We are all aware that life in the last year has gone up. Inflation has triggered the prices of all products, and technology has not been left behind. A rise that, in the case of SaaS, is estimated to have been 12% on average. Microsoft or Webflow are at the forefront of these increases.
Not only inflation has been the cause of these increases. Demand for SaaS is growing at a rate that Fortune Business Insights calculates at 18% year-on-year through 2030. Companies want to enjoy software as a service and are increasingly seeing more benefits from it. Thus, the more demand, the greater the ability of manufacturers to vary prices upwards.
73% of manufacturers have increased SaaS prices in the last year
Whatever the cause, the reality of rising SaaS prices is reflected in a Vertice study. With data from more than 16,000 manufacturers, the company certifies that 73% of manufacturers have increased the prices of their SaaS offerings in one year (August 2023- August 2022).
The upward variation has been an average of 12%, doubling the percentage increase of previous years, which stood at 6%. A particularly significant change in Microsoft, which has increased by 15%, or the Webflow web development platform, which has increased by 23%.
Although the SaaS shortage has been almost universal, providers that offer tools for finance, sales or productivity have been the most prone to these increases. Solutions that many companies are focusing on to improve their competitiveness, be more profitable or increase their performance.
And this increase in the cost of SaaS has had its consequences. With the data within the Vertice platform in hand, Microsoft, for example, has suffered a slight drop in the value of its contracts and the decline of Auth0, Snowflake, Slack, HubSpot or Highspot has been more acute. For their part, LinkedIn, NetSuite or Google have risen to the top positions. Salesforce has maintained its unchanging leadership position.
Generally speaking, the price increases have been able to penalize some manufacturers, but it has not caused the demand to decrease. On the contrary, companies have continued to bet on this type of software. The data also suggests that it will continue like this. Alluding to the Fortune Business Insights report, it is predicted that the SaaS business will exceed 273,000 million dollars this year and by 2030 we are talking about more than 908,000 million dollars.
However, the containment that is already the norm in this 2023, has been reflected in the lawsuit. Not only to avoid buying more SaaS than necessary, an evil endemic to this type of solution, but also because the price has affected and has once again reconfirmed that it continues to be an important factor, although it is not the only one, in technology purchases.
