Benefits of SaaS Management for IT and Finance Leaders 

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Much has been written about the security risks of Shadow IT, but did you know that unsanctioned Software-as-a-Service (SaaS) applications can also consume 30-40% of IT budgets? When you consider that most companies have 10 times more applications than they are aware of, managing SaaS applications is critical. In this article, we will delve into the importance and benefits of SaaS management and software and how they help IT and finance leaders manage spending and their security posture. 

Why SaaS Applications Must Be Managed 

The use of SaaS applications has brought in a lot of benefits, including reduced costs, increased productivity, and enhanced connectivity. However, unauthorized use of digital services can expose organizations to higher costs alongside security and compliance risks, making it essential to have governance and control over SaaS applications.  

  • Research shows 97% of companies use SaaS applications but only 62% have any defined governance for them, according to research firm Nemertes. 
  • 70% of IT leaders say Shadow IT is their #1 problem with cloud applications. 
  • Research published by shows 29% of cloud resources are wasted with 12% of cloud application licenses going unused and 17% going underutilized. 
  • 82% of CIOs say they are going to reduce their spending by optimizing SaaS licenses. 

This is where SaaS management platforms and software come into the picture.  

Benefits of SaaS Management Solutions 

SaaS management platforms help uncover Shadow IT or unauthorized use of digital services by offering discovery, monitoring, and analytics tools. But that’s not all. These platforms also streamline the management of SaaS app licenses, usage, and financial expenses. One of the main benefits of SaaS management platforms is that they allow IT teams to collect data on unauthorized SaaS use and provide alerts to new usage. Looking to invest in SaaS management solutions? Get six criteria for evaluating SaaS and IaaS management solutions

Real-time alerts, continuous monitoring, and detailed analytics help companies understand all applications in use, helping them see how they are spending and where they can consolidate vendors and reduce duplicate tools. At Tangoe, Shadow IT discovery is achieved through a five-step process including direct integration with 550+ applications, Single Sign-On (SSO) systems, identity software, as well as through financial systems and more.  

Another great aspect of SaaS management platforms is that they support financial management tasks. With SaaS management software, IT and finance teams can provide accurate cost allocations across departments and teams that use the SaaS applications and licenses. They can also provide recommendations on contract management, cost governance and policies, working with each team to ensure they are taking full advantage of the SaaS licenses available and optimizing their IT investments.  

See how Tangoe can help you with SaaS license and contract management as well as vendor and renewal management.  

SaaS management software helps IT teams administer the SaaS apps from procurement to assigning licenses to employees during on- and offboarding and contract management, handling apps across their lifecycle. SaaS lifecycle management software provides end-to-end visibility and control over usage, helping organizations streamline procurement with an app store, make the most efficient use of the licenses they purchase, and reduce costs at key moments including contract renewals. This helps eliminate manual tasks, reduce Shadow IT, and optimize SaaS spend. With detailed insights into SaaS application usage patterns, the software enables informed business decisions and identifies and mitigates any security risks, making it a valuable tool for IT and finance leaders. 

In addition, SaaS management solutions provide a rigorous discovery methodology consisting of a series of automated processes that identify risky or non-compliant application use and flag wasted spend. For this reason, many IT leaders are pairing SaaS security tools (like Cloud Access Security Broker i.e. CASB) and SaaS expense management tools together. Learn more about tackling SaaS spend management and SaaS security together. Given that executive leaders are increasingly demanding IT and finance leaders to maximize efficiency, SaaS management software would provide the cost control and visibility many enterprise IT teams are currently missing with their SaaS security strategies

Conclusion: Control Security and Spend with SaaS Management 

In conclusion, managing SaaS applications and software is essential in today’s digital transformation and adoption of SaaS apps. SaaS management platforms and software offer an efficient way to discover, monitor, and manage cloud applications, making it easier for IT and finance leaders to manage costs, security, and compliance. Organizations must consider utilizing these valuable tools to ensure they optimize their SaaS spending and maximize efficiency. With SaaS management platforms and software, IT and finance leaders have an effective means of managing their organization’s SaaS applications from procurement to offboarding.