Saas Spend Management Software Statistics 2024

In today’s rapidly evolving business landscape, understanding SaaS (Software as a Service) spend management is more critical than ever. As companies increasingly rely on a myriad of cloud-based solutions to streamline operations, the effective management of these expenditures has become a cornerstone for achieving financial efficiency and operational agility. The significance of SaaS spend management statistics lies in the insights they provide into how organizations can optimize their software investments, reduce waste, and enhance ROI. Navigating through these data points is essential for gaining a competitive edge and ensuring long-term business sustainability.

Key stakeholders, from CFOs to IT managers and procurement professionals, will find these statistics indispensable. For CFOs, understanding SaaS spend patterns helps in budget forecasting and cost control. IT managers can leverage this data to ensure optimal software utilization, while procurement teams gain valuable insights into negotiating better terms with vendors. Across the industry, these statistics influence strategic decisions, impacting everything from software adoption cycles to vendor relationship management.

Ultimately, detailed SaaS spend management data equips businesses with the tools needed to make informed decisions in a dynamic market. By scrutinizing these statistics, companies can fine-tune their strategies, ensuring they remain agile and competitive amidst technological advancements and shifting market demands. This article will delve into the critical metrics and trends, providing a comprehensive guide to mastering SaaS spend management in 2024.

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Top Saas Spend Management Software Statistics 2024

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Top Software Providers

• Productiv supports a broad range of SaaS applications, including Microsoft 365, Google Workspace, Slack, and Zoom. ^[?]
• Zluri offers integrations with several popular business tools like Slack, Google Workspace, and Microsoft 365. ^[1]
• Spendflo is considered one of the more affordable options, with pricing starting from $7/user/month. ^[1]
• Vertice helps businesses with SaaS spend management, saving the average business 20-30% on its SaaS spend. ^[2]
• Freshservice serves more than 10,000 SMB, mid-market, and enterprise customers worldwide. ^[9]
• NachoNacho enables businesses to manage, discover, and get discounts on SaaS per month. ^[9]
• N-able Cloud User Hub automates the management of all Microsoft tenants, users, and licenses from a single hub. ^[9]
• Lightspeed Digital Insight is a K-12 IT edtech usage analytics tool. ^[9]
• LicenceOne simplifies managing software subscriptions for SMEs and has analyzed over $80M in software spend for over 500 companies across 41 countries. ^[9]
• CloudEagle integrates with internal SSO, finance, and HRIS systems and provides complete visibility on SaaS application performance. ^[6]
• Volopay provides 5-in-1 spend management features and streamlines SaaS subscriptions on a centrally located expense management platform. ^[4]

Market Growth & Trends

• The SaaS market is predicted to grow by 18% in 2024 to a figure north of $230 billion a year. ^[2]
• The SaaS market was $145 billion in 2022. ^[2]
• IT budgets are only predicted to grow at a rate between 6-8.8% in 2024. ^[2]
• 33% of all SaaS contracts incorporate automated annual price hikes, which can climb as high as 71%. ^[2]
• 90% of companies are overspending on SaaS subscriptions by 20-30%. ^[2]
• Cloud-based SaaS products alone saw 33% of all spend go to waste in 2023. ^[2]
• The combined market value of the top 10 SaaS companies is above US$1.3 trillion. ^[3]
• By 2025, 85% of business apps will be SaaS-based. ^[3]
• By 2026, public cloud spending is predicted to exceed 45% of all enterprise IT spending. ^[3]
• 47% of venture capital funding in 2023 went to companies with a SaaS business model. ^[3]
• Early-stage SaaS companies received over $30 billion in VC investment in 2022. ^[3]

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Financial Impact

• Entry-level plans for SaaS spend management software may start around $7/user/month, while more feature-rich solutions can range from several hundred to thousands of dollars per month. ^[1]
• The average business spends roughly $7,900 per employee on SaaS software. ^[3]
• SMEs specifically spend approximately $11,200 per employee on SaaS software. ^[3]
• Over 50% of SaaS licenses are unused for more than 90 days. ^[3]
• The global SaaS spend management market size was valued at US$ 611 million in 2022 and is projected to reach US$ 2,456.8 million by 2029, growing at a CAGR of 22.0% from 2023 to 2029. ^[5]

Usage Statistics

• 79% of businesses said that using a live chat tool helped increase customer loyalty, revenue, and sales. ^[3]
• In 2023, the average number of SaaS apps a business uses reached 371. ^[3]
• Medium-growth SaaS companies saw around 11% quits over the year, while companies with less than 10% growth saw an average of nearly 15% of their workforce voluntarily leave during 2021. ^[3]
• The fastest-growing SaaS companies (annual growth rates over 50%) saw only half as much voluntary turnover as the slowest, around 7.5%. ^[3]
• 66% of enterprises already have a central cloud team or a cloud center of excellence. ^[3]

Security And Compliance

• 94% of IT executives believe manual SaaS management methods lead to poor decision-making about SaaS spending. ^[3]
• 48% of businesses want to improve their management of SaaS products in the next year. ^[3]
• 56% of enterprise apps aren’t managed, meaning no one pays close attention to things like renewal dates, licenses, app usage, security, and compliance. ^[3]
• 31% of employees admit to accessing SaaS apps from a previous employer. ^[8]

Global Trends

• The US has nearly 17,000 SaaS companies and 59 million customers worldwide. ^[3]
• The UK follows the US with 2,100 SaaS companies and 3 billion customers worldwide. ^[3]
• Private SaaS funding in Europe is seeing 3.2x year-over-year growth. ^[3]
• Investments in Indian SaaS companies increased to $4.5 billion in 2021, a 170% increase over 2020. ^[3]
• The SaaS industries in China, India, and Brazil are expected to grow by over 2x between 2020 and 2025. ^[3]
• In 2021, there were more than 337 SaaS unicorns and 15 decacorns (valued at more than $10 billion USD) in the US. ^[3]

Adoption And Usage

• A predicted 99% of companies will be using at least one SaaS system by the end of 2024. ^[3]
• Since the onset of COVID-19, B2B companies say digital interactions are two to three times more important to customers. ^[3]
• Young companies (1-2 years old) start out with 29 SaaS apps, and by the time they’re 3-6 years old, that number spikes to 103 apps. ^[3]

Pricing And Negotiation

• Market research reveals that vendors offer the same SaaS app at prices ranging from $35,000 to $45,000. ^[10]
• Zluri’s experts can negotiate on your behalf to secure SaaS apps for a price closer to the lower end of the vendor’s range. ^[10]
• Gartner projects that SaaS spending will grow over 17% in 2024, with the market exceeding $232 billion. ^[8]

Automation And Efficiency

• Gartner expects that by 2023, 75% of organizations that exploit distributed enterprise benefits will realize revenue growth 25% faster than competitors. ^[7]
• In a world where the average SaaS spend per employee is $2,623, that waste can add up fast. ^[8]
• Nearly 90% of IT professionals surveyed note that automation is key to managing SaaS operations. ^[11]

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