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2025 Software Spending Trends Report

We've analyzed $18B in software spend to reveal the AI spending surge, hidden cost traps, and exactly which suppliers your negotiation leverage lives

Our analysis of over $18 billion in managed software spend reveals that not only is AI impacting spending, it's reshaping how SMBs, Mid-Markets, and Enterprises buy, negotiate, and budget for software.

This report arms CFOs and procurement leaders with benchmark pricing across major suppliers, proven negotiation strategies that reduce AI premiums, and visibility into which emerging tools are growing fastest.

Key Findings

  • AI-native software spend grew 94% year-over-year for enterprise buyers, while traditional SaaS spend declined 8% as smaller teams cut tools that no longer justify their cost.
  • Vendors are charging "AI taxes" of 20-37% but strategic negotiation reduces these premiums by ~55% on average (down to 12% final uplifts)
  • Cursor saw 660% growth in contracts, Anthropic 584% - AI infrastructure has moved from experimentation to operational standard
  • Extreme pricing variability exists: companies pay wildly different rates for the same tools (DocuSign ranges from -68% to +66% off list price)
  • Google drives 43% of shadow spend, Microsoft 23%, OpenAI 21% - all designed for frictionless expansion that bypasses procurement

Our analysis of over $18 billion in managed software spend reveals that not only is AI impacting spending, it's reshaping how SMBs, Mid-Markets, and Enterprises buy, negotiate, and budget for software.

This report arms CFOs and procurement leaders with benchmark pricing across major suppliers, proven negotiation strategies that reduce AI premiums, and visibility into which emerging tools are growing fastest.

Key Findings

  • AI-native software spend grew 94% year-over-year for enterprise buyers, while traditional SaaS spend declined 8% as smaller teams cut tools that no longer justify their cost.
  • Vendors are charging "AI taxes" of 20-37% but strategic negotiation reduces these premiums by ~55% on average (down to 12% final uplifts)
  • Cursor saw 660% growth in contracts, Anthropic 584% - AI infrastructure has moved from experimentation to operational standard
  • Extreme pricing variability exists: companies pay wildly different rates for the same tools (DocuSign ranges from -68% to +66% off list price)
  • Google drives 43% of shadow spend, Microsoft 23%, OpenAI 21% - all designed for frictionless expansion that bypasses procurement

Our analysis of over $18 billion in managed software spend reveals that not only is AI impacting spending, it's reshaping how SMBs, Mid-Markets, and Enterprises buy, negotiate, and budget for software.

This report arms CFOs and procurement leaders with benchmark pricing across major suppliers, proven negotiation strategies that reduce AI premiums, and visibility into which emerging tools are growing fastest.

Key Findings

  • AI-native software spend grew 94% year-over-year for enterprise buyers, while traditional SaaS spend declined 8% as smaller teams cut tools that no longer justify their cost.
  • Vendors are charging "AI taxes" of 20-37% but strategic negotiation reduces these premiums by ~55% on average (down to 12% final uplifts)
  • Cursor saw 660% growth in contracts, Anthropic 584% - AI infrastructure has moved from experimentation to operational standard
  • Extreme pricing variability exists: companies pay wildly different rates for the same tools (DocuSign ranges from -68% to +66% off list price)
  • Google drives 43% of shadow spend, Microsoft 23%, OpenAI 21% - all designed for frictionless expansion that bypasses procurement

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.