“They certainly have a totally separate budget for AI, which is coming at the cost of having to reduce their operational costs, their day-to-day costs, and at the same time, they’re faced with price increases, and that puts them in a very difficult position,” Aymé says. “The price increase are not totally across the industry, but specifically in mission-critical [areas], where the cost of a migration or rip and replace is high.”
The price of data
SaaS data platforms fall into a similar category as other mission-critical applications, Aymé adds, because the cost of moving an organization’s data can be prohibitively expensive, in addition to the price of a new SaaS tool.
Kunal Agarwal, CEO and cofounder of data observability platform Unravel Data, also pointed to price increases for data-related SaaS tools. Data infrastructure costs, including cloud data warehouses, lakehouses, and analytics platforms, have risen 30% to 50% in the past year, he says.
