Opens in a new tab
News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Organizations' Use of SaaS Apps Grows 27% YoY

Organizations can expect to spend almost $10,000 per employee on software as a service in 2023, according to a new study by SaaS management company Productiv. The average department now uses an average of 87 SaaS apps, a growth of 27% between 2022 and 2023. The five most popular SaaS apps are Lucidchart, LinkedIn, Salesforce, Atlassian Cloud, and DocuSign.

This list has remained mostly the same since 2021, with the five apps listed above swapping places but remaining in the top five. Zendesk is another popular app among customer success teams, while Figma appears in the top five for engineering teams.

Engineering teams use the most SaaS apps, with an average of 108. The IT and security teams saw the most growth in SaaS app usage between 2022 and 2023, with an increase of 33%, mostly in point solution and ROI tools.

SaaS adoption continues to rise gradually. The average SaaS portfolio grew by 32% over the past two years. When broken down by the organization’s size, the data shows that Small and medium-sized business SaaS portfolios grew by 5%. In comparison, Mid-market portfolios increased by 41%, and Enterprise portfolios increased by 49%.

Why do we care?

That low SMB number says one of two things – either SaaS is heavily penetrated, or there is much room to grow.    Considering that the per-employee numbers for SMBs are higher… I’m going to say heavily penetrated.  This makes sense.      

This content is made possible by community-minded viewers like you

Join the Small Biz Thoughts Community to support independent journalism and get the raw Business of Tech interviews, Channel Intelligence briefs, monthly member calls and more. Member support is one way we sustain the costs of investigative work — from court filings to video editing — while keeping the core reporting open to all.

Thank you

Join the Small Biz Thoughts Community

Choose your upgrade:

Get the full benefits of Business of Tech Plus

Insider Access

$12/month

Perfect for MSPs and ITSPs that want full interviews, early access, and ad-free listening

  • Programmatic Ad-free private podcast feedSame show, little interruptions
  • Channel Chatter previews1–2 topics with light insights
  • Early access to interview episodesHear it days before public release
  • Monthly Insider BriefTighter analysis you can share internally
  • Extra audio segmentsCut interviews, behind-the-scenes commentary, quick competitive notes
  • Become an Insider for $12/month

    Leadership Access

    $149/month

    Perfect for MSPs and Vendors that run a team and need the extended tactics, executive summaries, and weekly alignment brief

  • All Insider Access benefits plus . . .
  • Invite your teamIncludes access for 5 team members with option to add more
  • Vendor Strategy BriefsThe entire library, plus new analysis every month
  • Channel ChatterAll topics, full insights, complete vendor discussion + sentiment list
  • Quarterly State of the Channel Briefing
  • Monthly AMA submission priorityAsk Dave direct questions, and skip the line
  • Get the Leadership Edge for $149/month

    Vendor Partner

    $500/month

    Perfect for channel companies or vendors looking to deepen their engagement with the show.

  • All Leadership Access benefits plus . . .
  • Get highlighted as a show sponsor You'll get placement in the show notes, throughout the website, and on our dedicated sponsors page.
  • Enjoy regular shout outs You'll be featured in a rotating format during the show
  • Become a show sponsor for $500/month

    Search all stories