TRENDING
COST OF SOFTWARE CRISIS : SAAS INFLATION OUTSTRIPS UK CONSUMER INFLATION FOR THE FIRST TIME
Vertice , a spend optimisation platform , has launched its Annual SaaS Inflation Index analysing data from 16,000 software vendors to provide an in-depth view of global software spend . The findings of the report revealed that almost three-quarters ( 73 %) of SaaS vendors hiked prices in 2023 , pushing software spend to an all-time high .
Software inflation has remained stubbornly high in 2023 at 8.7 %, significantly higher than the rate of CPI inflation in the UK ( 6.7 %) according to Vertice , the SaaS and cloud spend optimisation platform .
While UK CPI inflation , which includes everything from food to housing , has cooled compared with 2022 , Vertice ’ s annual SaaS Inflation Index shows that software prices are surging . In fact , a SaaS stack that cost £ 1,000,000 a year ago will today cost businesses an additional £ 87,000 .
The SaaS Inflation Index , which analyses data from 16,000 software vendors to provide an in-depth view of global software spending , identified a ‘ SaaS inflation gap ’ for the first time , illustrating a gulf between surging software prices and UK CPI inflation . In 2022 ,
A SaaS stack that cost £ 1,000,000 a year ago will today cost businesses an additional £ 87,000 .
the annual CPI rate grew 18 % faster than the rate of inflation in software . However , over the past year , we ’ ve crossed a tipping point and this trend has reversed – with SaaS prices rising 28 % faster than consumer goods inflation and showing no signs of slowing down .
Spiralling software price hikes
Almost three-quarters ( 73 %) of software vendors increased their prices in 2023 . Notable examples
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