You’re probably using a lot of online software to get work done nowadays.

These tools, called SaaS (Software as a Service), are great for productivity. But as you add more and more of them, keeping track of costs and making sure you’re using them well can become a real headache.

In fact, according to Ciodive, enterprises are wasting an average of $18 million annually on unused applications, despite efforts to optimise spending.

This represents a significant portion of their software budgets, which typically average around $45 million per organisation.

So, how do you handle that? That’s where SaaS spend management system come in handy.

But what’s a SaaS Spend Management System?

Think of it as your personal assistant for managing all your online software. It helps you see what you’re using, how much you’re spending, and where you might be wasting money. It’s like having a smart tool that keeps an eye on all your software subscriptions.

As you rely more on these online tools, it’s easy for costs to get out of hand.

You might be paying for software no one uses anymore or have multiple tools that do the same thing. By managing your SaaS spend, you can save money, stay within your budget, and make sure you’re getting the most out of every tool you pay for.

In this article, we’ll show you how SaaS spend management systems can change the way you buy and use software, helping you save money and work smarter.

So without further ado, let’s get to it!

How SaaS Spend Management Systems Find All Your SaaS Apps?

SaaS spend management systems are like detectives for your software. They use clever methods to find all the online tools your company is using. Here’s how they do it:

They look at your company’s financial records to spot payments for online software.

They also scan your network to see what cloud apps are being used. Some even use browser extensions to track web-based tools your team is accessing.

These systems can work with your company’s login system to see what apps people are signing into.

They might also ask employees to report what tools they’re using or send out surveys to catch any software that’s flying under the radar.

Many of these systems can directly connect to popular SaaS providers to get real-time info on your subscriptions. They’ll also scan your invoices and contracts to find details about your software vendors, prices, and when your subscriptions are set to renew.

By using all these methods, SaaS spend management systems give you a complete picture of all the software your company is using. This helps you start managing everything more effectively.

More in Nexalab’s blog: Top 7 SaaS Spend Management Platforms to Help You Control Your SaaS Spending

How Does Data Analysis Help You Save on SaaS?

The real power of SaaS spend management system lies in how they crunch the numbers. Here’s how they use data to help you save money:

They show you which apps are being used a lot and which ones are gathering dust. This helps you decide what to keep and what to cut. You can see how your spending changes over time and even predict future costs.

These systems can compare your spending to what other companies in your industry are paying, helping you spot areas where you might be overspending.

They also calculate if you’re getting your money’s worth from each tool.

If you have multiple tools that do similar things, the system will point that out. This way, you can consider keeping just one and saving on the others. It’ll also look at how you’re using your licences and suggest if you can switch to a cheaper plan.

When it’s time to renew your contracts, these systems give you a heads-up and arm you with information to negotiate better deals.

They can even break down spending by department, so you know which teams are using what.

All this data helps you make smarter decisions about your software spending, cutting out waste and making sure you’re paying for what you actually need and use.

How Can Managing Your Software Licences Save You Money?

Managing licences saves money by eliminating unnecessary expenses, optimising software usage, and leveraging data for better purchasing decisions.

It directly impacts the bottom line through cost avoidance, spend reduction, and improved resource allocation. Effective licence management typically results in 10–30% savings on software costs, freeing up significant budgets for other strategic initiatives.

How do you do that? It can be done through strategies like:

• Finding and removing extra subscriptions: Checking all software used across the company helps spot and get rid of duplicate or unnecessary services.
• Matching licences to actual needs: Many software plans charge based on features or number of users. Good management makes sure you don’t pay for more than you use.
• Control use-based costs: For software that charges based on how much you use, watching and managing usage prevents surprise bills and keeps costs down.
• Getting bulk discounts: Understanding software use across all departments lets you buy in larger quantities to get better prices.
• Cancelling or reducing unused services: Actively checking licences lets you stop paying for or reduce services you no longer need before they renew.
• Stopping unapproved software costs: Keeping track of all software purchases reduces money wasted on unapproved or unnecessary programmes.
• Getting better deals: Using data on your software needs helps you negotiate lower prices with vendors when it’s time to renew.

Octobits by Nexalab is a tool that will help you with your SaaS spending management strategy.

It shows you exactly how your licences are being used in real time. It automates the process of giving people access to software when they need it and taking it away when they don’t.

Octobits also uses smart analytics to predict how many licences you’ll need in the future. This means you can make better decisions about your software purchases, avoid wasting money on unused tools, and get the most value from the software you’re paying for.

More in Nexalab’s blog: 7 Best SaaS Spend Management Software That Will Help to Take Control of Your Software Costs

Conclusion

Now we see how important SaaS spend management system are for your business. Particularly when your SaaS usage is growing and becoming unmanageable, this type of software becomes more needed.

They give you clear visibility into your software usage, streamline your licence management, and provide insights to optimise your SaaS investments. You can reduce wasteful spending, improve security, and choose your software more wisely by using these tools.

Octobits by Nexalab offers you a powerful platform to tackle your SaaS management challenges. With real-time licence tracking, usage analytics, and optimisation recommendations, Octobits helps you transform how you spend on and use software.

Contact Nexalab today to see how Octobits can improve your SaaS management.