State of SaaS
2025
SaaS reality check! Brace yourselves, data nerds.
The State of SaaS 2025 report has materialized from the data streams, delivering a comprehensive analysis of the evolving SaaS matrix. This year, we delve into the algorithmic shifts and neural network patterns shaping the future of SaaS management.
Navigate the converging SaaS realities.
While the data indicates a continued decline in application proliferation, the digital ecosystem remains in flux. The quantum entanglement of security, budget constraints, and escalating IT workloads demands a paradigm shift towards intelligent SaaS lifecycle management.
Decrypt the report's core data nodes:
The consolidation anomaly: Analyze the deceleration of app consolidation and its implications for your strategic architecture.
Budgetary compression protocols: Optimize resource allocation by identifying and eliminating redundant or underutilized application nodes.
Security protocol breaches: Fortify your defenses against insider threats and exposed sensitive data, leveraging automated anomaly detection.
AI detected: Discover how AI is entering the tech stack across organizations and how IT is keeping up with the need to adopt AI yesterday.
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Highlights from this year’s report
Here’s a sneak peek of some of the major takeaways and key statistics from this year’s report.
IT is stretched thin amidst IT resource constraints
Approximately one-third of organizations report that IT supports more users than last year, with each IT professional now serving 108 employees (1:108). This 31.4% increase only stretches IT even more.
Thanks to growing tasks to manage all apps, users, files, and software budgets, coupled with an IT tech stack with too many SaaS management point solutions, the IT workload is crushing them. So it’s no wonder IT worries about missing key offboarding steps (48%).
Your enterprise’s AI advantage depends on IT
Integrating AI into enterprise SaaS is a growing trend, pushed by management's drive for increased productivity. However, this also brings new challenges for IT:
- SaaS and "Shadow AI" sprawl: More AI tools mean more scattered software and unapproved departmental IT solutions.
- Increased spending and security risks: AI adoption can inflate SaaS costs and introduce new security vulnerabilities, especially with the rise of "crime-as-a-service."
Beyond these, IT also faces the complex task of identifying business needs, evaluating and implementing AI solutions, and integrating them with current systems. This often requires specialized skills, training, and careful change management to meet ambitious ROI goals.
SaaS consolidation to optimize spending is helping companies save on the SaaS budget
For the second year in a row, organizations use fewer apps than the prior year. With an average of 106 different SaaS tools, down from 112, organizations use 5% fewer tools year over year.
Due to contractual obligations, organizations often can’t simply stop paying for SaaS apps and licenses they don’t use. Some apps have multiple year contracts that must be wound down. Others are complex, have high operational risk, and require lengthy data migration or integration periods. This is why consolidation takes place over multiple years.
The average number of apps decreased most significantly (28.8%) for companies with 1,500 to 4,999 employees.
ON-DEMAND WEBINAR
Dive into the top 10 insights
Are you prepared for the rising tide of security threats in SaaS? How is AI impacting your tech strategy?
Listen to Jesse Levin (BetterCloud CEO) in an exclusive webinar unveiling the highly anticipated 12th edition of the State of SaaS report.
Blast from the past!
Explore our archive of some of the past reports for a journey through SaaS history!
2024 State of SaaSOps:
Explore the trends from last year, including the first decline the average SaaS apps organization used.
2023 State of SaaSOps:
Take a look at the findings from 2023, including IT’s increasing responsibility for employee experience.
2021 State of SaaSOps:
Dive into the report from 2021 that includes trends of rising concerns of unsanctioned SaaS apps and massive SaaS growth.