TRENDING
Vertice found that the less transparent a software company is about its pricing , the more likely it is to make sudden price increases .
include HubSpot (+ 12 %), Microsoft (+ 15 %) and Webflow (+ 23 %).
The surge in inflation varied across product categories : sales software has seen the most rapid price increases with an inflation rate of 10.6 %. This is followed by finance ( 10.2 %) and productivity tools ( 10.1 %). HR and marketing software have seen more modest price increases .
More than half ( 57 %) of SaaS vendors hide their pricing from public view , making it easier to mask price hikes . In a similar way that airline and broadband pricing models can be a ‘ black box ’ for consumers , software vendors often make pricing complicated and difficult to understand . Additionally , Vertice found that the less transparent a software company is about its pricing , the more likely it is to make sudden price increases .
More than £ 1 of every £ 8 spent on software – a record high in SaaS business expenditure
SaaS spending now accounts for 14.1 % of a typical company ’ s expense line – up from 12.7 % last year – which means that more than £ 1 of every £ 8 spent is on SaaS . This equates to an average of £ 6,500 per employee spent on software , compared to £ 4,740 in 2022 .
Rampant ‘ SaaS shrinkflation ’
Alarmingly , the research highlights that while overall business SaaS spending is growing by 17.9 %, only
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