SaaS sprawl hits breaking point: Cloud marketplaces are emerging as the unlikely hero

SaaS sprawl hits breaking point: Cloud marketplaces are emerging as the unlikely hero

Dec 10, 2024

2

min read

75+ SaaS apps per key enterprise department - up from 50 in 2021! Imagine selling another tool to a department already juggling all these apps

75+ SaaS apps per key enterprise department - up from 50 in 2021! Imagine selling another tool to a department already juggling all these apps

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📊 Let's break down what the data reveals

Operations, IT, and Engineering departments lead the pack, each managing 80-85 different SaaS applications - a staggering 70% increase from 2021.

Even traditionally lighter tech users like Marketing now juggle 60+ apps, up from 40 in 2021.

💎 This proliferation creates three critical challenges for enterprises and software vendors:

Procurement Complexity:

Enterprise sales cycles become increasingly burdensome as companies manage more vendors, contracts, and renewal dates.

Budget Fragmentation:

With departments running dozens of subscriptions, software budgets are scattered across multiple cost centers and purchasing channels.

Integration Overhead:

IT teams struggle to secure, manage, and integrate an ever-expanding portfolio of applications.

🛒 Here's the reality check:

Imagine selling another tool to a department already managing 80+ apps. Not only do they barely track what they have, but their management now scrutinizes every new line item.

🎯 This explains the unprecedented growth of cloud marketplaces.

Their advantages for procurement and security teams are compelling:

  • Consolidated procurement and billing

  • Simplified vendor management

  • Leverage of existing cloud commits

  • Native integration with cloud infrastructure

  • Enhanced security and compliance

Recent Boston Consulting Group (BCG) data confirms this shift: 55% of enterprise buyers now spend over 10% of their IT budgets through marketplaces, with two-thirds planning to increase this channel.

⚡ For software vendors who sell to enterprises, the winners in 2025 won't just be those who list on marketplaces - they'll be the ones who transform their entire GTM strategy around this new purchasing reality.

What's your approach to navigating this fundamental shift in enterprise software consumption?

Source

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Scale to $100M+
via Cloud Marketplaces

Join 5,000 GTM leaders

Weekly Newsletter

Join 5,000 GTM leaders

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Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight

Join 5,000 GTM leaders

Weekly Newsletter

Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight

Join 5,000 GTM leaders

Weekly Newsletter

Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight