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Updated June 2026

SaaS Spend Benchmarks 2026: How Your Company Compares

Consolidated benchmark data from Zylo, Gartner, Productiv, and Flexera in one vendor-neutral reference. No product to sell, just the numbers.

$9,455

Median spend per employee/yr

305

Avg apps per company

36%

SaaS licenses unused

108%

AI-native SaaS spend growth YoY

SaaS Spend per Employee by Industry

The industry ranges below come from Productiv survey data on a pre-2026 basis and reflect the relative ordering between sectors. They predate the 2026 AI-driven step-up captured in Zylo's $9,455 all-company median, so treat them as a floor rather than a current point estimate, especially for technology and financial-services firms.

IndustryAnnual per EmployeeAvg App Count
Technology$6,200 - $8,500350+
Financial Services$5,800 - $7,200300+
Healthcare$4,900 - $6,100280
Professional Services$4,500 - $5,800260
Retail$3,800 - $5,000220
Manufacturing$3,200 - $4,500180
Education$2,800 - $3,800150

Sources: Productiv State of SaaS (industry splits), Gartner estimates. All-company median anchored to Zylo SaaS Management Index 2026.

SaaS Spend by Company Size

Company SizePer Employee/YearTotal Annual SaaSGrowth Rate
SMB (under 500)$3,500 - $5,000$350K - $2.5M18%
Mid-market (500-10K)$4,500 - $6,500$2.5M - $65M15%
Enterprise (10K+)$5,500 - $8,500$55M - $500M+12%

IT Spend as Percentage of Revenue

The average across all industries is 3.28% of revenue. This figure includes all IT spending (infrastructure, software, personnel, services), not just SaaS subscriptions. SaaS typically represents 40-60% of total IT spend.

IndustryIT as % of Revenue
Financial Services7.0% - 8.0%
Technology5.0% - 8.0%
Healthcare4.0% - 6.0%
Professional Services3.5% - 5.0%
Retail2.0% - 3.5%
Manufacturing1.5% - 3.0%

Sources: Deloitte CIO Survey 2025, Gartner IT Key Metrics Data

Shadow IT: The Untracked Third

One-third of SaaS applications in the average organization are unmanaged. These are subscriptions purchased by individual teams or employees without going through centralized IT procurement. Shadow IT creates three problems:

$2.4M+

Untracked Annual Spend

For a 1,000-person company, shadow IT typically represents $2.4M or more in unmanaged subscriptions.

40%

Duplicate Subscriptions

Nearly half of shadow IT apps overlap with existing approved tools, creating pure waste.

3x

Security Risk Multiplier

Unvetted tools are 3x more likely to suffer a data breach than IT-approved applications.

Where the 36% Waste Comes From

Unused Licenses

Employees who have seats but have not logged in for 30+ days. Common with tools purchased during hiring surges or onboarding of acquired teams. Typical unused rate: 15-25% of total licenses.

40% of waste

Duplicate Tools

Multiple teams paying for competing products that serve the same function. The classic example is three different project management tools (Jira, Asana, Monday) used by different departments in the same company.

35% of waste

Auto-Renewed Contracts

Annual subscriptions that renew automatically for tools that are no longer actively used. The renewal passes through finance without anyone questioning whether the tool is still needed. Common after team restructuring or project completion.

25% of waste

Frequently Asked Questions

What is the average SaaS spend per employee in 2026?+
In Zylo's 2026 SaaS Management Index, the median company spends about $9,455 per employee per year on SaaS, roughly double the prior year ($4,830 in the 2025 index). The jump is driven by AI-native application adoption, with overall AI-native SaaS spend up 108% year over year. Per-employee spend still varies widely by industry and company size, and the figure covers SaaS subscriptions only, not cloud infrastructure or salaries.
How much SaaS spending is wasted?+
Zylo's 2026 index finds organizations leave about 36% of their SaaS licenses unused. This waste comes from unused licenses where employees have seats but rarely log in, duplicate tools where multiple teams pay for competing products, and auto-renewed contracts for tools that are no longer actively used. A structured audit can typically reclaim 25% to 40% of this waste.
What percentage of SaaS apps are shadow IT?+
A large share of SaaS spend is decentralized: in Zylo's 2026 index, business units control about 81% of SaaS spend while IT directly manages only around 15%. Much of that is shadow IT, where individual teams or employees subscribe to tools without going through centralized procurement. Shadow IT creates untracked spend, security vulnerabilities, and compliance risks, and large enterprises add roughly 21 new applications every month.

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Updated June 2026