Brand
Product
Experience
AcquisitionIf you are a B2B SaaS company, explore statistics to help you understand the trends in spend by small, medium & enterprise businesses.
For Small Companies
( 1 - 100 employees )
It's predicted, on average, a total spend of $260k on SaaS in 2021.
For Midsize Companies
( 101 - 1000 employees )
In 2021 it's predicted, on average, a total spend of $2.8M on SaaS.
For Enterprises
( Over 1000 employees )
In 2021 it's predicted, on average, a total spend of $4.16M on SaaS.
And here is how different industries responded to increase ( or even decrease ) their spend on SaaS.
On average, companies spend $2,623 per employee per year on SaaS.
# of Employees
On average, employees have 8.3 SaaS apps each.
# of Employees
Of professionals across small & large organizations, 94% use cloud SaaS.
83% of company work will be done from the cloud by 2020.
70% of CIOs are attracted to cloud-based SaaS for its agility and scalability.
50% of US government organizations are now using the cloud.
The average midsized company has 32 different billing owners for its SaaS applications,
Growth in spending is significantly faster for some departments than others shown by these 2-year growth rates.
SaaS spending by department is most in customer service and HR over time.
S&M
Sales
Marketing
Customer Service
R&D
Product
Engineering
Product
G&A
IT & Security
HR
Finance
Business Ops.
Of professionals across small & large organizations, 94% use cloud SaaS.
83% of company work will be done from the cloud by 2020.
70% of CIOs are attracted to cloud-based SaaS for its agility and scalability.
50% of US government organizations are now using the cloud.
ORPHANED APPS
When the person who originally purchased the app on behalf of the company has left the organization,
DUPLICATE SUBSCRIPTIONS
Organizations that have multiple teams using the same app but have not combined it under one contract.
The average contract length is 1.3 years.
1 to 2 Years ( 57% )
2 to 3 Years ( 14% )
3 Or More Years ( 10% )
Month-to-Month ( 8% )
Less Than 1 Year ( 11% )
It has shortened from 1.5 in 2015.
Yearly and monthly are the most popular billing periods.
1 - 2 Years ( 3% )
Monthly ( 36% )
Quarterly ( 11% )
Quarterly to < 1 Year ( 9% )
Annual ( 42% )
Written by: Andy Halko, CEO & Founder
I started Insivia in 2002 and for over 22 years I have had the chance to work directly with hundreds of companies and founders to redefine or reinvent their businesses.