Software-as-a-service (SaaS) management is the process of proactively monitoring and managing a company's entire software technology portfolio.
With nearly 40% of companies spending more than a million dollars on SaaS tools, SaaS buying and usage must be optimized to avoid wastage. A good SaaS management platform can enable this with unified contracts, license tracking, spend monitoring and workflow automation. As companies add more SaaS tools to their tech stack, CFOs want to prioritize SaaS application management to control SaaS spend and rightsize usage.
In this article, we will talk about:
Here are the advantages that management of SaaS tools can bring:
With over 250 tools being used in high-growth organizations, SaaS management can become complex. Here are some of the key challenges finance, procurement and IT teams face in SaaS management.
Users, teams and departments use a number of SaaS tools for various use cases. Included in this is also SaaS that is bought by individual employees, who use their credit cards and reimburse to the organization. 360-degree visibility of this entire landscape is an organization’s primary challenge.
Given how easy it is to buy and access SaaS, it is also easy to set up auto-renewals and forget about it. Many teams also try multiple tools before making a decision, often resulting in duplicates. Without a unified SaaS usage monitoring system, organizations find it difficult to understand whether a tool is even useful or not.
Conducting security audits for hundreds of tools is near impossible for any organization. Therefore, they trust the vendor to ensure security. However, data security and privacy is the joint responsibility of the vendor and the organization. If there are regulations such as GDPR or HIPAA that apply to you, the responsibility is even higher.
Organizations must track renewals, negotiate pricing and identify unused subscriptions to optimize costs. Otherwise, they may end up paying for licenses they don't need or use.
Some applications may not integrate well with each other or legacy systems, causing data exchange and collaboration issues. This can affect workflow efficiency and data accuracy.
Finance teams must understand organizational needs, create a comprehensive SaaS inventory, establish governance policies and implement centralized management tools. Here are the steps to create an effective SaaS management strategy:
Centralized SaaS management tools and platforms simplify the administration and monitoring of SaaS applications in the following ways:
Poor SaaS application management can lead to security issues when access is not revoked after employees leave or productivity issues when new employees are not trained to use the tools. Here are some steps to manage SaaS applications better, save money by eliminating redundant applications and gain control over the SaaS stack.
Over the last few years, we’re seeing a consistent increase in the adoption of SaaS management tools. Organizations are realizing that their third biggest expense — SaaS — needs a closer look. This will continue to evolve as challenges become more and more complex.
Predictive analytics and artificial intelligence (AI) will enable organizations to gain deeper insights into their SaaS usage, performance and potential issues. AI algorithms will proactively identify patterns, anomalies and optimization opportunities, allowing for more proactive and efficient SaaS management.
Alerts and reminders will include more prescriptive recommendations to help procurement teams take charge of their negotiations. Advanced integration tools will make switching tools less complex, giving more negotiating power in the hands of the buyer.
Effective SaaS management is crucial for businesses to:
Effective SaaS management enables organizations to leverage the benefits of SaaS applications while minimizing risks and maximizing productivity. CFOs and finance teams can implement the strategies in this article to achieve successful SaaS management. By assessing organizational needs, establishing governance policies, monitoring performance, optimizing costs and staying informed about emerging trends, they can effectively manage their SaaS applications.
By leveraging Spendflo, you can proactively embrace the best practices, harness the full potential of your SaaS applications and save up to 30% on your SaaS stack.
Transform your SaaS buying and management with Spendflo today! Schedule a demo to learn more about how Spendflo can help you drive your SaaS stack like a well-oiled machine.
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