New research shows SaaS spend per employee is topping $13K annually. U.S. enterprises with 800 employees spend $15M on SaaS to power their business. They waste up to 30% of that spend, in part due to the complexities of SaaS pricing and the lack of control over the growing SaaS stack.
SAN FRANCISCO, September 10, 2019 - Cleanshelf, the leading SaaS spend optimization solution published its annual The State of Business’ SaaS Spend infographic which finds that the role of SaaS in organizations continues to rise. SaaS spend per employee has increased 164% over the last four years and now already stands at $13K. However, enterprises waste up to 30% of this outflow, requiring a new approach to data-driven SaaS vendor management and spend optimization.
“Companies are committing more budget to SaaS each year. Organizations now have dozens or even hundreds of cloud tools in their SaaS stack,” said Dusan Omercevic, CEO at Cleanshelf. “What CFOs and CIOs need to understand is whether the deployed cloud apps are driving the expected ROI.”
The State of Business’ SaaS Spend 2019 infographic reveals U.S. organizations with 800 employees are now spending $15M on SaaS, up 28% in comparison to 2018. Key findings include:
- The typical employee uses 44 apps to do their job. They never use seven.
- Annual SaaS spend per employee totals more than $13K. Businesses waste $4K on each.
- The typical 800-person U.S. company engages 141 SaaS vendors. They can save over $4M annually.
Dispersed and uncontrolled
“SaaS has infiltrated businesses down to every individual and has become critical for collaboration and business success. All departments within companies rely on SaaS to power their day-to-day operations, which is especially interesting,” adds Patrick West, Head of Solution Engineering at Cleanshelf and co-author of this research. Sophisticated software is not limited to IT, sales and marketing, as we’ve seen historically. Finance, HR, legal, and other departments are seeing a notable increase in SaaS usage and outgoings as well.
Although the benefits of SaaS are straightforward, enterprises often overlook the cost, causing this to race out of control. The report finds that enterprises waste up to 30% of companies’ annual SaaS outlay. Put another way, this translates to a loss of over $4M a year for a typical 800-person U.S. company. Businesses can no longer neglect SaaS management - it has become strategically important for their growth and bottom line.
For more insights into current business SaaS trends, see The State of Business’ SaaS Spend 2019, available here.
The research, conducted by the Cleanshelf research team, analyzed the patterns of scaled app management and SaaS license and spend optimization. This intelligence sheds light on the strategic importance of cloud-tool insight for finance and IT leaders. Although a growing and increasingly pressing issue, enterprises can quickly put an end to wasteful SaaS expenditure by giving it the attention it deserves.
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This Press Release was first published in Newswire on September 10, 2019.
Cleanshelf is the leading enterprise SaaS management platform focused on tracking, controlling, and benchmarking SaaS applications. Their SOC 2-compliant and AI-powered technology helps companies save up to 30% on their SaaS spending by automatically identifying unmanaged contracts, duplicate licenses, and wasted cloud software subscriptions. Based in San Francisco, Cleanshelf provides an enterprise-grade solution to over a hundred clients, including Hilton, Looker, and CoStar Group.