Businesses today rely heavily on Software as a Service (SaaS) applications. According to hbs.net, SaaS applications now account for more than 70% of company software use, making them a critical component of business success.

As the number of SaaS applications in use continues to grow, managing them effectively has become a critical challenge for IT departments and business leaders.

SaaS operations management addresses these issues. Managing many SaaS applications at once is challenging. Organisations need to handle these challenges so SaaS tools are helpful for companies, not problematic.

In this guide, we’ll explain SaaS operations management, why it matters for your business, and how to use best practices to improve your cloud software system.

We’ll cover the main parts of SaaS ops, its benefits, and how tools like Octobits by Nexalab can help manage your SaaS more efficiently.

What is SaaS Operations Management?

SaaS operations management, often called SaaS Ops, involves overseeing and improving the full lifecycle of SaaS applications in an organisation. This practice covers many activities, from finding and assessing new applications to managing user access, security, and costs.

The main aim of SaaS operations management is to help organisations maximise the value of their SaaS investments while reducing risks and inefficiencies.

This requires maintaining clear visibility of all SaaS applications in use, effective licence management, strong security and compliance measures, and streamlined processes for SaaS adoption and use.

SaaS Ops includes several important tasks:

1. Identifying and evaluating SaaS applications
2. Managing user access to SaaS applications
3. Monitoring SaaS usage and performance
4. Troubleshooting SaaS issues
5. Adding and removing SaaS accounts
6. Managing SaaS costs
7. Following industry regulations
8. Improving the SaaS stack to remove redundancies

Implementing a strong SaaS operations management strategy allows organisations to control their software ecosystem, reduce costs, improve security, and maintain compliance. This approach aligns technology tools with business goals and regulatory requirements, which drives efficiency and productivity across the organisation.

More in Nexalab’s blog: SaaS Subscription Management: A Comprehensive Guide to Manage Your Online Software Usage

How SaaS Ops Differs from Traditional IT Management

SaaS operations management marks a significant change from traditional IT management approaches. Several key factors set SaaS Ops apart from conventional IT management:

• Decentralised control: SaaS applications are often adopted by individual departments or employees without IT involvement, unlike on-premises software. This decentralisation calls for a different management and governance approach, where IT teams maintain oversight while allowing innovation.
• Rapid changes: Vendors frequently update SaaS applications, requiring constant adaptation and monitoring of features, security, and compliance. This fast-paced environment needs a more agile and proactive IT management approach.
• Subscription-based model: The subscription-based pricing of most SaaS applications requires ongoing cost management and optimisation. IT teams must regularly monitor usage, negotiate contracts, and adjust subscriptions for optimal value.
• Integration complexity: With many cloud applications in use, creating seamless data flow between systems becomes a significant task. SaaS ops must focus on building and maintaining integrations between various applications to support efficient workflows.
• User-centric approach: SaaS ops focuses more on user experience and adoption rather than just technical maintenance. This shift requires IT teams to work closely with end users to make sure SaaS applications meet their needs and are used effectively.
• Security and compliance challenges: The distributed nature of SaaS applications creates unique security and compliance challenges. SaaS ops must implement strong security measures across multiple platforms and follow various regulations.
• Lifecycle management: SaaS ops involves managing the entire lifecycle of applications, from discovery and procurement to retirement. This end-to-end approach differs from traditional IT management, which often focused mainly on maintenance and support.

SaaS Ops Key Aspects

Effective SaaS operations management involves several key aspects that organisations must address to maximise the value of their SaaS investments:

1. Visibility and Discovery

Organisations need a complete list of all SaaS applications used across the company. This includes finding both officially approved apps and those used without IT approval (shadow IT). Having a clear view of the SaaS landscape can help you:

• Track all applications in use, including those adopted by individual departments or employees
• Find potential security risks and compliance issues
• Identify ways to combine apps and save money
• Watch usage patterns to adjust licenses and subscriptions

Using tools and processes to continually find and monitor SaaS applications keeps the inventory current and provides a full view across the organization.

2. License Management

Tracking and improving software licences helps avoid excess spending and follow rules. This includes watching usage, taking back unused licences, and discussing better terms with vendors. Good licence management involves:

• Keeping an accurate count of licenses for each application
• Tracking usage to find underused or unused licenses
• Setting up processes to reassign and reclaim licenses
• Discussing volume discounts and good terms with vendors
• Following licensing agreements to avoid fines
• Improving license management can greatly reduce SaaS-related costs and increase the value of software investments.

