A $900bn market by 2023: Why SaaS growth isn’t slowing down

A $900bn market by 2023: Why SaaS growth isn't slowing down

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SaaS growth is expected to continue to grow to 9.6% in 2022 ($806bn), and then by 11.8% in 2023 ($902bn). 

That’s according to a Vendr report, where companies are adopting more SaaS products as remote working and digital transformations continue to evolve. 

The report reveals the only way is up for SaaS, where 2021 saw a 38% increase in its adoption by companies, mainly influenced by: 

  • Inflation, recession and supply chains 
  • Ongoing public health concerns 
  • The new world of work 
  • Digital transformation 

Agility is key to get ahead in a constantly evolving, fast paced world, aided by digital transformation. In fact, nearly 75% of organisations call digital transformation a priority in 2022, up from 54% the year before. 

‘Procurement works best when it’s a team effort.’ 

Companies need to prioritise looking for tools that drive value creation and maximise cost savings, a similar narrative to Zylo’s publication on 2022 SaaS trends. Since 2021, SaaS growth has gone into overdrive. 

With the right digital technologies, teams can feel empowered to automate tasks, free up more time and have more autonomy in their other responsibilities. 

People first, technology second 

Looking after your team will always be the first priority. But to help them, you need technology (or tools) to help your people to work effectively and efficiently. Zylo notes that the ‘average large enterprise (5000+ employees) had 609 applications in its SaaS portfolio and spends average $243m on SaaS each year’. Contrary to many thinking SaaS tools lie with IT, it is small at 27% compared to other business units at 66%, suggesting autonomy and employee control is also shifting. 

‘Unmanaged SaaS sprawl increases your risk and spend, decreases adoption.’ 
How do you reduce SaaS sprawl?  

Whilst SaaS growth isn’t slowing down, there is a risk of it becoming unruly within organisations, therefore application portfolios need to be rationalised, as well as have teams get ahead of renewal dates to reduce unnecessary costs. 

Despite this, SaaS will continue to grow and provide teams with the tools they need to complete their work and shape a successful digital transformation within their organisation. 

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