The Real Cost of SaaS

During the 2020 pandemic response, SaaS (Software-as-a-Service) providers quickly supplied the necessary tools for people to work remotely vs on-site. These services have grown their customer base while also making headlines from hackers successfully obtaining and selling sensitive customer data. To add insult to injury, these providers are also locking customers in with renewed pricing plans where they have to pay more to keep the features they were already using. Disdain for subscription services creating their own inflation is on the rise, yet these providers have shown no signs of offering relief to their customers. According to a SaaS market analysis study by Vertice, the price increases are expected to continue into 2024 and beyond.

In 2023, almost $200bn will have been spent on SaaS globally. That's more than the GDPs of Algeria, Hungary, and Ukraine. Putting that into more practical terms for finance leaders, that represents approximately $7,900 per employee, up from $6,220 in 2022.