Spending and budgets continue to be major concerns on any network executive’s mind. Instead of the willy-nilly, buying frenzy days of the late ’90s, IT investment and spending today is carefully analyzed before purchase orders are cut.

The top net execs today are those who can spend smartly in line with business objectives, yet also pick the best new technologies to further that goal. Gone are the times when you could buy technology just because it was cool or cutting edge. Today, cool only cuts it if it furthers your business, streamlines procedures or reduces cost - or ideally, all three.

This week’s Management Strategies story in Network World examines four categories of IT spenders. Analyzing where you recognize yourself in these descriptions will give you areas of improvement when it comes to smart spending and increased ROI.

The first category is Frugal Leaders. These folks spend less than their IT peers and get the most bang for their buck. Frugal Leaders adopt a wait-and-see approach to investing in new technologies, preferring to let them mature before spending their dollars. While this generally pays off, Frugal Leaders must keep an eye on technology and their industry as they could be left behind if they hold off too long.

Investing Leaders make up the second category. They spend more than their peers, but their investments pay off. These folks tend to have larger-than-average IT budgets for R&D and new technology projects. The danger here is if Investing Leaders fail to reduce their spending if the market for certain technologies drops, and they’re left with a dud and a lot of wasted money.

The third category is Investing Followers. These network executives spend like Investing Leaders, but don’t see the same ROI. They could be investing for long-term gain and not see short-term success like their peers, or they could be spending money on the wrong technology. Investing Followers are likely to have shaky job security if they don’t become more like Investing or Frugal Leaders.

Frugal Followers are the final category. These folks spend less on IT than their peers and are way behind in investing in new technology. Experts say Frugal Followers should consider a high-impact project to improve their ROI or enhance their business.