Tomasz Tunguz · 2022-09-20
· 1353d
SaaS Consolidation: From Best-of-Breed to Suite Strategy
The SaaS market has expanded dramatically with 3,000+ vendors in sales and marketing alone, but consolidation pressures are emerging as enterprises struggle with integration, billing, and support across fragmented point solutions. While product differentiation drives initial fragmentation, commoditized categories will likely see consolidation into integrated suites, with bigger companies leveraging balance sheet advantages.
Metrics in this report
$1B Software Acquisitions
30+count
in current year
2022 M&A activity
Bottoms-up IT Spend
30%+%
of total IT spend
non-IT-department-approved purchasing
Cloud Applications per Enterprise
613count
average
total cloud app usage
Enterprises Using 1000+ Cloud Apps
20%+%
of surveyed enterprises
high fragmentation segment
Sales and Marketing Software Vendors
500 to 3000count
growth over 3 years
sales and marketing SaaS category
Sanctioned Corporate Applications per Enterprise
10-15count
range
IT-approved applications