The software and cloud markets are shifting faster than ever. Subscriptions are now the dominant commercial model, cloud economics are under intense scrutiny, and major vendors continue to reshape their portfolios through acquisitions and forced migrations. For organisations across the UK and Europe, these changes are creating both new risks and new opportunities.
As we move into 2026, several clear trends are emerging that will influence how organisations manage licensing, SaaS, cloud and vendor relationships. Here’s what to expect.
1. Subscription becomes the standard and choice shrinks
Most vendors have already accelerated the move away from perpetual licensing, but 2026 will be the year when subscription becomes the only viable route for most enterprise products. Customers should expect:
- Fewer legacy entitlements being honoured at renewal.
- More bundled-only product strategies.
- Increased telemetry use to validate consumption and detect non-compliance.
This shift will strengthen vendor leverage at renewal time, making commercial preparation even more important.
2. Industry consolidation isn’t slowing down
Private equity activity and platform consolidation will continue across 2026. Large vendors are acquiring smaller ISVs to fill cloud, AI or cybersecurity gaps, while infrastructure-heavy portfolios are being rationalised.
Following the seismic impact of recent takeovers in the market, more customers will face:
- Product restructuring or discontinuation.
- Price harmonisation across global portfolios.
- Contract transitions that require careful governance.
Vendor strategy intelligence will become a critical asset during negotiations.
3. FinOps influence outgrows traditional ITAM
Cloud spend optimisation is becoming a board-level priority, and FinOps is increasingly the operating model of choice. By 2026, FinOps will have an even stronger foothold within technology and finance functions.
This does not replace ITAM. Instead, we expect:
- ITAM to evolve into a strategic partner focused on licensing intelligence, risk, and contract governance.
- More integrated operating models combining software, SaaS, cloud and AI cost management.
- Increased demand for a unified view of technology consumption and total cost.
4. AI changes the economics of software and cloud
AI-driven optimisation and AI-powered vendor telemetry will reshape compliance and cost governance. Vendors will embed automation to surface optimisation recommendations, licensing gaps or suspicious usage patterns.
At the same time, AI workloads themselves will become a major source of cost volatility. GPU-intensive training and inference will require new governance approaches, including:
- AI workload cost modelling.
- Consumption guardrails and chargeback structures.
- Policies for validating vendor-generated AI optimisation recommendations.
Organisations that do not build AI cost governance into their operating models will feel the impact quickly.
5. Audits are quietly evolving, not declining
Formal software audits may reduce in frequency, but the underlying risk is not going anywhere. Instead, we are seeing:
- Telemetry-based compliance monitoring embedded in contracts, for example by vendors such as Red Hat and Broadcom.
- Automated usage analysis triggering compliance questions.
- Renewal negotiations being shaped by real-time consumption data, a trend becoming more common across major vendors.
The shift from episodic to continuous compliance will require more proactive oversight.
6. SaaS sprawl and identity governance become priority risks
With subscription models everywhere, SaaS waste continues to rise. As we enter 2026, organisations will increasingly focus on:
- Usage-based entitlement rightsizing.
- Automated provisioning/deprovisioning through identity providers.
- Commercial governance of vendors adopting session-based or event-based billing.
Identity is becoming the control plane for SaaS cost management.
7. Increased regulation influences buying and operating models
UK and EU regulatory pressure is expected to expand beyond finance, affecting:
- Cyber resilience expectations.
- AI transparency and model governance.
- Environmental reporting linked to cloud and software usage.
Procurement and technology governance teams will require tighter alignment to stay compliant.
8. Managed ITAM and FinOps services enter a new growth phase
Skills shortages, vendor complexity and faster commercial cycles are pushing more organisations towards managed or co-managed models. In 2026, we expect strong demand for:
- Outsourced entitlement and licensing management.
- On-demand vendor negotiation expertise.
- Continuous optimisation services for cloud, SaaS and traditional software.
The market is shifting from tools-first to outcomes-first services.
Preparing for 2026: Where to focus now
Organisations should prioritise:
- Strengthening contract governance and protecting telemetry rights.
- Building a single operating model that unifies ITAM, FinOps and GreenOps.
- Evaluating vendor consolidation risk across strategic suppliers.
- Investing in identity-driven SaaS management.
- Developing AI workload cost governance frameworks.
2026 will reward organisations that adopt proactive governance, strong commercial insight and integrated operating models.
As these challenges accelerate, organisations need to move faster and with greater confidence. Independent ITAM consultancy can improve visibility across software, SaaS and cloud estates, strengthen governance and compliance, and identify sustainable cost-saving opportunities. bedigital works alongside organisations across the UK and Europe, providing objective, tailored support aligned to their specific needs and goals.
