The average organization with 500 to 1,000 employees is running between 100 and 200 SaaS applications. A fraction of those are managed by IT. The rest were procured by individual departments, teams, and employees using corporate credit cards, expense reports, and in some cases personal cards that get reimbursed. The finance team knows about the ones with purchase orders. The IT team knows about the ones that went through the security review queue. Nobody knows about all of them.

Enterprise software procurement moves at a pace that the software it is trying to purchase has long since left behind. The average procurement cycle for a mid-market enterprise software purchase — from initial vendor identification to signed contract — runs between four and nine months. The software category the procurement team is evaluating will have shipped multiple major releases during that period. The requirements documentation that anchored the evaluation will have drifted from what the business actually needs. The vendor selected may have been acquired.