Summary
This report details the findings of the 2023 State of SaaS Series, focusing specifically on SaaS spend trends. It outlines how businesses are adapting their technology investments in response to various macroeconomic challenges, including the pandemic and inflation. The analysis is based on over 100 billion app usage data points across nearly 100 million SaaS licenses collected over three years. The report presents insights into average SaaS spend per employee, which is currently $9,643, and highlights a significant shift towards shorter contract lengths, with one-year contracts increasing from 79% in 2020 to 85% in 2022. The findings indicate that small and medium-sized businesses spend more per employee compared to mid-market and enterprise segments. Furthermore, the report documents the changes in contract term lengths across different business segments, emphasizing the trend towards flexibility in SaaS agreements as organizations navigate fluctuating budgets and operational needs.
