Too much can go wrong or be overlooked. A variety of vendors specialize in technology expense management TEM), which encompasses telecommunications, mobility, cloud, networking, software, and related accessories. However, not every provider delivers on assurances or commitments.
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What this report covers:
Executive Summary
Key Stakeholders
Chief Information Officers, Chief Technology Officers, Chief Financial Officers, Finance Directors and Managers, Procurement Directors, Telecom Directors and Managers, Mobility Directors and Managers, IT Architects, Vice President/Director/Manager of IT Operations, DevOps Managers, System Architects, Product Managers, IT Sourcing Directors and Managers, IT Procurement Directors and Managers.
Why It Matters
Technology Expense Management (TEM) solutions can help companies with the IT Rule of 30. The IT Rule of 30: stating that every unmanaged IT spend category averages a 30% opportunity to cut costs, including telecom, mobility, cloud, and software. However, realizing this 30% is highly dependent on selecting the right solution with the correct criteria. This report provides four important considerations as companies select a proper TEM solution.
Top Takeaway
Remote work, powered by cloud services and mobility, is here to stay. Enterprise IT must take steps now to protect the organization’s finances. Every dollar spent on technology must serve a purpose, and every asset and service must meet a need. To optimize the financial environment of the IT ecosystem, we recommend avoiding the common pitfalls documented in this report to effectively partner with a strong TEM vendor and cement positive financial outcomes.
Look Out: Avoid These 4 Pitfalls When Choosing a TEM
There’s No Time – or Money – to Waste
Remote work and digital transformation became reality for enterprises en masse. This shift set the stage for new ways of operating over the long term. Even though a fair number of businesses intended at some point to return to at least some in‑office presence, most still saw remote as the mainstay model of the future.
That adaptation came with two major consequences related to technology. First, as the pandemic spread throughout the world, IT departments suddenly had to support employees with cloud‑ and mobile‑first technologies — and many headed into that challenge less than prepared. Second, as a result, organizations almost instantly shifted spending: rushing to add cloud services and licenses and more mobile devices and connectivity, while shutting down premises‑centric networking and applications.
Warning: Some important governance got lost along the way. Enterprises will absorb the impact of all that movement and digital transformation for years. While much of this comes with perks (e.g., happier employees, lower overhead), it also exposes a pressing reality: many enterprises lack the tools and skills for managing unfamiliar and fluctuating technology expenses. Now, organizations must fix that problem or keep hemorrhaging thousands — or millions — of dollars for no defensible reason.
Enterprises Under Pressure
Four Key Pitfalls
Pitfall 1: Hindered Insight Into Inventory
The pressure for enterprises to correct and properly oversee technology expense management will only grow. We see two primary motivations for this: more spending and, at the same time, more emphasis on accountability.
Consider that Gartner predicts worldwide IT spending will increase 4% as organizations implement more digital transformation initiatives, mainly for remote work. Broken down, Gartner says firms will funnel more money into projects including data center systems, enterprise software, devices, and communication services.
These spend categories house plenty of nuance. For instance, regarding data center systems, the majority of this growth will come in supporting cloud providers such as Amazon, Microsoft, and Google, rather than in traditional data centers.
Key Trend: Legacy landline telecom spending declining 10% as organizations shift to wireless and SaaS.
For communications, the projection is that legacy landline telecom will decline by 10%, as much of this spend diverts to both wireless telecom and Software as a Service expenses.
Key Trend: SaaS spending growing 25%+ as organizations choose cloud over on-premises.
For Software as a Service, it will grow by more than 25% as organizations opt for SaaS over premises‑deployed applications.
As this all takes place, enterprise leaders will apply ever‑greater scrutiny to technology spending. In line with that, 22% of chief information officers say they are concerned about technology rollouts straining company financials, according to a study conducted by McKinsey & Company. And yet, they cannot pause digital transformation if they hope to compete with strength and agility in “the next normal.” Therefore, heads of IT inevitably will face responsibility for ensuring the enterprise spends well on its technology and manages all associated expenses with thoroughness.
Too much can go wrong or be overlooked. A variety of vendors specialize in technology expense management (TEM), which encompasses telecommunications, mobility, cloud, networking, software, and related accessories. However, not every provider delivers on assurances or commitments.
Picking the first TEM that comes along may well backfire. As a longtime, on‑the‑ground expense management analyst firm, We understand the financial chaos that erupts when a TEM either does not manage, or mismanages, technology. Signing with a TEM that fails to follow through on promises and capabilities will cause long‑lasting, hard‑to‑reverse pain, often in the form of the pitfalls below.
Solution: Verification, transparency, and access.
