Software Spending Slips Ahead of Big Tech Earnings Season
- Average annual contract value declines 51% in second quarter
- Microsoft, Salesforce and Zoom among the vendors analyzed
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Software contract spending in the second quarter hit its lowest point in three years, according to a new report, suggesting potentially disappointing results when providers report earnings over the next month.
The average annualized value of software deals inked in the second quarter declined 51% to $62,000 compared with the same April-June period a year earlier, according to an analysis of 3,000 transactions from more than 500 buyers by tech procurement service Vendr. It was the lowest value since the same quarter in 2020, when the pandemic flared in the US.