Zylo Research Finds SaaS Spend Increased 26% During the Early Months Of The Pandemic
Zylo, the leading enterprise SaaS management platform, today released its annual SaaS Management Benchmarks research report, a comprehensive analysis of SaaS spending and management. The report examines data from more than $5B in SaaS spending and two billion user logins in more than one hundred companies ranging in size and industry.
Read More : 1touch.io Launches Strategic Channel Partner Program
The pandemic accelerated SaaS spending as organizations adopted software to mitigate the various challenges of a fully remote workforce. SaaS purchasing saw a 26% increase from February to April of 2020, the onset of the pandemic, compared to the year before. Data security SaaS spending spiked 132%, and web conferencing grew 22% from 2019.
Read More : SalesTechStar Interview with Scott Norwalk, SVP Growth & Strategic Partnerships at Centerfield Corporation
Other key findings from the report include:
- IT controls just 42% of SaaS spend, with one in four employees expensing SaaS
- On average, a company maintains 651 SaaS applications
- A typical company will see at least 10 new applications enter its environment and four applications exit active use every 30 days
“While SaaS revenue currently accounts for just 40% of the overall enterprise software market, we expect cloud will become the majority of all software by 2025, indicating a massive growth opportunity,” said Byron Deeter, partner at Bessemer Venture Partners and creator of the Bessemer Forbes Cloud 100 and BVP Nasdaq Emerging Cloud Index. “Data from Zylo’s 2020 SaaS Management Benchmarks report indicates that the SaaS market may be growing even faster than initially predicted.”
Gartner projects SaaS will garner $101 billion in revenue in 2020 and grow more than 16% in 2021, with a $117 billion estimated total revenue. Zylo’s Benchmarks findings, which also point to rapid SaaS growth, indicate an increased need for better control over spend and management to scale with the rate of adoption.
Read More : Find Your Future Music Fans By Making Better Use of Digital Ads
