The way in which companies assemble and manage their software tech stack is hitting a tipping point. Many are facing an economic downturn that could further impact and strain their business as the storm of Pandemic-related IT changes begins to calm down.
It's admirable that any company that survived the Pandemic is resilient. Many companies face a "pay-the-price" moment as the cost of their decisions and actions over the last 18 to 24 months come due.
Software license renewals are the most exposed part of your tech stack.
Most businesses were ready for digital transformation, even if they weren't. The shift to remote work and the need to quickly scale and onboard solutions point to cloud-based software. The lower cost of entry, minimal infrastructure requirements and quick implementation helped make moving to a SaaS tech stack the clear choice.
One of the best ways to help IT managers streamline the SaaS renewal process is to remove it from their plate entirely.
Almost all of the organizations were using some cloud-based products. According to our research, the average enterprise organization has doubled its spend on software as a service since the beginning of the year and is now spending over $30,000 on over 300 different tools.
In the heat of the moment, many companies focused on the immediate challenges that could be solved without truly understanding how this digital transformation would affect how they find, buy and manage their tech stack over the long term.
IT departments are feeling the pressure of managing a complex and diverse set of tools and justifying ROI in the face of rising software costs as a result of the software buying sprees of 2020 and 2021.
Aggressive pricing was used by software as a service companies to get into organizations that relied on them during the Pandemic. Businesses have been incredibly successful in improving productivity and recognizing their return on investment during difficult economic times. A lot of these products have become ubiquitous. Those with features like Airtable and Monday.com want to leverage those inroads when the time is right.
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