2019 SaaS Trends
Table of Contents
INTRODUCTION
SAAS SPENDING AND ADOPTION CONTINUE TO RISE
Companies spend more on SaaS than laptops
The average employee uses at least eight apps
SAAS IS DECENTRALIZED ACROSS THE ORGANIZATION
Every department uses SaaS
SaaS has many owners
Orphaned subscriptions
Duplicate subscriptions
THE SAAS GRAPH: MAPPING APP-PERSON CONNECTIONS
APP TURNOVER IS HIGHER THAN EMPLOYEE TURNOVER
Assume half of your SaaS stack will be different in 2 years
SAAS STRATEGY TAKEAWAYS AND RECOMMENDATIONS
Visibility is critical
Collaboration is necessary
Flexibility gives you leverage
A SAAS PROFILE FOR EVERY COMPANY SIZE
0-50 employees
51-100 employees
101-200 employees
201-500 employees
501-1,000 employees
1,000+ employees
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2019 SaaS Trends
Introduction
Each year, we analyze an anonymized data set from hundreds of SaaS companies to
identify trends in SaaS spend and usage. This report takes a look back at 2018 data
and offers guidance on how to think about SaaS in 2019.
It’s no surprise to report that SaaS spending and adoption have continued to rise. In
addition to further evidence of the SaaS explosion, the 2018 data revealed two
major trends. One is that app turnover is very common. In fact, the typical mid-
sized company saw 39% of their SaaS stack change last year. The other notable
trend is that IT decentralization is increasingly leading to budgeting and security
issues. A whopping 71% of companies have at least one SaaS subscription with no
billing owner. This can lead to all sorts of challenges, which we’ll discuss in depth
below.
SaaS Spending and Adoption Continue
to Rise
In 2018, SaaS spend and adoption continued to grow quickly across all company
sizes. In 2018, the average company spent $343,000 on SaaS, a 78% increase
from the previous year.
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Average Spend Per Company
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
200820102012201420162018
2019 SaaS Trends
Over the last 5 years, SaaS spending has increased across all company size
segments.
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51-100 Employees
$0
$40,000
$80,000
$120,000
$160,000
20142015201620172018
0-50 Employees
$0
$5,000
$10,000
$15,000
$20,000
$25,000
20142015201620172018
101-200 Employees
$0
$100,000
$200,000
$300,000
$400,000
20142015201620172018
201-500 Employees
$0
$300,000
$600,000
$900,000
20142015201620172018
501-1,000 Employees
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
20142015201620172018
1,000+ Employees
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
20142015201620172018
SaaS Spend by Company Size。