CIOs across Southeast and Northeast Asia face a brutal budgetary paradox today: board-mandated surges in AI and cybersecurity investments clashing directly with flat overall IT expenditure.
According to IDC and Forrester, while regional tech spending is rising, geopolitical risks and inflation are eroding real purchasing power. Consequently, technology leaders are forced into aggressive reallocation.
They must defer legacy ERP upgrades, consolidate SaaS contracts, and renegotiate vendor support to fund digital priorities without expanding the top-line budget, turning run-rate IT optimisation into a critical strategic lever for margin protection. This shift is redefining the CIO role.
In this PodChats for FutureCIO, we explore why IT budget strategies need to shift from cutting waste to driving innovation. For more on this, we are joined by Seth Ravin, CEO of Rimini Street.
Setting the Macro Context
1. With overall IT budgets remaining largely flat across Asia despite surging AI demands, how are CIOs fundamentally restructuring their 2026 budget cycles to accommodate these new priorities without asking for more money?
The Core Trade-off: AI vs. Legacy
2. In your conversations with customers, when boards ring-fence AI and cybersecurity spend, which specific legacy IT projects or 'run rate' operations bear the brunt of the cuts?
3. You have highlighted the deferral of ERP upgrades; what are the operational and technical risks CIOs are willing to accept by pushing these critical modernisations down the line?
Executing the Cuts: ERP, SaaS, and Cloud
4. How are enterprises leveraging third-party enterprise software support models to immediately free up capital. Is this shifting from a tactical cost-saving measure to a strategic boardroom lever?
5. Beyond traditional on-premise legacy systems, are we now seeing CIOs aggressively consolidating SaaS contracts and even renegotiating hyperscaler cloud commitments to fund AI initiatives?
Regional and Sector Nuances
6. CIOs at different sectors: manufacturing, healthcare, logistics, and financial services, approach how they manage their IT budgets. Are there distinct budget-cutting patterns or unique pressures specific to these sectors in the Asian market?
The CIO and CFO Dynamic
7. How has the conversation between the CIO and CFO evolved in the region? Are finance leaders now driving IT vendor renegotiations, or is the CIO leading this charge to protect innovation budgets?
Strategic and Financial Implications
8. Looking beyond 2026, if AI and cyber costs continue to scale without a corresponding increase in overall IT budgets, is the current model of funding them purely through legacy cuts sustainable?
9. Let’s round out what we’ve covered so far. Our topic is IT budget strategies for focusing on innovation and not cost-cutting. What are your top 3 recommendations for IT budget strategies for focusing on innovation and not cost-cutting?