31% of industries invest nearly 10% budget on SaaS
A data-backed study by Zluri has found that 50% of industries consume 20 SaaS applications approx.
Zluri, in a partnership with Pulse, conducted a survey to find how various industries tackle SaaS sprawl and the methods they have implemented to prevent falling into the SaaS trap.
Here is the crux of the report:
The top 3 industries that consume more than 50+ SaaS applications are Software (42%), Health Care and Social Assistance (37%), Finance, Banking and Insurance (34%), and Manufacturing (34%).
The top three industries to spend more than 10% of their budget on SaaS are Finance, Banking and Insurance(65%), Software (57%), and Manufacturing.
The top industries that have constantly shuffled more than 20% of their SaaS vendors in the last year are Health Care and Social Assistance (32%), Professional Services (31%), and Education Services (28%).
Industries like Software, Professional Services, and Finance collect employee feedback in surveys and interviews to track their SaaS usage and performance. While Education, Professional Services, Software, and Health Care still rely on Expense reporting to track their SaaS data.
Other Services, Finance, Software, Telecommunications, and Manufacturing, are the industries that mostly use SaaS management platforms to track their SaaS consumption.
Usage/Consumption is an important SaaS Application Metrics that matters to most industries.
80% of the surveyors have said they don't use any tool to track their SaaS usage. 72% of the Software industry that uses various SaaS applications daily do not use any SaaS management tool.
What We Think
It is no doubt that SaaS adoption will see rapid growth in the coming years. Along with growth, it will also bring SaaS sprawl concerns for businesses that cannot be monitored or avoided with a spreadsheet or internal audits. An organization should be equipped with a SaaS Management Platform that alerts during renewals, monitors usage, securely does onboarding and offboarding, and most of all offers visibility.
Any industry that desires to get the most out of its tech stack must have an SMP to monitor their 3rd party tools. Maybe today, having an SMP isn't present in the roadmap of some companies, but when these companies grow and expand, they will automatically understand its need.
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