Share of spend

SaaS investments continue to evolve

New data reveals notable shifts in SaaS budget allocation across both enterprises and SMB, highlighting differing priorities and adoption patterns.

For SMBs, CRM tools account for 8.4% of SaaS share of spend, up 7% year-over-year, while security spend has decreased slightly to 11%. Collaboration, productivity and development tools have also grown, reflecting smaller organizations' focus on flexibility, efficiency and scaling capabilities.

The biggest shift in IT budget allocation is on AI tools, where spend has surged 995% and now accounts for 5.5% of total SaaS spend within the average small to mid-sized business.

Enterprises show a different allocation profile. CRM remains steady at 9.1%, while security continues to claim a larger slice at 9.5%, reflecting the ongoing importance of protecting complex infrastructure. Significant growth is also seen in development (up 49%) and sales software (up 57%), alongside a 223% increase in AI spend, underscoring enterprises' appetite for advanced capabilities.

Conversely, traditional productivity suites and monitoring tools are declining in SaaS share of spend, suggesting tighter alignment of IT budgets with actual usage.

Overall, these trends highlight that IT budget allocation is rapidly evolving, with companies of all sizes directing spend toward AI, development and tools that drive efficiency.