.
Complete 24-month renewal calendar
12-month view of major renewals
Partial view — major gaps
No forward renewal visibility
Question 2 of 7
📈
Do you factor in vendor price uplifts when planning budgets?
Annual uplifts of 3-10% must be included. Without uplift planning, budgets are automatically short.
Uplifts modelled for all vendors
Major vendor uplifts included
Uplifts not systematically included
Uplift impact not considered
Question 3 of 7
👥
Do you account for headcount changes in licence cost projections?
Growing headcount increases licence needs. Shrinking headcount may not reduce costs if contracts lack reduction rights.
Licence costs linked to HR headcount forecasts
Major products adjusted for headcount
Growth included but not systematically
Headcount changes not reflected in licence planning
Question 4 of 7
📦
Do you plan for new software requests from the business?
Unplanned software requests are a major source of budget variance. A pipeline of anticipated needs improves accuracy.
Formal pipeline of business requests maintained
Major initiatives planned, smaller requests ad-hoc
Most new software is unplanned
No mechanism to anticipate new requests
Question 5 of 7
📊
Do you include a contingency buffer for unexpected costs?
Audits, compliance gaps, unplanned renewals, and emergency purchases create budget surprises.
10-15% contingency included and justified
5-10% contingency included
Small contingency, often consumed early
No contingency buffer
Question 6 of 7
🔄
Do you run cost optimisation before finalising the budget?
Proactive optimisation (right-sizing, rationalisation, renegotiation) before budget lock reduces baseline spend.
Comprehensive optimisation review annually
Major vendors reviewed for savings
Occasional opportunistic savings
No proactive optimisation
Question 7 of 7
📜
Who owns the software budget and is accountable for variance?
Clear ownership and accountability improve budget discipline and outcomes.
Designated owner with executive accountability
IT/procurement owns with finance oversight
Shared ownership — accountability unclear
No clear budget ownership

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