Methodology
Built from public evidence, scored against named benchmarks
Each measure rests on a named, independently published benchmark, not our own data. We score each group against its peers. When the evidence falls below the minimum we require, we disclose that rather than estimate.
How it works
Benchmarks and cross-checks
The index looks at markets, not companies.
The Stack-Tax Index studies market groups (company-size bands and industries) for the SaaS bloat that public evidence reveals. Each measure is tied to a named benchmark source, published independently of the sponsor and cross-checked against separate sets of data. The main sources are Vertice's SaaS spend benchmark, the Capterra and TrustRadius review panels, Vendr's contract price points, and SEC filings. On the Detailed Analysis page, each profile ends with an Evidence section listing the exact sources behind its charts. We never average measurements that are not comparable. The benchmark sets the level, and the cross-checks confirm the direction.
The indicators
Four measures
Named sources, with overlaps flagged.
- App Sprawl: how many software applications a group runs, compared with its headcount. For the industry rankings, no such count is published, so this measure instead counts how many different software categories an industry's reviewers report using.
- Unused Seats: the share of paid seats and licenses that we measure as unused or barely used.
- Spend per Employee: annual SaaS spend per employee, compared against benchmarks for each group.
- Price Increases: how much faster a group's software prices rise than the market-wide baseline. Tools with AI features have been raising their prices faster than the rest of the market, so this measure also counts how exposed a group is to that extra increase.
Unused Seats carries the most weight in the overall score. App Sprawl and Spend per Employee carry equal, middling weight. Price Increases carries the least, because its evidence base is the thinnest. The exact weights are set for each published edition and versioned with it. Unused Seats and Spend per Employee both draw on the same spend-platform benchmark. To turn that shared spend reading into a dollar figure, we apply the unused-seat share and the Price Increases premium to it separately. We then add the two results. App Sprawl and Price Increases each rest on their own separate sources.
Scoring
Ranked against peers, then compounded
A weak score on one measure cannot be hidden by a strong score on another.
We cap extreme raw values. We then rank each group against the other groups it can fairly be compared with. Its position among those peers becomes its score for that measure. We combine the measure scores so that a weak measure drags the total down more than a strong one lifts it. This means a group has to score well across the board to rank high. Where a group's evidence falls short on any measure, we publish a range instead of a single score, and we say so on the group itself.
Because peer pools are small, the percentile scores land on just a few round steps. That comes from ranking within a small pool. It is not a rounding of the underlying data.
What we measure
Size bands and industries
We slice the market two ways, and only as finely as the evidence allows.
Size bands run from Micro to Enterprise. We publish their employee-count boundaries alongside the ranking data. We rank industries on an industry score built from two measures, App Sprawl plus Price Increases, because those are the measures with dependable industry-level evidence today. We also work out each individual size-by-industry combination, and publish it with the state of its evidence.
Some report pages show how much more often than average a software category shows up in a group. We take the category's share of that group's review activity and divide it by its share across the full pool of reviews we studied. A value above one means the group reviews it more often than the pool does. A value near one means it matches the pool. This reads review behaviour, not the software actually installed.
Caveats
What the index does not claim
Clear limits on our sources and what we conclude from them.
The band measures rest on named, formally maintained reports. So a band's rank moves when a new edition publishes against refreshed evidence. Industry ranks work only half this way. Their Price Increases measure reads the same procurement benchmark, but their App Sprawl measure reads a rolling pool of reviews. So an industry rank can move on a re-run against a refreshed window, with no new edition involved. We also check the band ranking against revenue per employee. That benchmark is published by revenue band, so matching it to our headcount bands requires an assumption about revenue per employee. That assumed figure is the very thing the check reads, so the check leans on what it is meant to test. With only a handful of bands, treat it as a sanity check on direction. It is not a claim that the result is more than coincidence, and it is not an independent confirmation. It ran as expected in this edition. Three bands meet two conditions: the revenue benchmark overlaps them, and all four of their measures are observed directly. Across those three bands, a bigger Stack Tax goes with lower revenue per employee. The index describes market groups and never scores an individual company. One more limit: the band-level app count rests on an identity-provider system, which sees only the applications employees sign in to through it. So it is a floor, not a full count. Anything running outside it, including shadow IT, is not in the number. A separate source that automatically tracks software usage does estimate shadow IT, but nothing folds that estimate into this count.
Measure weights
- App Sprawl
- Middle
- Unused Seats
- Highest
- Spend per Employee
- Middle
- Price Increases
- Lowest
Relative weighting. The exact figures are set and versioned with each published edition.
Company-size bands
- Micro
- 0–49
- Small
- 50–499
- Mid
- 500–2,499
- Upper Mid
- 2,500–9,999
- Enterprise
- 10,000+
See where your stack sits.
Explore the full segment ranking, or get notified as the Stack Tax index is refined.