Apr 18, 2023

Key findings from Vendr’s SaaS Trends Report: Q1 2023 include: AI leading the charge: AI-powered software is becoming more essential for businesses, with 36% of tools purchased in Q1 having AI features. Top new purchases: Salesloft and Drata top the list of new purchases, displaying an emphasis on investing in sales/revenue alongside security and compliance. Economic factors + ACV: An increase in federal interest rates may be related to the consistent increase in ACV of SaaS purchases over the past 12 months, which rose by 23% in Q1 2023. Diversifying the SaaS portfolio: Prominent names like Salesforce, Zoom, and DocuSign constitute only 13% of transactions, while 900+ diverse products contribute to the majority of sales. As software prices continue to increase, the report also determined six key factors influencing SaaS purchasing heading into Q2: Streamlining SaaS usage: Companies are cutting down on SaaS sprawl by opting for fewer products and shorter contract terms. Focused spending: Recent trends indicate increased spending on specific, targeted SaaS products by businesses. Cost-reduction strategies: As budgets are put under a microscope, companies are implementing cost-cutting measures in response to price hikes for critical SaaS services. Enhanced integration: Improved integration capabilities offered by SaaS products allow companies to connect existing systems more seamlessly, reducing the need for additional services. Reducing redundancy: Companies are addressing overlapping functionality in SaaS products to eliminate inefficiencies. Simplified procurement: Businesses are working with fewer vendors to streamline procurement processes and reduce administrative burdens. Write in to  psen@itechseries.com to learn more about our exclusive editorial packages and programs.