3. Security and Compliance

Putting strong security measures in place and following industry rules and company policies are key parts of SaaS operations. This involves regular security checks, managing user access rights, and protecting data across all SaaS applications. Important security and compliance tasks include:

• Using strong login and access control methods
• Regularly checking the security of SaaS vendors
• Protecting data with encryption when it’s being sent and stored
• Watching for unusual activity or possible security breaches
• Following relevant regulations (e.g., GDPR, HIPAA)
• Setting up data storage and deletion policies

Focusing on security and compliance helps organisations protect sensitive data, keep customer trust, and avoid expensive rule violations.

4. User Lifecycle Management

Improving processes for adding, removing, and managing employee access is key for security and efficiency. This includes automating user account creation and removal across multiple SaaS applications. Good user lifecycle management involves:

• Creating standard processes for new employees
• Setting up role-based access control (RBAC) for SaaS applications
• Automating the creation and removal of access
• Regularly reviewing and checking user access rights
• Setting up secure processes to remove access when employees leave

Improving these processes increases security, reduces administrative work, and gives employees the right access to the tools they need to work.

5. Cost Optimisation

Finding ways to reduce costs by combining apps, negotiating, and improving usage is an ongoing process in SaaS operations. This might involve removing duplicate applications, adjusting license levels, or using volume discounts. Cost optimisation strategies include:

• Regularly reviewing SaaS spending and usage patterns
• Finding and removing unused or underused subscriptions
• Combining similar applications to reduce overlap
• Negotiating better rates with vendors based on usage data
• Setting up approval processes for new SaaS purchases

Focusing on cost optimisation helps organisations get the most value from their SaaS investments and avoid unnecessary expenses.

Why Your Business Might Need a SaaS Operations Management Strategy

As your business grows and uses more and more SaaS applications, the need for a comprehensive SaaS operations management strategy becomes more apparent. Here are some compelling reasons to consider implementing such a strategy:

1. Control SaaS sprawl: With the ease of adopting new SaaS applications, many organisations find themselves dealing with “SaaS sprawl”—an” uncontrolled proliferation of cloud software. This can lead to redundant applications, wasted resources, and increased security risks. A SaaS ops strategy helps rein in this sprawl, reducing complexity and associated costs.
2. Better data security: Unsanctioned or improperly managed SaaS applications can pose significant security risks. Shadow IT, where employees use applications without IT approval, can expose organisations to data breaches and compliance violations. A robust SaaS ops strategy helps identify and mitigate these risks by implementing proper security measures and access controls.
3. Maintain compliance: Many industries are subject to strict regulatory requirements regarding data protection and privacy. SaaS ops management helps ensure that all cloud applications in use comply with relevant regulations, reducing the risk of costly fines and reputational damage.
4. Optimise costs: Without proper management, SaaS costs can quickly spiral out of control. Organisations may find themselves paying for unused licences, redundant applications, or higher-tier subscriptions than necessary. A SaaS ops strategy helps identify unused licences, negotiate better contracts, and optimise overall spending.
5. Improve productivity: SaaS ops can significantly boost employee productivity through streamlined processes like user provisioning and application integration. Providing employees with access to the right tools at the right time and facilitating seamless interaction between these tools can lead to substantial efficiency gains.
6. Enable better decision-making: With comprehensive visibility into SaaS usage and performance, organisations can make more informed decisions about their software investments. This data-driven approach allows businesses to allocate resources more effectively and invest in the tools that provide the most value.

Without proper management, you can quickly find yourself dealing with an uncontrolled growth of cloud software, increased security risks, compliance issues, and spiralling costs.

A robust SaaS ops strategy helps address these challenges while also boosting employee productivity and providing insights for more informed software investment decisions.

SaaS Operations Best Practices

To maximise the benefits of SaaS operations management, consider implementing these best practices:

Implement a centralised SaaS Management Platform

A SaaS management platform is software that helps organisations oversee and control their cloud-based software applications. 

It provides a central location for managing various aspects of SaaS usage, including application discovery, licence tracking, security, and cost management.

Octobits by Nexalab is an example of a SaaS management platform.

