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SaaS bills climb as AI shakes up pricing: Zylo
['Alexei Alexis']
CFO Dive - Latest News
Large enterprises with 10,000 or more employees spent anywhere between $123.5 million and $375.5 million on average, Zylo said.
The report was based on an analysis of more than 40 million SaaS licenses.
New pricing mechanics and AI feature monetization are now leading factors behind rising SaaS costs, overtaking application sprawl, according to Indianapolis, Indiana-based Zylo, which annually publishes research on SaaS spending trends.
Software giants like Salesforce and Microsoft are updating plan structures, bundling AI features and accelerating the move to consumption-based pricing, Zylo said.
“SaaS pricing is undergoing the most significant shift the market has seen,” the report said.