A Hard Reset on Software Value

Enterprise software spending remains robust, with Gartner forecasting $1.43 trillion globally by 2026—up over 15% year-over-year. The narrative of a “SaaSpocalypse” misses the mark; what’s changing is how buyers evaluate value.

What Buyers Now Demand

  • Flexibility: Organizations want to adopt new AI capabilities without being locked into rigid vendor roadmaps.
  • Interoperability: Tools must integrate seamlessly within agent-based workflows with proper APIs and context handoff.
  • Data Portability: Clear clauses enabling data migration when contracts end.
  • Unique Value: Products need to deliver outcomes beyond what off-the-shelf AI agents could replicate.

The last demand is particularly challenging vendors, as simple workflow layers on databases no longer suffice—today’s engineers can build similar prototypes in hours.

Beyond Cost Pressure

While CFO scrutiny has always existed, the current reset goes deeper than just cost optimization. Years of “try everything” experimentation have created tool sprawl across organizations - with a typical large enterprise using around 660 SaaS applications and per-app spending steadily climbing.

Agent adoption further disrupts traditional pricing models where value scaled with user count—once tasks are automated, paying per seat becomes illogical.

Vendor Responses & the Future of Pricing

  • Some vendors are moving to usage-based or outcome-pricing models (though solutions vary).
  • Others have returned to seat-based pricing with usage caps for predictability.
  • A clear trend is emerging: vendors who demonstrate unique value beyond what agents can replicate will thrive, while others get absorbed into larger platforms.

The SAP Factor

For organizations using SAP, an additional forcing function exists: the retirement of Solution Manager and related components at the end of 2027 requires a rebuild of operations toolchains regardless of market conditions. This creates an opportunity to consolidate vendors while modernizing systems.

Instead of fearing disruption, smart companies are viewing this as a chance to build more agile, outcome-focused technology investments that support evolving business needs.