This kind of software offers comprehensive visibility and control over an organisation’s SaaS ecosystem. These platforms typically include features for discovery, licence management, security monitoring, and cost optimisation, all accessible from a single location. Key advantages of using a centralised SaaS management platform include:

• Automated discovery and inventory of SaaS applications
• Real-time monitoring of usage and spending
• Centralised user provisioning and access management
• Integration with existing IT systems and workflows
• Customisable dashboards and reporting capabilities

Implementing a centralised platform allows organisations to streamline their SaaS operations and gain valuable insights into their software ecosystem. This approach can lead to improved efficiency, better cost control, and enhanced security across the organisation’s SaaS environment.

Establish Clear Policies

Develop and communicate clear policies regarding SaaS adoption, usage, and security. These policies should cover areas such as app approval processes, data sharing guidelines, and security requirements for SaaS vendors. Key elements of effective SaaS policies include:

• Defined processes for evaluating and approving new SaaS applications
• Guidelines for data classification and handling in SaaS applications
• Security requirements for SaaS vendors, including encryption and access controls
• Acceptable use policies for employees using SaaS applications
• Procedures for managing shadow IT and bringing unsanctioned apps into compliance

Clear policies help ensure consistency in SaaS management across the organisation and reduce the risks associated with uncontrolled adoption of cloud applications.

Conduct Regular Audits

Periodic audits of your SaaS inventory help identify unused or underutilised applications. This practice optimises costs and reduces security risks associated with forgotten or abandoned apps. Regular audits should examine:

• All active SaaS subscriptions and licences
• Usage patterns and user adoption rates
• Redundant or overlapping applications
• Security and compliance status for each application
• Cost analysis and optimisation recommendations

Regular audits enable organisations to maintain an optimised and secure SaaS ecosystem while uncovering opportunities for improvement and cost savings.

This proactive approach allows IT teams to make informed decisions about which applications to keep, consolidate, or eliminate. It also helps align SaaS investments with business objectives and user needs, ultimately leading to a more efficient and cost-effective software environment.

Prioritise User Adoption

Focus on driving user adoption of approved SaaS applications to maximise ROI. This might involve providing training, creating user guides, or implementing gamification strategies to encourage adoption. Strategies for improving user adoption include:

• Developing comprehensive onboarding and training programmes
• Creating easily accessible documentation and support resources
• Implementing user feedback mechanisms to identify and address pain points
• Recognising and rewarding employees who effectively utilise SaaS tools
• Regularly communicating the benefits and best practices of approved applications

By prioritising user adoption, organisations can ensure that they are getting the most value from their SaaS investments and that employees are using approved tools effectively and securely.

Monitor and Optimise Costs

Conduct regular reviews of SaaS spending to identify cost optimisation opportunities. This approach may involve consolidating similar apps, negotiating better rates with vendors, or adjusting licence tiers based on actual usage. Effective cost optimisation strategies include:

• Implementing a formal SaaS procurement process
• Regularly reviewing and renegotiating contracts with vendors
• Identifying and eliminating unused or underutilised licences
• Consolidating similar applications to reduce overlap and costs
• Use volume discounts and multi-year contracts where appropriate.

These cost optimisation strategies can significantly reduce SaaS-related expenses while maintaining the necessary tools and functionality for effective operations.

Implementing these best practices allows organisations to take control of their SaaS environment, reduce risks, and drive significant value from their cloud software investments.

This proactive approach to SaaS management fosters a more efficient, secure, and cost-effective IT ecosystem, ultimately supporting broader business objectives and improving overall organisational performance.

More in Nexalab’s blog: What is SaaS Licence Management? A Definitive Guide for Businesses

Conclusion

The challenges of managing SaaS are significant, but with the right approach and tools, you can turn your SaaS ecosystem into one of your biggest strengths. From gaining visibility into your entire SaaS landscape to optimising costs and ensuring security, a well-implemented SaaS operations management strategy can transform how your organisation leverages cloud software.

Octobits by Nexalab offers a powerful solution to streamline your SaaS operations management. With its comprehensive features for discovery, licence management, security, and cost optimisation, Octobits empowers you owners to take control of your SaaS ecosystem and drive maximum value from their cloud investments.

Don’t let your SaaS environment become unmanageable. Take the first step towards optimised SaaS operations management with Octobits by Nexalab.

Contact us today to learn how we can help transform your cloud software strategy.