Managing Software as a Service (SaaS) applications comes with a set of challenges, particularly when it comes to gaining clear visibility into your SaaS inventory.
Understanding which applications are in use and how much is being spent is crucial for effective resource management.
Without this clarity, there’s a risk of overspending on unused or redundant licences, which can strain budgets and hinder operational efficiency.
Furthermore, as individual departments increasingly acquire SaaS tools independently, organisations often face a fragmented portfolio that complicates oversight and heightens potential security vulnerabilities.
In fact, statistics from Fortune Business Insights indicate that 63% of security incidents are caused by SaaS misconfigurations, emphasising the critical need for effective management.
Today, we are going to explore more about SaaS inventory management, including its definition, key features, and software recommendations for you.
Now let’s deep dive into it!
What is SaaS Inventory Management?
SaaS inventory management is the process of tracking all the Software as a Service (SaaS) applications your organisation utilises.
This process helps you understand which applications are in use, the expenses associated with them, and their compliance with relevant regulations.
This concept emphasises a critical principle in management: visibility is key.
Without a clear picture of your SaaS landscape, making strategic decisions becomes challenging. Regularly updating your record of SaaS applications allows you to gather insights into software usage patterns.
For example, recognising applications that remain unused or underutilised can help you reduce unnecessary expenses and optimise spending.
Moreover, understanding your SaaS inventory aids in licence management. It allows you to ensure that you do not exceed the limits of your licences and helps prepare for upcoming renewal deadlines.
These actions contribute to a more efficient and cost-effective approach to managing your business’s software resources.
More in Nexalab’s blog: 7 Best SaaS Subscription Management Software for Better Cost Control
Benefits of SaaS Inventory Management
A SaaS inventory management system strategy brings many benefits that make organisations run better. Each benefit helps teams manage software more easily and effectively.
Some of the key benefits include improved cost control, increased productivity, and better compliance with licencing agreements. Here are the details of that:
- Improved SaaS Visibility: Gain a complete view of all SaaS applications and related spending. This clarity supports informed decision-making and facilitates better tracking of usage and costs.
- Cost Savings: Identify redundant applications and optimise licence usage. This approach can lower overall SaaS expenses, helping organisations allocate resources more effectively.
- Improved Security: Keep tabs on shadow IT to maintain compliance with security policies. A good SaaS inventory management system helps manage risks by focusing on approved applications.
- Better IT Operations: Automating discovery and reporting processes saves valuable time for your IT team. This efficiency allows them to concentrate on strategic projects that contribute to growth.
- Better Collaboration: Allow stakeholders access to relevant data. This transparency promotes collaboration between IT and business units, leading to clearer communication around technology investments.
A SaaS inventory management system provides clarity and control over your software landscape. It helps organisations improve efficiency and gain more value from SaaS investments.
How to Discover, Build, and Maintain Your SaaS Inventory
To effectively discover and build your SaaS inventory, you must use a SaaS Management Platform (SMP).
Here are three key steps to find, build, and maintain your inventory:
Step 1: Discover Your Full SaaS Inventory
Visibility starts with SaaS discovery, which involves finding all the applications and spending in your environment.
Many organisations have tried and failed using traditional methods like spreadsheets and legacy software management tools. These methods only account for the applications you already know about and lack a discovery mechanism.
A SaaS management platform might be useful for you in this process, especially if your company has a large number of applications and subscriptions to keep track of.
With an SMP, you can automate the discovery process and gain a comprehensive view of your SaaS inventory, helping you make informed decisions about usage and spending. for this process.
Different SMP software uses different SaaS discovery methods.
Some can include AI-powered matching models, rule-based matching, cloud access security brokers (CASB), browser extensions, and single sign-on solutions.
Among these, AI-powered financial discovery is the most effective at identifying unknown SaaS applications and spending. However, AI-powered financial discovery is not something that is commonly found in the SMP software nowadays.
Step 2: Onboard Applications into Your SaaS Management Platform
Once you have discovered your full SaaS inventory, the next step is onboarding applications into your SaaS management platform.
This involves categorising applications, assigning ownership, and ensuring that all relevant data is captured. A centralised dashboard allows stakeholders to access the information they need, facilitating informed decision-making.
Step 3: Maintain Ongoing SaaS Inventory Management
Ongoing maintenance of your SaaS inventory is crucial for long-term success. Regularly review and update your inventory to account for new applications, changes in usage, and evolving business needs.
Establishing a governance framework ensures compliance with purchasing policies and helps mitigate risks associated with shadow IT.
