Enterprise software vendors are reporting a sharp drop in Net Retention Rates, falling from peak averages of 120% down to 104%. Chief Information Officers are mandating strict usage audits across all corporate departments.
Seat Rationalization
Unused SaaS licenses are being eliminated rapidly using centralized SaaS Management Platforms. Companies are reducing overall software seat counts by an average of 18% during renewal negotiations.
Platform Consolidation Over Best-of-Breed
Procurement teams are favoring single-vendor enterprise suites over point solutions. Point-solution vendors face pricing pressure, forcing acquisitions or drastic operational cost-cutting measures.