Discover the ultimate resource for smarter SaaS and cloud procurement decisions.

We're excited to give you the first look at our new Spend Insights Hub.

Powered by the industry's most comprehensive global dataset of SaaS and cloud spend - including billions in tracked spend and data across 16,000+ vendors.

Go beyond standard quarterly market reports. This is a continuously updated resource that provides the best data to help you make smarter software decisions, fuel growth and control costs.

Get a flavour of our latest findings below, and explore the Hub to discover more insights.

The state of SaaS spending

October 2024 SaaS prices are up by 13.2% year on year.

This means a business that spent $1,000,000 per annum on SaaS in 2023 can now expect to pay an additional $130,200 for the exact same tech stack - with no extra features, seats, capabilities or services.

What makes this even more galling is that US annual CPI inflation has dropped significantly in the past 12 months (down from 3.7% last September to 2.4% in September 2024, a 35% decrease). This means the rate of SaaS inflation is over four times the rate of headline inflation.??

SaaS spend per employee per annum has reached its highest level ever

Up 24% in 12 months, SaaS spend per employee is currently averaging $8,800, compared to $6,900 in 2023 and $5,760 in 2022. The sharp increase in SaaS spend per employee is down to a perfect storm of factors:

The state of cloud spending

AWS global spending climbed 14% during Q3 2024.

By region, Europe showed the strongest growth, with businesses spending 17% more in Q3 compared with the same quarter last year.

Despite the US remaining by far the largest cloud market, it actually saw a slight slowdown in growth - with businesses spending an average of 3% less.?

Gartner forecasts that public cloud spending will exceed the 1 trillion dollar mark before the end of this decade. But what’s driving the global acceleration??

1. Application modernization - as companies continue to spend their energy on modernizing their infrastructure and moving from on-premise to the cloud.?
2. Increasing investment in generative AI tools and infrastructure.

On-demand spend accounts for just over half (51%) of all compute spend

While it’s the most flexible, on-demand resources are the most expensive way to operate in the cloud.

Commitments and rightsizing are two of the main ways you can get more value from your cloud investments.

• Commitments - Discounts agreed with your cloud service provider e.g. committed spend up front, or set usage rates per application.

• Rightsizing?- Ensuring the correct quantity of services, applications, and usage capabilities for?your capacity.

We recommend teams aim to reduce on-demand to between 20-30% of their overall coverage, so there is huge scope for optimizations to be made.