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2025 SaaS Buying Trends Report

What’s Changing, What’s Next, and How to Stay Ahead

Software spending surged 10% in 2024, with AI-driven tools leading the charge. But rising costs and shifting pricing models mean smart procurement and spend management is more critical than ever. Our latest report, powered by $11B in spend data, breaks down the trends that matter—so you can make better decisions in 2025.

Why This Matters for 2025

Companies are spending more on software than ever, but the best teams aren’t just spending—they’re spending strategically. They create visibility through internal and external intelligence. This report arms you with the data, benchmarks, and negotiation strategies to control costs, maximize value, and future-proof your software investments.

If You’re Not Negotiating Early, You’re Losing Money

Security software costs jumped 56% YoY per employee—the highest increase across all categories. The smartest companies start negotiating six months in advance to secure better terms. Benchmarking pricing and locking in contract protections can save you thousands.

Contracts Are Getting Longer—And That’s Not Always a Good Thing

The average software contract is now 14.2 months, a 6% increase from last year. Vendors are pushing multi-year deals, but without price protection, you’re at risk of future cost spikes.

AI is Driving Explosive Growth—And Higher Prices

OpenAI saw a 146% YoY growth rate, with AI-first tools like Canva and Ashby close behind. 95% of the fastest-growing software companies now lean heavily on AI branding. But AI is also an excuse for price hikes—traditional per-seat pricing is disappearing, replaced by unpredictable usage-based fees.

Software spending surged 10% in 2024, with AI-driven tools leading the charge. But rising costs and shifting pricing models mean smart procurement and spend management is more critical than ever. Our latest report, powered by $11B in spend data, breaks down the trends that matter—so you can make better decisions in 2025.

Why This Matters for 2025

Companies are spending more on software than ever, but the best teams aren’t just spending—they’re spending strategically. They create visibility through internal and external intelligence. This report arms you with the data, benchmarks, and negotiation strategies to control costs, maximize value, and future-proof your software investments.

If You’re Not Negotiating Early, You’re Losing Money

Security software costs jumped 56% YoY per employee—the highest increase across all categories. The smartest companies start negotiating six months in advance to secure better terms. Benchmarking pricing and locking in contract protections can save you thousands.

Contracts Are Getting Longer—And That’s Not Always a Good Thing

The average software contract is now 14.2 months, a 6% increase from last year. Vendors are pushing multi-year deals, but without price protection, you’re at risk of future cost spikes.

AI is Driving Explosive Growth—And Higher Prices

OpenAI saw a 146% YoY growth rate, with AI-first tools like Canva and Ashby close behind. 95% of the fastest-growing software companies now lean heavily on AI branding. But AI is also an excuse for price hikes—traditional per-seat pricing is disappearing, replaced by unpredictable usage-based fees.

Software spending surged 10% in 2024, with AI-driven tools leading the charge. But rising costs and shifting pricing models mean smart procurement and spend management is more critical than ever. Our latest report, powered by $11B in spend data, breaks down the trends that matter—so you can make better decisions in 2025.

Why This Matters for 2025

Companies are spending more on software than ever, but the best teams aren’t just spending—they’re spending strategically. They create visibility through internal and external intelligence. This report arms you with the data, benchmarks, and negotiation strategies to control costs, maximize value, and future-proof your software investments.

If You’re Not Negotiating Early, You’re Losing Money

Security software costs jumped 56% YoY per employee—the highest increase across all categories. The smartest companies start negotiating six months in advance to secure better terms. Benchmarking pricing and locking in contract protections can save you thousands.

Contracts Are Getting Longer—And That’s Not Always a Good Thing

The average software contract is now 14.2 months, a 6% increase from last year. Vendors are pushing multi-year deals, but without price protection, you’re at risk of future cost spikes.

AI is Driving Explosive Growth—And Higher Prices

OpenAI saw a 146% YoY growth rate, with AI-first tools like Canva and Ashby close behind. 95% of the fastest-growing software companies now lean heavily on AI branding. But AI is also an excuse for price hikes—traditional per-seat pricing is disappearing, replaced by unpredictable usage-based fees.

Spend Management Is a Competitive Advantage

Companies are spending millions on growth software, but without intelligent spend management, they’re bleeding cash through inefficient processes. Prioritizing spend management delivers benefits across the entire organization, not just in finance. Yet, many businesses are quick to invest in sales and marketing tools while neglecting spend control—and that discrepancy is costing them. This report shows how modern spend management delivers greater ROI and helps you build the case for necessary resources.

99% of finance execs say spend management boosts efficiency.

Without it, you’re wasting time on manual tasks that could, and should, be automated.

78% of leaders link it directly to revenue growth.

Spend management isn’t just back-office—it's fueling top-line growth.

Companies using modern tools are 26% more confident in their operational efficiency.

Integrated systems mean better control, fewer errors, and more impact.

Something for everyone to Love

Procurement

Access benchmark data for strategic vendors and streamline your processes

Finance

Save time and money with software purchasing and renewals handled for you

IT Management

Improve procurement process compliance and manage SaaS with less effort

Drive savings and efficiency at any stage

Discover why hundreds of companies choose Tropic to gain visibility and control of their spend.