New Report from Vertice Shows How Finance Teams Save 22% on Software
The SaaS purchasing platform found financial leaders are spending more on software each year despite being well-versed in the negotiation process
Share of SaaS Vendors that Include Automatic Pricing Increases
Average Discount Across Finance Tools
Licenses Wasted by SaaS Category
SaaS License Utilization
LONDON, April 26, 2023 (GLOBE NEWSWIRE) — Vertice, a rapidly-growing software company that helps businesses optimize their SaaS purchasing, today published a proprietary data report and purchasing guide designed to provide CFOs, controllers, accounting professionals and other senior financial executives a market advantage when it comes to purchasing and organizing software tools.
As global SaaS spend is expected to reach $208 billion in 2023, marking an 18% growth over 2022, it has become more difficult than ever for finance leaders to manage sprawling expansion in software tooling and take full control of their tech stacks, especially during a time of lean financial planning. Vertice’s report gives financial leaders a comprehensive analysis of 50 of the most popular SaaS products present today, such as Netsuite, Expensify, Sage, Ironclad and Carta, along with comparisons of trends among finance tools with other sectors and specific guidance for purchasing strategies.
Notable findings within the report include:
- The average price paid by users of finance software is 22.2% lower than list price, in line with discounting in other SaaS categories, slightly less than sales (23.4%) and HR (22.4%), but more than DevOps (21.1%) and marketing (19.6%)
- Enterprise Resource Planning (ERP) products are the most likely type of finance tool to be discounted (25.3%), followed by Fintech (24.3%) and payments software (23.5%)
- Around 16% of financial SaaS licenses go to waste, meaning organizations are paying for software they’re not using. This is much better than in other departments, however — by comparison, only 48% of sales SaaS licenses are actively utilized
- Almost a quarter (23%) of finance software vendors completely obfuscate their pricing, offering zero transparency to their customers
- Around 85% of finance vendors feature auto-renewals, while about a third (32.8%) of finance vendors include automatic pricing increases in their contracts
“Finance tools are almost always purchased by a company’s finance leaders, who typically have a deeper level of understanding when investing in new software. This can be seen in the shrewd estimation and application of license counts, with finance tools being used more efficiently than those used in other departments,” explains Eldar Tuvey, CEO and cofounder of Vertice. “However, these more informed negotiation techniques do not result in greater discounts. The 22% reduction in average spend for users of finance software against list price is very close to discounting seen in other product categories.”
“The difference between each vendor is enormous — the discounting we’ve seen from some SaaS tools is 10 times greater than it is for others,” said Tuvey. Even the most talented financial leader cannot ensure good value for money when pricing visibility and benchmarking is so hard to secure. This research underscores to CFOs that you’re only as good as the information you have.”
Finance teams have a responsibility to practice smart SaaS buying and establish this across the enterprise. Solutions like Vertice are designed to support finance leaders and typically save customers over 20% on their global SaaS spend. Using extensive data intelligence covering thousands of live SaaS transactions, Vertice provides SaaS procurement expertise to negotiate new purchases and renewals on behalf of its customers.
To read the full findings of the report, please click here.
About Vertice
Vertice is a leading SaaS purchasing platform that helps businesses save on and optimize their annual software expenditure. Leveraging extensive data intelligence covering thousands of live SaaS transactions, Vertice utilizes SaaS procurement expertise to negotiate new purchases and renewals on behalf of its customers. The solution streamlines the entire software purchasing process and provides finance leaders with full visibility into their SaaS stacks, incorporating automated purchasing workflows, granular usage analytics, insights into legal terms, compliance and security considerations, as well as support for cloud cost optimization. Vertice is headquartered in London with offices in Brno, New York and Tel Aviv. For more information, please visit vertice.one.
Media contact:
Rob Kreis
[email protected]
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/2d9d7940-4719-41d5-b654-0ffb04daf47d
https://www.globenewswire.com/NewsRoom/AttachmentNg/72bb4bf9-2d23-413c-85ed-ecd69f112e02
https://www.globenewswire.com/NewsRoom/AttachmentNg/bb1a6526-449d-46e4-b616-75e4610da9d8
https://www.globenewswire.com/NewsRoom/AttachmentNg/47d1c433-d388-447b-ba47-dd559ae326a9
