      onlycfo.io · 2023-10-26
      · 952d
    

Software Buying Trends & Insights

The article analyzes Q3 2023 software purchasing trends from Vendr, revealing that 64% of contract renewals increased in price while companies prioritize consolidation over new purchases to manage costs. Through a CEO Q&A, the analysis highlights shifting buyer preferences toward multi-year deal avoidance, vendor consolidation, and proactive procurement strategies to combat rising SaaS expenses.

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Metrics in this report

Multi-Year Deal Propensity Decline at Purchase

14percent

2023 vs 2021

Reduction in likelihood of multi-year agreement selection at initial purchase

Multi-Year Deal Propensity Decline at Renewal

28percent

2023 vs 2021

Reduction in likelihood of multi-year agreement selection at contract renewal

Multi-Year Deal Savings - Net Purchase

13percent

average

Additional savings from multi-year commitment at initial purchase in 2023

Multi-Year Deal Savings - Renewal

26percent

average

Additional savings from multi-year commitment at renewal in 2023

New Software Purchases

17percent

Q3 2023

Proportion of total transactions that are new vs. renewal/consolidation

New Software Purchases

30percent

2022

Historical baseline for new purchase transaction proportion

People Costs as % of Total Operating Costs

70percent

typical

Mid-market SaaS company spending allocation

Software Contract Renewals with Price Increases

64percent

Q3 2023

Mid-market SaaS purchases via Vendr platform

Software Spend as % of Total Operating Costs

15-20percent

typical

Mid-market SaaS company spending allocation