Dive Brief:
- U.S. corporate IT spend on software is expected to grow 18% from $285 billion in 2021, according to a Silicon Valley Bank report which analyzed its proprietary data. The uptick will add up to a total of $336 billion spent on software by 2024.
- The biggest increase is expected in cloud. In 2021, cloud spend was $171 billion; it is expected to increase by 56% percentage points and reach $267 billion by 2024, according to the report.
- Globally, IT spending is expected to reach $4.81 trillion by 2023, up from $3.6 trillion in 2013, the report said.
Dive Insight:
While the SaaS market is full of vendors, the largest players have the most power.
Many of the big names in the software market have beefed up their capabilities through acquisitions, hoping to reel in more clients in search of the latest capabilities.
Adobe acquired Figma, a design interface platform, for $20 billion in September. Snowflake acquired Streamlit, a start-up with open source project capabilities for building data-based apps, for $800 million in March. Google acquired Siemplify, a cybersecurity automation and response firm, for $500 million in January.
These 2022 deals are among the 220 mergers and acquisitions that have happened this year. With an expected deal count of 314 by the end of the year, this number is still significantly below 2021 deal flow.
