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Snow Software 2023 Predictions: The Future of IT Spending and SaaS

vmblog-predictions-2023 

Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

The Future of IT Spending and SaaS

By Jennifer Kuvlesky, Director of Product Marketing at Snow Software

2022 has been a rollercoaster for the technology industry and workforce as a whole. Moving into the new year, companies are extremely focused on identifying ways to reduce costs and bolster employee morale, while continuing their pursuit of innovation and bringing new offerings to the market. SaaS organizations can start the year strong by re-evaluating spending priorities, identifying areas for furthering employee education and upskilling and determining how to best expand their offerings.

Let's take a closer look at each of these priorities for IT teams in 2023 and how they will help SaaS companies thrive in the coming year.

Businesses must re-evaluate their spending priorities... again

An economic downturn was largely expected at the start of 2022, though we didn't actually see a slow down in spending until the second half of the year. Organizations re-evaluated business practices and spending habits due to the pandemic, so the current economic situation may seem less jarring, or at least was well-anticipated. This preparedness will result in fewer cost-cutting measures. In fact, 2022 saw many new SaaS and cloud management vendors enter the market to keep a closer watch on spend.

Organizational leaders likely feel that they have already put in significant work to get a handle on their spending in recent years, though many are unaware of new technology which can make a huge impact in helping them reduce spend. Smaller businesses, especially with a smaller number of licenses, often think it's not worth the effort. In the coming year, businesses of all sizes will once again need to re-evaluate their spending priorities and determine what technologies are most worth their investments, and which ones they might need to cut.

ITAM professionals need additional education and cost awareness

The evolution of FinOps and ITAM working together will enable product teams to develop a better go-to-market strategy by really understanding the cost of software for both large-scale vendors and customers. Determining how to allocate costs of hosting to each customer will potentially help lower costs and use products as a lead to expand. From a product standpoint, product teams will be more involved in these conversations around cost and being more competitive. Education on the importance of cloud and SaaS for ITAM professionals will also need to improve in the upcoming year.

Proper data framework is essential to expanding SaaS offerings

We're going to see the continued expansion of SaaS functionality or companies acquiring functionalities to bundle offerings and integrate to drive expansion revenue in the coming year. However, you need to have the data framework to be able to integrate these acquisitions and for the capabilities to work together. To effectively sell bundled offerings, you need that effective data and presentation layer to simplify for the customer. Salesforce recently announced this transformation with their new Salesforce genie data layer to make app integrations faster.

Technology intelligence companies will seek to do this using data integration to bring silos of data together to provide more value for IT teams. We see this in various industries, such as marketing where there are a lot of disparate applications, but you can't get value from them because the data is not integrated. Companies need to make their investments more usable by other areas of the business by correlating and integrating their tools and data to gain additional perspective.

SaaS organizations are looking to grow and expand in the new year, and they will need to review the lessons they've learned in the past few years to do so. Once these companies take a close look at their spending habits, develop their employees' ITAM skills and cost understanding, and ensure they are working with an effective data framework, they will be significantly better positioned for success in 2023.

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ABOUT THE AUTHOR

Jennifer-Kuvlesky 

Jennifer Kuvlesky leads product marketing at Snow Software for the IT asset and SaaS management product lines. Prior to joining Snow, Jennifer held product marketing, customer success program management and product management roles at SolarWinds and IBM.

Published Friday, January 13, 2023 7:35 AM by David Marshall
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