It happens again and again: an IT manager needs details about the enterprise’s inventory but comes up against deficiencies within the TEM system. The most common issues? Outdated audit results and the inability to drill down by line item to the inventory details of circuits, devices, and services.
What’s the deal with audits?
An audit reveals a static, one‑time glimpse into the state of an enterprise’s IT environment. It may or may not be accurate, depending on whether all circuits, devices, licenses, and other assets were accounted for during data gathering — and whether the data is still current. Amalgam Insights has repeatedly witnessed the turmoil that arises when relying on a single snapshot audit, especially since an audit typically becomes obsolete within six to twelve months. Rates change. Lines get disconnected, yet the organization continues to pay for them. Employees leave, but their cloud application licenses and services remain active. All this skews costs and causes overpayment.
To prevent this situation, look for a TEM that verifies inventory on an ongoing basis. We recommend the provider perform platform‑assisted audits regularly — quarterly or even monthly — assisted by real‑time inventory and a mature TEM practice. Experts should delve into every aspect of the IT environment to uncover significant service, asset, and licensing anomalies. A frequent audit cadence combined with painstaking exploration furnishes a valid and reliable inventory. Optimization can only be correct when the data feeding it is equally precise.
Okay, what about inventory?
One of TEM’s value propositions lies in having a centralized inventory database. This means IT uses one platform to view all circuits, devices, and services, as well as their associated information. Ideally, drill‑down details will include service addresses (not the same as billing addresses), circuit speeds, features, and long‑distance carrier codes. Such accessibility and visibility allow managers to allocate costs, provide support, and manage change. Effective and thorough TEM hands enterprises the power to do that, in part by enabling insight into inventory details. Look for a TEM that supplies this level of intricacy.
On the whole, a top‑tier TEM will conduct regular audits and test circuits. This will give clear insight into the current state of the IT environment and point to any inaccuracies that require correction. Such a TEM also will provide inventory details so IT managers may allocate expenses by code, or pinpoint services and devices as needed.
Business Value Takeaway — Shifting Time to Higher‑Level Activities: IT managers and their staff save time when they don’t have to hunt through old audits or spreadsheets, or fight for invoice or account information. This frees employees to focus on strategic matters that empower the enterprise — optimizing environments, upgrading circuits and services, and aligning IT services and inventories to business needs.
Pitfall 2: Locked‑In Contracts That Amplify Enterprise Risk
Solution: Flexibility and guaranteed satisfaction.
Now, more than ever, enterprises could use the chance to test a TEM vendor before locking into a typical three‑year contract — and do so without fear of penalties should something change. Some TEM companies grant a test period or proof of concept. This is a low‑risk opportunity: IT departments work with governance and security to clinch initial buy‑in and trial expense systems. The trial should not access sensitive data but should allow a specific window to work with the TEM across defined activities.
The most appealing offers go beyond a trial period and also eschew penalties for backing out of a contract. This adds risk for a vendor. However, some TEMs invite that risk because they have the people, processes, technology — and track record — to back their promises.
Business Value Takeaway — Risk Mitigation and Informed Decision‑Making: Test periods let managers evaluate potential TEM vendors without rush or commitment. They avoid initial cash payments before the solution passes muster, and no‑risk contract language lets enterprises pivot according to their needs.
Pitfall 3: The TEM Makes Recommendations Based on Provider Commissions
Solution: The TEM is transparent about incentives and aligns to the customer’s best interests.
Many TEM vendors partner with telecom service providers and equipment manufacturers as agents or resellers, earning commissions. Some keep that commission — which can make sense if the vendor is open with the end user about the relationship. Others return commissions to the customer in the form of credits (often on new contracts). If a TEM receives commissions, it may show enterprise pricing as a lower rate that is then made up on the back end. Some require customers to buy services through them. Investigate the commissions stance to avoid lock‑in that may result in spotty service and/or paying more over the contract term.
Providers that credit the enterprise in some way or reduce fees based on commissions go above and beyond to ensure satisfaction. Do not switch carriers or device brands just to get some commission; the provider must check all the requisite boxes. When that occurs, receiving a cut of the sale is simply a bonus.
Business Value Takeaway — Cost Savings: Any time IT can add money to the organization’s financials — or clearly save it — leadership takes notice, especially in a tight economic climate.
Pitfall 4: Inexperienced or Un‑Dedicated Support on Each Initial Contact
Solution: Account‑specific personnel with regional expertise.
Support gaps often show up as time‑zone mismatches, language barriers, excessive movement among support tiers, and lack of carrier expertise or account knowledge. When vetting TEM vendors, don’t overlook support:
- Easy access to support. Enterprise IT should easily reach the TEM support team — without chat mazes, FAQ hunts, or phone trees for enterprise‑grade needs.
