A US Perspective on the 2023 Annual Software Study

Ongoing trends, challenges, and solutions for SaaS Industry leaders

The software industry has seen many ups and downs over the past several years.

What are the current trends, and what is likely to come next?

Simon-Kucher's Annual Software Study surveyed over 500 SaaS executives from across the globe to get a pulse on the ongoing trends and challenges of the SaaS industry. Read along as our specialists delve into software pricing, growth strategy, and generative AI, and offer solutions and strategies in this four-part series.

Four pricing mistakes your SaaS company might be making

Have you optimized your selling, contracting, and pricing processes?

Simon-Kucher teams have found that most SaaS businesses are not optimizing their selling, contracting, and pricing processes, and are sacrificing an incremental 11 – 17% in total revenue each year.

Our specialists discuss deal reconstructions, price escalators, and price accountability, and how your SaaS company can optimize these levers.

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Accelerating your SaaS company’s return to growth

2023 was a turbulent year for tech.

Despite a rough start to the year, most SaaS businesses expected to return to revenue growth as the year progressed. However, their expected revenue growth rates were significantly slower than the industry average in years past. What caused this, and how can SaaS companies move past this obstacle in 2024?

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Rule of 40 – Is it relevant for your company?

Hypergrowth remains the primary goal of most SaaS businesses.

However, what defines growth? Even more importantly, what is a realistic growth rate to target?

In recent years, the Rule of 40 has been a standard benchmark used to define a healthy SaaS company. However, most companies have historically struggled to achieve the Rule of 40.

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The rise of AI

Is your SaaS company ready to explore all the benefits GenAI offers?

Since the launch of ChatGPT and other artificial intelligence (AI) tools in the last year, the world has discovered that true generative AI is not a thing of the future, relegated to science fiction: it is here, and it is now.

It should come as no surprise that investment in AI skyrocketed last year. However, start-ups and their backers are not the only players throwing their hats in the ring to gain market share. A US perspective on the data from our Global Software Study shows that nearly all SaaS executives’ companies are investing in some form of generative AI.

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Our experts

Houston, USA
David Klemperer
Senior Manager
San Francisco, USA
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Filippo Gesuato
Chicago, USA
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