The Hidden Economics of Tech Decisions: Are You Paying 300% More Than You Should?
I wasn’t planning on writing about this—but when a CTO friend called in a panic over a freshly approved $1.2M “AI transformation” budget, I knew it was time to expose a hidden cost in enterprise tech spending.
“I know we’re about to waste at least half of this money—but I have no idea which half.”
That statement isn’t an isolated fear. Over the past five years, my team and I have saved clients over $4.5M by identifying and eliminating unnecessary tech spending. And here’s what we’ve learned:
The 3X Tax: Paying for Peace of Mind
When companies buy new technology, it’s not just about the code or hardware—it’s about buying psychological relief. Here’s what they’re really paying for:
Fear of falling behind competitors: “If we don’t buy this now, we’ll be left in the dust.”
Fear of missing out on the next big thing: “Everyone else is using AI; why shouldn’t we?”
Fear of looking incompetent: “I need to show leadership that I can innovate.”
Fear of career risk: “If this fails, it’s on my record.”
Tech vendors know how to stoke these fears and then position their solution as the ultimate safety net. This “3X Tax” means you’re paying a premium—sometimes up to 300% more—just to feel secure.
The Price vs. Value Matrix: A Closer Look at Your Spend
After analyzing over 50 enterprise tech implementations across various industries, a pattern emerged. Consider this simplified breakdown:
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