Companies strike a huge inflection point when it comes to how they assemble and manage their software technology stack. On the one hand, the storm of pandemic-related IT change is beginning to calm, but on the other hand, many are facing an economic downturn that could further impact and strain business.
The resilience and adaptability of any business that has survived the pandemic is admirable. But the harsh truth is that many of these companies are facing a moment of “paying the price” as the cost of their decisions and actions over the past 18 to 24 months come due.
That said, few parts of your technology stack will have as much exposure as your software license renewals.
The SaaS tsunami
Digital transformation has been rapid for most businesses, whether they are ready or not. The shift to remote work and the need to quickly scale and integrate solutions pointed in a logical direction: cloud-based software. Low cost of entry, minimal infrastructure requirements, and rapid implementation helped make moving to a SaaS technology stack the obvious choice.
One of the best ways to help IT managers streamline the SaaS renewal process is to remove it from their plate entirely.
In 2021, Deloitte estimated that 94% of organizations were using cloud-based SaaS products. According to our research, the average business has doubled its SaaS spend since 2018 and is now spending $35,000 on nearly 300 different tools.
In the heat of the moment, many companies focused on the immediate challenges that SaaS could solve without really understanding the impact of this digital transformation on how they find, buy, and manage their long-term technology stack.
Minimizing battery depletion in the face of a recession
The SaaS buying frenzies of 2020 and 2021 have resulted in tech stack fatigue, and IT departments are feeling the pressure to manage a complex and diverse set of tools and justify ROI in the face of rising costs softwares.
SaaS companies have used aggressive pricing to gain a foothold in organizations that relied on them and benefited from them during the pandemic. Many have been incredibly successful in helping businesses achieve their goals, improve productivity, and recognize ROI during significantly tough economic times. In fact, many of these SaaS products have become ubiquitous. Those with sticky, “can’t live without” features (think Airtable, Monday.com, and Slack) are looking to take advantage of these inroads at renewal time.