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Forum Key Insights

Enterprise SaaS customer assessment and H2 2022 budgetary outlook

  • Public Equity
  • TMT
  • North America

Last month, Third Bridge Forum spoke to two industry experts at CrowdStrike Holdings Inc and Futu Securities International Hong Kong Co Ltd to discuss enterprise SaaS trends, including the multi-vendor cloud software landscape and the impact of a recession on customer tools spending. Here are the need-to-know key insights from that Interview.

  • The specialists said that during a recession or period of economic contraction, tools used to operate a customer’s business are considered more “mission critical”. These include core ERP, customer relationship management and human capital management tools from companies such as Workday, Salesforce and SAP.
  • When looking to tighten budgets on software spending, the specialists told us decision-makers will first consider anything based on user licences – such as productivity suites – to find usage reductions before considering subscription licences.

“I would definitely say that if a [spend] reduction happened, I don’t see the tools are the first to get cut. I think the employees get the first cut, projects get another cut.”

  • Both specialists are “full speed ahead” but also “cautious” in setting 2023 budgets. They’ve not yet seen enough of an impact to discuss cutting 2023 budgets. 
  • We were told that projects with a “direct ROI,” such as data analytics and business planning applications, are likely to continue even in a harsh recession.

For more human insights on packaging trends, click on the transcripts below.

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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