Some new SaaS software stats from company Vendr, who analyzed their customer’s SaaS Spending.
The average growth rate for annualized spend on SaaS by company size is 58 percent. But where it gets significant is the smaller the company. For those organizations, say, between 500 and 999, there’s been 29% growth between 2020 and 2022. But that period has shown three hundred seventy-seven percent growth for those organizations with less than a hundred employees.
And in 2020, only 16.01 percent of software purchases in the top 10 SaaS categories helped generate revenue. However, in 2022, out of 2087 SaaS deals, 644 (30.85 percent) were linked to revenue generation.
More validation that SaaS adoption is linked to organization size; the smaller the org, the more SaaS. Analyze your customer base, and use this metric to understand where to spend your time and attention building service offerings. Based on this understanding of how customers consume technology, judge your offerings and your needs.