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Planning Next Year's Software Budget With Planning Workbench

How MI One's Planning Workbench projects next year's software budget from real contracts using inflation, SaaS uplift, headcount, savings and contingency drivers.

By the MI Solutions SAM team8 min read2 exhibits

Planning Workbench in MI One builds next year's software budget from the contracts you actually have. Each budget line is linked to its contracts, adjusted by explicit drivers, and given a decision, so the budget shows not just a number but how you got there.

The drivers

Exhibit 1
Planning Workbench bridges baseline to projectionExample: $14.2M baseline to $15.06M projection, $K$14,200KBaseline+$180KInflation+$520KSaaS uplift+$310KHeadcount−$430KEfficiency+$280KContingency$15,060KProjectedAxis starts at $13,000KExample figures. Uplift and headcount drivers apply only to tagged budget lines.
DriverWhat it does
General price inflationApplies a general percentage increase
SaaS price upliftApplies expected vendor increases to tagged lines
Headcount growthScales tagged per-user lines with hiring
Efficiency savingsApplies planned reductions
Contingency bufferAdds a reserve for unplanned needs

See software spend forecasting for the method behind the drivers.

Decisions per line

Every budget line carries a decision, such as keep as-is, renegotiating or not renewing, so finance and owners see what each number assumes.

Exhibit 2
A decision on every line shows what the budget assumesShare of next year's budget value by recorded decision, example portfolio95%of budget value hasa decisionKeep as-is62%Renegotiating29%Not renewing4%No decision yet5%Example figures. 'No decision yet' is the list for the next renewal review.

Step by step

  1. Start from the baseline

    This year's budget lines, linked to their contracts.

  2. Tag lines

    With the drivers that apply: uplift, headcount, efficiency.

  3. Set driver values

    Agreed with finance.

  4. Record decisions

    On every line, starting with the largest.

  5. Review the projection

    Against the baseline in your reporting currency, and adjust.

After planning

Track planned versus actual month by month. See planned vs actual.

Get started

Frequently asked questions

Can we model several scenarios?

Planning Workbench is designed for scenario planning; compare options before you commit.

Does it handle multiple currencies?

Yes, contracts keep their own currency and plans are shown in your reporting currency.

Who should use it?

The SAM lead and the IT finance partner together, with vendor owners confirming decisions on their lines.

See where your software budget goes

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Keep reading

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