AI Reshapes Software Pricing Models, Enterprise SaaS Spending Continues to Rise: Zylo Report
A report released Thursday by SaaS management company Zylo indicates that enterprises now spend an average of $55.7 million annually on software-as-a-service applications, with AI-driven tools growing the fastest. Despite the application portfolio remaining stable at an average of 305, spending in 2025 has still increased nearly 8% year-over-year. After analyzing over 40 million SaaS licenses, the report found that large enterprises (with more than 10,000 employees) spend between $123.5 million and $375.5 million annually. Ben Pippenger, Vice President of Strategic Partnerships at Zylo, stated that AI is rapidly becoming the most expensive "invisible employee" in organizations, bringing usage-based billing costs that are difficult to predict and govern.
Key Takeaways
- Enterprises now spend an average of $55.7 million annually on software-as-a-service (SaaS) applications, according to a report released Thursday by SaaS management company Zylo, withAI-driven toolsgrowing the fastest.
- Despite the number of enterprise application portfolios stabilizing at an average of 305, spending in 2025 is still up nearly 8% year-over-year. Zylo says large enterprises with more than 10,000 employees spend between $123.5 million and $375.5 million annually. The report is based on an analysis of more than 40 million SaaS licenses.
- "AI is rapidly becoming the most expensive 'invisible employee' in organizations," Ben Pippenger, vice president of strategic partnerships at Zylo, said in a press release. "As more work is done by AI-powered software, companies are adding opaque, usage-based spending that is harder to predict and control."
Deep Insights
According to Gartner's forecast,global software spendingwill reach $1.43 trillion in 2026, up 15.2% year-over-year.
Zylo, headquartered in Indianapolis, Indiana, publishes annual research on SaaS spending trends. Its latest report notes that new pricing mechanisms and the monetization of AI features have become major factors driving up SaaS costs, surpassing the impact of application portfolio expansion.
Zylo says software giants such as Salesforce and Microsoft are restructuring package tiers, bundling AI features, and accelerating the shift toward consumption-based pricing models.
"The number of applications enterprises own has actually leveled off, but spending continues to rise, indicating that pressure now comes from pricing mechanisms rather than application growth," the report states.
Microsoft announced in December that it plans toincrease commercial pricing for Microsoft 365 suitesstarting July 1 of this year. Microsoft said at the time the price increase was due to expanded AI features and new security and management capabilities added to Microsoft 365 products.
Zylo noted in the report that in August last year,Salesforce raised prices on its major cloud products by an average of 6%and launched a new AI-enhanced Agentforce, priced at $125 to $550 per user; additionally, Slack's Business+ plan price increased by 20%.
"SaaS pricing is undergoing the most significant shift the market has ever seen," the report says. "Seat-based models are giving way to hybrid and consumption-based models, making forecasting more difficult and widening the gap between planned and actual spending. As vendors introduce variable pricing tied to usage, AI features, or automatic overage fees, business leaders are encountering unexpected bills, which strains budgets and disrupts project plans."
Zylo says that as AI continues to drive pricing volatility and reshape commercial terms, companies need to establish "stronger financial controls and tighter operational rhythms" across technology, procurement, and finance teams.