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SaaS Growth Trends in 2018

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SaaS Connect 2018 (San Francisco, CA).

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VIDEO: https://youtu.be/9xSeBWS6pXo

SaaS Growth Trends in 2018
by Ariel Diaz, CEO, Blissfully

Published in: Marketing
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SaaS Growth Trends in 2018

  1. 1. 1 SaaS Trends What’s ‘app’ening in 2018 Ariel Diaz Founder/CEO, Blissfully @arieldiaz@blissfullycom
  2. 2. @blissfullycom Welcome to the SaaS Explosion 🚀 2 2010 2011 2012 2013 2014 2015 2016 2017 Finance HR Business Ops Dev Ops Engineering Product Customer Support Marketing Sales
  3. 3. @blissfullycom 3 Blissfully provides real time visibility into the SaaS app usage and spend across the entire organization Hundreds of companies All business functions8+ years of apps data
  4. 4. SaaS explosion, by the numbers 4
  5. 5. @blissfullycom The SaaS explosion is happening across all business functions 5 2010 2011 2012 2013 2014 2015 2016 2017 Finance HR Business Ops Dev Ops Engineering Product Customer Support Marketing Sales
  6. 6. @blissfullycom 6 Average SMB: •20+ paid SaaS apps •30+ free SaaS apps •$20k+ monthly spend
  7. 7. It’s real for big and small companies 7
  8. 8. @blissfullycom It’s no surprise bigger companies use MORE SaaS 8 Number of SaaS Apps Used by Company Size NumberofSaaSAppsUsed 50 100 150 Company Size (Number of Employees) 1-10 10-50 51-100 101-250 251-1000
  9. 9. @blissfullycom But growth rates in SaaS apps adoption are similar across sizes 9 1-10 Emp 2 3 5 6 Q12011 Q12012 Q12013 Q12014 Q12015 Q12016 Q12017 Q12018 251-1000 8 15 23 30 Q12011 Q12012 Q12013 Q12014 Q12015 Q12016 Q12017 Q12018 101-250 5 10 15 20 Q12011 Q12012 Q12013 Q12014 Q12015 Q12016 Q12017 Q12018 11-50 Emp 4 7 11 14 Q12011 Q12012 Q12013 Q12014 Q12015 Q12016 Q12017 Q12018 51-100 4 8 12 16 Q12011 Q12012 Q12013 Q12014 Q12015 Q12016 Q12017 Q12018 Number of Paid SaaS Apps per Company - By Company Size
  10. 10. @blissfullycom This can be seen more clearly on a log plot 10 Growth of SaaS Products Used by Company Size 10 100 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018
  11. 11. As companies grow, the mix changes 11
  12. 12. @blissfullycom Overall spending by department 12 SaaS Spending by Department and Company Size 25% 50% 75% 100% 1-10 11-50 51-100 101-250 251-1000 Sales Marketing Customer Support Finance HR Business Ops Product Dev Ops Engineering
  13. 13. @blissfullycom Sales spending grows along with companies 13 SaaS Spending by Department and Company Size 25% 50% 75% 100% 1-10 11-50 51-100 101-250 251-1000 Sales Marketing Customer Support Finance HR Business Ops Product Dev Ops Engineering
  14. 14. @blissfullycom Engineering and Marketing go down proportionally as companies scale 14 SaaS Spending by Department and Company Size 25% 50% 75% 100% 1-10 11-50 51-100 101-250 251-1000 Sales Marketing Customer Support Finance HR Business Ops Product Dev Ops Engineering
  15. 15. @blissfullycom 10-50 1 2 3 4 5 6 7 8 9 10 51-100 1 2 3 4 5 6 7 8 9 10 Top apps by Revenue Share by Co Size 15 1-10 1 2 3 4 5 6 7 8 9 10 101-250 1 2 3 4 5 6 7 8 9 10 251-1,000 1 2 3 4 5 6 7 8 9 10
  16. 16. Freemium is not just for SMB 16
  17. 17. @blissfullycom Companies use 3 times more free apps 17 Total SaaS Apps 77% 23% Paid Apps Free Apps
