As we plan for 2024, all eyes are focused on the macro environment. Many hope for a return to rapid SaaS growth, but the market won't bounce back fully to pre-2023 levels.
After monitoring predictions, I see one overlooked factor: tech spend has reached unsustainable heights, forcing scrutiny of subscriptions. The rapid increase in FinOps roles reflects this pressure.
The issue is simple - businesses don't get the ROI they expect from their tech stack. Providers must demonstrate tangible value, not just trivial calculators or sweeping claims.
The subscription model itself will face pressure to transition to usage- or outcome-based pricing. Pre-committed seats face extinction.
In 2024, the market will favor providers who can prove their value.
SaaS providers must go beyond honing their GTM motions - they need to completely re-evaluate their underlying business model to thrive in the new market reality.
The market has fundamentally changed.