So it can seem sometimes like SaaS spending has crashed recently, but really that’s not right. Every single year, SaaS spend goes up. A lot, in fact. Gartner is even predicting enterprise IT spend will accelerate in 2024.
But different years and different times benefit different vendors.
The past 18 months, it’s seemed like price increases and consolidation on core vendors has consumed more and more of SaaS IT budgets.
And the latest Vendr data confirms this. In 2022, 30% of their platform spend went to New vendors. That plummeted to 19% in 2023.
That’s a huge drop:
It is just plain harder to break out in 2023 than it was from 2H’20-early ’22.
And yes, in many cases, the App Layoffs are Over. The pruning of the IT stack is mostly done at many leaders.
But for now, price increases and trying to do more with the software you already have are consuming a big chunk of all IT budgets and importantly, IT budget growth.
-> The full report here.