How Platform Engineers Can Justify Budget for New Tools

As planning season kicks off, Platform Engineers are faced with the challenge of justifying budget for new tools. Securing buy-in for these investments can be difficult, but the right tools are essential for scaling development, reducing bottlenecks, and increasing efficiency. This article explores how Platform Engineers can build a compelling, data-driven case for tooling investments that align with organizational goals and enhance developer productivity.

Why Platform Engineering Tools Are Essential Investments

Platform engineering tools have become crucial in today’s complex engineering environments, where the cost of inefficiencies—such as duplicated efforts, lack of standardization, and scattered workflows—can add up quickly. The right tools empower Platform Engineers to support developer productivity, streamline workflows, and reduce operational costs, which in turn helps the entire engineering team operate more efficiently.

Recent studies confirm the benefits of effective tooling. For example, an IDC study on developer productivity found that organizations with integrated platform engineering tools see a 20–30% increase in developer productivity. This improvement not only frees engineers from repetitive tasks but also allows them to focus on high-impact work.

Key Metrics for Justifying Platform Engineering Tool Investments

For Platform Engineers aiming to secure budget, presenting data-driven metrics is essential. These key metrics can provide concrete evidence of a tool’s impact on engineering efficiency and overall business outcomes:

Total Cost of Ownership (TCO)

Assess the TCO of the tool by evaluating all associated costs, including licensing, maintenance, and potential training. This can be particularly compelling when comparing multiple solutions or considering a transition from internal workarounds to purpose-built tools.

Return on Investment (ROI)

ROI quantifies how much value the tool will bring relative to its cost, which is especially useful in demonstrating benefits like productivity gains or time saved. According to Forrester’s ROI study, developer productivity tools typically deliver an ROI of about 200% over three years, with tangible benefits appearing within the first few months.

Payback Period

The payback period measures how quickly a tool’s cost will be offset by savings or productivity gains. This metric can help justify tools that reduce repetitive tasks or streamline workflows, as these benefits often begin materializing soon after implementation.

These metrics lay the foundation for a persuasive argument, giving decision-makers a clear picture of both the operational and financial advantages.

Benefits of Platform Engineering Tools for Developers and the Entire Team

Effective platform tools don’t just boost productivity—they also positively impact developer satisfaction and retention. Studies like the Puppet State of DevOps Report show that developers with access to high-quality tools report higher job satisfaction and lower rates of burnout. Engineers can work more autonomously, reducing reliance on platform support and minimizing frustration with outdated or inefficient processes.

By framing the investment in terms of team morale and productivity, Platform Engineers can build a more holistic case for tooling that resonates with leadership’s goals of talent retention and operational efficiency.

Aligning Platform Engineering Tools with Business Objectives

To enhance buy-in, it’s crucial for Platform Engineers to align tooling benefits with broader business goals. For example:

• If time-to-market is a high priority, look for tools that reduce Mean Time to Recovery (MTTR) or improve deployment speed.
• If security is a major focus, emphasize tools that streamline compliance or enforce standards to reduce risk.

The 2024 DORA Report highlights that elite engineering teams deploy changes 47 times more frequently than their peers, thanks to streamlined tools that improve efficiency and reduce errors. Connecting these benefits to strategic objectives gives leadership a clearer understanding of how new tools support the organization’s long-term vision.

5 Tactical Steps for Building a Business Case for Platform Engineering Tools

To justify new platform investments, follow these five tactical steps:‍

Evaluate Current Challenges

Identify specific pain points and inefficiencies in your workflows that could be alleviated with better tools.‍

Quantify Inefficiencies

Estimate engineering time lost on repetitive tasks or workarounds, highlighting how a tool could minimize these.

Research and Pilot Solutions

Conduct thorough vendor research and consider piloting solutions to understand their impact firsthand.

Collect Team Feedback

Gather input from engineers to add a human element to your case, showing leadership the potential improvement in developer experience.

Present a Data-Driven Business Case

Compile all data, feedback, and cost-benefit analysis into a presentation or report with visual aids to make your case more digestible.

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Framing the Conversation for Executive Buy-In

Securing executive buy-in often requires framing tool investments around ROI and risk mitigation. Here’s how:

• Leverage Competitor Insights: Share insights from industry competitors that are investing in similar tools, emphasizing the need to keep pace with the market.
• Highlight Industry Benchmarks: Referencing reports like the DORA Report or Forrester’s findings on ROI in developer productivity tools can help validate the expected benefits.
• Focus on Risk Mitigation: Tools that provide best-in-class support, onboarding, and education will help stakeholders trust that adoption and usage projections are realistic.

Justifying Platform Engineering Tool Investments for 2025

Justifying platform tool investments may seem complex, but by using data, focusing on team impact, and aligning with strategic goals, Platform Engineers can build a compelling case. With the planning season in full swing, there’s no better time to advocate for investments that will lay the groundwork for an efficient, resilient engineering environment in the coming year.

If you’re ready to justify budget for an internal developer portal, book a call with our team today. We’ll help you create an ROI plan that your CFO will love.