Let’s face it, the end of 2025 will be here before we know it, and many businesses are turning their attention to 2026 budget planning. For most companies, technology is one of the largest operational investments, and one of the easiest areas to underbudget without realizing it. Beyond the obvious expenses like hardware upgrades and software renewals, there are hidden costs that can impact your bottom line if you are not prepared. We will explore five of the most common hidden IT costs to consider when planning your 2026 IT budget.
Data Storage Growth
As your business grows, so does your data. Many organizations underestimate how quickly storage fills up, particularly with companies that handle high-resolution media, large project files and increasing compliance requirements. Without proper planning, your business may face unplanned overages, slowdowns or even emergency purchases at premium pricing.
How to Avoid It:
- Conduct an annual data audit to track usage trends
- Invest in scalable cloud storage solutions that can grow with your company
- Implement data lifecycle management policies to archive or delete unnecessary data
Cybersecurity
Cyber threats evolve rapidly, and businesses need to invest in robust security measures to protect their data. Make sure that you leave room in your budget for cybersecurity enhancements. Without the proper cybersecurity protections, your business could risk fines, reputational damage and time-consuming remediation if an incident occurs.
It is also important to incorporate cybersecurity insurance into your budget. While premiums are already on the rise, the hidden costs come from the strict compliance requirements insurers place on policyholders. In 2025, over 40% of cybersecurity insurance claims get denied because the company did not follow all of the requirements. This means that even companies paying thousands of dollars for coverage were left without financial protection after a breach. In 2026, cybersecurity insurance requirements may increase, making compliance even more critical to avoid costly claim denials
How to Avoid It:
- Budget for ongoing security tools
- Schedule annual cybersecurity trainings to prevent user related breaches
- Stay informed with regulation updates to budget for potential cybersecurity enhancements before there is an emergency
- Assess cybersecurity insurance requirements as needed to increase your protections to continue to qualify for policy’s coverage
- Contact a trusted IT company to review attestation and determine if your company has the right coverage
Cloud Services
As teams adopt more cloud-based platforms, costs can rise exponentially if licenses are going unused or services are duplicated across teams. It is crucial to carefully evaluate the usage and services that go along with your cloud resources in order to optimize your subscriptions.
How to Avoid It:
- Perform quarterly audits of all subscriptions
- Consolidate platforms where possible to reduce overlap
- Use centralized procurement processes when it comes to purchasing new tools to reduce spending
Network Infrastructure
Businesses will often focus their budgets on the obvious technology upgrades like hardware and software updates but can neglect important infrastructure updates such as routers or Wi-Fi systems. Without proper upgrades, these can lead to slowdowns, security vulnerabilities and unexpected downtime.
How to Avoid It:
- Conduct a network health assessment in your annual planning
- Plan for scalable upgrades to support increased device usage and bandwidth needs
Support and Maintenance
With all the upgrades and enhancements that your team is planning, investing in support to maintain your systems is equally important. If you do not have a managed IT provider, the costs for regular management, system updates or troubleshooting can add up quickly.
How to Avoid It:
- Include ongoing support and maintenance into your yearly budget.
- Regularly review aging systems to reduce maintenance demands
- Consider partnering with a managed IT provider that provides services for a predictable monthly cost
At Progressive Computer Systems, we help businesses by delivering innovative, reliable and secure IT solutions for any budget. From network infrastructure planning to cybersecurity and managed IT support, we are here to ensure your 2026 technology investments align with your business goals. Contact us today to start a conversation and start your new year with confidence.
