Enterprise software optimization is accelerating as companies face potential budget freezes in 2025, according to new research from UBS reviewed by Slashdot. Following discussions with two leading SaaSOps vendors, analysts report that 21% of organizations cut their SaaS spend last year, with a staggering 30% of existing licenses sitting unused.
SaaS rationalization efforts are targeting familiar categories: collaboration tools (Zoom, Teams, Slack), project management solutions, and sales engagement platforms. Back-office systems like Workday remain relatively insulated due to their stickiness and pricing leverage, while front-office software faces mixed pressures. “Companies were looking to return to spend growth in 2HF25 from cost cutting but now that might no longer be the case,” one CEO told UBS.