7 Top SaaS Inventory Management Solutions
A good SaaS inventory management solution helps simplify this process. It provides insights into application usage, spending, and compliance.
These solutions offer insights into how each application is used. They also help you understand your spending and verify compliance with relevant regulations.
When evaluating SaaS inventory management solutions, focus on options that provide strong features and easy integration.
Look for tools that have received positive feedback from users. These solutions should align with your organisation’s specific needs and enhance your overall approach to software management.
So, if you are currently looking for SaaS inventory management solutions, here are some of the top software that you can consider.
1. Octobits
Octobits by Nexalab is a powerful SaaS management platform designed to help organisations discover, manage, and optimise their SaaS inventory effectively. With features like automated discovery, centralised dashboards, and robust reporting, Octobits empowers you to take control of your SaaS ecosystem.
2. Zoho Inventory
Zoho Inventory offers comprehensive inventory management features, including order management, tracking, and reporting. Its integration capabilities make it a versatile choice for businesses looking to streamline their operations.
3. TradeGecko (QuickBooks Commerce)
TradeGecko, now part of QuickBooks Commerce, provides inventory and order management solutions tailored for e-commerce businesses. Its user-friendly interface and robust features make it a popular choice among small to medium-sized enterprises.
4. Cin7
Cin7 is an all-in-one inventory management solution that integrates with various sales channels. Its features include real-time inventory tracking, order management, and reporting, making it suitable for businesses of all sizes.
5. Fishbowl Inventory
Fishbowl Inventory is a comprehensive inventory management system that integrates with QuickBooks. It offers features like inventory tracking, order management, and manufacturing capabilities, making it ideal for manufacturers and distributors.
6. DEAR Systems
DEAR Systems provides a cloud-based inventory management solution that offers features like purchasing, sales, and manufacturing management. Its integration capabilities with various e-commerce platforms make it a strong contender for online retailers.
7. inFlow Cloud
inFlow Cloud is designed for small businesses looking for an easy-to-use inventory management solution. It offers features like order tracking, reporting, and barcode scanning, making it a practical choice for startups.
Best Practices You Should Know for Effective SaaS Inventory Management
Effectively managing a portfolio of Software as a Service (SaaS) applications enables organisations to make better use of their technology investments.
Adopting a thoughtful approach to SaaS inventory management can lead to more efficient application usage, better cost control, and improved compliance. Below are some practices that could improve your management strategy:
- Run Ongoing Discovery: Regularly assess your SaaS portfolio. This practice helps you stay informed about the applications in use, their costs, and any associated risks.
- Centralise All Your SaaS Data: Establish a single repository for all SaaS-related information. This centralised data should cover user access, usage statistics, payment details, and contract terms, providing a comprehensive view of your applications.
- Identify, Assign, and Track Ownership of Applications: Clearly define ownership for each application. Create dashboards for each application owner to manage their responsibilities effectively, fostering accountability throughout your organisation.
- Set Up Automatic Alerts: Use automated alerts to monitor new applications. Notifications when new tools are added to your environment facilitate proactive management and help maintain oversight.
- Identify and Track Unvetted Applications: Regularly review applications that have not passed through necessary evaluations. Monitoring unvetted tools is critical for understanding potential security and compliance risks.
- Regularly Rationalise Applications in Your Portfolio: Commit to evaluating your applications periodically. This ongoing assessment addresses issues like SaaS sprawl and redundancy, helping streamline your tech stack and enhance efficiency.
- Establish a Governance Framework: Create a governance model that outlines purchasing policies and ensures compliance. This framework is vital in maintaining control over your SaaS environment.
Implementing these best practices helps organisations manage their SaaS applications effectively.
A structured framework for oversight enables you to improve resource allocation and strengthen security while maximising the value of software investments. Adopting these strategies allows for a more efficient SaaS environment that aligns with your organisational goals.
More in Nexalab’s blog: SaaS Operations Management Definition, Benefit, and Software Recommendation
Conclusion
Effective management of your SaaS inventory can significantly influence the success of IT managers and business owners looking to optimise software investments. A well-implemented SaaS inventory management system enhances visibility into application usage, leading to more informed decision-making.
Octobits by Nexalab is a SaaS management platform designed to simplify the complexities of SaaS inventory management. Centralised dashboards offer easy access to critical data, while advanced reporting capabilities enable a deeper analysis of usage patterns and expenditures.
Together, these tools empower organisations to manage their SaaS ecosystem more effectively, promoting better resource allocation and risk mitigation.
Contact Nexalab today to learn more about how Octobits can help your SaaS inventory management processes.
