Blissfully, a leading SaaS management company, announced the availability of its 2020 Annual SaaS Trends Report, which explores SaaS spending and usage data from nearly a thousand organizations. The report uncovered numerous data points from across the SaaS industry, including:
- SaaS app usage across all companies is up 30%, and spend is up 50%
- ~80% of the top 100 SaaS apps are HQ’d in US, more heavily-concentrated than broader tech.
- About half of the top 100 SaaS apps are still private, with an average backing of more than $100M.
- The typical mid-market company uses 185 different apps
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And includes insights and key takeaways for SaaS builders, consumers, and investors.
“We’re seeing the adoption of SaaS spike across all departments, within companies of all sizes,” said Ariel Diaz, CEO of Blissfully. “No single stakeholder ‘owns’ IT management any more, which has been a major boon to employee productivity since team leaders are able to quickly source and put new technologies into play. This rapid pace of change is also difficult for organizations to effectively manage as they grow. Blissfully’s 2020 SaaS Trends report shows that the distributed nature of SaaS is raising new financial, operational, and security issues that may not have been considered in the past.”
According to the report, the average midsized (101-1000 employees) company spent over $2M on SaaS applications in 2018. However, many organizations aren’t effectively keeping track of this significant budget line item. More than 70 percent of companies have SaaS subscriptions with no billing owner at all, which means they’re paying for apps that may be going completely unused.
Beyond budgeting, organizations should be concerned about the much deeper issue of security vulnerabilities in their SaaS stack. Though, they may not have the visibility necessary to truly understand the scope of the problem. The average midsized company uses 120 apps per company, but has about 2,500 app-to-person connections (what Blissfully calls the “SaaS Graph.”) These connections can expose organizations to major security risks (such as a lack of proper account security or employees who aren’t effectively offboarded from apps when they leave an organization). The SaaS Graph’s complexity only compounds with an organization’s size, with companies with 1,000+ employees having an average of almost 20,000 app-to-person connections.
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