SaaS spend jumps amid shifts in the vendor landscape

▤ Summary

Enterprises are seeing software spend rise as pricing models, usage patterns, and vendor consolidation make procurement harder to control. BCG says SaaS has grown from 13% to 21% of total tech budgets over five years, while third-party services budgets rose about 6% annually from 2019 to 2024. AI add-ons, consumption pricing, and fragmented vendor portfolios are pushing renewals and new contracts higher, with many organizations reporting cost increases above 10%. The report recommends tighter procurement discipline, stronger vendor rationalization, and more cost-focused management of existing systems and cloud usage.

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