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- 💸 Microsoft's 2025 licensing shift hits CIO budgets
💸 Microsoft's 2025 licensing shift hits CIO budgets
Microsoft Licensing Shake-Up, Hidden IT Waste Revealed, New CIOs at Builders Vision and Michael Baker International
Zack Tembi
May 06, 2025
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Welcome to this week’s edition of CIOsurge!
This week:
Microsoft’s 2025 licensing changes add a 5% premium for monthly billing, urging CIOs to reassess subscription strategies.
Enterprises are reclaiming millions through proactive IT audits, cutting waste from unused licenses and unnecessary hardware.
Builders Vision and Michael Baker International appoint new CIOs to drive sustainability, innovation, and AI-led transformation.
Let’s make this week a game-changer.
Stay sharp. Stay ahead.
💸 Microsoft's 2025 licensing shift hits CIO budgets
Starting April 2025, Microsoft adds a 5% premium for annual subscriptions billed monthly, impacting Microsoft 365 and Dynamics 365 licenses. CIOs face critical choices: upfront payments or added costs for monthly convenience, highlighting the urgency for strategic billing and careful license management under the New Commerce Experience.
CIOs, it's clear Microsoft is nudging us toward annual payments by charging a premium for monthly billing—even when we've committed for the full year. At scale, that seemingly small 5% can rapidly balloon into significant budget strain. Our challenge? Clearly segmenting which parts of our workforce genuinely require flexibility, and which don't.
This pricing change underscores how crucial proactive license management is becoming. It’s no longer enough to "set and forget"—we must regularly audit our user base, forecast future requirements accurately, and align subscription terms strategically. The savings achieved through rigorous governance can free up funds for innovation, turning Microsoft's changes into an opportunity rather than just another cost to swallow.
- Zack Tembi
💡 Hidden IT waste costs enterprises millions
Enterprises are uncovering staggering hidden tech waste, such as a major bank saving $9.6M by eliminating unnecessary laptop refreshes and another firm reclaiming $4.3M from unused software licenses. Leveraging data-driven insights and AI, CIOs are shifting from reactive IT management to proactive strategies, transforming IT from a cost center into a growth driver.
If there's one universal truth in enterprise IT, it's that hidden waste is everywhere—often lurking behind accepted practices like annual laptop upgrades or unchecked license renewals. The big takeaway for CIOs? Visibility through real-time data is your best weapon. When we clearly see what’s truly needed, we cut costs dramatically and reallocate resources to drive strategic business initiatives.
The era of reactive IT is fading fast. Leveraging AI-driven analytics and automation isn't optional anymore—it's fundamental. We must proactively identify and address issues before users ever notice them. The payoff? Massive operational savings that can be redirected to fuel innovation and improve the digital employee experience. This is how IT transitions from keeping the lights on to lighting the path forward.
- Zack Tembi
💬 Zack's Take
📈 Leveraging Marketplace Partnerships for Easier Procurement
In a world of tightening budgets and increasing oversight, streamlining procurement has become more critical than ever. One strategy we're actively pursuing at Single Fin is partnering directly with cloud marketplaces—like Amazon, Azure, and Google—to simplify procurement. This means clients can easily access and deploy our solutions using credits they've already committed to their cloud providers.
Beyond convenience, marketplace partnerships help CIOs strategically leverage their existing enterprise agreements. Rather than fighting new budget battles internally, leaders can tap into pre-allocated cloud spending, smoothing out friction in the procurement cycle and accelerating deployment timelines.
If you're looking to optimize spend and ease adoption, explore the marketplace offerings from your cloud providers. It’s a smart way to stretch your dollars, simplify onboarding, and quickly bring in trusted solutions without creating new budget headaches.
🗞️ At A Glance
💡 CIO Spotlights
Billionaire Lukas Walton taps Noelle Laing as CIO for Builders Vision family office
Noelle Laing steps up as CIO at Builders Vision, Walmart heir Lukas Walton’s family office, where she'll consolidate investment teams managing multi-billion-dollar assets focused on sustainability and impact investing.
Laing previously led Builders Vision’s $1.7 billion philanthropic arm, shifting 90% of its endowment toward mission-aligned investments in energy, food, and ocean health sectors.
Walton emphasized Laing’s role as 'instrumental' in aligning strategies across philanthropy, startup funding, and large-scale co-investments to amplify Builders Vision's environmental impact.
Michael Baker International appoints Devendra Kumar CIO to spearhead digital transformation
Devendra Kumar has been named CIO at Michael Baker International, tasked with leading IT strategy, digital transformation, and the implementation of generative AI tools to modernize client services.
Kumar, previously interim CIO, drove key initiatives including an AI-powered proposals chatbot and user communities for tools like Power BI and M365 Copilot, and formerly led digital strategy at Black & Veatch.
CEO Brian A. Lutes highlighted Kumar's collaborative approach in integrating emerging technologies, essential to positioning the firm as an innovator in infrastructure and consulting services.