SaaS management

Why is SaaS management important?

SaaS management is important because it helps businesses improve productivity, reduce costs, and ensure data security.

By managing SaaS tools effectively, companies can streamline workflows and make work more efficient. This ensures employees have access to the right tools, helping them get tasks done faster.

SaaS management also helps save costs by tracking subscriptions and avoiding overspending on unused software. It can reduce application expenses by 5% to 25% annually, according to Deloitte, making it a crucial component of IT cost optimization strategies. As the global SaaS market is set to grow from $3 trillion to $10 trillion by 2030, good SaaS management ensures businesses get the most value from their software and are prepared for future growth.

In addition, SaaS management ensures data security by controlling who has access to tools and protecting sensitive information. It also helps businesses stay compliant with data protection rules, ensuring the right people have access to the right data.

What are the goals of SaaS management?

SaaS management helps businesses use cloud software efficiently, stay secure, and get the most from their tools as they adopt digital solutions.

We’ll now examine the goals of SaaS management more closely.

Optimizing software usage and accessibility

• Ensures employees have access to the tools they need.
• Cuts wasted spending by identifying underused software.
• Improves teamwork by connecting software tools.
• Helps employees get up to speed with training and support.

Ensuring security and compliance

• Protects company data by controlling access to sensitive information.
• Reduces risks by monitoring software for security gaps.
• Ensures the company follows laws and regulations.
• Regularly checks tools to meet security standards.

Managing costs and scalability

• Tracks subscriptions and measures software ROI.
• Identifies opportunities to grow software usage as the business expands.
• Ensures the correct number of licenses are bought and assigned.
• Helps the company plan for future software needs.

Who is involved in SaaS management?

SaaS management involves several important people both inside and outside the company. These stakeholders help make sure the software is used correctly, securely, and efficiently to meet digital goals.

Let’s look into these stakeholders more closely.

Internal stakeholders

• IT department: Install, integrate, and secure the software.
• CIO/CTO: Ensure SaaS tools align with company goals.
• Procurement team: Choose, negotiate, and renew software subscriptions.
• Finance team: Track spending and manage budgets.
• End users (employees): Use the tools and give feedback on their experience.
• Security and compliance teams: Make sure tools are secure and meet legal standards.

External stakeholders

• SaaS providers: Supply the software, offer support, and update the product.
• Consultants: Help implement, integrate, and optimize SaaS tools.
• Third-party vendors: Provide extra services or integrations for the tools.

What is required for SaaS management success?

To achieve SaaS management success, focus on three key areas that help the organization optimize software usage, control costs, and ensure data security and compliance:

Optimize software usage

Regularly review which SaaS tools are being used across the organization. Ensure employees have the proper training to maximize the value of each tool. Remove any applications that are not being used to prevent unnecessary spending on unused resources.

Control and manage costs

Monitor and track the costs of each SaaS subscription closely using vendor management software to maintain oversight of your SaaS providers and contracts. Set a clear budget for software expenses and ensure spending stays within this budget. Look for opportunities to negotiate better deals or eliminate underutilized tools to save costs.

Ensure data security and compliance

Make sure that all SaaS tools meet security standards and comply with relevant regulations. Regularly check who has access to each tool and ensure sensitive data is protected to reduce potential risks.

Why do SaaS management projects fail?

SaaS management projects often fail because of several challenges. By recognizing these issues, organizations can make improvements and avoid unnecessary setbacks:

Lack of clear subscription overview

SaaS management struggles when organizations don’t have a clear view of their software subscriptions. Without knowing what tools are being used, who is using them, and how much they cost, businesses may pay for software that is not needed. This leads to wasted money and difficulty in managing software expenses effectively.

Poor integration with existing systems

SaaS tools that do not integrate well with other systems can cause major issues. Poor integration makes it difficult to track software usage, manage data, and coordinate across departments. It becomes harder to keep track of renewals, usage data, and updates, leading to inefficiencies and missed opportunities to streamline operations.

Weak governance and policies

A lack of clear governance and policies can cause SaaS management to fall apart. Without defined rules for approving, renewing, and monitoring software subscriptions, organizations risk running up unnecessary costs and creating security gaps. Over time, unchecked software growth can lead to compliance problems and management difficulties.

SaaS management use cases

While the core goal of SaaS management is to optimize software usage, implement cloud cost optimization strategies, and ensure security, how it’s implemented can vary.

Here are three examples of how it works in different industries.

Retail

Scenario: A retail company uses several SaaS tools for inventory, customer management, and marketing. Some of the tools overlap and are underused.

Method: The company reviews its subscriptions, removes duplicates, and ensures employees only have access to what they need.

Outcome: This cuts costs, makes better use of the tools, and improves productivity by focusing on the right resources.

Finance

Scenario: A financial firm uses many SaaS tools for planning, client management, and data analysis, but lacks control over licenses and compliance.

Method: SaaS management tools track subscriptions, monitor license use, and make sure the firm meets data security and privacy rules.

Outcome: The firm saves money, stays compliant with regulations, and improves security and efficiency.

Healthcare

Scenario: A healthcare provider uses SaaS tools for patient management, telemedicine, and records, but some tools are outdated or not working well.

Method: The provider uses SaaS management to review current software, upgrade old tools, and integrate them with other systems.

Outcome: This improves patient care, strengthens security, and lowers costs by removing outdated software.