2026 is bringing uncertainty: economic shifts, geopolitical tension, and reshaping priorities. For tech leaders, IT budgeting is one of the most important, inevitable, and often most daunting responsibilities. If your IT provider is reactive instead of proactive, the process feels even more overwhelming. The truth is, the right IT budget isn’t just about controlling costs; it’s about protecting your people, enabling growth, and positioning your company for long-term advantage.
According to Forrester, more than half of IT leaders worldwide plan to increase their budgets in 2026. In this blog post, you will find advice on what to include in your IT budget for 2026, so you can make strategic decisions.
Key Priorities to Include in Your 2026 IT Budget:
Tariffs: Rising Hardware & Software Costs
We have received numerous notices regarding expected price increases in the upcoming months from our vendors and technology partners. If you anticipate upgrades, budget proactively to avoid last-minute surprises. This will affect you, so be prepared rather than react to the situation when needed.
Why you should care: Failing to plan now means unexpected overruns and delayed upgrades later.
Cyber Insurance and Cybersecurity
It’s essential to view cyber insurance not as a replacement for cybersecurity, but as part of a layered risk management strategy. From the budgeting standpoint, you need to think about both the insurance premiums and the security investments to qualify for it.
Premiums are increasing sharply as insurers respond to the rising costs of ransomware, phishing and data loss.
Be prepared with the proper security stack, with the required minimum being:
- MFA (Multi-Factor Authentication): Ensure secure access across all critical systems. Must be used on all critical applications!
- MDR (Managed Detection & Response): 24/7 monitoring to detect and respond to threats. It is an obligatory requirement for getting cyber insurance these days.
- Backups & Disaster Recovery Plan: Regular, tested backups stored securely offsite and a documented recovery plan to get you up and running in case of an IT fiasco.
Why you should care: Competitors are strengthening their security posture, pursuing SOC 2 certifications, which means you risk falling behind if you don’t keep up. At the same time, prospective clients are increasingly making cybersecurity a prerequisite for doing business. Many of our customers have had to add security layers mid-contract just to win new deals. The smarter approach is to invest ahead of time so you’re ready, competitive, and client-approved when opportunities arise.
Artificial Intelligence: Turning Hype Into Practical ROI
While many companies are experimenting, few are leveraging it strategically. AI is changing the way your employees work. At the highest level, it is your job to keep your team educated on how to properly use these tools and keep the data safe.
Not sure where to start? We recommend looking into automation and assistant options. Check out our AI Readiness page or shoot us an email at cybersecurity@waident.com. We can help guide you.
Why you should care: Companies that strategically budget for AI are gaining efficiency and workflow speed, and those that don’t risk falling behind.
Cloud migrations: Reducing Hardware Dependence
2026 might be a good year to explore migrations into the cloud or a data center, to eliminate the costs and risks of maintaining physical hardware. Cloud solutions also provide built-in redundancy and security at a level most organizations can’t match on-premise without serious investments. Most importantly, your business needs scalability and flexibility. Cloud is designed for that.
Why you should care: Moving away from on-premise hardware lowers expenses, strengthens redundancy, and builds long-term scalability of your business.
Extra bonus:
Windows 11 Upgrades: Avoid bottlenecks
Windows 10 end-of-support in 2025 means that many organizations will still be finalizing upgrades in 2026. Budget for licensing, rollout support, and possible hardware refreshes to ensure compatibility.
Why you should care: Windows 10 support is ending, and delaying upgrades leaves your business exposed to security gaps and potential downtime.
Conclusion
It is much easier to build a budget plan than to suffer the consequences of not having one. Being proactive in managing your expenses and potential risks is always better than being reactive. This exercise may sound daunting, but it really is not. Let us help.
For more recommendations, check out our 2025 recommendations list.
