Share of spend

SaaS investments vary significantly by company size

Enterprises are prioritizing CRM and security, while SMBs focus on productivity & collaboration

There are some notable differences in how SaaS budgets are allocated between enterprise organizations and small to mid-sized businesses (SMBs), reflecting distinct priorities and operational needs.

Within enterprise organizations, 12.5% of the average software budget is allocated to CRM tools, compared to just 8.1% within SMBs. This disparity may be due to larger businesses managing more complex sales operations across multiple teams, regions, and customer segments – in turn requiring more advanced CRM capabilities and integrations. In contrast, smaller companies often operate with leaner sales teams and may opt for more affordable, lightweight solutions.

SMBs, however, dedicate a greater share of their software spend (around 10%) to collaboration and productivity tools. This suggests a focus on flexibility and efficient communication, which are critical for smaller teams trying to scale. Enterprises, by contrast, allocate a larger portion of their SaaS budgets to security tools, which is expected given their greater exposure to risk, compliance obligations, and complex infrastructure.

One of the most significant shifts across both segments is in AI-related software. While it still represents a small share of total SaaS spend – 0.7% in enterprises and 0.2% in SMBs – it is growing rapidly. Over the past year, enterprise spend on AI tools has surged by 394%, and SMB investment has increased by 57%, highlighting the growing appetite across the board to explore AI’s potential, even if adoption remains in early stages.