- Support‑staff location. Staff should match regional time zones and language usage, and understand the regional business environment.
- Trained, dedicated teams. Standout vendors pair each customer with a dedicated team that knows stakeholders and the account’s technical and financial attributes.
Business Value Takeaway — Operational Efficiency and Time Savings: Strong TEM support gives time back to strained IT departments, accelerates troubleshooting and onboarding, and improves overall efficiency in managing IT costs and inventory.
Vendor Profile: Tellennium
Tellennium targets businesses with technology environments based in the United States and U.S.‑headquartered multinationals spending most of their technology budgets in the U.S.
Based in Kentucky, Tellennium manages network, mobile, cloud, software, and other enterprise expenses. It differentiates on invoice processing and reporting, U.S.‑based support, and depth of inventory that allows for frequent and accurate auditing.
Tellennium extends guaranteed‑satisfaction clauses. As part of its flexibility, Tellennium offers a Savings Trial before an enterprise commits to signing. The length varies by customer, but includes a one‑time audit and optimization of spend and inventory information the client wants analyzed, access to Tellennium’s expense management platform, and technical support. Tellennium positions this with a guarantee that savings will outweigh fees, or the client will not pay. During the trial, Tellennium’s software and people can assess some non‑IT spend categories (e.g., utilities and waste) to provide a more complete spending picture. When procuring carrier services, Tellennium passes received commissions directly to the client and does not require purchasing through partners.
Our Recommendations
The process of choosing a TEM vendor can consume excessive amounts of IT managers’ time and cause frustration. It doesn’t have to be that way. With that in mind, here are selection criteria to look for:
- Granular detail for each device, service, and feature, cross‑charged to person, department, and/or project; updated monthly as service orders, invoices, and inventory are reconciled.
- A meaningful trial of your current environment: implementation, account management, help desk support, data integration, and other critical aspects — with payment terms aligned to a fully functional deployment that demonstrates savings.
- Multi‑area savings realization, including: unused mobile devices or those assigned to departed employees; high‑rate or over‑configured plans; unused or over‑sized wireline; unused and/or over‑stuffed SaaS licenses.
- Support for additional spend categories (e.g., utilities, waste, labor, real estate).
- No‑fault operation if you want to change vendors — TEMs should win on service, not contractual lock‑in.
- Hands‑on validation of the support team — communications, technical knowledge, and service‑provider experience should match stakeholder expectations.
Conclusion
Remote work, powered by cloud services and mobility, is here to stay. Enterprise IT must take steps now to protect the organization’s finances. Every dollar spent on technology must serve a purpose, and every asset and service must meet a need. Partner with a strong TEM vendor to cement those outcomes.
Fortunately, the TEM selection process has matured in significant ways. The onus falls on CIOs who want to optimize cost structure and save millions of dollars to take advantage of the highest‑quality TEM services. Use these recommendations to conduct due diligence that yields measurable business value and customer satisfaction.
KELLY TEAL
Senior Research Analyst
About The Author
Kelly Teal authors many of AOTMP Research & Advisory’s reports, from Analyst Perspectives and Market Landscapes to vendor whitepapers, Anatomy of a Decision insights and more. Thanks to a background diverse in technology journalism, Kelly is able to write with versatility across AOTMP Research & Advisory’s practice areas. This has cultivated a skillset that allows her to speak to the range of issues enterprises and vendors face amid the ever-changing telecom, mobility and IT management climate. Web content updated August 1, 2025. Original documents preserved as published.
How Tellennium Helps Organizations Succeed
Tellennium is an enterprise expense management company, founded in 1999, traditionally known as Telecom or Technology Expense Management (TEM). Tellennium provides organizations with technology, proven processes, and solution-consulting expertise to efficiently manage enterprise expenses.
Tellennium’s platform, Management of Things® (MoT®), was recognized by business and technology leaders at the AOTMP Engage conference as the Hottest New IT Solution of 2021.
Tellennium’s SaaS-based software platform, MoT®, helps organizations gain full visibility and control over their network, mobility, utilities, waste, & IT spend.
MoT® provides automation workflows and facilitates the identification of billing errors and optimization opportunities, both of which drive expense management savings for the enterprise.
MoT® supports several spend categories and is fully backed by regionally based support teams and guaranteed client satisfaction. The platform technology
is highly configurable to support the custom needs of each organization, and reporting dashboards can be individually tailored to support unique customer
requirements.
Contact us to schedule a demo and see MoT® for yourself.