SaaS Management Software provides end-to-end visibility, control, governance and security over an organizations’ SaaS ecosystem, a lack of which are common challenges enterprises face today. It’s a cloud-based solution that enables IT and (IT) Finance Teams to carefully manage SaaS spend, as well as purchasing, on and offboarding, license utilization, renewals, and SaaS cost optimization – all the essential functions associated with SaaS license management and adding SaaS operating costs to an enterprises’ tech stack budget.
SaaS costs are increasing exponentially, with a 5x growth in just 7 years. It is projected that 85% of software that organizations use will be SaaS by 2025. SaaS Management Software automates manual tasks, eliminates shadow IT and helps significantly reign in SaaS spend, running continuous SaaS optimization analysis. As companies continue to adopt new applications and grow their SaaS stack cross functionally, it is extremely important as an IT leader to get a handle on excessive spending in order to effectively set budgets, reallocate resources and make investments that drive innovation and generate growth.
True cloud SaaS costs, SaaS license management, SaaS optimization, SaaS vendor management and utilization oversight requires end-to-end SaaS Management Software. Enterprises of all sizes across every major industry need this to mitigate increasing security risks, control rising costs and to optimize their overall cloud spend.
Gartner defines shadow IT as the ownership and/or control of IT devices, software and services outside of IT organizations. And while 74% of SaaS applications are sourced and purchased by IT Executives, 51% and 34% of Business Executives and Line-of-Business Managers are involved in the buying process, respectively.
Given that executive leaders are being granted their own SaaS budgets, SaaS spend management tools would provide the level of control and visibility many enterprise IT teams are currently missing. The lack of governance is precisely what is leading to an influx of siloed shadow IT activities and unmanageable SaaS operating costs. This in turn opens a pandoras box of security, compliance and wasted SaaS spend for unused or underutilized licenses, common challenges enterprises face today that create major hurdles for IT to scale/right-size.
The Everest Group reports that 50% or more of IT spending in large organizations can go towards shadow IT. Shadow IT Discovery is a core capability of SaaS Management Software that provides IT Teams with detailed profiles on each SaaS application, including cost and consumption data down to the user level to combat shadow IT.
The rigorous discovery methodology consists of a series of automated processes that identify rouge activity and flags wasted spend and non-compliant activity. This pertains to everything from unused/unnecessary, underutilized, misused or unauthorized apps that need to be decommissioned. A critical piece to cloud expense management is SaaS Management Software, providing insights that can be actionable and to inform strategic business decisions and proactively mitigate compliance, security and financial risks.
To be effective, enterprise-level SaaS Management Software needs to include Shadow IT Discovery processes that integrate with an existing cloud tech stack, an Employee App Store so that your workforce can choose from apps not available to them directly as well as SaaS License Management and SaaS Vendor Management.
SaaS Management Software should also provide Renewal and Contract Management as well as Expense, Usage, Invoice Management, Inventory Analysis and delivers automated SaaS Cost Optimization recommendations. All the insights generated from these capabilities must then be captured in reporting and analytics. Intuitive dashboards should give you both an in-depth and holistic view of your SaaS spend, SaaS operating costs, usage and licenses, delivering complete SaaS subscription management.
SaaS Management Software puts IT teams in control of SaaS spend, SaaS operating costs, consumption, compliance, and SaaS cost optimization. It allows them to maximize the value of IT investments by reallocating resources and budgets, scaling, right-sizing as needed in order to drive innovation and growth. SaaS Management Software help drive ROI with critical insights that inform SaaS spend, budgetary and forecasting decisions. Equally as important is the ability to respond to security threats from SaaS app downloads and usage in a timely manner, an identify unmanaged IT activity due to licenses procured without its’ consent.
Security Ops teams need to be able to enforce strict governance, regulatory and security protocols to protect sensitive data, stay ahead of potential security threats and ensure compliance audit readiness. The latter is accomplished with the Shadow IT SaaS Discovery features that should be part of a complete SaaS Management Software solution.
SaaS Management Software provides finance teams with centralized SaaS Cost Management and SaaS Management Tools that provide a complete and holistic view of all SaaS spend, SaaS operating costs, license utilization and consumption. Automated finance and accounting processes from invoice management to inventory analysis, AP/GL file integration, as well as accurate cost allocations and chargebacks to business units help eliminate late fees and disconnects.
Savings through SaaS License Management, identification of duplicative apps and hidden costs are just some of the meaningful insights you can uncover to reduce wasted SaaS spend and drive ROI – insights that can then be delivered to executive leadership for strategic budgeting and financial modeling.
With the right SaaS Management Software, you’re able to track, measure, analyze and control costs via an automated, AI-embedded Spend Manager tool. Instant cost savings recommendations are delivered in real time with data that identifies hidden cross-platform expenses, usage trends and unused, misused and /or unnecessary licenses that can be decommissioned in order to reduce and even eliminate in many cases wasted spend. This helps IT teams right-size the number and tiers of licenses they own with certainty and garner substantial savings.
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