SaaS Management
Erin Geiger, Director of Content at Lumos
The SaaS management market is growing larger by the year, as more companies discover the power of these platforms.
Especially if you work in IT or for a tech company, you’re probably familiar with the concept of tech stack proliferation. With new SaaS applications hitting the market every day, promising to transform companies with their value propositions, it can be a lot to keep up with. That’s why SaaS management platforms exist—to streamline and consolidate, and increase productivity.
If you’re wondering whether SaaS management is just a trend or here to stay, you’ll want to keep reading. In this article, we’re going to take a look at the SaaS—and SaaS management—markets.
How Big Is the SaaS Industry Market in 2023?
In 2023, the ever-growing SaaS market was expected to reach $197B—with that number for 2024 expected to balloon to $232B. As far as the business to business (B2B) SaaS market size, 2023 was expected to exceed $60B worldwide, with North America holding the largest market share of the global market. Those numbers are eye-popping, to be sure. But, to look at this another way…
What Is the Growth Rate of SaaS in 2023?
Additional market research indicates an expected 13.7% increase to the SaaS industry’s compound annual growth rate (CAGR) from 2023 to 2030.
Sustained growth is expected to impact the SaaS market size, Gartner forecasts. Their research suggests that worldwide public cloud end-user spending will reach nearly $600B by the end of 2023, with spending on SaaS applications expected to account for nearly one-third ($197B) of the broader category—which also includes platform-as-service (PaaS), infrastructure-as-a-service (IaaS), and a handful of other service types.
Of course, if you’ve been paying attention the past few years, this won’t come as a surprise—especially from an IT perspective. There’s a consistent rise, for example, in the adoption of public cloud services, especially among enterprise-level companies—which also comes with a shift away from costly, on-premises software deployment in favor of SaaS offerings. Why? To put it simply, SaaS offerings are often easier to install, configure, maintain, troubleshoot, and secure.
What Is SaaS Management?
SaaS management simply refers to the tools and techniques for optimizing the SaaS applications an organization leverages, including considerations like fit, functionality, and cost. The objectives of SaaS management include budget optimization, streamlining of workflows, addressing duplicate or under-used applications, and even vendor and contract management.
With the average company using well over 100 different SaaS applications, it begs the question of whether each of those tools is providing enough value to justify its cost. As the number of applications increases, tech stack proliferation quickly gets out of control. The result? Inefficiencies. Bloated budgets. IT burnout. Even the biggest SaaS companies deal with these headaches from time to time.
To lean on an overused, yet apt, metaphor, it’s not unlike herding cats. With each application having its own vendor and contract terms, it can just become overwhelming.
Enter: SaaS management platforms. With the right SaaS management platform, it becomes much easier to assess the tech stack and make sure it aligns well with the needs and priorities of your business. You can offload unnecessary applications, and optimize how you’re using the most mission-critical softwares to provide the most bang for your buck.
How Big Is the SaaS Management Market?
As recently as 2020, the SaaS management market held a value of nearly $114B. By 2028, that figure is expected to explode to a whopping $716B, according to Verified Market Research. It’s also noted that from 2021 to 2028, the SaaS management market size is expected to see a compound annual growth rate (CAGR) of 27.5%.
SaaS Management Is Increasingly Important. Is Your Company Ready?
There’s a profound difference between “we seem to be in OK shape” and “we are 100% ready,” so how can you make the leap? The answer lies in finding the right SaaS management platform—which just so happens to be our speciality. Our platform makes it easy to manage apps, access, and vendors in one place. It’s a comprehensive and versatile tool that can benefit your organization in countless ways, including through:
- SaaS and Vendor Management: Slash software costs, discover shadow IT, and get more out of every contract.
- Identity Governance: Control and manage access to SaaS, cloud & internal tools.
- Privileged Access Management: Enforce least-privilege with just-in-time access and make IAM your first line of defense.
We’re Ready! Are You?
Modern organizations can’t afford to let shadow IT, inefficiencies, and security vulnerabilities hide in the darkness waiting to drag them down. They count on their IT teams to be jack-of-all-trades superheroes, ready to solve problems completely and quickly. The reality, though, is that tech worker burnout is very real—and it’s only growing.
Visit our website to learn more about everything our platform can do. You can also read customer stories to understand the type of transformation that could be just around the corner for your organization, or request a demo to see the platform in action.
