The SaaS
Benchmark Report
Q1: 2024
Comprehensive Insights and Emerging Trends from Our SaaS Ecosystem
Introduction
Cloud applications are not just tools; they are our workspace. However, IT departments often lack the insights to manage this SaaS-based workspace. Questions like “Who is using which app, how frequently, for what purposes, and at what cost?” lack straightforward answers.
At Torii, we recognize that effective management begins with transparency. Our platform is meticulously crafted to be data-driven, mirroring our users’ priorities. While process enhancement, artificial intelligence, and automation are all exciting methods for scaling IT operations, their success hinges on the integrity of the underlying data.
To help add clarity and insight, we’re excited to release the first in our series of Quarterly Benchmark Reports, offering a glimpse into how some of the most forward-thinking organizations navigate the complexities of SaaS usage. I hope you find this report helpful in your journey.
CEO
Portfolio Size
Average number of applications in a company’s ecosystem in Q1: 2024
| Startup Up to 100 employees | 0 |
|---|---|
| Small 100 - 500 employees | 0 |
| Mid-size 500 - 2000 employees | 0 |
| Large 2000 - 5000 employees | 0 |
| Enterprise 5000+ employees | 0 |
High count: Torii’s AI-powered discovery engine uncovers apps that other methods miss, resulting in a shockingly high total application count.
Startups lean In: Today’s startups rely heavily on the power of SaaS to punch above their weight. Despite being less than 2% of an enterprise org’s headcount, startups will use 28% of the cloud applications.
Total Unique Apps Used in Q1: 2024
Top 5 Apps Shaping Our Work
Top 5 apps based on the number of users who used the app within Q1: 2024
Unmanaged Applications
Percentage indicates how often the app is left in a discovered state by IT after someone within the organization uses it
Most common shadow IT apps found within the organization
Shadow IT is shadow AI: AI tools dominate the unmanaged charts, indicating that organizations are dealing with a flood of new, relatively unknown applications.
Integrations can scale risk: While most shadow IT apps pose no security risk, they often request integration with the core tech stack of the organization
Top “Pure Play” AI Apps
Top 10 tools whose capabilities are entirely dependent upon AI
Top AI-Powered Apps
Top 10 tools whose capabilities are highly dependent upon AI
Inactive apps
Average percentage of apps with no active users during the last 30 days of Q1: 2024 (Feb 29 - Mar 29)
Apps with no active users in the last 30 days
Most Overbought Apps
A higher number indicates a higher percentage of app licenses that were left unused during Q1 2024
Apps with the highest license non-utilization rate
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Salesforce0.554 |
|---|---|
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Zoom0.446 |
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Pagerduty0.416 |
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Jamf Pro0.34 |
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Jira0.253 |
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1Password0.234 |
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Adobe0.232 |
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Atlassian0.219 |
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Calendly0.214 |
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Miro0.206 |
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Microsoft 3650.201 |
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Tableau0.13 |
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Google Workspace (G Suite)0.117 |
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JetBrains0.106 |
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Slack0.105 |
How it happens: A high non-utilization rate often results from one of these factors: purchasing more than is needed, reducing headcount after the contract is signed, or poor application adoption within the organization.
Balancing act: These numbers illustrate leadership’s constant balance of tools and needs within the organization as well as the possible downside to long-term contracts
Average and Median Contract Value
Contract values for our business-critical applications
Budget creep is ongoing: Alongside the recent slowdown in many tech sectors, both average and median contracts have increased year over year.
Renewals become even more critical: Thanks to SaaS visibility tools, organizations can finally review license utilization rates and gain more leverage in contract renewal negotiations.
Final Thoughts
The SaaS landscape, though chaotic, offers opportunity. As organizations seek financial and performance advantages, SaaS apps will attract even more attention for their potential to streamline operations and reduce costs through rationalization.
However, the missing ingredient for most is clear visibility.
Whether your goal is to spend well, go faster, improve security, or build a better process, your outcome is only as good as your data.
If you’re missing this vital data, try Torii’s AI-powered discovery engine. We offer a 14-day free trial with no credit card or phone call required.
Good luck! 👋