  18. 18. @blissfullycom This is true across company sizes 18 Free vs. Paid SaaS Products by Company Size SaaSProductsUsed 25 50 75 100 125 Company Size (Employees) 1-10 10-50 51-100 101-250 251-1000 Paid Apps Free Apps
  19. 19. @blissfullycom This is true across company sizes 19 Free vs. Paid SaaS Products by Company Size SaaSProductsUsed 20% 40% 60% 80% 100% Company Size (Employees) 1-10 10-50 51-100 101-250 251-1000 Paid Apps Free Apps
  20. 20. Vendor Trends 20
  21. 21. @blissfullycom Top 20 Apps by Revenue are familiar folks 21 1-10 1 Engineering 2 Sales 3 Business Ops 4 Dev Ops 5 Business Ops 6 Marketing 7 Dev Ops 8 Business Ops 9 Marketing 10 Engineering 11-20 11 Sales 12 Customer Support 13 Finance 14 Engineering 15 Business Ops 16 Finance 17 Dev Ops 18 Dev Ops 19 Marketing 20 Engineering
  22. 22. @blissfullycom Top 20 Apps by Market Share skew more towards SMB and lower ARPU 22 1-10 1 Business Ops 2 Engineering 3 Engineering 4 Business Ops 5 Marketing 6 Business Ops 7 Business Ops 8 Finance 9 Engineering 10 Marketing 11-20 11 Dev Ops 12 Business Ops 13 Finance 14 Sales 15 HR 16 Customer Support 17 Customer Support 18 Dev Ops 19 Marketing 20 Engineering
  23. 23. @blissfullycom While the top 20 are well known, we’ve also seen an explosion in the number of vendors 23 Number of SaaS Vendors Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018
  24. 24. @blissfullycom Some categories are growing faster, others are more mature 24 SaaS Spend Growth by Department (Y/Y) 50% 100% 150% 200% 250% Customer
 Support Finance Engineering Marketing Business
 Ops Sales Product Dev Ops HR 222% 189% 168% 142% 136% 117% 102%102% 94%
  25. 25. @blissfullycom Top apps by Growth Rate 25 Fastest Growing Apps 1 12 23 34 2 13 24 35 3 14 25 36 4 15 26 37 5 16 27 38 6 17 28 39 7 18 29 40 8 19 30 41 9 20 31 42 10 21 32 43 11 22 33 44
  26. 26. Implications 26
  27. 27. @blissfullycom For SaaS Vendors 27
  28. 28. @blissfullycom For SaaS Vendors 27 Bad News • More vendors = more competition
  29. 29. @blissfullycom For SaaS Vendors 27 Bad News • More vendors = more competition Good News • Market still growing at healthy clip • Still underserved categories
  30. 30. @blissfullycom For SaaS Vendors 27 Bad News • More vendors = more competition Good News • Market still growing at healthy clip • Still underserved categories Other Keys • Freemium business model very prevalent across companies of all sizes
  31. 31. @blissfullycom For SaaS Consumers 28
  32. 32. @blissfullycom For SaaS Consumers 28 Bad News • More vendors = more confusion, chaos
  33. 33. @blissfullycom For SaaS Consumers 28 Bad News • More vendors = more confusion, chaos Good News • Every function served by great software
  34. 34. @blissfullycom For SaaS Consumers 28 Bad News • More vendors = more confusion, chaos Good News • Every function served by great software Other Keys • Need better tools to manage this chaos
  35. 35. @blissfullycom This SaaS chaos is why Blissfully exists 29
  36. 36. @blissfullycom Real time visibility across multiple data sources 30 1 - Install G Suite App
  37. 37. @blissfullycom Real time visibility across multiple data sources 30 1 - Install G Suite App 2 - Additional Integrations ~20+ more
  38. 38. @blissfullycom Real time visibility across multiple data sources 30 1 - Install G Suite App 3 - Complete report in 5 minutes2 - Additional Integrations ~20+ more
  39. 39. @blissfullycom 31

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