Just how fast is SaaS and Cloud growing?  One thing we know — Fast. Still.  Even now, at hundreds of billions in annual spend.

Gartner’s latest report illustrates just that.  Cloud software spending grew a stunning 23% in 2021, from $270 billion to $330 billion.  But that’s just the start.  After polling CIOs, Gartner found that total SaaS spend will grow from $100B in 2020 to $140B in 2022:

A few interesting implications and learnings:

  • The growth in SaaS buying should give you a +20% a year boost on top of your other sales and marketing efforts. That’s a huge tailwind. Budgets and spend are increasing a stunning 20% a year in SaaS.  It’s not a zero-sum game, with stagnant budgets.
  • “Get in Early” to big accounts, almost whatever it takes.  Yes, we all now know top SaaS leaders have world-class NRR, from 110% to 160%.  The fact that SaaS spend will further grow 20% a year means these early, big accounts will be even most important over time.  Do whatever it takes to close that great logo and account.
  • Enterprises are spending an additional $20B on SaaS each year.  That’s $20B more budget than last year, just for enterprises alone. Go grab your piece.
  • The SaaS companies with $1B in ARR have 1% of all total enterprise spend.  Ok, it’s quite possible Gartner is way underestimating SMB spend here, the total spend on SaaS is likely $200B or more.  Still, it’s interesting to think that the $1B ARR club at least in the enterprise is perhaps capturing 1% of all spend.  E.g., if Slack at $1B is 50% enterprise, that probably means 0.5% of all enterprise SaaS spend is going to Slack.  2% for Zoom (50% of $4B in ARR).  Etc. etc.

No matter what, the wave of enterprise spending that fueled 100 SaaS and Cloud unicorns is just getting bigger and strong.

This is your time, folks.  Go make it happen.

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