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The cloud is the main SaaS investment for 45% of European companies

Cloud solutions and tools from providers such as AWS, Microsoft Azure, and Google Cloud are the main type of SaaS platform in which European companies invest. Specifically, they represent the largest budget item for 45% of companiesaccording to Sastrify’s ‘I European Radiography of SaaS Investment’.

In line with this increase, a recent study by the analyst Canalys has registered a 29% increase in cloud investment last year compared to 2021. Thus, global spending on this type of solution during 2022 increased to 247,000 million dollars. “In the last year, the number of companies that are migrating to the cloud has grown. A movement that speeds up processes and allows for gains in efficiency and productivity. As a result, the ‘cloud’ ranks first in SaaS spending for many companies”, underlines David AlonsoCountry Manager in Spain of Sastrify.

After the cloud, the second position is for office tools, as is the case with Microsoft365 or Google Workspace, representing the highest SaaS spend for 20% of organizations. These are followed by CRMs, such as Salesforce or Hubspot (14%), and Human Resources software (9%), among which we can find Personio or Deel.

For their part, the ‘project management’ platforms close the top-5 of investment, with Asana, Monday, and Atlassian as the main providers (6%), followed closely by tools that offer communication and collaboration support (5%), such as Slack and Zoom.

Investment in SaaS has doubled since 2020

With regard to the investment in SaaS platforms as a whole, the Sastrify study highlights a strong commitment from European organizations for accelerating their SaaS strategies, with 51% of the companies acknowledging that they have increased the amount of spending they allocate to this type of solution in the last two years. In fact, in the case of this type of company, the average growth in investment has been up to 100%.

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In addition, 39% of companies claim to continue making the same investment, while only 10% claim to have reduced their spending. “The fact that 90% of companies have increased the capital they invest is symptomatic of the importance of SaaS in the digital transformation of the business. A first transcendental step to which more and more companies are adding collaboration with partners that allow optimizing the use and contracting of licenses, which is where we now find the true differential value”explains David Alonso.

Regarding short-term investments, 94% of organizations plan to continue spending at least the same amount of money as they are currently in the next three years, while one in two estimates that they will increase their spending in the same period of time. A figure that contrasts with the 6% of companies that expect to slow down their investments in SaaS.

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