SaaS Inflation Index

The impact of SaaS in terms of productivity, collaboration and inclusion has been significant. But the accompanying cost has also been quietly spiraling upwards. The annual increase in SaaS spending has hovered around 11% to 16% over the past five years. This growth has far outpaced the rate of general economic inflation, even in recent periods of an uncharacteristically high CPI.

Analysis of 10,000 SaaS contracts over the past five years reveals that 88% of vendors have clauses that allow them to change their pricing at any time — in some cases without the need to notify customers. Other vendor tactics analyzed in this report include Auto-renewal clauses, billing and payment terms, and a widespread lack of pricing transparency.

Organizations need a more systematic approach for managing their SaaS purchasing strategies, and it starts with the right questions. What are other companies paying for their licenses? What is the price of enterprise products and what is the average discount rate for similar customers? Answering these questions is a challenge, often involving informal peer networks or arcane online research methods in lieu of a trustable benchmarking solution.